Financial Performance - Xiaomi Corporation reported a total revenue of RMB 111.3 billion for Q1 2025, a year-on-year increase of 47.4%[5] - The adjusted net profit for Q1 2025 reached RMB 10.7 billion, marking a 64.5% increase compared to the same period last year[5] - Revenue for Q1 2025 reached RMB 111,293.3 million, a 47.4% increase from RMB 75,506.8 million in Q1 2024[31] - Gross profit for Q1 2025 was RMB 25,405.9 million, up 51.0% from RMB 16,829.7 million in Q1 2024[31] - Operating profit for Q1 2025 was RMB 13,125.4 million, compared to RMB 3,683.0 million in Q1 2024, marking a 256.5% increase[31] - The net profit for the first quarter of 2025 was RMB 109 billion, reflecting a 161.0% increase from RMB 42 billion in the first quarter of 2024[68] - The adjusted net profit increased by 64.5% to RMB 107 billion in the first quarter of 2025, compared to RMB 65 billion in the same period of 2024[69] - Basic earnings per share for Q1 2025 were RMB 0.44, compared to RMB 0.17 in Q1 2024[134] - The total comprehensive income for Q1 2025 was RMB 10.91 billion, up from RMB 4.26 billion in Q1 2024, reflecting a strong performance[136] Revenue Segmentation - The smartphone and AIoT segment generated revenue of RMB 92.7 billion, reflecting a year-on-year growth of 22.8%[13] - In Q1 2025, the company's smartphone business revenue reached RMB 50.6 billion, a year-on-year increase of 8.9%, with a gross margin of 12.4%[15] - The IoT and lifestyle products segment generated revenue of RMB 32.3 billion in Q1 2025, a 58.7% year-on-year increase, with a gross margin of 25.2%[17] - The smart electric vehicle and AI segment reported total revenue of RMB 18.6 billion in Q1 2025, with smart electric vehicle revenue at RMB 18.1 billion[24] - Internet services revenue reached RMB 9.1 billion in Q1 2025, a year-on-year increase of 12.8%, with a gross margin of 76.9%[21] Market Performance - Xiaomi's global smartphone shipments reached 41.8 million units in Q1 2025, a 3.0% increase year-on-year, maintaining a market share of 14.1%[8] - In mainland China, the smartphone market share increased by 4.7 percentage points year-on-year to 18.8%, reclaiming the top position in shipments after ten years[15] - The number of active users on Xiaomi's platform reached 718.8 million, a 9.2% increase year-on-year[8] - The AIoT platform connected devices reached 943.7 million units as of March 31, 2025, a 20.1% year-on-year growth[19] Research and Development - Research and development expenditure for Q1 2025 was RMB 6.7 billion, up 30.1% year-on-year, with R&D personnel reaching 21,731, accounting for 47.7% of total employees[9] - The company launched its first self-developed flagship processor, the Xuanjie O1, in May 2025, showcasing its commitment to core technology development[9] Cash Flow and Capital Management - Cash and cash equivalents as of March 31, 2025, amounted to RMB 86.17 billion, significantly up from RMB 33.66 billion at the beginning of the period[119] - Operating cash flow for the three months ended March 31, 2025, was RMB 4,509.5 million, compared to RMB 23,906.8 million for the same period in 2024[119] - The company reported a net cash inflow from financing activities of RMB 38,077.4 million for the three months ended March 31, 2025[119] - The company’s investment activities resulted in a net cash outflow of RMB 9,920.8 million for the same period[119] Cost Management - The total sales cost for Q1 2025 was RMB 85,887.4 million, a 46.4% increase from RMB 58,677.1 million in Q1 2024[43] - The cost of sales for the mobile × AIoT segment increased by 22.1% to RMB 71,612.7 million in the first quarter of 2025, compared to RMB 58,654.3 million in the first quarter of 2024[45] - Sales cost decreased by 0.8% from RMB 86,550.3 million in Q4 2024 to RMB 85,887.4 million in Q1 2025, reflecting improved cost management[81] Future Outlook and Strategy - Xiaomi plans to expand its retail presence in mainland China, aiming for approximately 20,000 offline stores by the end of 2025[12] - The company is focusing on expanding its smart electric vehicle and AI-related innovative businesses as part of its growth strategy[143] Compliance and Governance - The audit committee reviewed the unaudited interim results for the three months ended March 31, 2025, ensuring compliance with accounting policies and internal controls[164] - The company has ongoing investigations by Indian authorities regarding compliance with tax and foreign exchange regulations, with potential financial implications yet to be determined[160]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Zhihu Inc. （於開曼群島註冊成立以不同投票權控制的有限責任公司） （紐交所代號：ZH；聯交所代號：2390） 內幕消息 截至2025年3月31日止季度 未經審計財務業績 本公告乃根據香港聯合交易所有限公司（「香港聯交所」）證券上市規則第13.09條 及證券及期貨條例（第571章）第XIVA部刊發。 知乎（「本公司」）欣然宣佈本公司及其附屬公司及綜合聯屬實體截至2025年3月 31日止三個月的未經審計簡明合併業績。 本公司欣然宣佈，根據美國證券交易委員會（「美國證監會」）適用規則刊發的本公 司及其附屬公司及綜合聯屬實體截至2025年3月31日止三個月的未經審計簡明合 併業績（「第一季度業績」）。 第一季度業績乃根據美國公認會計準則（有別於國際財務報告準則）編製。 本公告附表I為本公司於2025年5月27日（美國東岸時間）就第一季度業績刊發的新 聞稿全文，其中部分內容可能構成本公司的重大內幕消息。 ...

