37 Interactive Entertainment
Network Technology Group Co. Ltd.2026 Interim Report (Summary)
August 2026
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) as well as the directors and senior management of 37
Interactive Entertainment Network Technology Group Co. Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the truthfulness accuracy and completeness of the contents of this
Report and shall be jointly and severally liable for any misrepresentations misleading statements
or material omissions therein.Zeng Kaitian the Company’s legal representative and Ye Wei the Company’s person-in-
charge of accounting & head of the accounting department (accounting supervisor) hereby
guarantee that the financial statements carried in this Report are truthful accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Report.The Board has approved an interim dividend plan as follows: based on the total issued share
capital (exclusive of shares in the Company’s account for repurchased shares) on the date of record
a cash dividend of RMB1.00 (tax inclusive) per 10 shares is planned to be distributed to all the
shareholders of the Company with no bonus issue from either profit or capital reserves.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Table of Contents
Part I Important Notes Table of Contents and Defin....2
Part II Corporate Information and Key Financial In....4
Part III Management Discussion and Analysis...........7
Part IV Governance Environmental and Social Inform...26
Part V Share Changes and Shareholder Information.....31
Part VI Financial Statements.........................37
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name 37 Interactive Entertainment Stock code 002555
Place of listing Shenzhen Stock Exchange
Company name in Chinese 三七互娱网络科技集团股份有限公司
Abbr. (if any) 三七互娱
Company name in English (if
37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO. LTD.
any)
Legal representative Zeng Kaitian
II Contact Information
Board Secretary Securities Affairs Representative
Name Wang Sijie Wang Sijie
Room 7001 7/F Tower B1 Wanjiang Room 7001 7/F Tower B1 Wanjiang
Office address Fortune Plaza 88 Ruixiang Road Wuhu Fortune Plaza 88 Ruixiang Road Wuhu
City Anhui Province City Anhui Province
Tel. 0553-7653737 0553-7653737
Fax 0553-7653737 0553-7653737
Email address ir@37.com ir@37.com
III Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes□ No
H1 2026 H1 2025 Change (%)
Operating revenue (RMB) 7274643508.72 8486116689.62 -14.28%
Net profit attributable to the
Listed Company’s 1766269020.71 1400246950.03 26.14%
shareholders (RMB)
Net profit attributable to the
Listed Company’s
shareholders after deducting 1016313090.37 1387236352.38 -26.74%
non-recurring profits and
losses (RMB)
Net cash flows from
1088989342.51 1753342666.68 -37.89%
operating activities (RMB)
Basic earnings per share
0.80 0.64 25.00%
(RMB/share)
Diluted earnings per share
0.80 0.64 25.00%
(RMB/share)
Weighted average return on 12.35% 10.46% 1.89%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.equity (%)
June 30 2026 December 31 2025 Change (%)
Total assets (RMB) 22974092497.79 22315257868.14 2.95%
Equity attributable to the
Listed Company’s 14089689011.25 13534207976.09 4.10%
shareholders (RMB)
IV Accounting Data Differences under China’s Accounting Standards for Business Enterprises
(CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable□ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable□ Not applicable
No difference for the Reporting Period.V Non-recurring Profits and Losses
□ Applicable □ Not applicable
Unit: RMB
Items Amount Note
Gain or loss on disposal of non-current assets (inclusive of impairment
-2317905.75
allowance write-offs)
Government grants recognized in profit or loss (exclusive of those that
Mainly due to
are closely related to the Company's normal business operations and
government grants other
given in accordance with defined criteria and in compliance with 5395925.38
than the rebates of value-
government policies and have a continuing impact on the Company's
added tax
profit or loss)
Gain or loss on fair-value changes in financial assets and liabilities held
by a non-financial enterprise as well as on disposal of financial assets
985992418.90
and liabilities (exclusive of the effective portion of hedges that is related
to the Company's normal business operations)
Reversed portions of impairment allowances for receivables which are
2326754.21
tested individually for impairment
Non-operating income and expenses other than the above -1995887.30
Less: Income tax effects 239283904.29
Non-controlling interests effects (net of tax) 161470.81
Total 749955930.34
Particulars about other gains and losses that meet the definition of non-recurring profits and losses:
□ Applicable□ Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent a non-recurring profits and losses item listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Profits and
Losses Items:
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.□ Applicable□ Not applicable
No such cases for the Reporting Period.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period
(I) Industry review
1. Steady growth in the scale and user base of the game industry
According to the China’s Game Industry Report from January to June 2026 released by the Game Publishing Committee of
China Audio-video and Digital Publishing Association (CADPA) during the first half of 2026 the actual sales revenue of the
domestic gaming market reached RMB188.45 billion representing a year-over-year (YoY) increase of 12.17%; and the number of
game users in China stood at 684 million a YoY increase of 0.82%. The game industry achieved notable expansion with sound
development momentum. Users have put forward more diversified demands for content gameplay experience and emotional
value driving the continuous evolution of games toward segmentation and differentiation.From January to June 2026 the self-developed games in China generated USD12.372 billion in overseas market revenue a
YoY increase of 30.22%. The United States Japan and South Korea remained the primary target markets for Chinese mobile
games abroad with respective shares of 32.31% 14.05% and 7.48% (53.84% in total). Among the top 100 self-developed mobile
games with the highest overseas revenue strategy games held the largest share with a slight YoY increase. Merge games ranked
second with a notable YoY growth emerging as one of the promising sub?segments. Role?playing games and shooting games
came in third and fourth respectively maintaining steady performance.For January?June 2026 the actual sales revenue of self?developed games in China’s domestic market reached RMB163.356
billion representing a YoY increase of 16.31% showing sound growth momentum. Of this amount the actual sales revenue of
the mobile game market stood at RMB135.21 billion a YoY rise of 7.9%. Among the top 100 mobile games ranked by revenue
role?playing games and strategy games still took the leading positions followed by board?and?card games and gacha games.In addition mini?games and lightweight games have maintained high user engagement. In the first half of this year the
revenue of domestic applet games amounted to RMB31.657 billion a considerable YoY growth of 36.01% serving as an
important driver for industry?wide growth.In 2026 driven by policy support a sound ecosystem and technological innovations the Chinese game industry shows steady
growth. The industry focuses on the development and innovation of high-quality games comprehensively enhancing game quality
while accelerating global expansion. The industry scale continues to grow economic potential continues to be released and strong
momentum for high-quality development has been injected.
2. Policies steering the industry toward high?quality and sound development
In March 2026 the Outline of the 15th Five-Year Plan for Economic and Social Development of the People's Republic ofChina was released. It explicitly emphasizes the need to “guide and regulate the healthy development of online literature onlinegames and online audiovisual content” and to “encourage cultural enterprises to expand internationally promote the overseasdissemination of high-quality online literature games films animation and premium exhibitions and strengthen theconstruction of international communication key bases and national cultural export bases” further supporting the healthy and
high-quality development of the industry. In April 2026 the State Council issued the Opinions on Expanding Capacity and
Improving Quality of the Service Sector. It aims to expand capacity and improve quality of the service sector and fosterhigh?quality and efficient development of services. It highlights priorities including “strengthening the supporting role of scienceand technology services accelerating innovative development of software and information services developing innovative
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.models for culture? tourism? and sports?related services and steadily advancing opening?up and cooperation in the servicesector”. Actively responding to the policy directives and complying with regulatory requirements the Company keeps
strengthening its capacity to deliver quality games. It explores ways to integrate gameplay experience with cultural attributes and
deploy innovative technologies. Through internal?external resource collaboration in the cultural?entertainment and technology
sectors the Company advances in?depth integration of games and culture contributing to the global dissemination of fine
traditional Chinese culture.In February 2026 the Cyberspace Administration of China (CAC) and seven other government departments issued the
Circular on Issuing the Measures for Identifying Online Platform Service Providers with a Massive Minor User Base and Significant
Influence on Minors. The document aims to scientifically define the scope of online platform service providers with a massive
minor user base and significant influence on minors further strengthen constraints and administration over enterprises and
enhance targeted protection for minors. The Company attaches high importance to minor protection. Its official proprietary
platforms have fully prohibited users under the age of 18 from registering for game accounts. Additionally the Companycontinues to refine and upgrade its minor?protection system. It has rolled out an upgraded version of the “Game Real?nameRegistration and Minor Anti?Addiction System” revamped the existing “Parental Supervision Platform” optimized
customer?service handling procedures and assisted guardians in inquiry and verification so as to foster the healthy growth of
minors.In April 2026 the State Administration for Market Regulation (SAMR) issued the Circular on Deepening the Governance of
the Internet Advertising Ecosystem and the Key Tasks for Rectifying the Order of the Internet Advertising Market. The documents
aim to support overall online?ecosystem governance and foster high?quality development of the internet?advertising industry.The Company has built a full?process compliance?management system covering generative?AI?powered advertisements pop?up
advertisements and omni?channel ad placements. For AI?generated advertisements it has established mechanisms for content
review label management and file retention to define clear boundaries for intelligently?created ad content. It has standardized
control rules for pop?up advertisements optimized user interaction for closing functions implemented time?phased controls and
differentiated blocking for minors. Multi?level content approval procedures are enforced for ad placements and user?targeted
advertising is standardized. Both domestic and overseas advertisements operate in compliance with local regulatory
requirements. Dynamic control over advertising?related risks is achieved through regular compliance inspections.(II) The Company’s principal operations and products
The Company specializes in the development and publishing of games for global players with the game development brand
“Three Seven Games” as well as game publishing brands “37Mobile” “37GAMES” and “37Online”. For the Reporting Period the
Company recorded operating revenue of RMB7275 million a YoY decrease of 14.28%; and a net profit attributable to its
shareholders of RMB1766 million a YoY increase of 26.14%.
37 Interactive Entertainment
Three Seven Games 37Mobile 37GAMES 37Online
(game development) (publishing of mobile (overseas publishing) (publishing of mobile &
games) browser games)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.During the Reporting Period the Company’s titles including Nobody's Adventure Chop-Chop (寻道大千) Puzzles & Survival
Survive for 33 Days (生存 33 天) Last Asylum: Plague Ragnarok: The New World (RO 仙境传说：世界之旅) Lootborn Warriors
(英雄没有闪 ) My Memory Shop (时光杂货店 ) Puzzles & Chaos Bonk Bonk Tribe (时光大爆炸 ) and SoulLand: Clash of
Spirimasters (斗罗大陆：魂师对决) maintained sound operating performance. The Company’s peak global monthly active users
exceeded 160 million.In terms of overseas business the Company continued to build strength in core categories such as SLG MMORPG business
simulation games and casual games. It sought growth opportunities in overseas markets and refined its long-term operation
strategy. This has led to the sound development of its overseas business. During the Reporting Period the Company achieved
overseas operating revenue of RMB3021 million a YoY growth of 10.90% accounting for 41.53% of its total operating revenue.
