37 Interactive Entertainment Network
Technology Group Co. Ltd.2025 Interim Report (Summary)
August 2025
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
1Part 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 Chief Financial Officer & Board Secretary 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.Possible risks facing the Company and countermeasures have been detailed
in “VII Risks Facing the Company and Countermeasures” under “Part IIIManagement Discussion and Analysis” herein which investors are kindly reminded
to pay attention to.The Company is subject to the disclosure requirements for listed companies
engaged in software and IT services.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 RMB 2.10 (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.
2Table 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 Environmental Social and Governance Inform...29
Part V Share Changes and Shareholder Information.....34
Part VI Financial Statements.........................39
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
3Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name 37 InteractiveEntertainment 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 any) 37 INTERACTIVE ENTERTAINMENT NETWORK TECHNOLOGY GROUP CO.LTD.Legal representative Zeng Kaitian
II Contact Information
Board Secretary Securities Affairs Representative
Name Ye Wei Wang Sijie
Room 7001 7/F Tower B1 Room 7001 7/F Tower B1
Office address Wanjiang Fortune Plaza 88 Wanjiang Fortune Plaza 88Ruixiang Road Wuhu City Anhui Ruixiang Road Wuhu City Anhui
Province 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 2025 H1 2024 Change (%)
Operating revenue
(RMB) 8486116689.62 9231969089.44 -8.08%
Net profit attributable to
the Listed Company’s 1400246950.03 1264633578.95 10.72%
shareholders (RMB)
Net profit attributable to
the Listed Company’s
shareholders after 1387236352.38 1274632666.86 8.83%
deducting non-recurring
profits and losses (RMB)
Net cash flows from
operating activities 1753342666.68 2129183514.99 -17.65%
(RMB)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
4Basic earnings per share
(RMB/share) 0.64 0.57 12.28%
Diluted earnings per
share (RMB/share) 0.64 0.57 12.28%
Weighted average
return on equity (%) 10.46% 9.68% 0.78%
30 June 2025 31 December 2024 Change (%)
Total assets (RMB) 20570279030.73 19582691938.40 5.04%
Equity attributable to the
Listed Company’s 12999715994.04 12920729844.38 0.61%
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 103712.54
impairment allowance write-offs)
Government grants recognized in
profit or loss (exclusive of those
that are closely related to the
Company's normal business
operations and given in Mainly due to government grants
accordance with defined criteria 7503710.86 other than the rebates of value-
and in compliance with added tax
government policies and have a
continuing impact on the
Company's profit or loss)
Gain or loss on fair-value changes
in financial assets and liabilities
held by a non-financial enterprise 16179452.53
as well as on disposal of financial
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
5assets 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 tested individually for 90424.20
impairment
Non-operating income and
expenses other than the above -12136021.56
Less: Income tax effects -1247910.53
Non-controlling interests
effects (net of tax) -21408.55
Total 13010597.65
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:
□ 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.
6Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period
(I) Industry review
1. Growth in industry scale and user base continued to unlock the potential of the game industry
According to the China’s Game Industry Report from January to June 2025 released by the Game
Publishing Committee of China Audio-video and Digital Publishing Association (CADPA) during the first half
of 2025 the actual sales revenue of the domestic gaming market reached RMB168000 million representing
a year-over-year (YoY) increase of 14.08%; and the number of game users approximated 679 million a YoY
increase of 0.72%. Both figures have hit record highs.In recent years the mini-game segment continued its explosive growth with several outstanding
products emerging. These games expanded into previously untapped user demographics within existing
application scenarios. Their accessible entry points more precisely and effectively attracted target players
while fragmented gameplay and lightweight user experiences introduced more casual gaming modes.These features met users’ demand for light fragmented entertainment and brought new growth potential to
the gaming industry. In the first half of the year the actual sales revenue from domestic applet games
amounted to RMB23276 million a YoY growth of 40.2%.From January to June 2025 the self-developed games in China generated USD9.501 billion in overseas
market revenue a YoY increase of 11.07%. The United States Japan and South Korea remained the primary
target markets for Chinese mobile games abroad with respective shares of 31.96% 16.20% and 7.47%.Additionally the combined market share of Germany the United Kingdom and France was 8.78% making
Europe a key region for Chinese game exports. Among the top 100 self-developed mobile games with the
highest overseas revenue strategy games (including SLG) accounted for 43.33% ranking first followed by
role-playing games with a 10.02% share slightly down compared to the same period last year. Shooting
games ranked third with a share of 8.85% showing a slight YoY increase.In the first half of 2025 driven by policy support a sound ecosystem and technological innovations the
Chinese game industry showed steady growth. The industry focused on the development and innovation of
high-quality games comprehensively enhancing product quality while accelerating global expansion. The
industry scale continued to grow economic potential continued to be released and strong momentum for
high-quality development was injected.
2. Policy guidance drove high-quality development and multi-dimensional exploration of "Games+"
integration
In March 2025 the General Office of the CPC Central Committee and the General Office of the StateCouncil issued the Special Action Plan for Boosting Consumption proposing to “strengthen consumptionbrand leadership. Focus on commerce logistics culture and tourism and other service sectors and formulate
targeted policies to enhance service quality. Develop more Chinese service brands. Integrate outstanding
traditional Chinese culture into product design support the development of original intellectual property (IP)
brands promote consumption of animation games e-sports and their derivative products and expanddomestic and international markets for fashionable domestic brands”. In April 2025 the Ministry of Commerce
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
7issued a notice titled “Work Plan for Accelerating the Promotion of the Comprehensive Pilot Program forExpanding Opening-up of the Service Industry” which proposed the development of game exports and
encouraged a full industrial chain layout from IP creation to game production distribution and overseas
operations. In May 2025 Guangdong Province published Several Policy Measures for Promoting High-Quality
Development of Guangdong’s Online Game Industry which focused on supporting original high-quality
games technological innovation optimizing the business environment establishing industrial clusters
improving support systems and strengthening service support mechanisms to promote the high-quality
development of Guangdong’s online game industry.In response to national policies the Company has earnestly implemented management requirements. It
delved into the essence of traditional culture in game R&D and operational strategies. And it has actively
sought to integrate cultural significance into player experiences and apply innovative technologies. By
implementing a "Games+" model the Company aims to achieve mutual empowerment of cultural and
industrial value and to promote the traditional Chinese culture across the world.For example during the Reporting Period under the guidance of the Guangdong Provincial Departmentof Agriculture and Rural Affairs the Company actively responded to the lychee initiative under the “Hundred-Thousand-Ten Thousand Project”. Using digital methods to unlock the cultural and commercial potential of
lychee-themed content the Company creatively incorporated lychee cultural elements into games such as
Trading Legend (叫我大掌柜 ) Bonk Bonk Tribe (时光大爆炸 ) My Memory Shop (时光杂货店 ) and Nobody's
Adventure Chop-Chop (寻道大千 ) developing a crossover edition titled “You Li Quan Qiu (游荔全球 )”. By
aggregating in-game traffic the initiative helped expand sales channels for local lychee farmers enabling
Guangdong lychees to reach the global stage through the “Games+” digital approach.Furthermore the Company actively explored the “Games+” integrated development model of
“technology + cultural tourism”. The Company has combined the virtual character and real-world cultural
tourism scenarios to facilitate the promotion of cultural tourism in cities such as Guangzhou. For example
during the Reporting Period the Company developed the digital product My Intangible Cultural Heritage
Treasure: A Culinary Journey which presented the representative traditional culinary craftsmanship such as
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
8poon choi (an auspicious one-pot dish served in a very big pot) and yum cha (Cantonese tradition of
breakfast or brunch involving Chinese tea and dim sum) through engaging game interactions and graphical
programming. This approach sparked interest in discovering intangible cultural heritages and cultural depth.Furthermore at the “Guangzhou: The Capital of Gourmet” brand launch event organized by the Guangzhou
Municipal Administration for Market Regulation the Company’s virtual character “CongMei” became the
brand ambassador showcasing the charm of Guangzhou’s food culture in a lively and interactive manner
and bringing the brand story of “Guangzhou: The Capital of Gourmet” to life.As AI technology continues to mature the development of games in sync with AI has become
increasingly prominent. Technological innovation in AI is increasingly seen as a key factor in the global
competitiveness of products. The Company adheres to technology-driven innovation explores the potential
for deep integration of AI and other emerging technologies with its business and promotes organic innovation
capabilities.In 2025 the Company became one of the first “City Partners” of Guangzhou as a designated “SuperPartner” further deepening its collaboration with the local government and expanding partnership
opportunities to co-create a new blueprint for the development of Guangzhou’s digital economy. The
Company will launch a special version of Trading Legend (叫我大掌柜) called “National Games Guangzhou”
and relying on the in-house gaming-specific large language model “Xiao Qi” apply generative AI
technology to allow players to join the Cantonese lion dance in the digital twin of Guangzhou experience
Cantonese yum cha culture and explore online reproductions of cultural landmarks such as the Five RamsStatue and Chen Clan Ancestral Hall. Players from around the world will be able to enjoy a “cloud tour ofGuangzhou” from their homes. Additionally the Company’s virtual character “CongMei” will act as a smart
city assistant providing services such as ticketing venue guides and recommendations for cultural tourism
attractions in Guangzhou during the 15th National Games.The Company has remained focused on its core business deepened its "integration of R&D and
operation" strategy and continued to enhance its capability of producing quality games. We explore
possibilities of integrating technology into our business by leveraging resources both within and outside the
entertainment technology domain. With steady strides we have advanced high-quality and sustainable
business development dedicated to offering the public a wealth of premium cultural content.(II) The Company’s principal operations and products
The Company specializes in the development and publishing of games for global players with the
excellent game development brand “Three Seven Games” as well as professional game publishing brands
“37Mobile” “37GAMES” and “37Online”. The Company precisely grasped the industry development trends
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
9made continuous improvements in operation and remained a top performer in the industry while adhering to
the "boutiqueization diversification and globalization" strategy. For the Reporting Period the Company
recorded operating revenue of RMB 8.486 billion and a net profit attributable to its shareholders of RMB 1.4
billion a YoY increase of 10.72%.