Financial Performance - Kuaishou Technology reported total revenue of RMB 32.608 billion for the three months ended March 31, 2025, representing a year-on-year increase of 10.9%[5] - Adjusted net profit for the quarter was RMB 4.58 billion, with an adjusted net profit margin of 14.0%[5] - The company's gross profit was RMB 17.792 billion, with a gross margin of 54.6%[5] - Revenue increased by 10.9% from RMB 29.4 billion in Q1 2024 to RMB 32.6 billion in Q1 2025, driven by growth in online marketing services, live streaming, and e-commerce[21] - Online marketing services revenue rose by 8.0% from RMB 16.7 billion in Q1 2024 to RMB 18.0 billion in Q1 2025, attributed to the application of AI technology in marketing solutions[21] - Live streaming revenue increased by 14.4% from RMB 8.6 billion in Q1 2024 to RMB 9.8 billion in Q1 2025, due to refined operations and diverse quality content[22] - Operating profit for Q1 2025 was RMB 4.3 billion, with an operating margin of 13.1%, compared to RMB 4.0 billion and 13.6% in Q1 2024[34] - The adjusted net profit for Q1 2025 was RMB 4.6 billion, compared to RMB 4.4 billion in Q1 2024, reflecting a decrease in adjusted profit margin from 14.9% to 14.0%[34] User Engagement - The average daily active users reached 408 million, marking a historical high and a year-on-year growth of 3.6%[11] - The total viewing of Spring Festival content on the platform exceeded 15 billion, with short video views surpassing 200 billion[11] - Monthly active users have reached 200 million, marking a 25% increase from the previous year[95] - The average revenue per daily active user for online marketing services was RMB 44.1, an increase from RMB 42.3 year-on-year[7] E-commerce and GMV - Kuaishou's total e-commerce GMV for the quarter was RMB 332.325 billion, up from RMB 288.073 billion in the previous year[7] - E-commerce GMV grew by 15.4% year-on-year to RMB 332.3 billion in Q1 2025, with monthly active buyers reaching 135 million[14] - The number of new merchants joining the platform increased by over 30.0% year-on-year in Q1 2025[14] International Expansion - Kuaishou's overseas business achieved positive operating profit for the first time in Q1 2025, reflecting the effectiveness of its international market strategy[9] - Overseas business revenue grew by 32.7% year-on-year to RMB 1.3 billion in Q1 2025, achieving positive quarterly operating profit for the first time[18] Research and Development - The company launched the upgraded Kuailing AI 2.0 model in April 2025, enhancing video generation capabilities and expanding its application across various industries[10] - R&D expenses increased by 16.0% from RMB 2.8 billion in Q1 2024 to RMB 3.3 billion in Q1 2025, primarily due to increased employee benefits[31] - Investment in artificial intelligence (AI) technologies has increased by 30%, with a focus on enhancing user engagement and content generation[95] Cost Management - The average response rate of AI customer service reached approximately 80.0% in Q1 2025, significantly reducing merchant costs[16] - The company is implementing cost-cutting measures aimed at reducing operational expenses by 15% over the next year[93] Future Outlook - The company anticipates a revenue growth of 25% for the upcoming fiscal year, driven by new product launches and market expansion strategies[93] - Future outlook remains cautiously optimistic, with potential risks identified in regulatory changes and market competition[93] Cash Flow and Financial Position - Cash and cash equivalents as of March 31, 2025, were RMB 11,598 million, a decrease from RMB 12,697 million as of December 31, 2024[64] - The company generated RMB 3,283 million in net cash from operating activities for Q1 2025, with a pre-tax profit of RMB 4,200 million[65] - Total available funds as of March 31, 2025, amounted to RMB 94 billion, slightly up from RMB 92.8 billion as of December 31, 2024[63] - The company reported a cumulative loss of RMB 238,186 million as of March 31, 2025, an improvement from RMB 242,164 million at the end of December 2024[71] Shareholder Returns - The company repurchased a total of 29,188,100 Class B shares at a total cost of HKD 1,419,146,016.31 during the three months ended March 31, 2025[87]

Financial Proceeds and Allocations - The net proceeds from the global offering, after deducting expenses and commissions, amounted to approximately HKD 115.6 million[2] - The board has decided to reallocate funds originally designated for establishing an industry acquisition fund to expand the oil and natural gas station network[2] - The revised allocation for expanding the oil and natural gas station network is HKD 50 million, with HKD 25.286 million already utilized as of December 31, 2024[3] - The logistics transportation fleet expansion is allocated HKD 10 million, with HKD 9.198 million already utilized as of December 31, 2024[3] - The total amount utilized as of December 31, 2024, is HKD 90.886 million out of the HKD 115.6 million net proceeds[3] - The company plans to utilize the remaining proceeds for further expansion of its operations and marketing strategies[3] Share Options - The total number of share options available under the share option scheme as of January 1, 2024, and December 31, 2024, is 23,450,200 shares each[6] - The total number of shares available for issuance under the share option scheme represents approximately 6.3% of the company's issued share capital as of the annual report date[6] Marketing and Promotions - The board has approved the allocation of funds for strengthening marketing and promotional strategies amounting to HKD 5.8 million, which has been fully utilized[3] Supplementary Information - The company maintains that the supplementary information provided does not affect the other information contained in the annual report[4]