1. Solid performance of new games and building a global market?oriented product matrix
The Company’s self?developed survival?themed RPG Survive for 33 Days (生存 33 天 ) carried out a collaboration with
GrandBuy Gold. It combined in?game online gameplay with offline promotions to create an integrated operation scenario.Meanwhile the Company partnered with Jackie Chan for a series of communication campaigns. Popular mass?market elements
were incorporated into product promotion which enhanced brand awareness and won positive reviews from players. Driven by
dual market breakthroughs from brand collaboration and celebrity endorsement the title’s influence kept expanding. It ranked
No.?1 on both the WeChat Mini?Games and Douyin Mini?Games bestseller charts throughout January and remained among the
top five on the bestseller charts of both platforms in the first quarter demonstrating robust market performance and high user
engagement.The Company’s self?developed MMORPG Ragnarok: The New World (RO 仙境传说：世界之旅 ) delivered solid market
performance following its official launch in China’s Hong Kong Macao and Taiwan regions. Upon release it peaked at No.1 on
both the free chart and bestseller chart of major local app stores. The results demonstrated the Company’s comprehensive
capabilities in localized publishing user operation and monetization conversion for classic IP titles and reflected the sustained
user influence and regional monetization potential of the IP. The game officially launched in Southeast Asia in July 2026. As one of
the markets where the IP boasts the strongest influence Southeast Asia is expected to continuously unlock the IP value and
further consolidate the Company’s business layout in the MMORPG segment.The Company’s medieval-themed strategy game Last Asylum: Plague achieved coverage across 137 countries and regions
worldwide after its launch in 2026 supported by a mature publishing system continuous content operation and strong
monetization performance. It maintained solid performance in key markets including the United States Europe Russia and South
Korea and ranked 16th on Sensor Tower’s June ranking of revenue-generating Chinese mobile games overseas.The title introduces lightweight gameplay such as business simulation into its core SLG framework as an entry point for the
early-stage experience effectively enhancing new users' sense of immersion and playability. Combined with the mature global
user base for medieval and survival-themed content and its differentiated art presentation it has demonstrated strong potential
in user acquisition efficiency user retention monetization capabilities etc. Since launch the title rolled out diverse operational
activities including seasonal gameplay and targeted festive events. Its total registered users exceeded 15 million and it ranked
Top 9 on Sensor Tower’s Overseas Revenue Growth Ranking for Chinese Mobile Games in July. In addition the game officially
kicked off market expansion in China’s Hong Kong Macao and Taiwan regions. The Company enlisted Ethan Juan as its brand
ambassador for promotion and the game is expected to become another long-running title in the Company’s SLG segment.During the Reporting Period the Company’s new survival-themed SLG title Z Route: Redemption launched in overseasmarkets and gained user recognition across multiple overseas markets. It verified the replicability of the product model of “hyper-Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.casual gameplay for front-end user acquisition + mid-core SLG gameplay for back-end user retention” in diverse markets
emerging as another key title in the Company’s SLG segment.In addition multiple titles of the Company including Dreamweaving Garden (织梦森林 ) Critter Rumble (爪爪大乱斗 )
Huang Wu Zhi Xia (荒无之下) Battle Through the Heavens: Mo Qi Shao Nian Qiong (斗破：莫欺少年穷) The Soul Land: Chuan
Cheng (斗罗大陆：传承) Battle Through the Heavens: Dou Di Zhi Lu (斗破苍穹：斗帝之路) and My Heroic Husband (赘婿)
were successively launched further enriching the Company’s diversified genre portfolio. These titles are expected to
continuously unlock value in respective sub-segments and bring incremental growth to the Company’s gaming business.Pipeline titles:
Guided by its strategic positioning of "boutiqueization diversification and globalization" and centering on industry
development trends and its core competitive advantages on the one hand the Company continued to deepen its strategic
presence in the mini-game and lightweight game segments continuously enriching game genres and innovating gameplay to
consolidate its core competitive advantages; on the other hand it focused on the development and global publishing of SLG
MMORPG and business simulation games among others continuously increasing investment in innovation in core gameplay
long-term operation the development of localization capabilities etc.Set out below are some of the Company’s key upcoming pipeline titles:
Source of game Name of game Game genre theme and art style Intendedpublishing area
Self-developed Code MLRPG (代号 MLRPG) Western fantasy RPG Global
Self-developed Xiao Tou Kui Da Mao Xian (小头盔大冒险) Chibi fantasy RPG Global
Self-developed Huang Mo Sha Zhou (荒漠沙舟) American cartoon survival SLG Global
Self-developed Code MRRPG (代号 MRRPG) Chibi survival RPG Global
Self-developed Code YCSLG (代号 YCSLG) Survival SLG Global
Self-developed Code KGSLG (代号 KGSLG) Medieval SLG Global
Self-developed Code Hope (代号 Hope) Survival Merge Overseas
Self-developed Code FMR (代号 FMR) Realistic football gacha SLG Global
Self-developed Code FXCZB (代号 FXCZB) Oriental Xuanhuan RPG Global
Self-developed Code YPBY (代号 YPBY) Ancient-style business simulation Global
Agency The Soul Land: Zero (斗罗大陆：零) Oriental Xuanhuan gacha RPG Domestic
Agency Meng Hui Zhen Huan Zhuan (梦回甄嬛传) Chibi ancient-style casual Domestic
Agency Code FX2 (代号 FX2) Oriental Xuanhuan idle RPG Domestic
Agency The Soul Land: Qi Cheng (斗罗大陆：启程) Oriental Xuanhuan idle RPG Global
Agency Code LD (代号 LD) Survival SLG Global
Agency Code KCZM (代号 KCZM) Three Kingdoms SLG Domestic
Agency Code K5 (代号 K5) Survival SLG Overseas
Agency Code Dream (代号 Dream) Casual puzzle match-3 Overseas
Agency Code Rise Match-3 (代号 Rise 三消) Casual puzzle match-3 Overseas
Agency Code RV Match-3 (代号房车三消) Casual puzzle match-3 Overseas
Agency Code Nova Merge (代号 Nova 二合) Casual puzzle merge Overseas
Agency Code Match Catch (代号 Match Catch) Casual puzzle merge Overseas
2. Steady long-term operation and enhanced long-term value via diversified collaborations
In terms of the operation of mature titles the Company prolonged product life cycles by continuously introducing new
gameplay features and cross-border collaborations. Nobody's Adventure Chop-Chop (寻道大千) the Company’s Chinese-style
casual cultivation game has maintained its vitality through content iteration and cross-border collaborations. The title has rolled
out initiatives including a cultural and tourism collaboration with Quanzhou City a charity art exhibition and an offline check-in
campaign. Leveraging movie tie-ins long-cycle seasonal events and anniversary-themed content it continuously increased user
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.activity and engagement further enriching long-term player experience and stabilizing user expectations.The Company’s breakout global title Puzzles & Survival which integrates Match-3 and SLG gameplay has benefited from its
mature publishing system continuous content operation and strong user monetization capability. The title is available across 171
regions worldwide and has maintained relatively stable gross billing contributions years after launch consistently ranking among
the top Chinese mobile games by overseas revenue. From launch through the end of the Reporting Period the title amassed over
75 million cumulative global users with total gross billing exceeding RMB16.8 billion. Leveraging the overseas market’s high
receptiveness to classic IP fantasy themes and racing gameplay the Company rolled out diverse in-game campaigns during the
Reporting Period including Transformers tie-in content dragon-themed updates and racing-themed versions. While preserving
the core gameplay experience the Company continuously enriched the depth of game content and visual presentation to
enhance players’ sense of novelty and engagement.The Company’s idle ARPG title Lootborn Warriors (英雄没有闪) has increased user retention and engagement continuously
through class expansion system updates and seasonal operation. This year it rolled out new content including the brand-new
class "Shadow Ranger" Spring Festival events the first-anniversary celebration and the mount system and launched Season S2
"Four Horsemen of the Apocalypse" driving growth in new user and overall metrics and further consolidating its core user base.The Company’s modern-themed business simulation mobile title My Memory Shop (时光杂货店) has kept innovating and
making breakthroughs in response to market shifts. It has built a more comprehensive user operation framework via integrated
marketing public welfare collaborations and city tour activities. Centered on "digital for good" the title continuously explores the
integration of gameplay with poverty alleviation for agriculture and cultural inheritance. During the Reporting Period the game
rolled out an agricultural support program featuring "grow tea trees online obtain premium tea offline" helping expand
communication and consumption scenarios for ancient tree black tea from Fengqing County Yunnan Province. Meanwhile it
launched a cultural-themed version themed on “The Thirteen?Hongs of Guangzhou” as well as an AI public welfare promotional
video of the same theme. It showcases commercial culture and the Lingnan Maritime Silk Road spirit in a digital manner further
elevating the title’s cultural influence and brand value.The Company’s time progression business simulation game Bonk Bonk Tribe (时光大爆炸 ) leveraged its differentiated
theme and lightweight simulation experience to rapidly attract users topping the free charts upon its launch. On the WeChatMini-Games platform it ranked within the top three for popularity and top four for bestsellers earning the “2025 InnovativeBreakthrough Mini-Game” award and frequently appearing on subcategory charts. Over time it has become a key addition to the
Company’s portfolio of emerging products.During the Reporting Period the Company’s self-developed gacha mobile title SoulLand: Clash of Spirimasters (斗罗大陆：
魂师对决 ) continuously delivered fresh gameplay experiences for players through anniversary campaigns regular launches of
new characters and content as well as content expansions featuring new developments in the Divine Realm. It maintained the
activity of core users via competition systems such as the Spirimasters Championship League. In its fifth year post-launch the
title still delivered relatively steady gross billing performance which demonstrates the Company’s capability in the long-term
operation of IP-based mobile games.The Company’s fantasy-themed Match-3 strategy mobile title Puzzles & Chaos has maintained solid growth momentum in
the global market with its integrated Match-3 and SLG gameplay and differentiated positioning centered on Western fantasy
themes. It has been launched in more than 80 countries and regions worldwide ranking among the top 20 on strategy game
grossing charts across multiple markets. The title consistently leads the list of newly launched overseas Western fantasy SLG titles
and stays within the top 50 in the annual ranking of strategy mobile games going global. Since launch its overseas revenue has
kept rising and the volume of new users has hit record highs on multiple occasions.The Company remains committed to inheriting and promoting China's outstanding traditional culture actively exploring
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.ways to integrate games with cultural development. Throughout product development and operations it keeps incorporating
Chinese cultural elements into gameplay and narrative systems. It promotes Chinese culture into overseas markets in a more
interactive and communicative manner aimed at demonstrating the unique connotations and contemporary value of Chinese
culture.In the first half of 2026 three of the Company’s titles namely Nobody's Adventure Chop-Chop (寻道大千) Bonk Bonk Tribe
(时光大爆炸) and Trading Legend (叫我大掌柜) collaborated with Quanzhou cultural?tourism authorities on the "Hair?Flower
New Year Lucky Quanzhou Tour" campaign. Centered on the Spring?Festival?themed blessing concept the integration of
intangible?cultural?heritage and world?heritage elements such as Xunpu hair?flower headdresses and Nanyin music was
embedded into in?game content. An immersive offline check?in event “Lucky Quanzhou Tour Office” was set up connecting
iconic Quanzhou scenic spots including Kaiyuan Temple Xunpu Village and West Street. Through online digital presentationcoupled with offline scenario?based collaborations the initiative further expands the integration boundary of “Game +Cultural?Tourism” helping Quanzhou City’s world?heritage culture and urban cultural?tourism brand reach a broader young?user
audience.
3. Leveraging cutting-edge technological advantages and business applications
(1) Building a sustainable AI capability system and continuously unlocking core business value
The Company places a high emphasis on the deployment and application of big data and AI technologies. After years of
technological accumulation and business practices the Company has established an AI architecture centered on the AI capability
foundation which covers the intelligent product layer and business application layer forming an end-to-end AI empowerment
system for game R&D and operation.In terms of business application the Company advances AI integration into game R&D and operation procedures to build an
AI?empowerment system covering the full chain of game R&D and operation. Leveraging AI technologies the Company has
realized intelligent production and deployment of diverse content forms including AI?text AI?multimodal and AI?comprehensive
application categories. Over 80% of the Company’s 2D art assets are AI?aided generated with more than 500000 assets
produced in a single quarter. The proportion of AI?3D?aided asset generation exceeds 30%; more than 70% of ad creative videos
deeply involve AI generation and AI?driven automated ad placement accounts for over 50%. AI?powered localized translation
covers all of the Company’s overseas titles across 18 languages with a peak accuracy rate of 95%. Intelligent customer service has
been deployed across all titles boasting an 80% resolution accuracy rate.In terms of capability development the Company takes “Xiao Qi” its self?developed game?vertical large model as its core
base. It also integrates mainstream external models and tool ecosystems and has built an enterprise?grade intelligentknowledge?base platform "Zhi Qi" (知七 ) a multi?agent development platform "Zhiqi" (智七 ) as well as the “Xiao Qi AgentPlatform”. As of the end of the Reporting Period the “Xiao Qi Agent Platform” has accumulated more than 70 AI capabilities
integrated over 240 models and AI tools and housed more than 600 self?developed agents. It covers business domains including
market analysis game project initiation art design development assistance ad placement operation analysis intelligent
customer service and general?purpose office work enabling AI to serve as systematic productivity spanning the full workflow of
R&D operation and management.In terms of organizational support the Company leverages mechanisms including the AI Efficiency Committee the AI Lab
and the Super Professional Team (SPT) to coordinate the implementation of strategies platform development and cutting?edge
exploration so that AI can better serve business development. During the Reporting Period the call volume and activity level of
the Company’s “Xiao Qi Agent Platform” increased markedly. AI applications have penetrated employees’ daily work scenarios
and continuously reshaped core?business workflows for games effectively lifting organizational efficiency operational
intelligence and overall work quality and efficiency. This allows teams to focus more on creativity innovation and emotional
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.expression.