37 Interactive Entertainment
Three Seven Games 37Mobile 37GAMES 37Online
(game development) (publishing of mobile (overseas publishing) (publishing of mobile
games) & browser games)
1. Continuously enhancing the long-term operation of diverse products
In response to industry trends the Company has consistently adhered to the "diversification" strategy
understanding the demands of diverse user bases and continuously expanding its user base. By tapping into
new markets and nurturing new growth drivers we have continuously pushed back the boundaries of our
game genres. In addition to delving into the existing four primary genres: massive multiplayer online role
playing games (MMORPGs) strategy games gacha games and business simulation games we have
developed more diverse and lightweight games to provide diversified player experiences. During the
Reporting Period the Company’s globally published mobile games achieved peak monthly gross billing of
approximately RMB 2.2 billion.In early 2025 several of the Company’s products including Bonk Bonk Tribe (时光大爆炸) and Lootborn
Warriors (英雄没有闪) were launched and quickly gained popularity among players. Among them the time
progression simulation game Bonk Bonk Tribe (时光大爆炸) achieved first place on the iOS free app chart
upon its release in January and its subsequent applet version quickly ranked fourth on the WeChat mini-
game bestseller list. Similarly the vertical-screen side-scrolling idle ARPG looter game Lootborn Warriors (英
雄没有闪) quickly entered the top five on the iOS bestseller list after the release of its app version and its
applet version also topped the WeChat mini-game bestseller chart demonstrating impressive performance.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
10In July 2025 the Company began public testing for The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) a
self-developed game based on the novel and anime Soul Land which received both the novel and anime
licenses. This product the first 3D realistic MMORPG based on the IP the Soul Land fully implemented the
Company’s strategy of boutiqueization offering a smooth exploration experience in an expansive open world.By blending Chinese and Western art styles it showcases the inclusiveness and diversity of Chinese culture
and creates a Soul Land universe with cultural fusion across time and space. The game had garnered over ten
million pre-registrations before its launch and quickly ascended to the top of the iOS free app charts
performing excellently and becoming another benchmark for the Company’s deep involvement in the
MMORPG sector.During the Reporting Period the Company continued to strengthen its advantage of long-term operation
with several of its existing products maintaining strong vitality and potential. For example the Chinese-style
simulation game Nobody's Adventure Chop-Chop ( 寻 道 大 千 ) achieved multiple breakthroughs in its
collaborative models including partnerships with the popular Chinese comic—Battle Through the Heavens (斗
破苍穹)—and Meituan for an immersive consumer experience collaboration with the fantasy classic IP Shen
Mu (神墓 ) and deep involvement in the Weifang International Kite Festival to showcase traditional culture.During its second anniversary the game partnered with the nationally popular IP Calabash Brothers (葫芦兄弟)
focusing on user operations to boost game revenue. Furthermore the game launched a lychee aid program
for farmers using the game as a platform to fulfill corporate social responsibility. Through the deep integration
of “classic IP + regional culture + public welfare actions” the game successfully established a new model for
cross-sector collaboration in the game ecosystem.During the Reporting Period the Company’s modern-themed simulation game My Memory Shop (时光杂货
店 ) operated steadily. By adapting to market trends through continuous innovation and breakthroughs the
game adopted a more flexible go-to-market strategy. It developed a more comprehensive user engagement
model through IP collaborations public welfare campaigns and city tours such as collaborations with classicfilm IPs such as A Chinese Odyssey (大话西游) and introducing a creative worldview of “ancient characters inthe modern world”. These efforts strengthened the consistency of online and offline content operations
effectively prolonging the game’s lifecycle and further solidifying the Company’s long-term operation strength
in the business simulation genre.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
11During the Reporting Period the Company’s self-developed gacha mobile game SoulLand: Clash of
Spirimasters (斗罗大陆：魂师对决) launched the “Speed Server” concept which significantly improved the user
experience by accelerating early-stage growth and enriching in-game rewards. It also initiated a
collaboration with Cantonese culture incorporating intangible cultural heritages such as Cantonese
embroidery and Cantonese opera to help promote traditional Chinese culture through its immersive game
presentation. This encouraged user re-engagement stabilized daily active users and further prolonged the
game’s lifecycle.During the Reporting Period the mobile game Fan Ren Xiu Xian Zhuan: Ren Jie Pian (凡人修仙传：人界篇)
launched its anniversary version “Shuang Dao Gong Ran” (双道共燃) in mid-2025. The game collaborated with
Battle Through the Heavens (斗破苍穹) to create a “Realm-Breaking Duel” cultivation concept using a traffic
management-centric approach. This has not only helped the Company expand its active user base but has
also allowed it to continuously improve the game’s ecosystem and enrich players’ experiences. The game has
thus become a flagship product in the Company’s cultivation-themed MMORPG lineup.Trading Legend (叫我大掌柜) a Chinese-style simulation mobile game of the Company has successfully
converted new players through an engaging and nostalgic marketing approach and intellectual property (IP)
collaborations. By creating a long-term ecosystem with a focus on user interactions this game has consistently
sparked a boom. During the Reporting Period the game partnered with the animated series True Cooking
Master Boy (厨神小当家) to launch a new cooking master-themed event ensuring stable long-term gross billing.To celebrate its fourth anniversary the game held a special livestream concert where players were invited to
sing and celebrate together. Additionally the anniversary update introduced a new “Guardian Spirit”
progression system and long-term seasonal gameplay further enhancing long-term player engagement
prolonging the product lifecycle and reinforcing the Company’s long-term operation capabilities.During the Reporting Period Three Kingdom: Ba Ye (霸业 ) one of our self-developed strategy mobile
games on the theme of the Three Kingdoms launched its S7 season and introduced a new dungeon mode
Treasure Hunt Path. To mark its second anniversary the game also held an exclusive “June 6 Festival”
celebration releasing a tag-team hero Ban Yu Shuang Shu designed to enhance long-term gameplay
experience and player retention. These efforts have further contributed to the Company’s expertise in long-
term operations of SLG games.The Company consistently adheres to long-term operation providing players with meticulous and
comprehensive long-term services. It deeply integrates the highlights of its intellectual property (IP) to
continuously innovate in terms of reflow methods and activities consistently prolonging the product life
cycle and igniting product vitality. This demonstrates the Company’s strong capabilities of long-term game
operation.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
122. Continuously exploring global market opportunities and promoting the mutual empowerment
between games and culture
During the Reporting Period the Company achieved overseas operating revenue of RMB 2.724 billion
accounting for 32.10% of its total operating revenue. The Company drawing upon its years of experience in
overseas expansion has continuously explored its overseas markets in line with the "tailored games" strategy.It continued to seek growth opportunities in the overseas market achieved regional breakthroughs and
continued to refine its long-term operation strategy. We have consolidated our strengths in sectors such as
MMORPGs strategy games gacha games and business simulation games and opened up opportunities in
the casual game market thereby boosting the steady growth of our overseas business.Puzzles & Survival a phenomenal product launched overseas by the Company integrates “Match-3gameplay + SLG”. During the Reporting Period the game continued to deepen its global content strategy
and collaborated with the globally renowned IP Transformers. Through highly faithful character integration
and original storylines the game enhanced its worldview and immersion for players. With features such as
multi-dimensional interactive gameplay and multilingual localization the game effectively engaged global
core users further enhancing its brand influence and consolidating its position as a genre leader. Since its
launch in 2020 the game has generated over RMB10 billion in gross billing demonstrating the Company’s
strong capabilities in IP integration and long-term operation.The Company has continued to explore player preferences and market trends within the strategy game
genre to iterate high-quality products through theme diversification and gameplay differentiation. For
example the magical match-3 strategy mobile game Puzzles & Chaos has attracted over 15 million global
players since its official launch. During the Reporting Period the game introduced new gameplay features
such as the Doom Arena League and Phantom Expedition which have been well received by players
across various overseas markets. Its overseas revenue has continued to grow and the game has ranked
among the top 20 best-selling strategy games in more than 80 regions worldwide.The Company adheres to the role of an “advocator of Chinese culture” and actively explores the
integration of games and culture. It creatively incorporates traditional Chinese cultural elements into its
game products using games as a global cultural medium to showcase the unique charm of Chinese cultureto the world. During the Reporting Period the Company was recognized as a “Key Cultural Export Companyof China for 2025-2026” and its game Trading Legend (叫我大掌柜) was selected as a “Key National CulturalExport Project of China for 2025-2026”. With its engaging gameplay and stunning visuals the game deeply
integrates Chinese traditional culture presenting the prosperity of ancient Chinese commerce to global
players. The Company continues to seek a balance between Eastern aesthetics and global narratives
enabling Chinese stories to reach global users in a more impactful way and positioning games as a new
engine for cultural communication and exchange.