Financial Performance - Revenue for the six months ended February 28, 2025, was RMB 3,673 million, an increase of 11.8% compared to RMB 3,284 million for the same period in 2024[21]. - Gross profit for the same period was RMB 1,978 million, reflecting a growth of 7.6% from RMB 1,839 million in 2024[21]. - Operating profit increased by 3.3% to RMB 1,524 million, up from RMB 1,475 million in the previous year[21]. - Net profit decreased by 8.2% to RMB 1,091 million, down from RMB 1,188 million in 2024[21]. - Adjusted net profit was RMB 1,182 million, a decline of 2.9% compared to RMB 1,217 million in the prior year[21]. - Administrative expenses increased by 18.9% to RMB 566 million, compared to RMB 476 million in the previous year[21]. - Adjusted EBITDA for the six months ended February 28, 2025, was RMB 2,100 million, up from RMB 1,956 million for the six months ended February 29, 2024, indicating an increase of 7.4%[27]. - EBITDA for the six months ended February 28, 2025, was RMB 2,009 million, an increase of 4.3% from RMB 1,927 million for the six months ended February 29, 2024[42]. - The group reported a total comprehensive income of RMB 1,094 million, slightly lower than RMB 1,186 million from the previous year[122]. - Basic and diluted earnings per share were both RMB 35.63, a decrease from RMB 41.97 in the prior year[122]. Market Segments - The domestic market segment's revenue increased from RMB 3,179 million for the six months ended February 29, 2024, to RMB 3,544 million for the six months ended February 28, 2025, representing an increase of 11.5%[29]. - The international market segment's revenue rose by 22.9%, from RMB 105 million for the six months ended February 29, 2024, to RMB 129 million for the six months ended February 28, 2025[30]. - Customer revenue from mainland China reached RMB 3,544 million, up 11.5% from RMB 3,179 million in 2024, while revenue from Australia increased to RMB 129 million from RMB 105 million[142]. Expenses and Costs - The cost of revenue increased by 17.3%, from RMB 1,445 million for the six months ended February 29, 2024, to RMB 1,695 million for the six months ended February 28, 2025[32]. - Financing costs increased by 5.3%, from RMB 225 million for the six months ended February 29, 2024, to RMB 237 million for the six months ended February 28, 2025[39]. - Employee costs rose to RMB 1,193 million, up 16.9% from RMB 1,020 million in 2024, primarily due to increased salaries and benefits[146]. Loans and Financing - The company has secured loans from the Asian Development Bank totaling up to RMB 284.9 million with a maximum term of 60 months[19]. - Additionally, a loan agreement with the Asian Infrastructure Investment Bank was signed for up to RMB 574.7 million, with a maximum term of 84 months[19]. - The company entered into a loan agreement with the International Finance Corporation (IFC) for a maximum amount of $200,000,000 with a term of up to seven years[100]. - The company has a loan agreement with banks for $189,500,000 with a maximum term of seven years, requiring the controlling shareholders to remain the single largest direct or indirect shareholders[105]. Corporate Governance - The company has complied with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO, which are held by the same individual[67]. - The company is committed to enhancing corporate governance practices to build confidence among shareholders and potential investors[68]. - The company has adopted a standard code for regulating directors' securities trading, and all directors confirmed compliance during the reporting period[70]. Shareholder Information - As of February 28, 2025, the total number of shares held by the director Yu Kai is 848,270,608, representing approximately 31.26% of the total issued shares[76]. - Major shareholders hold a total of 1,696,541,216 shares, representing 62.52% of the total issued shares as of February 28, 2025[80]. - The company has a total of 2,713,791,221 issued shares as of February 28, 2025[83]. Compliance and Regulations - The company is committed to ensuring compliance with the new qualification requirements for foreign investors in educational institutions[96]. - The new regulations from the Chinese government restrict foreign investment in higher education, requiring foreign partners to have a minority stake[93]. Capital Expenditures and Assets - Capital expenditures for the six months ended February 28, 2025, were RMB 1,207 million, down from RMB 2,032 million in the previous year[45]. - The group's property, plant, and equipment increased by 3.3% to RMB 22,425 million as of February 28, 2025, from RMB 21,706 million as of August 31, 2024[44]. - Non-current assets