(2) Exploring “AI + Game” integration and extending diversified value
The Company continues to explore the application of technologies in R&D efficiency improvement content generation and
personalized user experiences under the “AI + Game” framework. On one hand the Company leverages AI technologies to
support preliminary design tasks including character scene prop and motion?effect creation as well as style testing improving
efficiency for game project initiation and version updates. On the other hand through the internally incubated AI?powered
mini?game Ming Yue Gong Xin (明月宫心 ) the Company explores how generative AI reconstructs game?content production
workflows. Its sequel Ming Yue Gong Xin II (明 月宫 心贰 ) validates the feasibility of AI?driven non?linear content and
“personalized?for?each?user” gaming experiences. Meanwhile the Company has rolled out a corporate?culture strategy oriented
toward AI?driven innovation. Through internal initiatives such as the Micro?Innovation Contest it has built an enterprise?wide
incubation platform for gaming-related innovation. The Company encourages employees to tap into the application potential of
AI in content generation and personalized interaction unlocking creativity in areas including gameplay mechanics AI?powered
interactive experiences and independent prototypes. It places great importance on cultivating AI talent. Innovative activities such
as the “21-Day AI Learning Challenge” “Open Classes on AI” and “AI Expert Program” certification have been carried out to
comprehensively enhance employees’ AI skills. In parallel the Company has continuously expanded its AI-related job functions to
build a robust talent pipeline that supports its AI strategy.Building on its solid core game?business foundation the Company continues to explore broader application values of AI
beyond games extending its AI capabilities from content production and enterprise?level services to social?value creation. For
instance the Company has launched “Ling Cha Cha” an integrated service platform for enterprise?oriented copyright protection
and brand?content insights. It delivers functions including brand reputation monitoring communication analysis and
infringement?risk identification providing digital?asset?protection services for enterprises in cultural?entertainment e?commerce
technology and other sectors. During the Reporting Period the Company also rolled out “Ling Xu Xu” an AI?powered
video?creation platform covering key links such as text authoring content deconstruction asset management video generation
and video editing and final rendering. It can effectively improve the production efficiency of video content and standardized
delivery capabilities. In the healthcare sector the Company has collaborated with Zhujiang Hospital of Southern Medical
University to explore gamified applications for Alzheimer's cognitive training. By combining AI with interactive game design the
collaboration seeks to develop supportive training solutions for individuals with cognitive impairments demonstrating a
multifaceted approach to leveraging AI and games for social impact.
(3) Technology ecosystem and investment strategy focused on long-term competitiveness
The Company adheres to an investment strategy guided by "core business synergy + strategic positioning in frontier
technologies". On one hand its investments target innovative entities that can form effective synergies with its game R&D and
operation and support the development of its core business; on the other hand it focuses on frontier technologies aligned with
the national 15th Five?Year Plan as well as featuring high potential growth rates and broad growth space and steadily advances
technology capability building and forward-looking strategic positioning. In recent years focusing on the upstream and
downstream segments of its core industrial chains of cultural and entertainment technology human-computer interaction and
artificial intelligence the Company has invested directly or indirectly in a number of innovative enterprises. The portfolio
includes Zhipu AI Moonshot AI Baichuan AI AIsphere Luxvisions Tsing Micro LuminX HYQ Huixi BrainCo iStar and RayNeo.The Company explores the adaptive application of technologies from invested enterprises in the game R&D and operation
pipeline and continuously empowers business innovation and technological capacity expansion through strategic investments.(III) The Company’s principal operations and business models
The Company is principally engaged in the development publishing and operation of online games (mostly mobile and
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.browser games). The business models of the Company’s online games mainly include independent operation and third-party joint
operation.Under the independent operation model the Company obtains the licenses of games through independent R&D or being an
operator of other games and publishes and operates these products through its own or third-party channels. The Company is fully
responsible for the operation promotion and maintenance of the games; providing unified management services for online
promotion online customer service and top-up payment; and updating games along with game developers based on the real-time
feedback of users and games.Under the third-party joint operation model the Company cooperates with one or more game operators or game application
platforms to jointly operate games. And the aforesaid parties are responsible for the management of their own channels including
operation promotion the recharge and charge system while the Company provides technical support services along with game
developers.(IV) The Company’s presence on the market and primary growth drivers
Focusing on cultural and creative businesses based on the development publishing and operation of online games the
Company is a comprehensive entertainment provider in China’s A-stock market. It is a Key Cultural Export Company of China
Demonstration Base for China’s Cultural Industry Civilized Institution in Guangdong Province Top 30 Cultural Enterprise of
Guangzhou and Guangzhou City Partner among others. In 2025 the Company has risen to No. 17 on a list of China’s top 100internet companies. It has been steadily advancing with the development strategy of “boutiqueization diversification andglobalization” and promoting high-quality and sustainable development. With “bringing joy to the world” as its mission the
Company is dedicated to becoming an excellent and sustainable entertainment provider.II Core Competitiveness Analysis
The Company’s core competitiveness remained largely the same during the Reporting Period.
1. A stable team and an efficient management mechanism bolstering the Company’s operational resilience
The Company has been deeply engaged in the cultural and creative industry for many years. Its core management team is
deeply involved in the front line of business working hard together with all the employees. Guided by the enduring marathon
spirit across the entire organization the Company maintains the stable operation of its existing business model. Centering on key
products and core businesses it advances operational initiatives to improve operational efficiency and market responsiveness.Against the backdrop of an evolving industry landscape the Company leverages its core competitive strengths and keeps a close
eye on emerging market opportunities. It pursues strategic business layout upon prudent evaluation. Empowered by a robust
team and a scientific management mechanism the Company seizes market opportunities and has achieved sustained growth
amid multiple industry transitions. In the course of development the Company has established a sound and efficient internal
management mechanism and consistently prioritized talent cultivation and team building. By virtue of a well-rounded promotion
mechanism remuneration management system and performance incentive framework the Company stimulates employees’
enthusiasm and creativity further strengthens operational resilience and advances all business lines in a steady manner.
2. Integration of R&D and operation for coordinated development fostering a diversified product portfolio
The Company has continuously advanced its strategy of "integration of R&D and operation" deepened its diversified
product portfolio and established a multidimensional product portfolio. First the Company continuously expands its self-
development capabilities and strengthens its foothold in core genre tracks. Leveraging its proven IP?adaptation methodology andsystematically integrating the three elements for non?IP themes — “theme packaging prototype gameplay and long?periodShould there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.commercial models” it advances the development of key products from a global perspective. This has cultivated a product
portfolio with self-developed offerings as a core component. Second through investment empowerment and business support
the Company has maintained long-term partnerships with numerous developers for years and continuously built up a portfolio
of high-quality deeply customized products. Third by cooperating with developers with long-term and stable partnerships the
Company further supplements and optimizes its product portfolio. Under the above-mentioned models the stability and
diversity of the Company’s product portfolio have been steadily enhanced forming a diversified and well-rounded product
portfolio and driving the sustainable growth of the Company’s business.Under the “integration of R&D and operation” model the Company strengthens collaboration between R&D and operation
arms. Leveraging feedback on market and user demands from the operation side it supports the R&D team in optimizing
product design. Meanwhile close cooperation between the R&D and operation teams enables timely adjustments to content
updates and operational strategies for launched products enhancing sustained operation capacity and enabling more effective
long-term operations.
3. Publishing capabilities have been continuously iterated to facilitate long-term operation from a global perspective
In response to the ever-evolving global gaming market the Company adheres to a strategy of “tailored games” for overseas
users with diverse cultural backgrounds gaming preferences and payment habits. Tailored promotion and operation strategies
are adopted for different countries regions and game types. The Company focuses on publishing different genres of games in
different regions and localizes game content and promotional materials to reflect the cultural characteristics of each region.Over the years the Company's publishing team has launched and operated numerous games across diverse genres and themes
in global markets. In this process the Company explores innovative marketing approaches and promotion pathways in response
to market changes. It adopts a variety of creative marketing strategies such as renowned IP collaboration celebrity
endorsement and situational presentation builds a long-term ecosystem centered on user social interaction and continuously
iterates its publishing capability.
4. Technology-driven innovation and breakthroughs to embrace industry transformation
Prioritizing innovation the Company fosters an open and inclusive environment for innovative exchanges. It keeps a close
watch on the application of emerging technologies in game R&D and operation. Based on actual business needs the Company
applies big data artificial intelligence and other technologies to multiple links including project initiation content production
publishing and operation as well as data asset management. Over the years by continuously iterating and optimizing smart
products across the entire R&D and operation chain the Company has upgraded its game industrial pipeline and improved
overall R&D and operational efficiency. In addition the Company closely monitors development trends in the upstream and
downstream segments of its core industrial chains of cultural and entertainment technology human-computer interaction and
artificial intelligence. It explores opportunities for technological transformation and business synergy through strategic
investment supports the continuous expansion of application scenarios for new technologies promotes resource sharing and
complementary advantages and gradually builds a win-win ecosystem.III Analysis of Principal Operations
Overview
See contents under the heading “I Principal Operations of the Company in the Reporting Period”.Year-over-year changes in key financial data:
Unit: RMB
H1 2026 H1 2025 Change (%) Main reason for change
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.The games in operation were at different
stages of their life cycles. Gross billing for
long?term operated titles including
Nobody's Adventure Chop-Chop (寻道大
千) naturally declined. Meanwhile
Operating multiple games launched in Q4 2025 and
7274643508.72 8486116689.62 -14.28%
revenue the current period such as Survive for
33 Days (生存 33 天) Ragnarok: The
New World (RO 仙境传说：世界之旅)
and Last Asylum: Plague were still in the
introduction phase with their gross
billing contributions yet to stabilize.Lower revenue from agency games
during the Reporting Period which led
Cost of sales 1638778174.35 1976706274.51 -17.10%
to a corresponding decrease in the cost
of royalties
Games including Lootborn Warriors (英
雄没有闪) Bonk Bonk Tribe (时光大爆
炸) and My Memory Shop (时光杂货店)
Distribution and
3764438195.99 4410194833.32 -14.64% which entered the long?term?operation
selling expenses
or maturity phase in the current period
adopted revised marketing strategies
with reduced traffic spending.General and
administrative 283967346.39 296824781.90 -4.33%
expenses
A YoY decrease in interest income and a
Financial expenses -30697350.20 -86935899.78 64.69% YoY increase in exchange losses during
the Reporting Period
During the Reporting Period taxable
temporary differences such as those
Income tax arising from gains on equity investments
483800898.81 208478502.79 132.06%
expenses increased leading to a rise in the
corresponding accrued deferred income
tax liabilities.During the Reporting Period the number
Research and
of R&D personnel rose resulting in a
development 391018887.50 337441172.39 15.88%
corresponding increase in related
investments
remuneration expenses.Decreased cash received from the sales
Net cash flows
of goods or rendering services during the
from operating 1088989342.51 1753342666.68 -37.89%
Reporting Period compared with the
activities
same period last year
Increased net cash flows from the
Net cash flows purchase and recovery of wealth
used in/from 1034176149.00 -102066991.25 1113.23% management products and term
investing activities deposits during the Reporting Period
compared with the same period last year
Net cash flows Increased net cash flows used in new
used in/from -1436233044.76 -1100000218.92 -30.57% issuance and repayment of bill financing
financing activities during the Reporting Period
Net increase in Increased net cash flows from investing
cash and cash 661102182.66 554657996.31 19.19% activities during the Reporting Period
equivalents compared with the same period last year
Significant changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable□ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.No such changes in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
H1 2026 H1 2025
As % of operating As % of operating Change (%)
Amount Amount
revenue (%) revenue (%)
Total operating
7274643508.72 100% 8486116689.62 100% -14.28%
revenue
By operating division
Online games 7237953487.51 99.50% 8415466388.52 99.17% -13.99%
Others 36690021.21 0.50% 70650301.10 0.83% -48.07%
By product category
Mobile games 7114676188.13 97.81% 8239189563.05 97.09% -13.65%
Browser games 123277299.38 1.69% 176276825.47 2.08% -30.07%
Others 36690021.21 0.50% 70650301.10 0.83% -48.07%
By operating segment
Domestic 4253626634.26 58.47% 5762094584.35 67.90% -26.18%
Overseas 3021016874.46 41.53% 2724022105.27 32.10% 10.90%
Operating division product category or operating segment contributing over 10% of operating revenue or operating profit:
□ Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Online games 7237953487.51 1614324435.48 77.70% -13.99% -15.69% 0.45%
By product category
Mobile games 7114676188.13 1578966267.12 77.81% -13.65% -15.09% 0.38%
Browser games 123277299.38 35358168.36 71.32% -30.07% -35.84% 2.58%
By operating segment
Domestic 4253626634.26 952533953.87 77.61% -26.18% -25.91% -0.08%
Overseas 3021016874.46 686244220.48 77.28% 10.90% -0.69% 2.65%
Core business data restated according to the changed methods of measurement that occurred in the Reporting Period:
□ Applicable□ Not applicable
Breakdown of the cost of sales for principal operations:
Unit: RMB
H1 2026 H1 2025
Breakdown of cost As % of cost of As % of cost of Change (%)
Amount Amount
sales sales
Royalties 1455119775.64 88.79% 1770265739.04 89.56% -17.80%
Cost of servers 130619613.69 7.97% 112883638.23 5.71% 15.71%
Amortization of
20965609.42 1.28% 27540936.91 1.39% -23.87%
copyright money
Other costs 7619436.73 0.46% 4012444.98 0.20% 89.90%
Total 1614324435.48 98.50% 1914702759.16 96.86% -15.69%
Any over 30% YoY movements in the data above and why:
□ Applicable □ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
1. Operating revenue and cost of sales of browser games decreased by 30.07% and 35.84% respectively compared with the same
period last year. This was primarily driven by the natural decline in game gross billing over the product lifecycle which resulted in
lower operating revenue and cost of sales.