3. Building a rich product pipeline for the global market
The Company focuses on its core gaming business. On one hand it continuously expands the
boundaries of self-development capabilities actively expands into various categories and develops
products with a global perspective. It carefully works out details regarding gameplay design art quality
music effects etc. continues to invest in product iteration user experience and other aspects and has
formed professional layouts in MMORPGs strategy games and light games. Remaining "Dedicated to
Making Premium Games" it has a strong pipeline of refined self-developed mobile games. On the other
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
13hand based on its self-developed brands the Company consistently prioritizes high-quality content as its
strategic direction. Through multi-dimensional approaches such as investment empowerment and business
support the Company has carried out in-depth collaborations with reputable game developers such as
EyuGame and Yanqu Network. This approach has allowed the Company to accumulate abundant external
R&D reserves which is conducive to its diversified arrangements for product supply. In terms of IP the
Company has secured adaptation rights for several IPs including Battle Through the Heavens (斗破苍穹) Lord
of Mysteries (诡秘之主 ) and Soul Land (斗罗大陆 ) providing a richer content foundation for building a
diversified product portfolio.The Company has built a portfolio of games across genres such as MMORPGs strategy games gacha
games and business simulation games. These games cover diverse themes including western fantasy
oriental fantasy Three Kingdoms modern themes and ancient themes. These include: the Japanese Chibi-
style MMORPG Code MLK (代号 MLK) the realistic Three Kingdoms SLG Qi Mou San Guo (奇谋三国 ) the
American cartoon-style survival SLG Code XSSLG (代号 XSSLG) the oriental fantasy SLG Code GMSLG (代号
GMSLG) the traditional Chinese ink painting-themed business simulation game Zhui Xu (赘婿) the oriental
fantasy RPG Code Dou Po (代号斗破) and the oriental fantasy RPG The Soul Land: Zero (斗罗大陆：零).The Company is currently accelerating the release schedule of its reserved products aiming to deliver a
more diversified gaming experience for players. Looking ahead certain key games in the pipeline are
presented below:
Game category theme IntendedDeveloper Name of game and style publishingarea
Self-
developed Code MLK ( MLK)
Japanese Chibi-style
代号 MMORPG Global
Self- Realistic Three Kingdoms
developed Qi Mou San Guo (奇谋三国) SLG Global
Self-
developed Code GMSLG (代号GMSLG) Oriental fantasy SLG Global
Self-
developed Code XSSLG ( XSSLG)
American cartoon survival
代号 SLG Global
Self-
developed Code YCSLG (代号 YCSLG) Survival-themed SLG Global
Self-
developed Code DTSLG (代号 DTSLG) Survival-themed SLG Global
Self-
developed Code DLXD (代号 DLXD) Chibi-style fantasy RPG Global
Self-
developed Code BDRPG (代号 BDRPG) Chibi-style fantasy RPG Global
Agency Code Mi Cheng (代号迷城) Tower defense SLG Domestic
Agency Code Dou Po (代号斗破) Oriental fantasy RPG Domestic
Traditional Chinese ink
Agency Zhui Xu (赘婿) painting-style business Domestic
simulation game
Agency Qi Shi Yu Da Long ( ) Western fantasy Chibi-style骑士与大龙 gacha games Domestic
Agency Shi Shi Da Lu (史诗大陆) Western fantasy RPG Domestic
Agency The Soul Land: Zero (斗罗大陆：零) Oriental fantasy RPG Domestic
Agency Dou Shou Zhan Chang (斗兽战场) Giant-themed SLG Domestic
Agency Code DPMMO (代号 DPMMO) Oriental fantasy MMORPG Domestic
Agency Code RS (代号 RS) Realistic survival SLG Overseas
Agency Code AK (代号 AK) Realistic microworld SLG Overseas
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
14Modern cartoon seaside
Agency Seaside Resort: Match 3 resort-themed match-3 Overseas
game
Agency Lootborn Warriors Western fantasy RPG Overseas
Agency Death Route Survivor Survival-themed SLG Overseas
4. Leveraging cutting-edge technological advantages and business applications
(1) Continuous upgrades to the AI capability system and the development of a comprehensive AI
empowerment ecosystem based on a self-developed industry-specific large language model
As one of the earliest game companies in China to systematically adopt AI technologies the Company
places a high strategic emphasis on the deployment and application of big data and AI technologies. After
years of technological accumulation and business practice the Company has established an AI
architecture centered on the AI capability foundation which covers the intelligent product layer and
business application layer forming a full-link AI empowerment system for game R&D and operation. This
system comprehensively enhances the industrialization level of the Company’s game R&D and operation.Building the AI capability foundation: Based on deep data accumulation from business scenarios and
computility investment the Company continuously conducts internal training and inference optimization on
the massive high-quality data accumulated over the years independently developing the gaming-specific
large language model “Xiao Qi”. The Company using “Xiao Qi” and incorporating an advanced external
large language model cluster has developed more than 40 AI capabilities. This AI capability foundation fully
empowers various general and specialized systems across the Company following the technology iteration
path of chatbot/tool-copilot-agent-digital labor.Continuous upgrades to the AI capability system: Based on the industry-specific large language model
“Xiao Qi” the Company has established the “Xiao Qi” AI agent platform. This platform covers business areas
such as market analysis product planning art design development assistance advertising operational
analysis intelligent customer service and general office tasks. The upgraded AI agents can generate
images videos and 3D materials that meet the Company's product needs accurately support advertising
campaigns and perform excellently in code generation and text creation thus fully empowering game
R&D and operation. During the Reporting Period the Company continuously upgraded the core interface
and architecture system of the “Xiao Qi” AI agent platform and developed more vertical-domain AI agents.Subsequently it plans to introduce multi-agent collaboration capabilities to support more complex internal
coordination tasks.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
15(2) AI reshapes the game pipeline for quality and efficiency enhancement across multiple dimensions
At the business application layer the Company has leveraged AI technology to achieve intelligent
production and application across various content formats including AI-multimodal AI-text and AI-smart
applications categories.Concerning the AI-multimodal category in the publishing process over 80% of the 2D art assets used by
the Company are now generated using AI technology as a support. During the Reporting Period more than
500000 2D images were produced each quarter. In terms of AI-3D generation the Company was also an
early adopter of tools and 3D model training continuously increasing the proportion of AI-3D applications
with mature use of art assets such as characters and item models. AI-3D assisted asset generation accounts
for more than 30%. In the Reporting Period the effectiveness of AI-generated videos became evident with
more than 70% of the Company’s in-game advertising videos involving AI in their generation.In addition AI-text application scenarios of the Company have shown continuous improvement while
comprehensive applications such as AI advertising and AI data analysis have also been gradually
implemented. For example all of the Company’s games have integrated AI-powered customer service to
offer more efficient intelligent service experiences to players. AI localization translations now cover 85% of
the Company’s overseas games in 18 languages with an accuracy rate of 95%.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
16In terms of the AI-smart applications category AI-assisted code generation has also been applied to
code review event code generation backend system code generation and automated testing improving
efficiency by 30%. In terms of advertising ads placed by AI now account for 50% of the total ad content
increasing overall ad placement efficiency by 70%. The Company has also developed an AI-powered
material infringement detection system to provide intelligent risk detection solutions for internal teams
ensuring efficient material review effectively identifying external material infringement issues protecting the
Company’s intellectual property and safeguarding original content rights.In terms of R&D AI algorithms have been employed to capture high-precision and high-performance
motions and the capture function for facial expressions has been introduced addressing the pain points
such as high costs and overly long periods typically identified with specialized traditional motion capture
equipment. This has enhanced both R&D efficiency and quality. In terms of AI balance testing many of our
self-developed products such as SoulLand: Clash of Spirimasters (斗罗大陆：魂师对决) Three Kingdom: Ba Ye
(霸业) The Soul Land: Lie Hun Shi Jie (斗罗大陆：猎魂世界) and Code MLK (代号MLK) have benefited from the
AI-assisted stat balance testing function with improved training efficiency and access process resulting in
better player experiences and prolonged game life cycles. Furthermore the Company has continued to
deepen its research in artistic resource generation algorithms based on Generative Adversarial Networks
(GAN) Stable Diffusion (SD) and Neural Radiance Fields (NeRF). It has built an intelligent art asset
generation platform that supports physical rendering workflows and developed features such as animation
generation and migration as well as 3D model generation thereby streamlining the game development
pipeline.Internally the Company established an “AI Efficiency Committee” to implement a top-down AI
innovation-driven corporate culture strategy and promote AI applications in all business links. The Company
places great importance on cultivating AI talent actively promoting AI learning among employees through
innovative activities such as the “21-Day AI Learning Challenge” and “AI Expert Program” certification.These efforts aim 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. The ultimate goal is to drive enterprise-wide innovation through AI and inject new momentum into
industry development.In general office scenarios the Company’s AI assistant based on the large language model of “XiaoQi” is extensively applied in employees’ daily work comprehensively improving efficiency. This represents a
new level of intelligent transformation in corporate operation. For example based on its large model Xiao Qi
the Company has developed an efficient meeting minutes assistant capable of accurately recording and
intelligently analyzing meeting content. This has significantly improved meeting efficiency and collaboration
quality reduced communication costs and optimized information management.As the Company continues to promote AI applications AI reshapes the workflow of each business link
and improves the level of automation. As AI technologies continue to deepen in business applications the
optimization and upgrading of all business pipelines have enabled teams to focus more on creativity and
emotional expression. With the industry’s ongoing technological iteration and innovation the Company will
continue to explore the implementation of advanced AI capabilities in reasoning and decision-making
providing deeper support and assistance for the efficient operation of all stages of the gaming business.