increased to RMB 31,758 million from RMB 31,059 million, primarily due to investments in property and equipment[124]. Cash Flow and Liquidity - For the six months ended February 28, 2025, the net cash from operating activities was RMB 663 million, a decrease of 39.5% compared to RMB 1,097 million for the same period in 2024[132]. - The company reported a net decrease in cash and cash equivalents of RMB 2,424 million for the six months ended February 28, 2025, compared to RMB 1,129 million for the same period in 2024[132]. - The total cash and cash equivalents at the end of the period were RMB 3,814 million, down from RMB 4,048 million at the end of February 29, 2024[132]. Future Outlook - The company is optimistic about the long-term development prospects of the education industry, aligning with national development strategies and individual career needs[18]. - The company plans to continue focusing on expanding its vocational education services in both domestic and international markets[135]. - The company has a strong expectation of sufficient resources to continue operations for at least the next twelve months[133].

Stock Option Plan - The total number of stock options available for issuance under the stock option plan is 20,000,000 shares[2] - The stock option plan does not set a limit on the number of options for service providers[2] - The company aims to provide supplementary information regarding the stock option plan to shareholders and potential investors[2] - The announcement is part of the annual report supplementary disclosure for the fiscal year ending March 31, 2024[2] Corporate Governance - The board of directors confirms that the information disclosed is accurate and complete in all material aspects[4] - The board consists of executive directors and independent non-executive directors, ensuring diverse oversight[4] - The chairman and executive director is Li Yue, who oversees the company's strategic direction[3] Disclosure and Compliance - The announcement will be published on the Hong Kong Stock Exchange website and the company's website for at least seven days[4] - The announcement is made in accordance with GEM listing rules to provide information about the company[4] - The company emphasizes the absence of misleading or fraudulent elements in the disclosed information[4]

Stock Options - The number of stock options granted under the 2022 stock option plan was 51,463,528 shares as of March 31, 2024[5] - The stock option plan is detailed on pages 31 to 33 of the 2024 annual report[5] Financial Reporting - The announcement serves as supplementary information to the 2024 annual report, which should be read in conjunction with it[5] - The announcement was made on May 27, 2025, regarding the financial year ending March 31, 2024[4] - The company emphasizes that all other information in the 2024 annual report remains unchanged[5] Corporate Governance - The board of directors includes executive directors Lin Guangru, Pan Guozheng, Huang Weiguo, and Zhong Zhitang, along with non-executive and independent non-executive directors[5] - The company reiterates its commitment to shareholder engagement and corporate governance[4] - The company is committed to transparency in its financial disclosures and governance practices[4] Responsibility and Accuracy - The company does not assume any responsibility for the accuracy or completeness of the announcement's content[1] - The announcement is part of the company's ongoing communication with stakeholders regarding its financial performance[4]

Financial Performance - The company's revenue decreased by 27.6% from RMB 645.1 million in 2023 to RMB 467.0 million in 2024[6]. - Gross profit fell by 28.5% from RMB 105.7 million in 2023 to RMB 147.8 million in 2024[6]. - The net loss increased dramatically from RMB 4.5 million in 2023 to RMB 361.1 million in 2024, representing a 7,924.4% change[6]. - Cash and cash equivalents decreased by 34.6% from RMB 70.3 million in 2023 to RMB 46.0 million in 2024[7]. - Total assets declined by 18.3% from RMB 1,725.5 million in 2023 to RMB 1,409.4 million in 2024[7]. - The total cost of sales decreased by approximately 27.3% from RMB 497.3 million in 2023 to RMB 361.3 million in 2024[44]. - The gross profit for the group decreased by 28.5% from RMB 147.8 million in 2023 to RMB 105.7 million in 2024[47]. - The group recorded a total loss of RMB 361.1 million in 2024, a significant increase in loss of 7,924.4% compared to a profit of RMB 4.5 million in 2023[49]. - The administrative and other operating expenses increased by 75.4% from RMB 89.5 million in 2023 to RMB 157.0 million in 2024[57]. - Financing costs decreased by approximately 31.8% to about RMB 24.5 million from RMB 35.9 million in the previous year, primarily due to the conversion of two convertible bonds issued by the company[59]. - Income tax expenses increased by approximately RMB 24.7 million from RMB 19.4 million to RMB 44.7 million, mainly due to the reversal of deferred tax assets related to expected credit losses on trade receivables in the men's clothing division[60]. Revenue Breakdown - Revenue from industrial products decreased by 29.4% to RMB 365.1 million, primarily due to the impact of the Red Sea crisis starting at the end of 