2. Other costs increased by 89.90% YoY primarily driven by the increased cost of technical service charges.
IV Analysis of Non-principal Operations
□ Applicable □ Not applicable
Unit: RMB
As % of profit
Amount before income Reason/source Recurrent or not
tax expenses
Mainly due to gains and losses on
long-term equity investments
accounted for using the equity
Investment income 1016007741.85 45.22% method dividends during the period No
of holding equity investments and
income from investments in wealth
management products
Mainly due to changes in fair value of
Gain/loss on
13955741.75 0.62% equity investments and wealth No
changes in fair value
management products
Impairment loss on Mainly due to impairment loss on
2743061.69 0.12% Yes
assets credit
Non-operating
3256146.88 0.14% Mainly due to compensation income No
income
Non-operating Mainly due to expenditure on
5252034.18 0.23% No
expenses donations and litigation damages
Mainly due to government grants that
Other income 10455459.39 0.47% are related to normal business No
operations
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
June 30 2026 December 31 2025
Change in
As % of total As % of total Reason for any significant change
Amount Amount percentage (%)
assets assets
Monetary funds 3829663758.66 16.67% 4123545240.96 18.48% -1.81% No significant change
Accounts receivable 1158973141.41 5.04% 1121605274.40 5.03% 0.01% No significant change
Inventories 482988019.56 2.10% 474948916.44 2.13% -0.03% No significant change
Investment properties 818533023.49 3.56% 829444129.24 3.72% -0.16% No significant change
This was mainly due to the listing of Z.AI Co. Ltd.during the Reporting Period in which the Company
holds an investment via an associate. Share?price
Long-term equity
1514133101.02 6.59% 541108476.33 2.42% 4.17% movements of Z.AI drove higher fair?value?change
investments
gains of the associate resulting in increased
investment income from the associate recognized by
the Company under the equity method.Fixed assets 884745772.85 3.85% 895767572.19 4.01% -0.16% No significant change
Construction in
38418492.09 0.17% 24017193.68 0.11% 0.06% No significant change
progress
Right-of-use assets 8069581.98 0.04% 10071890.44 0.05% -0.01% No significant change
Short-term loans 3683005400.14 16.03% 3963827983.08 17.76% -1.73% No significant change
Contract liabilities 246985779.58 1.08% 239381006.69 1.07% 0.01% No significant change
Lease liabilities 382931.32 0.00% 2452513.57 0.01% -0.01% No significant change
Trading financial
2928530938.68 12.75% 3223557823.14 14.45% -1.70% No significant change
assets
Prepayments 981257764.11 4.27% 933533438.08 4.18% 0.09% No significant change
This was mainly due to the reclassification of certain
term deposits with original maturities of more than
Non-current assets
1822101178.59 7.93% 711592656.37 3.19% 4.74% one year from other non?current assets to
due within one year
non?current assets due within one year as their
remaining maturities fell below one year during the
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Reporting Period.Other non-current
2220630165.97 9.67% 1880164590.83 8.43% 1.24% No significant change
financial assets
Intangible assets 1360466372.70 5.92% 1384921036.69 6.21% -0.29% No significant change
Goodwill 1578065048.53 6.87% 1578065048.53 7.07% -0.20% No significant change
This was mainly due to the reclassification of certain
term deposits with original maturities of more than
Other non-current
2702838314.20 11.76% 3994251725.88 17.90% -6.14% one year to non?current assets due within one year
assets
as their remaining maturities fell below one year
during the Reporting Period.Accounts payable 2156968755.49 9.39% 1776482556.69 7.96% 1.43% No significant change
Notes payable 833410180.40 3.63% 944600000.00 4.23% -0.60% No significant change
2. Major Assets Overseas
□ Applicable □ Not applicable
Mana
geme Material
Asset value Control measures to protect asset Return generated As % of the
Asset Source Location nt impairment risk
(RMB) safety (RMB) Company’s equity
mode or not
l
Investments in A sound business supervision
Other equity Hong Kong in China
overseas 746516234.66 mechanism and a sound risk control -9298942.56 5.30% No
assets etc.companies mechanism have been put in place
Purchase of
Wealth overseas A sound business supervision
Hong Kong in China
management wealth 708722362.64 mechanism and a sound risk control 13325098.20 5.03% No
etc.products management mechanism have been put in place
products
Income from A sound business supervision
Hong Kong in China
Monetary funds investments 800957618.27 mechanism and a sound risk control 5.68% No
Singapore etc.and operations mechanism have been put in place
3. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Impairme
nt
Gain/loss on fair-
allowance
value changes in Cumulative fair-value Purchased in the Sold in the Reporting
Item Beginning amount made in Other changes Ending amount
the Reporting changes through equity Reporting Period Period
the
Period
Reporting
Period
Financial assets
1. Trading
financial assets
(exclusive of 3223557823.14 1926376.91 3822000000.00 4102442274.19 -16510987.18 2928530938.68
derivative
financial assets)
2. Other equity
195214869.29 -229518059.32 68000000.00 34247820.30 -389863.35 228577185.64
investments
3. Other non-
current financial 1880164590.83 13325098.30 404920889.32 43126976.61 -34653435.87 2220630165.97
assets
Subtotal of
5298937283.26 15251475.21 -229518059.32 4294920889.32 4179817071.10 -51554286.40 5377738290.29
financial assets
Total of the
5298937283.26 15251475.21 -229518059.32 4294920889.32 4179817071.10 -51554286.40 5377738290.29
above
Financial
9009110.18 -1295733.46 -10304843.64 0.00
liabilities
Contents of other changes:
Other changes were incurred by exchange rate fluctuations etc.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes□ No
4. Restricted Asset Rights as at the End of the Reporting Period
Item Ending carrying amount (RMB) Reason for restriction
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Item Ending carrying amount (RMB) Reason for restriction
Monetary funds 300000.00 Money frozen by bank and security deposits
Monetary funds 1182211241.43
Principals and interest of term deposits with a maturity within one year as
pledges
Principals and interest of term deposits and large-denomination
Non-current assets due within 422558957.41 certificates of deposit with a maturity of over one year (due on or before
one year
June?2027) as pledges
Principals and interest of term deposits and large-denomination
Other non-current assets 715342151.73
certificates of deposit with a maturity of over one year as pledges
Total 2320412350.57
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.VI Principal Subsidiaries and Joint Stock Companies
□ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the Company’s net profit:
Unit: RMB
Relationsh
ip with Principal Registered Operating Operating
Name Total assets Net assets Net profit
the activity capital revenue profit
Company
Developmen
Anhui 37 Jiyu
t of mobile 6250000. 2728123 2091130 88373897 444807815 402581251.2
Network Technology Subsidiary
and browser 00 441.54 381.49 2.14 .59 8
Co. Ltd.games
Publishing
37 Interactive
and
Entertainment 10000000 18089755 5846820 7272740 17725750 1339006488
Subsidiary operation of
(Shanghai) .00 987.82 711.47 650.23 76.96 .52
mobile
Technology Co. Ltd.games
Subsidiaries obtained or disposed of in the Reporting Period:
□ Applicable□ Not applicable
Other information on principal subsidiaries and joint stock companies:
None.VII Risks Facing the Company and Countermeasures
1. Changes in industry policies risks of violation and countermeasures
In recent years the authority in charge has attached great importance to the development of game industry made a series of
major decisions and arrangements and issued a series of policies and regulations to guide the industry to develop in a standardized
and healthy way. For example clear new standards and requirements have been put forward for protection of minors and anti-
addiction of online games. Further strict management measures have been taken to promote standardized management of game
industry. At the same time information security and protection of users' privacy have drawn much attention from the society. In
the long term the regulation of the online game industry is becoming more and more standardized which is conducive to the
healthy development of the industry. The enterprises with standardized operation will benefit from it. However in the future if the
Company fails to make corresponding adjustments timely in accordance with changes in industry policies or has a deviation in
understanding management regulations in its operation there may be a risk that the Company will be punished by relevant
departments or the works will not go online as planned which will have a significant negative impact on the Company's business
development and brand image. In this regard the Company will strictly abide by various industry policies rules and regulations
actively implement relevant requirements for industry development establish an internal sound quality management and control
mechanism strengthen industry policy risk management capability and fully reduce and avoid the business risks caused by changes
in industry policies.
2. Market competition risks and countermeasures
The online game industry is facing increasingly fierce competition as it gradually matures. At the same time online game users
are maturing with higher quality demand for game products. The industry is characteristic of fast product transition limited
product life cycle and volatile player preferences among others. Failure to sustain strong competitive advantages in gameplay
innovation content quality publishing promotion and operational performance may adversely affect the Company’s operating
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.results and sustainability.In response the Company will continue to implement the strategy of "boutiqueization diversification and globalization" to
steadily enhance its core competitiveness. On one hand the Company will maintain continuous investment in self-developed
games and keep pace with technological trends industrywide. It will pursue innovative exploration in multiple dimensions including
product creativity gameplay themes art design and technologies. Meanwhile by cooperating with outstanding developers the
Company will enrich the quality game offerings expand game categories through a combined model of self-development and
agency and consolidate the competitive edge of “integration of R&D and operation”. On the other hand the Company will steadily
advance its overseas market presence. Leveraging its mature overseas experience it carries out diversified deployment in key
overseas markets deepens its presence in core categories and expands its player base. In addition the Company will continuously
strengthen operational data analysis capabilities dynamically optimize product operation strategies and R&D directions improve
refined operation and the long-term service mechanism and elevate digital marketing and operation and management capabilities
so as to enhance overall market competitiveness. Facing the current competition landscape in the industry leading enterprises
possess prominent advantages in technological R&D channel operation product promotion player base and market share. The
Company will further solidify its competitive edges proactively respond to industrywide changes mitigate market competition risks
and seize market opportunities.