(3) AI drives game innovations
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
17Supporting Game Project Initiation: During the early stages of game project establishment and new
version updates of operating products the Company utilizes AI technology to assist in designing game
characters combat scenarios and game items. This optimizes characters gameplay environments
animation effects and style testing outcomes thereby enhancing the efficiency of project approval and
version update processes.Exploration of the AI+Game Technology: The Company continues to improve and optimize the internal
exploration of the "AI+game" technology aiming to integrate multimodal content generation data
algorithm models and game development to improve R&D efficiency. At the same time relying on AI
generation and personalized recommendations it accurately grasps user needs provides a new interactive
experience and builds key technology reserves for commercial products in the future. Also compliance
capabilities are continuously strengthened to ensure the compliance and security of technology
applications. For example the Company continues to work on using AIGC to recommend and generate
player-preferred images elements and gameplay lowering the threshold for creation and enabling AI-
powered production of all game elements including plot art programming and music. On top of that the
Company is working on non-linear gaming experience through discriminative AI. Based on user preferences
AI is used to generate content for players in real time realizing a “one player one narrative” model.Development of a General AI Solution for In-Game Housing Systems: The Company is continuously
integrating technologies such as large language models AI voice and AI motion capture to develop
intelligent NPC systems and AI-powered in-game housing systems. It is exploring the convergence of games
with UGC content creation aiming to enable NPCs to perform autonomous behaviors based on compound
reasoning and to provide players with emotional companionship and personalized interactive experiences.Players can enjoy character development story and scene design item creation and other innovative
social interaction experiences within increasingly enriched housing systems laying a technological
foundation for more diverse and personalized gameplay in the future.The Company is actively exploring innovative applications of AI in gaming. At present it continues to
accumulate technological reserves for future AI game products through technological verification and
capability accumulation while building a capability foundation for the implementation of commercial
products in the future. Under the premise of ensured technological feasibility it explores paths for deep
integration between AI and game content and focuses on the potential of AI in enhancing gameplay and
interactive experience with the aim of delivering more immersive and personalized gaming experiences to
users.
5. Empowering business innovation and sustainable development through investment
Benefiting from our pioneering strides in the exploration of AI applications we have remained open-
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
18minded about transformations in industry technologies and ecosystems. We have insisted on a steadily
progressive manner continuously iterated and optimized innovative tools to align with the Company's
business development and deeply integrated advanced technologies and business needs. These efforts
have promoted the long-term development of the Company in the field of AI.In response to the rapid iteration of AI technologies and applications worldwide the Company keeps
pace with technological transformation trends. It invests in large language models and application layers
and continually explores the applicability of these models and AI technologies to the Company’s R&D and
operation line. Specifically the Company has directly or indirectly invested in leading companies such as
Zhipu AI Moonshot AI Baichuan AI aiXcoder DeepLang AI Yahaha Studio 51 and DeepMirror Technology.Supported by foundational large language models the Company strives to unlock the potential of AIGC toempower diverse vertical scenarios. Furthermore the Company is actively building an industrial chain of “AI+ computility”. To this end it has invested in firms such as iStar CIX Tingyu Tech Huixi HYQ and Eeasy Tech.These investments aim to build an integrated industrial chain that links computility infrastructure large
language model algorithms and AI applications and promote the coordination and integration of the
invested businesses and the Company’s own businesses.The Company continuously monitors hardware and technological advancements with a strong focus
on hard & core technology and emphasizes business synergy. It has invested in cultural entertainment and
high-tech sectors such as computility optical displays extended reality (“XR”) devices cultural and
entertainment content semiconductors and materials spatial computing engines AI new sensing
technology and AIGC-based social platforms for games. The Company’s goal is to drive business innovation
through investments thereby forging competitive edges in the entertainment technology sector.(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 browser games). The business models of the Company’s online games mainly include
independent operation and third-party joint operation.Under the independent operation mode 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 mode 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 and Top 30 Cultural Enterprise of Guangzhou and MSCI ESG AA-rated company
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
19among others. With “bringing joy to the world” as its mission the Company is dedicated to becoming an
excellent and sustainable entertainment provider. The Company has been steadily advancing with the
development strategy of “boutiqueization diversification and globalization” and promoting high-quality and
sustainable development.II Core Competitiveness Analysis
The Company’s core competitiveness remained largely the same during the Reporting Period.
1. Forging ahead with determination the team has seized market opportunities swiftly
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. Always upholding the spirit of marathon-like perseverance the Company has been forging
ahead with breakthroughs as well as pursuing better financial results and faster growth while maintaining
sound operation. Over the years the Company has demonstrated keen market insight seizing emerging
opportunities in the industry through a robust team of skilled professionals and scientific management
mechanisms. Anticipating the "shift from web games to mobile games" in its early stages the Company
spearheaded overseas market penetration over a decade ago. Presently we remain aligned with the trend
towards mini-games. Navigating numerous industry transitions we have achieved sustained growth.Throughout the development the Company has consistently emphasized talent cultivation and team
building. The Company has built a high-caliber talent pool. Through a scientific talent promotion mechanism
remuneration management system and performance incentive scheme the Company inspires employee
motivation and creativity. With "bringing joy to the world" as its mission the Company is advancing towards
the vision of "becoming an excellent and sustainable entertainment provider".
2. Strengths in the integration of R&D and operation have been consolidated enriching the product
portfolio
The Company has continuously advanced its strategy of "integration of R&D and operation" deepened
its diversified product portfolio and established a robust and efficient multidimensional product supply
system. First the Company has consistently pushed back the boundaries of its self-development capabilities
delved into core product categories and adopted a global perspective to create a central supply layer
with self-developed products at the core. Second through investment empowerment and business support
the Company has fostered deeper partnerships with numerous high-quality developers both domestically
and internationally continuously accumulating deeply customized premium products. Third by
collaborating with long-term and stable developers the Company has further refined its product offerings.Under this supply system the Company has built a robust product supply chain continuously enriched the
portfolio of high-quality products and drove steady business growth.With the “integration of R&D and operation” model the Company can fully combine its strengths in
product R&D and operation. This on the one hand facilitates a deeper understanding of the market and
user demands by the R&D team thereby increasing the success rate of products under development. On
the other through close collaboration between R&D and operations teams the Company can optimize the
updates and promotions of already launched products thus effectively achieving long-term operation and
prolonging product life cycles.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
203. Publishing capabilities have been continuously iterated to facilitate long-term operation from a
global perspectiveIn response to the ever-evolving global gaming market the Company adheres to a strategy of “tailoredgames” 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 successfully launched numerous quality games across diverse genres and
themes in global markets. During this journey we have kept abreast of the latest market trends and
accordingly innovated our marketing strategies. By employing various creative marketing strategies such
as collaboration with renowned IP celebrity endorsements and immersive storytelling we have established
a long-term ecosystem revolving around user interactions thus fortifying robust publishing barriers and
facilitating the long-term operation of multiple products.