2023[41]. - Revenue from men's apparel decreased by 24.0% to RMB 93.1 million, attributed to price reductions and a shift in consumer purchasing habits towards online platforms[41]. - The energy storage battery segment saw a revenue increase of 60.0% to RMB 8.8 million, although the total amount remains modest[42]. - The revenue from the energy storage battery segment increased by 215.4% to RMB 12.3 million in 2024[53]. - The men's apparel segment accounted for 19.9% of total revenue, while the energy storage battery segment represented 1.9%[39]. Market and Industry Trends - The company is optimistic about the growth of automotive parts demand in Saudi Arabia despite challenges in the industrial product sales business[12]. - The demand for automotive and motorcycle industrial products remains strong, supported by Saudi Arabia's Vision 2030 initiative aimed at economic diversification[18]. - The industrial products division experienced a revenue decrease of approximately 29% compared to the previous year due to the Red Sea crisis affecting delivery schedules[16]. - The demand for home improvement products has increased due to strong non-oil income in Saudi Arabia, leading to higher consumer spending on renovations[20]. - Saudi Arabia's GDP is projected to grow by 1.3% in 2024, with non-oil sector activities driving overall growth at 4.3%[19]. - The industrial products division faces increasing competition from Southeast Asian suppliers, putting pressure on pricing and overall profit margins[17][25]. - The automotive market in Saudi Arabia has shown a continuous increase in vehicle sales over the past few years, indicating robust demand for related industrial products[18]. Strategic Initiatives - The company plans to strengthen its energy storage battery segment and has signed contracts with several state-owned enterprises in China[11]. - The company is actively pursuing new marketing strategies and affordable products to maintain market share amid changing consumer preferences[11]. - The company has transitioned from labor-intensive manufacturing to outsourcing production, enhancing flexibility in meeting customer demands[27]. - The company is in the process of selling equity in Jiangsu Hengan, with investors agreeing to contribute a total of RMB 28 million, of which approximately RMB 6.65 million will be used for registered capital, representing about 2.34% of Jiangsu Hengan's expanded equity[70]. - The investment proceeds will be strategically allocated to enhance production capacity and upgrade the Nanjing production facility from semi-automated to fully automated systems[72]. Governance and Compliance - The company has a board of directors consisting of five executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[96]. - The board is responsible for setting the overall goals and strategies of the group, as well as monitoring and evaluating operational and financial performance[99]. - The company has adhered to the corporate governance code and principles as outlined in the listing rules, ensuring compliance with governance standards[95]. - The audit committee consists of three independent non-executive directors, with the chairman possessing appropriate professional qualifications and accounting experience[109]. - The board has established three committees: audit, nomination, and remuneration, each with a clear written terms of reference approved by the board[107]. - The company has engaged an external auditor to ensure compliance with financial reporting standards[132]. Risk Management - The company has established a risk management framework to identify, assess, and manage significant risks, with senior management required to identify adverse risks at least annually[134]. - The board believes the risk management and internal control systems are effective and sufficient based on the annual review results[134]. - A dedicated committee will be formed to review the current financial reporting and internal control systems, aiming to enhance oversight and management of accounting functions[139]. - The company will implement policies requiring subsidiaries to submit monthly financial data, including management accounts and bank reconciliation statements, to improve oversight[141]. Employee and Operational Insights - The total employee cost for the year was approximately RMB 38.8 million, up from RMB 30.9 million in 2023, with a total of 180 employees as of December 31, 2024[82]. - The company emphasizes employee development and offers competitive compensation, recognizing employees as one of its greatest assets[181]. - The company has made appropriate insurance arrangements for its directors and executives against potential legal actions[102]. - The company has strengthened guidelines for proper handover procedures before employee resignations[143]. Shareholder Engagement - The company encourages shareholders to participate in annual general meetings and communicate directly with the board[146]. - The company has a policy in place for shareholders to propose candidates for director positions, requiring a notice period of at least seven days[151]. - The company has a structured process for shareholders to request special meetings, requiring a minimum of 10% of the paid-up capital[148].