3. Risks of core personnel turnover and countermeasures
A stable and high-quality talent team is an important guarantee for the Company to maintain its core competitive advantage.If the Company fails to effectively build a core talent team give reasonable incentives and manage the core personnel the
employees’ enthusiasm and creativity will be affected which will have an adverse impact on the Company’s operations.In response much attention has been attached to cultivation and acquisition of professional talents. The Company creatively
builds a platform-based talent management mechanism according to which excellent game producers are rewarded with project
bonus and given discretion of research and project concept creation. In order to attract and retain outstanding management
talents and business elites the Company has reformed the project mechanism shortened the review cycle and established
diversified objectives so as to stimulate the innovative vitality of employees. In terms of employee performance management the
Company has set up diversified KPIs based on employees' contribution and ability as well as reasonable team objectives and
innovative incentive activities to encourage employees’ creativity so as to increase the attractiveness to core staffs and R&D
personnel.In addition the Company cares about the long-term development of employees. The Company has established “37 InteractiveEntertainment Learning and Development Center” to provide sufficient training and learning opportunities for employees and help
them grow rapidly. The Company actively carried out training for newcomers and professional abilities such as "Marathon
Leadership Training Camp" "Huangpu New Army" "X+ Plan" and "37TALK" promoted talent to meet the needs of business
upgrading paid attention to internal sharing established a team of internal professional lecturers among employees spread
culture of sharing built a talent echelon and upgraded talent development system.Centering on the cultural philosophy of "health happiness and sustainability" the Company upgraded its diverse welfare
system strengthened employee care and promoted talent retention. The diverse welfare system encompasses interest-free
housing loans employee charity funds commercial insurance and employee health management services. The Company has
launched the “Newborn Initiative” under which a childbirth fund of RMB20000 per child is granted to officially employed staff with
a service tenure of two years or more further enhancing talent care and incentive measures. In addition seasonal activities onholidays annual physical examination singles' fellowship "Family Day" "Boss Face-to-Face" "37 Battle Talk" "Carnival" “Healthy
37ers” and other thematic activities were regularly held. Inter-departments' team building promoted the connection between
employees and their friends relatives and colleagues. In addition the Company has established recreational clubs for employees
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.covering “Super Runners” e-sports table games dancing badminton football and yoga created cultural atmosphere that meets
the characteristics of the younger generation strengthened employees' sense of belonging balanced employees' work and life and
took care of employees' physical and mental health in various forms.
4. Technology iteration and innovation risk and countermeasures
The game industry has seen rapid technology iteration and faster changes in cutting-edge technologies and demand for new
types of products has emerged among young users. Against this backdrop if a game company fails to grasp the industry
development trend in a forward-looking manner and promptly innovate its technology and products its R&D and application of key
technologies will be outdated resulting in the risk of products falling behind the market. In response the Company continued to
focus on changes in the industry's cutting-edge technologies. First it closely followed industry changes and probed into cutting-
edge technologies through investment layout to maintain sensitivity to leading technologies. Second it intensified the incubation
of internal technologies valued investment in self-developed games improved self-development system established an effective
R&D system framework and introduced diversified incentives to encourage employees to explore new technologies. By taking
these actions the Company has reserved technologies and products for the industry development trend.VIII Development and Implementation of Market Value Management System and Valuation
Enhancement Plan
Indicate whether the Company has developed a market value management system.□ Yes □ No
Indicate whether the Company has disclosed any valuation enhancement plan.□ Yes□ No
The Company's market value management system is aimed to regulate the Company's market value management activities
safeguard the legitimate rights and interests of the Company and investors enhance the Company's investment value and
increase investor returns. The main contents include the goals and basic principles organs and responsibilities plans and
methods of market value management etc.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Part IV Governance Environmental and Social Information
I Changes of Directors and Senior Management
□ Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Ye Wei Board Secretary Resignation February?12?2026 Reassignment
Deputy General
Zhu Huaimin Resignation February?12?2026 Reassignment
Manager
Wang Sijie Board Secretary Appointed February?12?2026 Reassignment
II Interim Dividend Plan
□ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 1.00
With a fixed dividend payout ratio based on the total issued
share capital (exclusive of shares in the Company’s account for
repurchased shares) on the date of record a cash dividend of
RMB1.00 (tax inclusive) per 10 shares is planned to be
distributed to all the shareholders of the Company; and there
Share base (share) will be no bonus issue from either profit or capital reserves. As
of the date of this report there were 12539547 of the
Company’s shares in its account for repurchased shares. As
such the relevant calculation is based on the share capital of
2199698134 shares being the total share capital of the
Company of 2212237681 shares less the repurchased shares.Cash dividends (RMB) (tax inclusive) 219969813.40
Cash dividends in other forms (such as share repurchase)
0.00
(RMB)
Total cash dividends (including those in other forms) (RMB) 219969813.40
Distributable profit (RMB) 4634962506.95
Total cash dividends (including those in other forms) as % of
100.00%
total profit to be distributed
Applicable cash dividend policy
If it is difficult to identify the development stage of the Company but it has a significant capital expenditure arrangement when
making profit distribution cash dividends shall account for no less than 20% in the profit distribution.Details of the cash and/or stock dividend plan
In light of the second?quarter net profit attributable to the Listed Company’s shareholders after deducting non-recurring profits
and losses as well as of the second?quarter net cash flows from operating activities upon approval by the Board of Directors the
Company’s 2026 interim dividend plan is as follows: With a fixed dividend payout ratio based on the total issued share capital
(exclusive of shares in the Company’s account for repurchased shares) on the date of record a cash dividend of RMB1.00 (tax
inclusive) per 10 shares is planned to be distributed to all the shareholders of the Company; and there will be no bonus issue
from either profit or capital reserves. The above dividend plan is consistent with the Company’s performance growth and also in
line with relevant provisions of the Company Law the Company’s Articles of Association the Company’s Shareholder Return
Plan etc. For further information please visit http://www.cninfo.com.cn.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.III Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable □ Not applicable
1. Equity Incentives
None
2. Implementation of Employee Stock Ownership Plans
□ Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
Awardee coverage Number of
Total
number of Change As % of the totalawardees shares held share capital
Funding source
The Proposal on
The Third Employee Extending the Duration of
Stock Ownership Plan: the Company’s Third
the leadership team of Employee Stock
the Company (directors Ownership Plan was
and senior approved at the Seventh Shares under the
management); chief Meeting of the Seventh employee stock
officers and deputy No more than Board of Directors on ownership plan
1119886 0.05% were transferred
chief officers; key 400 April?16?2026. As such it from repurchased
management and was approved to extend shares for no
technological staff the duration of the compensation.(mid-level employees); Company’s Third
and other employees Employee Stock
approved by the Ownership Plan by 36
Company months i.e. extending its
duration to July?26?2029.Change of the asset management institution during the Reporting Period:
□ Applicable□ Not applicable
Share ownership changes due to share disposal by holders and other reasons during the Reporting Period:
□ Applicable □ Not applicable
At the end of the Reporting Period 1119886 shares were held under the Company’s Third Employee Stock Ownership Plan
representing 0.05% of the Company’s total share capital.Exercise of shareholder rights during the Reporting Period:
None
Other information about employee stock ownership plans during the Reporting Period:
□ Applicable □ Not applicable
The original expiration date for the duration of the Company’s Third Employee Stock Ownership Plan was July?26?2026.Upon approval by the Company’s Board of Directors it was resolved to extend the duration of the Company’s Third Employee
Stock Ownership Plan by three years i.e. extending its duration to July?26?2029.Changes in the members of the employee stock ownership plan management committee:
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.□ Applicable□ Not applicable
Impact of employee stock ownership plans on the finance of the Company during the Reporting Period and the relevant
accounting treatments:
□ Applicable□ Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable□ Not applicable
3. Other Incentive Measures for Employees
□ Applicable□ Not applicable
IV Environmental Information Disclosure
Indicate whether any of the listed company and its major subsidiaries is included in the list of companies that are required by law
to disclose environmental information.□ Yes□ No
V Corporate Social Responsibility (CSR)
During the Reporting Period the Company made donations of RMB5.03?million to support initiatives including rural
revitalization cultivation of innovative talents and care for disadvantaged?groups so as to contribute to social development.
1. Support for rural revitalization
(1) Diversified development of rural talents
Through the Guangdong Youxin Charity Foundation initiated by the Company 37 Interactive Entertainment has continued to
advance high?quality education development and youth development providing outstanding high?school students with support
including AI literacy improvement innovative?thinking expansion scholarships and student?aid grants. During the Reporting
Period via the Guangdong Youxin Charity Foundation the Company sustained financial support for 2658 outstanding
high?school students across 10 regions including Anhui Sichuan Guizhou and Fujian.To raise the digital vitality of rural education and equip rural teachers with practical skills and innovative ideas for AI?enabled
teaching and student administration 37 Interactive Entertainment also delivered hands?on training for primary and
secondary?school teachers from more than 100 schools in locations such as Lechang of Guangdong and Qingyuan of Jiangxi.
(2) Digital empowerment for rural industries
37 Interactive Entertainment gave full play to its strengths in digital creativity to facilitate the development of distinctive
rural industries.During the Reporting Period the Company carried out cultural tie?ins featuring characteristic tea industries in its well?known
games The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) and My Memory Shop (时光杂货店). The initiatives enabled users
to learn about tea culture related to Maofeng tea from Wuhu Anhui and black tea from Fengqing Yunnan and allowed users to
experience the full process of tea production from planting to stir?frying within the games. The Company also developed themed
gift boxes as another way of support realizing support coverage spanning digital?content?driven advocacy to tangible
product?based assistance.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
2. Social?oriented application of AI
(1) AI?enabled silver?age industry
Through its quality education brand Miaocode 37 Interactive Entertainment has partnered with Guangzhou Yuewei Senior
Vitality Research Institute to proactively explore age?friendly AI product design so as to address the spiritual needs of the elderly
in the AI era.The Company has launched public?welfare courses on AI literacy tailored for the elderly. Via on?site hands?on lectures more
than 250 elderly participants learned to use basic AI tools. It also developed a series of online training programs for AI
applications exploring commercial pathways to help the elderly acquire digital skills and inject new vitality into the silver?age
economy.During the Reporting Period the Company further cooperated with Zhujiang Hospital of Southern Medical University to
advance the R&D of a gamified therapeutic program that leverages AI technology for Alzheimer’s rehabilitation training. Designed
to empower elderly healthcare via digital and gamified approaches the game is scheduled for release within the year.
(2) AI?empowered community services
To help front?line community workers acquire practical AI skills and improve the quality and efficiency of community
services 37 Interactive Entertainment delivered AI?empowered training courses for key front?line talents from 29 grassroots
communities in Guangzhou during the Reporting Period including:
In cooperation with Guangzhou Charity Federation the Company provided guidance on adopting AI tools for community
workers in specific scenarios such as public?welfare project planning public?welfare project data management and public?welfare
project communication.Working with the Party School of Haizhu District Committee the Company delivered a special Party?lecture themed
“Community Governance in the AI Era” for secretaries of community Party organizations. It also went deep into sub?districts to
guide front?line community workers in leveraging AI tools to increase the efficiency of document drafting.
(3) AI?driven innovation exploration
For innovative talent development the Company co?hosted the “Shenshan Cup” 2026 Global University AI Micro?Drama
Creation and Game Design Competition together with the Publicity Department of CPC Wuhu Municipal Committee Wuhu
Bureau of Culture and Tourism and the People’s Government of Jiujiang District. Special incubation funds and competition
incentives were set up to help young talents improve their AI application capabilities and develop high?quality digital content.In terms of digital?content innovation the Company together with its well?known game My Memory Shop (时光杂货店)
produced an AI?powered promotional video themed on “The Thirteen?Hongs of Guangzhou”. Leveraging AI technologies the
video recreates historical scenes of friendly Sino?foreign exchanges and prosperous trade facilitating cultural communication.Under the guidance of the Cyberspace Affairs Office of Wuhu Municipal Committee of the CPC and Wuhu Municipal Bureau
of Justice the Company produced a five?episode AI?generated legal?popularization video series to raise public awareness of
anti?fraud practices privacy protection and maintaining a clean cyberspace.Drawing on capabilities of the Company’s self?developed “Xiao Qi Large Model” the Company innovatively adopted AI?aided
manhua?drama generation and transformed ESG topics including cybersecurity public?welfare student aid and ecological
environmental protection into inspirational “level?up through monster?fighting” storylines.