4. Technology-driven innovation and breakthroughs to embrace industry transformation
As one of the earliest gaming enterprises in China to systematically adopt AI the Company prioritizes
innovation and fosters an open and inclusive environment for knowledge exchange. By deeply integrating
big data and AI technologies into its business operations the Company has empowered all aspects of the
value chain—from product development and content production to publishing operation and asset
accumulation. Over the years it has accumulated vast amounts of data and technological advantages
continuously iterating and optimizing its full-cycle digital intelligent products upgrading its game
industrialization pipeline and enhancing R&D and operational efficiency. In addition through strategic
investment in technology the Company is gradually establishing a presence across the industry chain
spanning computing infrastructure large language model algorithms and AI applications. This enables
resource sharing and the leveraging of complementary strengths allowing the Company to stay at the
forefront of technological advancement and build 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 2025 H1 2024 Change(%) Main reason for change
The game products in operation
are at different stages of their
life cycles. The main games in
operation during the current
Operating revenue 8486116689.62 9231969089.44 -8.08% period were new games such asLootborn Warriors (英雄没有闪)
and Bonk Bonk Tribe (时光大爆炸)
which were in the introduction
stage while the main games in
operation in the same period
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
21last year were existing games in
the mature stage which were
able to generate relatively
stable gross billing.Cost of sales 1976706274.51 1880723779.43 5.10% Increased cost of royaltiesduring the Reporting Period
Games such as Nobody's
Adventure Chop-Chop (寻道大
千) and Three Kingdom: Ba Ye
Distribution and (霸业) that were in the growth
selling expenses 4410194833.32 5360351377.24 -17.73% stage in the same period lastyear have entered the mature
stage in the Reporting Period
and traffic placement for these
games has decreased.General and
administrative 296824781.90 295724089.56 0.37%
expenses
Increased exchange gains
Financial expenses -86935899.78 -75004717.79 -15.91% during the Reporting Periodcompared with the same period
last year
Income tax
expenses 208478502.79 202945190.16 2.73%
Research and
development 337441172.39 350778127.57 -3.80%
investments
Decreased cash received from
Net cash flows from the sales of goods or rendering
operating activities 1753342666.68 2129183514.99 -17.65% services during the ReportingPeriod compared with the same
period last year
Decreased net cash flows used
Net cash flows in the purchase and recovery of
used in/from -102066991.25 - 95.47% wealth management products
investing activities 2253026693.16 and term deposits during theReporting Period compared with
the same period last year
Decreased cash inflows from the
Net cash flows redemption of financial
used in/from -1100000218.92 -692657291.32 -58.81% management products and
financing activities term deposits used as pledgesfor bank loans during the
Reporting Period
Net increase in Increased net cash flows from
cash and cash 554657996.31 -840354079.38 166.00% investing activities during the
equivalents Reporting Period compared withthe same period last year
Significant changes to the profit structure or sources of the Company in the Reporting Period:
□Applicable □ Not applicable
No such changes in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
22H1 2025 H1 2024
As % of As % of Change
Amount operating Amount operating (%)
revenue (%) revenue (%)
Total operating
revenue 8486116689.62 100% 9231969089.44 100% -8.08%
By operating division
Online games 8415466388.52 99.17% 9172745267.36 99.36% -8.26%
Others 70650301.10 0.83% 59223822.08 0.64% 19.29%
By product category
Mobile games 8239189563.05 97.09% 8958803229.22 97.04% -8.03%
Browser games 176276825.47 2.08% 213942038.14 2.32% -17.61%
Others 70650301.10 0.83% 59223822.08 0.64% 19.29%
By operating segment
Domestic 5762094584.35 67.90% 6333847795.59 68.61% -9.03%
Overseas 2724022105.27 32.10% 2898121293.85 31.39% -6.01%
Operating division product category or operating segment contributing over 10% of operating revenue or
operating profit:
□ Applicable □ Not applicable
Unit: RMB
YoY
Gross change in YoY YoY change
Operating revenue Cost of sales profit operating changein cost of in gross profitmargin revenue sales (%) margin (%)(%)
By operating division
Online
games 8415466388.52 1914702759.16 77.25% -8.26% 2.54% -2.39%
By product category
Mobile
games 8239189563.05 1859591647.28 77.43% -8.03% 9.14% -3.55%
Browser
games 176276825.47 55111111.88 68.74% -17.61% -66.26% 45.09%
By operating segment
Domestic 5762094584.35 1285714348.30 77.69% -9.03% 8.15% -3.54%
Overseas 2724022105.27 690991926.21 74.63% -6.01% -0.13% -1.50%
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 2025 H1 2024
Breakdown
of cost As % of cost of As % of cost of Change (%)Amount sales Amount sales
Royalties 1770265739.04 89.56% 1712014217.49 91.03% 3.40%
Cost of
servers 112883638.23 5.71% 129283531.00 6.87% -12.69%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
23Amortization
of copyright 27540936.91 1.39% 24468488.07 1.30% 12.56%
money
Other costs 4012444.98 0.20% 1440978.06 0.08% 178.45%
Total 1914702759.16 96.86% 1867207214.62 99.28% 2.54%
Any over 30% YoY movements in the data above and why:
□ Applicable □ Not applicable
1. Cost of sales of browser games decreased by 66.26% YoY primarily driven by the decreased game
licensing fees.
2. Other costs increased by 178.45% 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 method
Investment income 61930197.10 3.85% dividends during the No
period of holding
equity investments
and income from
investments in wealth
management
products
Mainly due to
Gain/loss on changes in fair value
changes in fair 19374832.45 1.20% of equity investments
value and wealth
No
management
products
Impairment loss on Mainly due to
assets -267254.09 -0.02% impairment loss on Yescredit
Non-operating Mainly due to
income 1140329.45 0.07% compensation Noincome
Mainly due to
Non-operating
expenses 13276351.01 0.82%
expenditure on
donations and No
litigation damages
Mainly due to
government grants
Other income 13015767.02 0.81% that are related to No
normal business
operations
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
24V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2025 31 December 2024 Change Reason for any
As % of in
Amount total Amount As % of percenta
significant
assets total assets ge (%)
change
Monetary funds 5373334806.58 26.12% 5058893098.76 25.83% 0.29% No significantchange
Accounts 1271836971.46 6.18% 1212667677.20 6.19% -0.01% No significantreceivable change
Investment
properties 841019909.26 4.09% 689233033.12 3.52% 0.57%
No significant
change
Long-term equity No significant
investments 411654888.75 2.00% 446322435.18 2.28% -0.28% change
Fixed assets 906898935.04 4.41% 1076644793.81 5.50% -1.09% No significantchange
Right-of-use assets 11485365.21 0.06% 6566577.29 0.03% 0.03% No significantchange
Short-term loans 2646787083.45 12.87% 2653781111.11 13.55% -0.68% No significantchange
Contract liabilities 259690255.10 1.26% 244227089.06 1.25% 0.01% No significantchange
Lease liabilities 5723939.30 0.03% 1528614.88 0.01% 0.02% No significantchange
Trading financial
assets 2231896412.99 10.85% 2249440497.59 11.49% -0.64%
No significant
change
Mainly due to
the increased
prepayments
for Internet
traffic charges
and copyright
money as a
result of the
Prepayments 1228924513.92 5.97% 729588626.88 3.73% 2.24% launch of newgames such as
Bonk Bonk
Tribe (时光大爆
炸) and
Lootborn
Warriors (英雄
没有闪) during
the Reporting
Period
Other non-current
financial assets 1129286893.94 5.49% 1037418816.34 5.30% 0.19%
No significant
change
Intangible assets 1864591049.99 9.06% 1888794105.85 9.65% -0.59% No significantchange
Goodwill 1578065048.53 7.67% 1578065048.53 8.06% -0.39% No significantchange
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
25Other non-current
assets 2565399621.70 12.47% 2195871744.13 11.21% 1.26%
No significant
change
Accounts payable 2001654876.00 9.73% 1667812211.58 8.52% 1.21% No significantchange
Mainly due to
the increased
bank
acceptance
Notes payable 1734500000.00 8.43% 1044500000.00 5.33% 3.10% bills paid to
suppliers
during the
Reporting
Period
2. Major Assets Overseas
□ Applicable □ Not applicable
Man
Asset age Control Return Material
Asset Source value Location men measures to genera
As % of the impairme
(RMB) t protect asset ted
Company’s
equity nt risk ormod safety (RMB) not
el
A sound
business
Investme supervision
Other nts in Hong
equity overseas 4648061 Kong in
mechanism 23688
assets compani 94.01 China
and a sound 3.58% No
etc. risk control
48.37
es mechanism
have been
put in place
A sound
Purchase business
Wealth of supervision
manage overseas
Hong mechanism
wealth 1437562 Kong in and a sound 691714ment manage 94.21 China
1.11% No
products etc. risk control.80
ment mechanism
products have been
put in place
A sound
Income business
from Hong supervision
Monetary investme 2184591 Kong in mechanism
funds nts and 025.18 China and a sound 16.80% No
operatio Singapor risk control
ns e etc. mechanismhave been
put in place
3. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
26Unit: RMB
Gain/loss Impairme
on fair- Cumulative nt Purchas Sold in
Item Beginning
value allowanc ed in
amount changes
fair-value e made the the Other Ending
in the changes in the Reportin Reportin changes amount
Reporting through equity Reporting g Period g Period
Period Period
Financial
assets
1. Trading
financial
assets
(exclusive of 2249440 51342323. 484700 491465 -1235258.13 2231896
derivative 497.59 38 0000.00 1149.85 412.99
financial
assets)
2. Other
equity 2170229 - 180000.72.20 247394639.43 00 -101430.00
2085109
investments 89.00
3. Other non-
current 1037418 - 178701 501424 1129286
financial 816.34 34557783.06 508.16 29.76
-2133217.74893.94
assets
Subtotal of
financial 3503882 16784540. - 502570 496497286.13 32 247394639.43 1508.16 3579.61 -3469905.87
3569694
assets 295.93
Total of the 3503882 16784540. - 502570 496497 3569694
above 286.13 32 247394639.43 1508.16 3579.61 -3469905.87 295.93
Financial 8743696. 2590292.1 159980 -751877.80 3801719.liabilities 60 3 6.85 82
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
Monetary funds 699433.86Money frozen by bank and security deposits
Fixed assets 1324238054.77Principals and interest of term deposits with amaturity within one year as pledges
Non-current assets due within Principals and interest of term deposits with a
one year 213962130.89maturity of over one year (due before June 2026) aspledges
Other non-current assets 618250160.00Principals and interest of term deposits with amaturity of over one year as pledges
Total 2157149779.52
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
27VI 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
Relations
hip with
Name the Principal
Register
ed Total Net
Operatin
g Operatin Net profit
Compan activity capital assets assets revenue g profit
y
Anhui 37
Jiyu Developm
Network Subsidiar ent ofmobile and 625000 2697292 2054982 8644572 4607690 4409418Technolo y browser 0.00 955.59 817.73 92.39 31.69 98.56gy Co.Ltd. games
37
Interactiv
e
Entertain Publishing
ment Subsidiar and
(Shangha y operation
10000015958195176367848819611556179597335
of mobile 00.00 0417.90 608.20 176.09 625.78 33.43i)
Technolo games
gy Co.Ltd.Subsidiaries obtained or disposed of in the Reporting Period:
□ Applicable □ Not applicable
Name of subsidiary How it was obtained or Effects on the overall operations anddisposed of performance
Shanghai Tuoxiong
Network Technology Co. Acquired in cash In line with the Company’s strategic planning
Ltd. and helpful for its business development
Guangzhou Dingtuo Acquired by purchasing
Network Technology Co. equity interests in its parent In line with the Company’s strategic planning
Ltd. company and helpful for its business development
Guangzhou Siying Acquired by purchasing
Network Technology Co. equity interests in its parent In line with the Company’s strategic planning
Ltd. company and helpful for its business development
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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
28management 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. Intense market competition will challenge the Company’s development in terms of products and
market channels.In response the Company will continue to implement the strategy of "boutiqueization diversification and
globalization". On the one hand it will strengthen its core competitiveness of its own business pay continuous
attention to self-research investment carry out R&D and innovation in product creativity gameplay theme
art and technology and keep up with industry technology development trend; at the same time it will
maintain close cooperation with excellent developers to guarantee the supply of quality products and
continue to expand game categories through independently-developed and agency games to deepen the
competitive edge of "integration of R&D and operation". Meanwhile the Company will speed up the pace of
exporting give full play to the edges of it in overseas markets face diversified operations of overseas markets
deepen the cultivation of key markets and broaden the categories of games and increase market share. In
addition the Company will dig deeper into operational data and timely adjust operational and R&D
strategies to meet the core demands of users further play the role of new ideas of digital marketing operation
deepen the business strategy of multi-channel marketing and long-term service and continuously enhance
core competitiveness in the market.Facing the current industrial competition pattern the top-performing enterprise has obvious edges in
technology R&D ability channel operation ability product promotion ability user scale and market share. The
Company will continue to consolidate and cement its competitive edges actively respond to changes in the
industry reduce 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 manages the core personnel the employees’ enthusiasm and creativity will be affected
which will have an adverse impact on the Company’s core competitiveness.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
29In 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 Interactive Entertainment 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 upgrading 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 concept of "health happiness and sustainability" the Company upgraded
colorful welfare system strengthened humanistic care and promoted retention of talents. The colorful welfare
system encompasses interest-free loan love fund commercial insurance and employee health management.The Company has also launched the “Newborn Initiative” under which a childbirth fund of RMB20000 per
child will be 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 on holidays 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 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 sensitive 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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
30development trend.
5. Risk associated with being investigated by the China Securities Regulatory Commission with no clear
conclusion yet
On 27 June 2023 the Company Mr. Li Weiwei (the actual controller and Chairman of the Board of the
Company) and Mr. Zeng Kaitian (the Vice Chairman of the Board of the Company) received the "Notification
of the China Securities Regulatory Commission on Case Filing" (CSRC Case No. 03720230061 No. 03720230062
No. 03720230063) from the said commission (hereinafter referred to as the "CSRC") respectively. For suspected
information disclosure violations according to the Securities Law of the People's Republic of China the Law of
the People's Republic of China on Administrative Penalties and other applicable laws and regulations the
CSRC decided to file a case against the Company Li Weiwei and Zeng Kaitian.During the period of investigation the Company will actively cooperate with the CSRC’s investigation and
fulfil its information disclosure obligations in strict accordance with applicable laws regulations and regulatory
requirements.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
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.Indicate whether the Company has disclosed any valuation enhancement plan.□ Yes □ No
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
31Part IV Environmental Social and Governance Information
I Changes of Directors Supervisors and Senior Management
□ Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Ye Wei Director Elected 17 July 2025 Change of term
Cheng Lin Employee Director Elected 17 July 2025 Change of term
Xie Huijia IndependentDirector Elected 17 July 2025 Change of term
Fang Xiaojun IndependentDirector Elected 17 July 2025 Change of term
Zeng Kaitian General Manager Appointed 17 July 2025 Change of term
Cheng Lin Deputy GeneralManager Appointed 17 July 2025 Change of term
Director and
Yang Jun Deputy General Resignation upon
Manager expiration of term
17 July 2025 Change of term
Director and
Liu Jun Deputy General Resignation uponexpiration of term 17 July 2025 Change of termManager
Li Yang Independent Resignation uponDirector expiration of term 17 July 2025 Change of term
Ye Xin Independent Resignation uponDirector expiration of term 17 July 2025 Change of term
Chairman of the
He Yang Supervisory Resignation upon 17 July 2025 Change of term
Committee expiration of term
Cheng Lin Supervisor Resignation uponexpiration of term 17 July 2025 Change of term
Liu Fengyong Supervisor Resignation uponexpiration of term 17 July 2025 Change of term
Xu Zhigao General Manager Resignation uponexpiration of term 17 July 2025 Change of term
II Interim Dividend Plan
□ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 2.10
Share base (share) 2212237681
Cash dividends (RMB) (tax inclusive) 464569913.01
Cash dividends in other forms (such as share
repurchase) (RMB) 0.00
Total cash dividends (including those in other forms)
(RMB) 464569913.01
Distributable profit (RMB) 4674663704.82
Total cash dividends (including those in other forms)
as % of total profit to be distributed 100%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
32Applicable 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
Upon approval by the Board of Directors the Company’s 2025 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 RMB 2.10 (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.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 Number of Total number of As % of the
coverage awardees shares held Change total share Funding sourcecapital
The Third Employee
Stock Ownership
Plan: the
leadership team of
the Company
(directors Shares under
supervisors and the employee
senior stock
management); ownership plan
chief officers and No more th 1161886 None 0.05% were
deputy chief an 400 transferred from
officers; key repurchased
management and shares for no
technological staff compensation.(mid-level
employees); and
other employees
approved by the
Company
The Fourth No more th 16301534 None 0.74% Shares under
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
33Employee Stock an 650 the employee
Ownership Plan: stock
the directors ownership plan
(exclusive of were
independent transferred from
directors) repurchasedshares for no
supervisors senior compensation.management key
management and
staff who have
direct and
substantial impact
on and
contribution to the
Company’s future
operations and
growth
Shares held by directors supervisors and senior management under employee stock ownership plans during
the Reporting Period:
Number of shares Number of shares
Name Office title held at the period- held at the period- As % of the total
begin end share capital
Xu Zhigao Yang
Jun Liu Jun He Directors
Yang Cheng Lin supervisors and
Liu Fengyong Ye senior 1585000 0 0%
Wei and Zhu management
Huaimin
The number of shares held by the above-mentioned directors supervisors and senior management at
the end of the Reporting Period is 0 due to the Company's Fourth Employee Stock Ownership Plan
Management Committee recovering the unlocked shares.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
Exercise of shareholder rights during the Reporting Period:
None
Other information about employee stock ownership plans during the Reporting Period:
□ Applicable □ Not applicable
The third lock-up period of the Fourth Employee Stock Ownership Plan ended on 29 June 2025. As the
2024 annual operating results failed to reach the target the unlockable shares of all the awardees in the
third lock-up period of the Employee Stock Ownership Plan should not be unlocked.According to the Fourth Employee Stock Ownership Plan (Draft) after the three appraisal periods the
corresponding unlocked shares shall be recovered and sold by the Employee Stock Ownership Plan
Management Committee and the proceeds from the sale shall belong to the Company.Changes in the members of the employee stock ownership plan management committee:
□ Applicable □ Not applicable
Impact of employee stock ownership plans on the finance of the Company during the Reporting Period and
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
34the relevant accounting treatments:
□ Applicable □ Not applicable
Termination of employee stock ownership plans during the Reporting Period:
□ Applicable □ Not applicable
Other information:
None
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)
1. Empowering rural talent revitalization
Since 2014 through the Guangdong Youxin Charity Foundation which it initiated and established 37
Interactive Entertainment has been supporting the revitalization of county-level high schools promoting
balanced education development and cultivating youth talent.The Company via the Guangdong Youxin Charity Foundation collaborates with education and civil
affairs authorities schools teachers public welfare organizations and corporate volunteers to continuously
implement projects such as the “Youxin Peers” high school education assistance program the high school
enrolment guarantee program for ethnic minority girls the county high school free reading program the
“Vocational Wisdom Calling” career planning program and the “Embrace Exploration” Guangzhou
Summer Camp. These programs provide scholarships foster innovative thinking expand cultural knowledge
and offer other forms of support to help rural talent reach their potential.To improve the comprehensive abilities of rural youth in adapting to the future technological society
the Company has launched the “Little Elephant AI” themed public welfare course through its quality
education brand Miaocode. The program teaches students how to effectively utilize AI tools and is planned
to be implemented in regions such as Qingyuan Guangdong and Qiannan Guizhou.During the Reporting Period 37 Interactive Entertainment supported 2767 outstanding high school
students across nine regions including Anhui Sichuan and Guizhou through the Guangdong Youxin Charity
Foundation.