Financial Performance - Revenue for the six months ended March 31, 2025, was HKD 3,455,679,000, representing a 427.1% increase compared to HKD 655,608,000 for the same period in 2024[2] - Gross profit decreased to HKD 10,990,000, down 65.8% from HKD 32,141,000, resulting in a gross margin of only 0.3% compared to 4.9% in the previous year[2] - The company reported a loss before tax of HKD 12,300,000, a decline of 112.4% from a profit of HKD 99,266,000 in the prior year[2] - Basic and diluted loss per share was HKD (2.64), a significant drop from earnings of HKD 21.42 per share in the same period last year[5] - The company experienced a net loss of HKD 12,300,000 for the period, compared to a profit of HKD 101,167,000 in the same period last year[6] - The company reported a net loss attributable to shareholders of HKD 12,300,000 for the six months ended March 31, 2025, compared to a profit of HKD 99,813,000 in the same period of 2024[35] - The group reported a loss before tax of approximately HKD 12.3 million for the period 2025, compared to a profit of approximately HKD 99.3 million in 2024, primarily due to a decrease in other business income by approximately HKD 16.7 million, mainly from the suspension of cryptocurrency mining services[72] Cash and Equity - Cash and cash equivalents as of March 31, 2025, were HKD 61,856,000, a slight decrease of 0.7% from HKD 62,282,000 as of September 30, 2024[2] - Total equity decreased to HKD 275,485,000, down 2.3% from HKD 281,909,000 at the end of the previous reporting period[8] - The company’s total non-current assets are located entirely in China, including Hong Kong[26] - As of March 31, 2025, the company reported trade receivables of HKD 1,705,000, a decrease of 61% from HKD 4,384,000 as of September 30, 2024[41] - The company’s trade receivables from related parties amounted to HKD 1,007,000 as of March 31, 2025, down from HKD 2,759,000 as of September 30, 2024[40] - The company’s total assets related to trade and other receivables were HKD 190,958,000 as of March 31, 2025, compared to HKD 240,685,000 as of September 30, 2024[41] - As of March 31, 2025, the group had no outstanding borrowings, maintaining a debt-to-asset ratio of 0%[82] Acquisitions and Investments - The company has entered into agreements to acquire 100% of Avenir Asset Holding Limited for $30,462,086.38 and approximately 7.69% of BitTrade Inc. for $2,769,435.22, totaling approximately $33,231,521.60[10] - Avenir Asset Holding Limited will become a wholly-owned subsidiary, and BitTrade will be an indirect subsidiary, with their financial performance consolidated into the company's financial statements[11] - The acquisition of Avenir Asset Holding Limited and BitTrade is part of the company's strategy to expand its presence in the cryptocurrency trading business[10] - The company is committed to integrating the financial results of the acquired entities into its overall financial performance[11] - The group has completed the acquisition of over 50% of the shares in the compliant exchange BitTrade, which will result in an indirect ownership of 92.31% upon completion of the acquisition[100] Revenue Sources - Cryptocurrency trading business revenue was HKD 3,437,756,000, a substantial increase from HKD 620,989,000 in the previous year[4] - Cryptocurrency trading accounted for HKD 3,437,756,000 of the total revenue, compared to HKD 620,989,000 in the previous year, indicating a growth of around 453%[27] - Revenue from the asset management services was approximately HKD 12.8 million for the 2025 period, a decrease of approximately 25.7% from HKD 17.3 million in the 2024 period[62] - Revenue from the custody services increased to approximately HKD 0.6 million in the 2025 period, up approximately 64.3% from HKD 0.4 million in the 2024 period[64] - The technology solutions business generated revenue of approximately HKD 3.7 million in the 2025 period, compared to approximately HKD 2.9 million in the 2024 period[59] Operational Changes and Strategies - The company continues to focus on expanding its services in the virtual asset ecosystem, including asset management and cryptocurrency trading[9] - The group aims to enhance its one-stop virtual asset service ecosystem, focusing on compliance exchange operations and integrating custody, asset management, and quantitative product services[99] - The group plans to expand its asset management business in Hong Kong, offering a more diversified virtual asset investment fund structure to professional investors[101] - The group has implemented a series of network controls to mitigate digital asset custody risks, including two-factor authentication and daily wallet management[93] - The group is committed to adhering to anti-money laundering regulations, with ongoing monitoring and reporting procedures in place to reduce compliance risks[95] - The group is developing a comprehensive upgrade of its one-stop virtual asset service platform to optimize user experience and facilitate seamless asset management[99] - The group has introduced various quantitative trading strategies, including Delta neutral strategies and high-frequency trading strategies, to provide clients with stable returns and risk-neutral