(4) AI for business development
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
37 Interactive Entertainment actively advanced the commercialization of its AI capabilities and upgraded the “Ling Cha Cha”
monitoring system to provide enterprises with solutions covering brand insight intellectual?property protection and AI channel
optimization.The Company launched “Ling Xu Xu” an AI?creation platform to enable rapid generation of marketing materials resolve
common pain points and drive higher efficiency in corporate communications.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Part V Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Share
as
s as
dividen
divid
d
Percent New end Percenta
Number convert Other Subtotal Number
age (%) issues conv ge (%)
ed from
erted
capital
from
reserve
profit
s
1. Restricted shares 624878832 28.25% -46403775 -46403775 578475057 26.15%
1.1 Shares held by
the government
1.2 Shares held by
state-owned
corporations
1.3 Shares held by
other domestic 624878832 28.25% -46403775 -46403775 578475057 26.15%
investors
Including: Shares
held by domestic
corporations
Shares
held by domestic 624878832 28.25% -46403775 -46403775 578475057 26.15%
natural persons
1.4 Shares held by
overseas investors
Including: Shares
held by overseas
corporations
Shares
held by overseas
natural persons
2. Un-restricted shares 1587358849 71.75% 46403775 46403775 1633762624 73.85%
2.1 RMB-
denominated common 1587358849 71.75% 46403775 46403775 1633762624 73.85%
shares
2.2 Domestically
listed foreign shares
2.3 Overseas listed
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.foreign shares
2.4 Others
100.00
3. Total shares 2212237681 0 0 2212237681 100.00%
%
Reasons for share changes:
□ Applicable □ Not applicable
During the Reporting Period there was no change in the Company’s total share capital. The share changes stemmed from
the unlocking of all shares held by directors supervisors and senior management upon the expiration of the six?month lock?up
period following their departure from office in accordance with applicable laws and regulations.Approval of share changes:
□ Applicable□ Not applicable
Transfer of share ownership:
□ Applicable□ Not applicable
Progress on share repurchases:
□ Applicable□ Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable□ Not applicable
Effects of share changes on the basic earnings per share diluted earnings per share equity per share attributable to the
Company’s common shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□ Applicable□ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable□ Not applicable
2. Changes in Restricted Shares
□ Applicable □ Not applicable
Unit: share
Restricted
Increase in
Beginning shares Ending
Name of restricted Reason for Date of
restricted unlocked restricted
shareholder shares during restriction unlocking
shares during the shares
the period
period
Li Weiwei 242421239 0 0 242421239 Subject to
Zeng Kaitian 184855555 0 0 184855555 regulations in
respect of
changes in
shareholdings
of directors and
Hu Yuhang 151198263 0 0 151198263 Locked shares senior
of senior management in
management the Company
Law etc.Xu Zhigao 38996974 38996974 0 0
Yang Jun 2100000 2100000 0 0 January?16?202
Liu Jun 5296801 5296801 0 0 6
He Yang 10000 10000 0 0
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Total 624878832 46403775 0 578475057 -- --
Note: Xu Zhigao Yang Jun Liu Jun and He Yang completed the six?month period following their departure from their positions as
the Company’s directors supervisors and senior management on January?16?2026. Pursuant to relevant laws and regulations all
shares held by them were unlocked.II Issuance and Listing of Securities
□ Applicable□ Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of preferred-share shareholders with
Number of common shareholders 187589 0
resumed voting rights (if any) (see note 8)
5% or greater shareholders or the top 10 shareholders (exclusive of shares lent in refinancing)
Sharehol Increase/decr Shares in pledge marked or
Un-
Name of Nature of ding ease in the Restricted frozen
Shares held restricted
shareholder shareholder percenta Reporting shares held
shares held
ge Period Status Shares
Domestic
Li Weiwei 14.61% 323228319 0 242421239 80807080
natural person
Domestic
Zeng Kaitian 11.14% 246474074 0 184855555 61618519
natural person
Domestic
Hu Yuhang 9.11% 201597684 0 151198263 50399421 In pledge 24150000
natural person
Hong Kong
Securities Overseas
3.95% 87310039 -39577113 0 87310039
Clearing corporation
Company Ltd.China
Minsheng
Banking Corp.Ltd.－China
Securities
Cartoon Games
Other 1.84% 40809506 -18841184 0 40809506
Exchange
Traded Open-
End Index
Securities
Investment
Fund
Domestic
Xu Zhigao 1.76% 38996974 0 0 38996974
natural person
Overseas
Wu Weihong 1.61% 35653178 400000 0 35653178
natural person
Domestic
Wu Weidong 1.16% 25650057 -4630000 0 25650057
natural person
37 Interactive
Entertainment
Network
Other 0.59% 13035834 -3265700 0 13035834
Technology
Group Co. Ltd.－The Fourth
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Employee Stock
Ownership Plan
Shanghai
Pudong
Development
Bank Co. Ltd.－
Guotai China
Securities
Cartoon Games Other 0.54% 11963243 -3395900 0 11963243
Exchange
Traded Open-
End Index
Securities
Investment
Fund
Strategic investor or general
corporation becoming a top-10
N/A
shareholder in a rights issue (if
any) (see note 3)
1. Among the top 10 shareholders of the Company Wu Weidong and Wu Weihong are shareholders acting in
Related or acting-in-concert concert.parties among the shareholders 2. The Company is not aware of whether there is among the other top 10 shareholders any related parties
above or acting-in-concert parties as defined in the Measures on the Administration of Acquisition of Listed
Companies.Explain if any of the shareholders
above was involved in
entrusting/being entrusted with None
voting rights or waiving voting
rights
The Company’s account for repurchased shares accumulated 12539547 shares repurchased through
Special account for share
centralized?bidding transactions representing 0.57% of the Company’s total share capital as of June?30?2026.repurchases (if any) among the top
As required such shares shall not be presented in the list of the Company’s top?10 unrestricted
10 shareholders (see note 11)
common?share shareholders.Top 10 un-restricted shareholders (exclusive of shares lent in refinancing and senior management’s locked shares)
Shares by class
Name of shareholder Un-restricted shares held
Class Shares
RMB-
Hong Kong Securities Clearing denominate
87310039 87310039
Company Ltd. d common
shares
RMB-
denominate
Li Weiwei 80807080 80807080
d common
shares
RMB-
denominate
Zeng Kaitian 61618519 61618519
d common
shares
RMB-
denominate
Hu Yuhang 50399421 50399421
d common
shares
China Minsheng Banking Corp. RMB-
Ltd.－China Securities Cartoon denominate
40809506 40809506
Games Exchange Traded Open-End d common
Index Securities Investment Fund shares
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.RMB-
denominate
Xu Zhigao 38996974 38996974
d common
shares
RMB-
denominate
Wu Weihong 35653178 35653178
d common
shares
RMB-
denominate
Wu Weidong 25650057 25650057
d common
shares
37 Interactive Entertainment RMB-
Network Technology Group Co. denominate
13035834 13035834
Ltd.－The Fourth Employee Stock d common
Ownership Plan shares
Shanghai Pudong Development
RMB-
Bank Co. Ltd.－Guotai China
denominate
Securities Cartoon Games 11963243 11963243
d common
Exchange Traded Open-End Index
shares
Securities Investment Fund
Related or acting-in-concert
1. Among the top 10 shareholders of the Company Wu Weidong and Wu Weihong are shareholders acting in
parties among the top 10 un- concert.restricted shareholders as well as 2. The Company is not aware of whether there is among the other top 10 shareholders any related parties
between the top 10 un-restricted or acting-in-concert parties as defined in the Measures on the Administration of Acquisition of Listed
shareholders and the top 10 Companies.shareholders
Top 10 common shareholders
engaged in securities margin N/A
trading (if any) (see note 4)
5% or greater shareholders top 10 shareholders and top 10 un-restricted public shareholders involved in refinancing shares
lending:
□ Applicable□ Not applicable
Indicate whether there was any change to the top 10 shareholders or top 10 un-restricted public shareholders due to refinancing
shares lending/returning during the Reporting Period compared to the same period of last year.□ Applicable□ Not applicable
Indicate whether any of the top 10 common shareholders or the top 10 un-restricted common shareholders of the Company
conducted any promissory repo during the Reporting Period.□ Yes□ No
No such cases in the Reporting Period.IV Changes in the Shareholdings of Directors and Senior Management
□ Applicable□ Not applicable
No such changes in the Reporting Period. For the relevant information see the 2025 Annual Report.V Change of the Controlling Shareholder or Actual Controller
If the Company previously disclosed that the actual controller plans a change of control which has not yet been finalized please
elaborate on the latest progress of such change of control arrangement.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.□ Applicable□ Not applicable
Change of the controlling shareholder in the Reporting Period:
□ Applicable□ Not applicable
No such cases in the Reporting Period.Change of the actual controller in the Reporting Period:
□ Applicable□ Not applicable
No such cases in the Reporting Period.VI Preferred Shares
□ Applicable□ Not applicable
No such cases in the Reporting Period.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Part VI Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes□ No
They are unaudited by such an auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by 37 Interactive Entertainment Network Technology Group Co. Ltd.June 30 2026
Unit: RMB
Item June 30 2026 January 1 2026
Current assets:
Monetary funds 3829663758.66 4123545240.96
Transaction settlement funds
Loans to other banks
Trading financial assets 2928530938.68 3223557823.14
Derivative financial assets
Notes receivable
Accounts receivable 1158973141.41 1121605274.40
Accounts receivable financing
Prepayments 981257764.11 933533438.08
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 46024749.08 49631915.13
Including: Interest receivable
Dividends receivable 17200000.00
Redemptory monetary capital for
sale
Inventories 482988019.56 474948916.44
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year 1822101178.59 711592656.37
Other current assets 137551231.85 131846683.21
Total current assets 11387090781.94 10770261947.73
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Long-term equity investments 1514133101.02 541108476.33
Other equity investments 228577185.64 195214869.29
Other non-current financial assets 2220630165.97 1880164590.83
Investment properties 818533023.49 829444129.24
Fixed assets 884745772.85 895767572.19
Construction in progress 38418492.09 24017193.68
Productive living assets
Oil and gas assets
Right-of-use assets 8069581.98 10071890.44
Intangible assets 1360466372.70 1384921036.69
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 1578065048.53 1578065048.53
Long-term deferred expenses 137638132.78 126078222.22
Deferred income tax assets 94886524.60 85891165.09
Other non-current assets 2702838314.20 3994251725.88
Total non-current assets 11587001715.85 11544995920.41
Total assets 22974092497.79 22315257868.14
Current liabilities:
Short-term loans 3683005400.14 3963827983.08
Loans from the central bank
Loans from other banks
Trading financial liabilities 9009110.18
Derivative financial liabilities
Notes payable 833410180.40 944600000.00
Accounts payable 2156968755.49 1776482556.69
Advances from customers 1093499.99 1279551.31
Contract liabilities 246985779.58 239381006.69
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 233254850.29 335240716.75
Taxes payable 236611976.77 254439929.14
Other payables 1005812281.81 951480965.46
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within
one year 7061560.60 7082965.49
Other current liabilities 59844119.96 65640725.70
Total current liabilities 8464048405.03 8548465510.49
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 382931.32 2452513.57
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 285464160.80 94766989.80
Other non-current liabilities
Total non-current liabilities 285847092.12 97219503.37
Total liabilities 8749895497.15 8645685013.86
Shareholders' equity:
Share capital 2212237681.00 2212237681.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2718090448.20 2551612936.51
Less: Treasury shares 300524656.78 300524656.78
Other comprehensive income -183682511.78 -169643754.58