2. Innovating industrial support models
37 Interactive Entertainment actively responded to the “10000 Enterprises Revitalize 10000 Villages”
initiative and the “Hundred-Thousand-Ten Thousand Project” leveraging its technological creative and
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
35resource advantages to support the high-quality development of rural characteristic industries.
The Company has pioneered a digital agricultural support model centered around an innovative
triangular framework of “digital content + agricultural products + global communication”. During the
Reporting Period the Company launched themed game versions centered on lychee a fruit rich in Lingnan
cultural heritage by creatively integrating lychee elements into six globally distributed games including
Trading Legend (叫我大掌柜) Bonk Bonk Tribe (时光大爆炸) My Memory Shop (时光杂货店) and Nobody's
Adventure Chop-Chop (寻道大千 ). This has allowed global users to gain deeper insights into the cultural
significance of lychee through game scenes interactive gameplay and themed gift boxes.The Company also developed a dedicated support plan for “Yinghong No. 9” a specialty tea from
Yingde Qingyuan. Based on its unique product attributes and consumer preferences the Company helped
upgrade the brand and explored creative cultural designs and new distribution channels aimed at
attracting younger urban consumers effectively expanding the consumption scenarios for rural specialty
products.
3. Advancing ecological civilization
During the Reporting Period 37 Interactive Entertainment continued to promote its transition toward
zero-carbon development and actively implemented science-based carbon targets.To support ecological civilization progress and wetland conservation 37 Interactive Entertainment
partnered with renowned environmental public welfare organizations such as the SEE Conservation PearlRiver Project Center and the Guangdong Nature Conservation Foundation to jointly promote the “UrbanWetlands and Biodiversity Protection” initiative. This initiative has already led to the development of a
wetland ecology knowledge popularization game the creation of seven wetland restoration courses based
on the philosophy of Nature-based Solutions (NbS) the construction of five micro and small wetland science
education facilities and the organization of 20 advocacy activities for youth and volunteers. Over 1500
participants engaged raising public awareness and understanding of wetland conservation.
4. Contributing to a better society
During the Reporting Period 37 Interactive Entertainment made a donation of RMB 9.7614 million
contributing to rural revitalization innovation talent cultivation ecological and environmental protection
and community development and helping to improve social welfare.In addition to fulfilling its CSR 37 Interactive Entertainment encourages employees to participate in
various social volunteer services. During the Reporting Period under the leadership of its Party Committee 37
Interactive Entertainment organized 17 volunteer activities engaging Party members and staff in programs
such as digital literacy education for youth care for children with special needs ecological and
environmental protection and support for underprivileged communities.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
36Part V Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Ne as
Shares as
Percen w dividen
dividend
Number tage d converteissu d from Other Subtotal
Numb Percent
(%) convert er age (%)es ed from capital
profit reserves
1. Restricted
shares 613270388 27.65%
61327
038827.72%
1.1 Shares held
by the
government
1.2 Shares held
by state-owned
corporations
1.3 Shares held
by other
domestic 613270388 27.65%
61327
038827.72%
investors
Including:
Shares held by
domestic
corporations
Shares held by 61327
domestic natural 613270388 27.65% 0388 27.72%
persons
1.4 Shares held
by overseas
investors
Including:
Shares held by
overseas
corporations
Shares held by
overseas natural
persons
2. Un-restricted 15989
shares 1604593893 72.35% -5626600 -5626600 67293 72.28%
2.1 RMB- 1604593893 72.35% -5626600 -5626600 15989 72.28%
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
37denominated 67293
common shares
2.2
Domestically
listed foreign
shares
2.3 Overseas
listed foreign
shares
2.4 Others
3. Total shares 2217864281 100.00% -5626600 -5626600
22122
37681100.00%
Reasons for share changes:
□ Applicable □ Not applicable
On 22 January 2025 the Company retired 5626600 repurchased shares and its total share capital has
thus changed from 2217864281 shares to 2212237681 shares.Approval of share changes:
□ Applicable □ Not applicable
The Company held the 15th meeting of the Sixth Board of Directors and the First Extraordinary General
Meeting of Shareholders in 2024 on 26 December 2023 and 12 January 2024 respectively at which the
Proposal on the Plan to Repurchase the Company's Shares by the Way of Centralized Bidding was
approved. As such the Company was agreed to use its own funds to repurchase shares by the way of
centralized bidding. The repurchased shares would be retired to reduce the registered capital.Transfer of share ownership:
□ Applicable □ Not applicable
Progress on share repurchases:
□ Applicable □ Not applicable
The Company held the 15th meeting of the Sixth Board of Directors and the First Extraordinary General
Meeting of Shareholders in 2024 on 26 December 2023 and 12 January 2024 respectively at which the
Proposal on the Plan to Repurchase the Company's Shares by the Way of Centralized Bidding was
approved. As such the Company was agreed to use its own funds to repurchase shares by the way of
centralized bidding. The total amount to be used for the share repurchase shall not be less than RMB 100
million (inclusive) and not more than RMB 200 million (inclusive) and the repurchase price should not
exceed RMB 33.90 per share (inclusive). The period for the implementation of the share repurchase should
be within 12 months from the date on which the Company's general meeting of shareholders approved the
share repurchase plan. The Company would make and implement repurchase decisions at an appropriate
time based on market conditions within the aforesaid period. The repurchased shares would be retired to
reduce the registered capital.As of 10 January 2025 the share repurchase period expired and during the said period the Company
had cumulatively repurchased 5626600 shares (or 0.25% of the total share capital) with its securities
account for repurchased shares by the way of centralized bidding. With the highest trading price being RMB
18.13/share and the lowest being RMB 17.66/share the total amount paid was RMB 100691594 (exclusive of
transaction costs). As such the implementation of the share repurchase plan had been completed.On 22 January 2025 the Company completed the retirement formalities for the above-mentioned
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
38repurchased shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation
Limited. As such the Company's total share capital has changed from 2217864281 shares to 2212237681
shares.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
During the Reporting Period the Company's total share capital decreased by 5626600 shares due to
the share repurchase. As per the Accounting Standards for Business Enterprises the aforesaid repurchased
shares were excluded in the calculation of basic earnings per share.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
II Issuance and Listing of Securities
□ Applicable □ Not applicable
III Shareholders and Their Holdings as at the Period-End
Unit: share
Number of preferred shareholders with
Number of common shareholders 150523 resumed voting rights (if any) (see note 0
8)
5% or greater shareholders or the top 10 shareholders (exclusive of shares lent in refinancing)
Shareh Increase/d Pledged marked or
Name of Nature of olding ecrease in Restricted Un- frozen status
shareholder shareholder percen Shares held theReporting shares held
restricted
tage shares held Status SharesPeriod
Li Weiwei Domesticnatural person 14.61% 323228319 0 242421239 80807080
Zeng Kaitian Domesticnatural person 11.14% 246474074 0 184855555 61618519
Hu Yuhang Domesticnatural person 9.11% 201597684 0 151198263 50399421 Pledged 31450000
Hong Kong
Securities Clearing Overseas 6.01% 132856952 74317171 0 132856952
Company Ltd. corporation
Wu Weidong Domestic 1.88% 41690057 409100 0 41690057
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
39natural person
Xu Zhigao Domesticnatural person 1.76% 38996974 0 29247730 9749244
China Minsheng
Banking Corp. Ltd.－China Securities
Cartoon Games
Trading Open- Other 1.67% 36936890 5268805 0 36936890
ended Index
Securities
Investment Fund
Wu Weihong Overseasnatural person 1.59% 35253178 0 0 35253178
Li Xingping Domesticnatural person 0.79% 17570206 17570206 0 17570206
37 Interactive
Entertainment
Network
Technology Group
Co. Ltd. The Other 0.74% 16301534 0 0 16301534－
Fourth Employee
Stock Ownership
Plan
Strategic investor or general
corporation becoming a top-10
shareholder in a rights issue (if any) N/A
(see note 3)
1. Among the top 10 shareholders of the Company Wu Weidong and Wu Weihong are
shareholders acting in concert.Related or acting-in-concert parties 2. The Company is not aware of whether there is among the other top 10 shareholders