services[101] Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards that do not have a significant impact on its financial performance and position[16] - The new Hong Kong Financial Reporting Standard No. 18 will affect the presentation of the consolidated income statement and future disclosures in the consolidated financial statements[20] - The group has adopted all applicable corporate governance code provisions as of March 31, 2025[103] - The board of directors includes non-executive director Mr. Li Lin (Chairman), executive directors Mr. Du Jun (CEO) and Ms. Zhang Li, and independent non-executive directors Mr. Yu Junjie, Mr. Ye Weiming, and Dr. Lin Jiali[107] Market Risks - The group is facing unique risks related to the rapid development of the digital asset market, including regulatory changes and market volatility, and is implementing operational infrastructure to support business growth[92] Other Financial Information - The company did not recommend the payment of an interim dividend for the six months ended March 31, 2025[33] - The company’s financing costs for the six months ended March 31, 2025, were HKD 122,000, down from HKD 4,679,000 in the previous year[28] - The company incurred a loss of HKD 4,326,000 from foreign exchange differences during the reporting period[27] - The company recognized a loss provision of HKD 10,250,000 during the six months ended March 31, 2025, compared to no loss provision in the same period last year[40] - The company completed a claim submission for FTX deposits amounting to approximately USD 18,089,000 (equivalent to about HKD 141,748,000) which has been accepted by the liquidator[37] - The company entered into a sale agreement for the claim amount at a price of approximately USD 19,500,000 (equivalent to about HKD 152,125,000) on May 24, 2024[38] - The company increased its authorized share capital from 500,000,000 shares to 700,000,000 shares with a par value of HKD 0.001 per share[42] - The company issued 157,000,000 new ordinary shares at a subscription price of HKD 2.08 per share, raising approximately HKD 324,605,000 after expenses[43] - The group recorded total revenue of approximately HKD 3,455.7 million for the six months ended March 31, 2025, an increase of approximately 427.1% or HKD 2,800.1 million compared to HKD 655.6 million for the six months ended March 31, 2024[58] - The group reported a gross profit of approximately HKD 11.0 million for the 2025 period, down from approximately HKD 32.1 million in the 2024 period[58] - Other income and gains for the 2025 period amounted to approximately HKD 6.0 million, an increase of approximately HKD 7.0 million from a net loss of approximately HKD 0.9 million in the 2024 period[69] - Administrative expenses for the 2025 period were approximately HKD 39.3 million, a significant decrease of approximately 27.4% from approximately HKD 54.1 million in the 2024 period[70] - The net cash used in operating activities for the period 2025 was approximately HKD 46.2 million, a decrease from approximately HKD 52.3 million in 2024, attributed to reduced cash used in administrative expenses and the acquisition of cryptocurrency for operational purposes[76] - The net cash from investing activities for the period 2025 was approximately HKD 41.8 million, significantly up from approximately HKD 0.7 million in 2024[77] - The net cash used in financing activities for the period 2025 was approximately HKD 0.4 million, a substantial decrease from approximately HKD 223.0 million in 2024, mainly due to lease liability repayments[79] - Major customers accounted for 37.9% of total revenue, while the top five customers represented 90.2% of total revenue for the period 2025[86] - The group has no significant contingent liabilities as of March 31, 2025, apart from those disclosed in the previous annual report[85] - The group had cash and cash equivalents of approximately HKD 61.9 million as of March 31, 2025, compared to HKD 62.3 million as of September 30, 2024[89] - The average number of ordinary shares outstanding increased slightly from 465,960,665 shares in 2024 to 466,173,190 shares in 2025[34]

Financial Performance - Total revenue for the year ended February 28, 2025, was RMB 294.1 million, a decrease of 26.7% from RMB 401.4 million in the previous year[4]. - Gross profit for the same period was RMB 143.2 million, down 42.9% from RMB 250.8 million year-on-year[4]. - The company reported a loss attributable to equity holders of RMB 100.8 million, compared to a loss of RMB 23.5 million in the previous year[4]. - Basic and diluted loss per share was RMB 14.28, significantly higher than RMB 3.34 in the prior year[4]. - The company recorded a net loss for the year of RMB 103.3 million, compared to a loss of RMB 24.3 million in the previous year[6]. - Revenue from external customers in mainland China decreased to RMB 294,096 thousand in 2025 from RMB 394,164 thousand in 2024, representing a decline of approximately 25.4%[18]. - The total loss for the year ended February 28, 2025, was RMB 103,292 thousand, compared to a loss of RMB 24,326 thousand for the year ended February 29, 2024[15]. - Total revenue from government subsidies decreased to RMB 732,000 in 2025 from RMB 1,358,000 in 2024, a decline