Special reserves
Surplus reserves 666869940.33 666869940.33
General risk reserves
Retained earnings 8976698110.28 8573655829.61
Total equity attributable to shareholders
of the Company 14089689011.25 13534207976.09
Non-controlling interests 134507989.39 135364878.19
Total shareholders' equity 14224197000.64 13669572854.28
Total liabilities and shareholders’ equity 22974092497.79 22315257868.14
Legal representative: Zeng Kaitian Person-in-charge of accounting: Ye Wei Head of the accounting department: Ye Wei
2. Balance Sheet of the Company
Unit: RMB
Item June 30 2026 January 1 2026
Current assets:
Monetary funds 1030416582.95 924898806.39
Trading financial assets 2102478632.88 2321253907.41
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 488877.09 66558.63
Other receivables 1401103089.04 1584542300.00
Including: Interest receivable
Dividends receivable
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one
year 847593318.14 182647178.06
Other current assets 9981801.59 9162316.97
Total current assets 5392062301.69 5022571067.46
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Long-term equity investments 9305301327.68 9305301327.68
Other equity investments
Other non-current financial assets 80738178.41 80738178.41
Investment properties
Fixed assets
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 354237.54
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 25152032.00 33539022.53
Other non-current assets 919354815.86 1223203873.69
Total non-current assets 10330546353.95 10643136639.85
Total assets 15722608655.64 15665707707.31
Current liabilities:
Short-term loans
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 469844.11 430742.59
Advances from customers
Contract liabilities
Employee benefits payable 94243.96 553634.94
Taxes payable 2816.16 3403.05
Other payables 1655921009.17 2031943501.25
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within
one year
Other current liabilities
Total current liabilities 1656487913.40 2032931281.83
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities
Total liabilities 1656487913.40 2032931281.83
Shareholders' equity:
Share capital 2212237681.00 2212237681.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Capital reserves 6410513070.57 6250612855.35
Less: Treasury shares 300524656.78 300524656.78
Other comprehensive income
Special reserves
Surplus reserves 1108932140.50 1108932140.50
Retained earnings 4634962506.95 4361518405.41
Total shareholders' equity 14066120742.24 13632776425.48
Total liabilities and shareholders’ equity 15722608655.64 15665707707.31
3. Consolidated Income Statement
Unit: RMB
Item H1 2026 H1 2025
1. Total operating revenue 7274643508.72 8486116689.62
Including: Operating revenue 7274643508.72 8486116689.62
Interest income
Premium income
Handling charge and
commission income
2. Total operating costs and expenses 6069360410.81 6958794617.16
Including: Cost of sales 1638778174.35 1976706274.51
Interest expense
Handling charge and
commission expenses
Surrenders
Net claims paid
Net appropriation of
insurance liability reserves
Expenditure on policy
dividends
Reinsurance premium
expenses
Taxes and surcharges 21855156.78 24563454.82
Distribution and selling
expenses 3764438195.99 4410194833.32
General and
administrative expenses 283967346.39 296824781.90
Research and
development expenses 391018887.50 337441172.39
Financial expenses -30697350.20 -86935899.78
Including: Interest
expense 18915883.26 31464412.78
Interest
income 81726876.69 116078865.48
Add: Other income 10455459.39 13015767.02
Investment income (“-” for
loss) 1016007741.85 61930197.10
Including: Share of profits and
losses of joint ventures and associates 968550580.43 10145519.06
Gain on
derecognition of financial assets
measured at amortized cost (“-” for loss)
Gain on exchange (“-” for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss) 13955741.75 19374832.45
Impairment loss on credit (“-”
for loss) 2743061.69 -267254.09
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Impairment loss on assets (“-”
for loss)
Gain on disposal of assets (“-”
for loss) 160702.64 103702.54
3. Operating profit (“-” for loss) 2248605805.23 1621479317.48
Add: Non-operating income 3256146.88 1140329.45
Less: Non-operating expenses 5252034.18 13276351.01
4. Profit before income tax expenses (“-”
for loss) 2246609917.93 1609343295.92
Less: Income tax expenses 483800898.81 208478502.79
5. Net profit (“-” for net loss) 1762809019.12 1400864793.13
5.1 Classified by continuity of
operations
5.1.1 Net profit from continuing
operations (“-” for net loss) 1762809019.12 1400864793.13
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 Classified by ownership of the
equity
5.2.1 Net profit attributable to
shareholders of the Company (“-” for net 1766269020.71 1400246950.03
loss)
5.2.2 Net profit attributable to non-
controlling interests (“-” for net loss) -3460001.59 617843.10
6. Other comprehensive income net of
tax -39218854.52 -15725349.02
Other comprehensive income
attributable to shareholders of the -39218908.31 -15725349.02
Company net of tax
6.1 Other comprehensive income
that will not be reclassified subsequently -7105553.20
to profit or loss
6.1.1 Changes caused by
remeasurement of defined benefit
pension schemes
6.1.2 Share of the other
comprehensive income of the investee
accounted for using equity method that
will not be reclassified subsequently to
profit or loss
6.1.3 Changes in fair value of
other equity investments -7105553.20
6.1.4 Changes in the fair value of
the company's own credit risk
6.1.5 Others
6.2 Other comprehensive income
that will be reclassified subsequently to -39218908.31 -8619795.82
profit or loss
6.2.1 Share of the other
comprehensive income of the investee
accounted for using equity method that -19025.79 32846.75
will be reclassified subsequently to profit
or loss
6.2.2 Changes in fair value of
other equity investments
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Allowance for credit
impairments in other debt investments
6.2.5 Cash flow hedge reserve
6.2.6 Exchange differences on -39199882.52 -8652642.57
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.translation of foreign currency financial
statements
6.2.7 Others
Other comprehensive income
attributable to non-controlling interests 53.79
net of tax
7. Total comprehensive income 1723590164.60 1385139444.11
Total comprehensive income
attributable to shareholders of the 1727050112.40 1384521601.01
Company
Total comprehensive income
attributable to non-controlling interests -3459947.80 617843.10
8. Earnings per share:
8.1 Basic earnings per share 0.80 0.64
8.2 Diluted earnings per share 0.80 0.64
Where business combinations under common control occurred in the current period the net profit achieved by the acquirees
before the combinations was RMB0.00 with the amount for the same period of last year being RMB0.00.Legal representative: Zeng Kaitian Person-in-charge of accounting: Ye Wei Head of the accounting department: Ye Wei
4. Income Statement of the Company
Unit: RMB
Item H1 2026 H1 2025
1. Operating revenue 0.00 0.00
Less: Cost of sales 0.00 0.00
Taxes and surcharges 31839.73 22500.00
Distribution and selling
expenses
General and administrative
expenses 15763438.01 10040386.71
Research and development
expenses
Financial expenses -20739439.83 3924444.04
Including: Interest expense 4122626.79
Interest income 21143551.94 560708.75
Add: Other income 5088398.41 2148111.38
Investments income (“-” for
loss) 1602432257.04 2429511791.54
Including: Share of profits
and losses of joint ventures and
associates
Gain on
derecognition of financial assets
measured at amortized cost (“-” for loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss) 11182134.24 11167932.85
Impairment loss on credit (“-”
for loss)
Impairment loss on assets (“-”
for loss)
Gain on disposal of assets (“-”
for loss)
2. Operating profit (“-” for loss) 1623646951.78 2428840505.02
Add: Non-operating income 2.03 158401.12
Less: Non-operating expenses
3. Profit before income tax expenses (“-” 1623646953.81 2428998906.14
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.for loss)
Less: Income tax expenses 8386990.53 728066.84
4. Net profit (“-” for net loss) 1615259963.28 2428270839.30
4.1 Net profit from continuing
operations (“-” for net loss) 1615259963.28 2428270839.30
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
tax
5.1 Other comprehensive income
that will not be reclassified subsequently
to profit or loss
5.1.1 Changes caused by
remeasurement of defined benefit
pension schemes
5.1.2 Share of the other
comprehensive income of the investee
accounted for using equity method that
will not be reclassified subsequently to
profit or loss
5.1.3 Changes in fair value of
other equity investments
5.1.4 Changes in the fair value of
the company's own credit risk
5.1.5 Others
5.2 Other comprehensive income
that will be reclassified subsequently to
profit or loss
5.2.1 Share of the other
comprehensive income of the investee
accounted for using equity method that
will be reclassified subsequently to profit
or loss
5.2.2 Changes in fair value of
other equity investments
5.2.3 Other comprehensive
income arising from the reclassification
of financial assets
5.2.4 Allowance for credit
impairments in other debt investments
5.2.5 Cash flow hedge reserve
5.2.6 Exchange differences on
translation of foreign currency financial
statements
5.2.7 Others
6. Total comprehensive income 1615259963.28 2428270839.30
7. Earnings per share:
7.1 Basic earnings per share
7.2 Diluted earnings per share
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2026 H1 2025
1. Cash flows from operating activities:
Cash received from the sales of
goods or rendering services 7521986079.75 8799176336.06
Net increase in customer deposits
and interbank deposits
Net increase in loans from the
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest handling charges and
commissions received
Net increase in loans from other
banks
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Refunds of taxes and levies 67704.42 1495944.11
Cash received relating to other
operating activities 54125747.96 48851788.95
Sub-total of cash inflows from operating
activities 7576179532.13 8849524069.12
Cash paid for purchases of goods
and services 1728162342.90 1807591425.24
Net increase in loans and advances
to customers
Net increase in deposits in the
central bank and other banks and
financial institutions
Payments for claims on original
insurance contracts
Net increase in loans to other banks
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and on behalf of
employees 883781950.55 901658510.47
Payments of taxes and levies 456060269.91 338618589.43
Cash paid relating to other
operating activities 3419185626.26 4048312877.30
Sub-total of cash outflows used in
operating activities 6487190189.62 7096181402.44
Net cash flows from operating activities 1088989342.51 1753342666.68
2. Cash flows from investing activities:
Cash received from disposal of
investments 84437279.43 127980980.54
Cash received from investment
income 139718548.50 274026030.77
Cash received from disposal of fixed
assets intangible assets and other long- 989325.00 10356.00
term assets
Net cash received from disposal of
subsidiaries and other business units 696779.00
Cash received relating to other
investing activities 7140629199.97 9270962040.85
Sub-total of cash inflows from investing
activities 7366471131.90 9672979408.16
Cash paid for acquisition of fixed
assets intangible assets and other long- 95339717.81 227815426.77
term assets
Cash paid to acquire investments 649241969.32 58252981.87
Net increase in pledged loans
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.granted
Net cash paid for the acquisition of
subsidiaries and other business units 1495.90
Cash paid relating to other investing
activities 5587713295.77 9488976494.87
Sub-total of cash outflows used in
investing activities 6332294982.90 9775046399.41
Net cash flows from/used in investing
activities 1034176149.00 -102066991.25
3. Cash flows from financing activities:
Cash received from capital
contributions 520000.00
Including: Cash received from
capital contributions by non-controlling 520000.00
interests of subsidiaries
Cash received from borrowings 2855000894.67 2225668707.76
Cash received relating to other
financing activities 210550215.22 220000000.00
Sub-total of cash inflows from financing
activities 3066071109.89 2445668707.76
Cash repayments of borrowings 3136725697.19 2235168707.76
Cash paid for interest and dividends 1359697726.48 1304574913.29
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash paid relating to other
financing activities 5880730.98 5925305.63
Sub-total of cash outflows used in
financing activities 4502304154.65 3545668926.68
Net cash flows from/used in financing
activities -1436233044.76 -1100000218.92
4. Effect of foreign exchange rate
changes on cash and cash equivalents -25830264.09 3382539.80
5. Net increase/decrease in cash and
cash equivalents 661102182.66 554657996.31
Add: Cash and cash equivalents at
beginning of the period 1501026856.98 1545506260.60
6. Cash and cash equivalents at end of
the period 2162129039.64 2100164256.91
6. Cash Flow Statement of the Company
Unit: RMB
Item H1 2026 H1 2025
1. Cash flows from operating activities:
Cash received from the sales of
goods or rendering services
Refunds of taxes and levies 728511.99
Cash received relating to other
operating activities 7130957113.40 1753296108.69
Sub-total of cash inflows from operating
activities 7130957113.40 1754024620.68
Cash paid for purchases of goods
and services
Cash paid to and on behalf of
employees 732211.80 2856795.06
Payments of taxes and levies 32426.62 26280.57
Cash paid relating to other
operating activities 7327576603.37 2637861398.99
Sub-total of cash outflows used in
operating activities 7328341241.79 2640744474.62
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.Net cash flows from/used in operating
activities -197384128.39 -886719853.94
2. Cash flows from investing activities:
Cash received from disposal of
investments
Cash received from investment
income 1615972245.74 2440244687.41
Cash received from disposal of fixed
assets intangible assets and other long-
term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
investing activities 3520000000.00 3715000000.00
Sub-total of cash inflows from investing
activities 5135972245.74 6155244687.41
Cash paid for acquisition of fixed
assets intangible assets and other long-
term assets
Cash paid to acquire investments 15000000.00
Net cash paid for the acquisition of
subsidiaries and other business units
Cash paid relating to other investing
activities 3794470534.23 3645000000.00
Sub-total of cash outflows used in
investing activities 3794470534.23 3660000000.00
Net cash flows from/used in investing
activities 1341501711.51 2495244687.41
3. Cash flows from financing activities:
Cash received from capital
contributions
Cash received from borrowings 50000000.00
Cash received relating to other
financing activities 159900215.22
Sub-total of cash inflows from financing
activities 159900215.22 50000000.00
Cash repayments of borrowings 400000000.00
Cash paid for interest and dividends 1341815861.74 1280169889.95
Cash paid relating to other
financing activities 1408080.00 2816160.00
Sub-total of cash outflows used in
financing activities 1343223941.74 1682986049.95
Net cash flows from/used in financing
activities -1183323726.52 -1632986049.95
4. Effect of foreign exchange rate
changes on cash and cash equivalents
5. Net increase/decrease in cash and
cash equivalents -39206143.40 -24461216.48
Add: Cash and cash equivalents at
beginning of the period 772379986.63 45010430.49
6. Cash and cash equivalents at end of
the period 733173843.23 20549214.01
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
7. Consolidated Statement of Changes in Shareholders’ Equity
H1 2026
Unit: RMB
H1 2026
Equity attributable to shareholders of the Company
Other equity
Item instruments
Gene
Other Speci Non- Total
Less: ral
Share Prefer Capital comprehe al Surplus Retained Oth controllin shareholder
Perpe Treasury risk Sub-totalcapital reserves nsive reser reserves earnings ers g interestsred Oth s' equity
tual shares reser
share ers income ves
bonds ves
s
1. Balance
-
as at the 2212237 2551612 3005246 6668699 8573655 13534207 1353648 13669572
1696437
end of prior 681.00 936.51 56.78 40.33 829.61 976.09 78.19 854.28
54.58
year
Add:
Adjustment
s for
changed
accounting
policies
Adjust
ments for
corrections
of previous
errors
Others
2. Balance
-
as at 2212237 2551612 3005246 6668699 8573655 13534207 1353648 13669572
1696437
beginning 681.00 936.51 56.78 40.33 829.61 976.09 78.19 854.28
54.58
of year
3. Increase/ 16647751 - 40304228 555481035 - 554624146
decrease in 1.69 1403875 0.67 .16 856888.8 .36
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.the period 7.20 0
(“-” for
decrease)
3.1 Total - -
1766269 17270501 17235901
comprehen 3921890 3459947
020.71 12.40 64.60
sive income 8.31 .80
3.2 Capital
contributio
n and
15990021 159900215 520000.0 160420215
withdrawal
5.22 .22 0 .22
by
shareholder
s
3.2.1
Common
shares
contributio
520000.0
n and 520000.00
0
withdrawal
by
shareholder
s
3.2.2
Capital
contributio
n and
withdrawal
by holders
of other
equity
instruments
3.2.3 Share-
based
payments
included in
shareholder
s’ equity
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
3.2.4 15990021 159900215 159900215
Others 5.22 .22 .22
- - -
3.3 Profit
1341815 13418158 13418158
distribution
861.74 61.74 61.74
3.3.1
Appropriati
on to
surplus
reserves
3.3.2
Appropriati
on to
general risk
reserves
3.3.3
Distribution - - -
to 1341815 13418158 13418158
shareholder 861.74 61.74 61.74
s
3.3.4
Others
3.4 Internal
transfers -
2518015
within 25180151
1.11
shareholder .11
s’ equity
3.4.1
Capital
reserves
transferred
into capital
(or share
capital)
3.4.2
Surplus
reserves
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.transferred
into capital
(or share
capital)
3.4.3
Surplus
reserves for
making up
losses
3.4.4
Changes in
defined
benefit
pension
schemes
transferred
into
retained
earnings
3.4.5 Other
comprehen
sive income -
2518015
transferred 25180151
1.11
into .11
retained
earnings
3.4.6
Others
3.5 Special
reserves
3.5.1
Increase in
the period
3.5.2 Used
in the
period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
6577296. 3769272. 10346569. 2083059 12429628.
3.6 Others
47 81 28 .00 28
4. Balance
-
as at the 2212237 2718090 3005246 6668699 8976698 14089689 1345079 14224197
1836825
end of the 681.00 448.20 56.78 40.33 110.28 011.25 89.39 000.64
11.78
period
H1 2025
Unit: RMB
H1 2025
Equity attributable to shareholders of the Company
Other equity
Item instruments
Gene
Other Speci Non- Total
Less: ral
Share Prefer Capital comprehe al Surplus Retained Oth controllin shareholder
Perpe Treasury risk Sub-totalcapital red Oth reserves nsive reser reserves earnings ers g interests s' equity
tual shares reser
share ers income ves
bonds ves
s
1. Balance
-
as at the 2217864 2678529 4012290 6668699 7878369 12920729 9587640 13016606
1196741
end of prior 281.00 816.16 96.75 40.33 071.34 844.38 1.07 245.45
67.70
year
Add:
Adjustment
s for
changed
accounting
policies
Adjust
ments for
corrections
of previous
errors
Others
2. Balance -2217864 2678529 4012290 6668699 7878369 12920729 9587640 13016606
as at 1196741281.00 816.16 96.75 40.33 071.34 844.38 1.07 245.45
beginning 67.70
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.of year
3. Increase/
decrease in - - - -
12433593 78986149. 3081933 109805487
the period 5626600. 12470227 1007044 1572534
5.48 66 8.03 .69
(“-” for 00 6.77 39.97 9.02
decrease)
3.1 Total -
1400246 13845216 617843.1 13851394
comprehen 1572534
950.03 01.01 0 44.11
sive income 9.02
3.2 Capital
contributio
n and - - - -
3022972
withdrawal 5626600. 12530760 1007044 30229764. -40.00
4.77
by 00 4.74 39.97 77
shareholder
s
3.2.1
Common
shares
contributio
n and
withdrawal
by
shareholder
s
3.2.2
Capital
contributio
n and
withdrawal
by holders
of other
equity
instruments
3.2.3 Share-
based
payments
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.included in
shareholder
s’ equity
- - - -
3.2.4 3022972
5626600. 12530760 1007044 30229764. -40.00
Others 4.77
00 4.74 39.97 77
- - -
3.3 Profit
1275824 12758249 12758249
distribution
917.72 17.72 17.72
3.3.1
Appropriati
on to
surplus
reserves
3.3.2
Appropriati
on to
general risk
reserves
3.3.3
Distribution - - -
to 1275824 12758249 12758249
shareholder 917.72 17.72 17.72
s
3.3.4
Others
3.4 Internal
transfers
within
shareholder
s’ equity
3.4.1
Capital
reserves
transferred
into capital
(or share
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.capital)
3.4.2
Surplus
reserves
transferred
into capital
(or share
capital)
3.4.3
Surplus
reserves for
making up
losses
3.4.4
Changes in
defined
benefit
pension
schemes
transferred
into
retained
earnings
3.4.5 Other
comprehen
sive income
transferred
into
retained
earnings
3.4.6
Others
3.5 Special
reserves
3.5.1
Increase in
the period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
3.5.2 Used
in the
period
-
3.6 Others 605327.97 -86096.83 519231.14 491001.30
28229.84
4. Balance
-
as at the 2212237 2553827 3005246 6668699 8002705 12999715 1266957 13126411
1353995
end of the 681.00 539.39 56.78 40.33 006.82 994.04 39.10 733.14
16.72
period
8. Statement of Changes in Shareholders’ Equity of the Company
H1 2026
Unit: RMB
H1 2026
Other equity instruments
Item Other TotalLess: Treasury Special Retained
Share capital Preferred Perpetual Capital reserves comprehensive Surplus reserves Others shareholders'
Others shares reserves earnings
shares bonds income equity
1. Balance as at
the end of prior 2212237681.00 6250612855.35 300524656.78 1108932140.50 4361518405.41 13632776425.48
year
Add: Adjustments
for changed
accounting
policies
Adjustments
for corrections of
previous errors
Others
2. Balance as at
2212237681.00 6250612855.35 300524656.78 1108932140.50 4361518405.41 13632776425.48
beginning of year
3. Increase/
decrease in the 159900215.22 273444101.54 433344316.76
period (“-” for
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.decrease)
3.1 Total
comprehensive 1615259963.28 1615259963.28
income
3.2 Capital
contribution and
159900215.22 159900215.22
withdrawal by
shareholders
3.2.1 Common
shares
contribution and
withdrawal by
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity
instruments
3.2.3 Share-based
payments
included in
shareholders’
equity
3.2.4 Others 159900215.22 159900215.22
3.3 Profit -
-1341815861.74
distribution 1341815861.74
3.3.1
Appropriation to
surplus reserves
3.3.2 Distribution -
-1341815861.74
to shareholders 1341815861.74
3.3.3 Others
3.4 Internal
transfers within
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.shareholders’
equity
3.4.1 Capital
reserves
transferred into
capital (or share
capital)
3.4.2 Surplus
reserves
transferred into
capital (or share
capital)
3.4.3 Surplus
reserves for
making up losses
3.4.4 Changes in
defined benefit
pension schemes
transferred into
retained earnings
3.4.5 Other
comprehensive
income
transferred into
retained earnings
3.4.6 Others
3.5 Special
reserves
3.5.1 Increase in
the period
3.5.2 Used in the
period
3.6 Others
4. Balance as at 2212237681.00 6410513070.57 300524656.78 1108932140.50 4634962506.95 14066120742.24
the end of the
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.period
H1 2025
Unit: RMB
H1 2025
Other equity instruments
Item Other TotalLess: Treasury Special Retained
Share capital Preferred Perpetual Capital reserves comprehensive Surplus reserves Others shareholders'
Others shares reserves earnings
shares bonds income equity
1. Balance as at
the end of prior 2217864281.00 6345690695.32 401229096.75 1108932140.50 3522217783.24 12793475803.31
year
Add: Adjustments
for changed
accounting
policies
Adjustments
for corrections of
previous errors
Others
2. Balance as at
2217864281.00 6345690695.32 401229096.75 1108932140.50 3522217783.24 12793475803.31
beginning of year
3. Increase/
decrease in the -
-5626600.00 -95077839.97 1152445921.58 1152445921.58
period (“-” for 100704439.97
decrease)
3.1 Total
comprehensive 2428270839.30 2428270839.30
income
3.2 Capital
contribution and -
-5626600.00 -95077839.97
withdrawal by 100704439.97
shareholders
3.2.1 Common
shares
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.contribution and
withdrawal by
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity
instruments
3.2.3 Share-based
payments
included in
shareholders’
equity
-
3.2.4 Others -5626600.00 -95077839.97
100704439.97
3.3 Profit -
-1275824917.72
distribution 1275824917.72
3.3.1
Appropriation to
surplus reserves
3.3.2 Distribution -
-1275824917.72
to shareholders 1275824917.72
3.3.3 Others
3.4 Internal
transfers within
shareholders’
equity
3.4.1 Capital
reserves
transferred into
capital (or share
capital)
3.4.2 Surplus
reserves
transferred into
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.capital (or share
capital)
3.4.3 Surplus
reserves for
making up losses
3.4.4 Changes in
defined benefit
pension schemes
transferred into
retained earnings
3.4.5 Other
comprehensive
income
transferred into
retained earnings
3.4.6 Others
3.5 Special
reserves
3.5.1 Increase in
the period
3.5.2 Used in the
period
3.6 Others
4. Balance as at
the end of the 2212237681.00 6250612855.35 300524656.78 1108932140.50 4674663704.82 13945921724.89
period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
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