of 46.0%[19]. - The company reported a significant fair value loss on investment properties of RMB (9,244,000) in 2025, with no such loss reported in 2024[19]. - The company's total revenue for the fiscal year 2024/2025 decreased by 26.7% to RMB 294.1 million, compared to RMB 401.4 million in the previous fiscal year 2023/2024[28]. Assets and Liabilities - Total assets decreased to RMB 574.2 million from RMB 744.1 million year-on-year[7]. - Total liabilities reduced to RMB 90.8 million from RMB 126.0 million in the previous year[8]. - Total assets as of February 28, 2025, amounted to RMB 529,994 thousand, a decrease from RMB 693,135 thousand as of February 29, 2024[16]. - The total liabilities as of February 28, 2025, were RMB 76,475 thousand, compared to RMB 106,224 thousand as of February 29, 2024, indicating a reduction of approximately 28.0%[16]. - Cash and bank balances were RMB 327.9 million, down from RMB 364.7 million year-on-year[7]. - Trade receivables were reported at RMB 20.9 million for 2025, down from RMB 31.0 million in 2024, with a provision for impairment of RMB 946,000[26]. - Trade payables decreased to RMB 9.1 million in 2025 from RMB 18.6 million in 2024, indicating improved cash flow management[27]. - The company's total non-current assets (excluding deferred tax assets) decreased to RMB 92,936 thousand in 2025 from RMB 116,035 thousand in 2024[18]. - Non-current assets in mainland China decreased to RMB 25,922 thousand in 2025 from RMB 41,591 thousand in 2024, a decline of approximately 37.7%[18]. Operational Efficiency - The company implemented discount promotions to accelerate inventory turnover, which led to a significant decline in average selling prices and gross profit margins[40]. - The inventory turnover period for finished goods decreased from 432 days to 291 days[35]. - The company has optimized its logistics system to streamline operations, reduce inventory costs, and improve product turnover rates[40]. - A centralization of functions is being pursued to enhance operational efficiency and responsiveness to market changes, while reducing redundant positions[40]. - The group is implementing a series of optimization measures to enhance resilience against external market changes and improve operational efficiency, including streamlining company structure and integrating supply chains[36]. Market and Strategic Focus - The overall decline in revenue and gross profit reflects challenges in the market, necessitating strategic adjustments moving forward[28]. - The company plans to focus on enhancing product offerings and market expansion to recover from the current financial downturn[28]. - The retail environment remains weak, with consumer confidence not showing significant improvement, leading to cautious spending behavior among consumers[36]. - The group is actively reviewing and optimizing its offline distribution network, particularly focusing on stores that incur fixed rental costs and retaining only those contributing positively to the group[39]. - The group aims to maintain an appropriate distance between stores to improve the effectiveness of reaching target customer groups[39]. Employee and Governance - As of February 28, 2025, the company had a total of 595 full-time employees, a decrease from 927 employees as of February 29, 2024[46]. - Employee benefits expenses totaled RMB 124.7 million for the year, compared to RMB 121.7 million in the previous year, reflecting a 2.5% increase[46]. - The company has established comprehensive training programs for employees, enhancing skill development through external consultants[46]. - The company is committed to maintaining high standards of corporate governance and has adhered to the corporate governance code since October 2019[49]. - The audit committee consists of four independent non-executive directors, ensuring oversight of financial reporting and internal controls[47]. E-commerce and Brand Management - The group's e-commerce revenue declined by 8.8% year-on-year due to intense online brand competition and increased return rates in the industry[41]. - The group emphasizes effective online brand management to maintain brand image, rather than relying solely on price reduction strategies[41]. - The group is leveraging live streaming and product sharing events to engage potential customers and stimulate repurchase intentions[41]. - The group aims to strengthen partnerships with traditional e-commerce platforms and emerging social media platforms to drive online traffic[41]. - The group is focused on creating a synergistic effect between online and offline channels to boost overall sales performance[41]. Future Outlook - The World Bank estimates global economic growth to be 2.7% by 2025, but significant downside risks remain due to trade policy uncertainties and ongoing economic tensions[42]. - The company plans to enhance brand image through a new visual identity and packaging upgrades, including a refined gray gift box and a light purple brand logo, to improve customer experience[42]. - The company will continue to optimize offline sales channels and has opened its first flagship store in Shunde Wanxianghui, featuring a wide range of products and fast restocking capabilities[43].