among the shareholders above any related parties 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
Special account for share
repurchases (if any) among the top N/A
10 shareholders (see note 11)
Top 10 un-restricted shareholders (exclusive of shares lent in refinancing and senior management’s locked-up shares)
Shares by class
Name of shareholder Un-restricted shares held
Class Shares
RMB-
Hong Kong Securities Clearing denomin
Company Ltd. 132856952 ated 132856952common
shares
RMB-
denomin
Li Weiwei 80807080 ated 80807080
common
shares
Zeng Kaitian 61618519 RMB-denomin 61618519
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
40ated
common
shares
RMB-
denomin
Hu Yuhang 50399421 ated 50399421
common
shares
RMB-
denomin
Wu Weidong 41690057 ated 41690057
common
shares
China Minsheng Banking Corp. Ltd. RMB-
－China Securities Cartoon Games denomin
Trading Open-ended Index 36936890 ated 36936890
Securities Investment Fund commonshares
RMB-
denomin
Wu Weihong 35253178 ated 35253178
common
shares
RMB-
denomin
Li Xingping 17570206 ated 17570206
common
shares
37 Interactive Entertainment RMB-
Network Technology Group Co. denomin
Ltd. The Fourth Employee Stock 16301534 ated 16301534－
Ownership Plan commonshares
RMB-
Ping An Life Insurance Company of denomin
China Ltd. Own Funds 13363800 ated 13363800－ common
shares
Related or acting-in-concert parties
among the top 10 un-restricted 1. Among the top 10 shareholders of the Company Wu Weidong and Wu Weihong areshareholders acting in concert.shareholders as well as between 2. The Company is not aware of whether there is among the other top 10 shareholders
the top 10 un-restricted any related parties or acting-in-concert parties as defined in the Measures on the
shareholders and the top 10 Administration of Acquisition of Listed 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.Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
41□ 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 Supervisors and Senior
Management
□ Applicable □ Not applicable
No such changes in the Reporting Period. For the relevant information see the 2024 Annual Report.V Change of the Controlling Shareholder or Actual Controller
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.
42Part 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.
30 June 2025
Unit: RMB
Item 30 June 2025 1 January 2025
Current assets:
Monetary funds 5373334806.58 5058893098.76
Transaction settlement funds
Loans to other banks
Trading financial assets 2231896412.99 2249440497.59
Derivative financial assets
Notes receivable
Accounts receivable 1271836971.46 1212667677.20
Accounts receivable financing
Prepayments 1228924513.92 729588626.88
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 61577803.67 42840109.04
Including: Interest receivable
Dividends receivable 22613234.78 12782059.51
Redemptory monetary capital for sale
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year 536506012.51 923069692.33
Other current assets 170630952.09 118850219.61
Total current assets 10874707473.22 10335349921.41
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 411654888.75 446322435.18
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
43Other equity investments 208510989.00 217022972.20
Other non-current financial assets 1129286893.94 1037418816.34
Investment properties 841019909.26 689233033.12
Fixed assets 906898935.04 1076644793.81
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 11485365.21 6566577.29
Intangible assets 1864591049.99 1888794105.85
Including: Data resources
Development expenditure
Including: Data resources
Goodwill 1578065048.53 1578065048.53
Long-term deferred expenses 110226142.63 66733610.79
Deferred income tax assets 68432713.46 44668879.75
Other non-current assets 2565399621.70 2195871744.13
Total non-current assets 9695571557.51 9247342016.99
Total assets 20570279030.73 19582691938.40
Current liabilities:
Short-term loans 2646787083.45 2653781111.11
Loans from the central bank
Loans from other banks
Trading financial liabilities 3801719.82 8743696.60
Derivative financial liabilities
Notes payable 1734500000.00 1044500000.00
Accounts payable 2001654876.00 1667812211.58
Advances from customers 985420.12 362116.34
Contract liabilities 259690255.10 244227089.06
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 246458565.57 384954362.43
Taxes payable 189100877.72 200043621.99
Other payables 189503209.45 200414366.22
Including: Interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance payables
Liabilities held for sale
Non-current liabilities due within one year 4121456.63 5085969.06
Other current liabilities 64315373.98 49219418.15
Total current liabilities 7340918837.84 6459143962.54
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 5723939.30 1528614.88
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
44Deferred income tax liabilities 97224520.45 105413115.53
Other non-current liabilities
Total non-current liabilities 102948459.75 106941730.41
Total liabilities 7443867297.59 6566085692.95
Shareholders' equity:
Share capital 2212237681.00 2217864281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 2553827539.39 2678529816.16
Less: Treasury shares 300524656.78 401229096.75
Other comprehensive income -135399516.72 -119674167.70
Special reserves
Surplus reserves 666869940.33 666869940.33
General risk reserves
Retained earnings 8002705006.82 7878369071.34
Total equity attributable to shareholders of the
Company 12999715994.04 12920729844.38
Non-controlling interests 126695739.10 95876401.07
Total shareholders' equity 13126411733.14 13016606245.45
Total liabilities and shareholders’ equity 20570279030.73 19582691938.40
Legal representative: Zeng Kaitian Chief Financial Officer: Ye Wei
Board Secretary: Ye Wei
2. Balance Sheet of the Company
Unit: RMB
Item 30 June 2025 1 January 2025
Current assets:
Monetary funds 20549214.01 45010430.49
Trading financial assets 1403357410.96 1472922373.98
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing
Prepayments 492828.00 299511.91
Other receivables 2927527446.03 2067993087.97
Including: Interest receivable
Dividends receivable
Inventories
Including: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 8513855.17 8185040.85
Total current assets 4360440754.17 3594410445.20
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 9561797839.35 9561797839.35
Other equity investments
Other non-current financial assets 80738178.41 80738178.41
Investment properties
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
45Fixed assets
Construction in progress
Productive living assets
Oil and gas assets
Right-of-use assets 1416950.52 2479663.50
Intangible assets
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term deferred expenses
Deferred income tax assets 8502339.59 9230406.43
Other non-current assets
Total non-current assets 9652455307.87 9654246087.69
Total assets 14012896062.04 13248656532.89
Current liabilities:
Short-term loans 50027499.99 400281111.11
Trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 491488.50 1713740.20
Advances from customers
Contract liabilities
Employee benefits payable 50868.94 28060.00
Taxes payable 17739439.95
Other payables 16404479.72 32866010.91
Including: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 2552367.41
Other current liabilities
Total current liabilities 66974337.15 455180729.58
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 66974337.15 455180729.58
Shareholders' equity:
Share capital 2212237681.00 2217864281.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6250612855.35 6345690695.32
Less: Treasury shares 300524656.78 401229096.75
Other comprehensive income
Special reserves
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
46Surplus reserves 1108932140.50 1108932140.50
Retained earnings 4674663704.82 3522217783.24
Total shareholders' equity 13945921724.89 12793475803.31
Total liabilities and shareholders’ equity 14012896062.04 13248656532.89
3. Consolidated Income Statement
Unit: RMB
Item H1 2025 H1 2024
1. Total operating revenue 8486116689.62 9231969089.44
Including: Operating revenue 8486116689.62 9231969089.44
Interest income
Premium income
Handling charge and commission
income
2. Total operating costs and expenses 6958794617.16 7832939934.89
Including: Cost of sales 1976706274.51 1880723779.43
Interest expense
Handling charge and commission
expenses
Surrenders
Net claims paid
Net amount provided as policy
reserve
Expenditure on policy dividends
Reinsurance premium expenses
Taxes and surcharges 24563454.82 20367278.88
Distribution and selling expenses 4410194833.32 5360351377.24
General and administrative expenses 296824781.90 295724089.56
Research and development
expenses 337441172.39 350778127.57
Financial expenses -86935899.78 -75004717.79
Including: Interest expense 31464412.78 40576529.74
Interest income 116078865.48 128780026.36
Add: Other income 13015767.02 41785392.54
Investment income (“-” for loss) 61930197.10 62436738.05
Including: Share of profits and losses of
joint ventures and associates 10145519.06 -12407533.87
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) 19374832.45 -34768367.03
Impairment loss on credit (“-” for loss) -267254.09 2073562.27
Impairment loss on assets (“-” for loss)
Gain on disposal of assets (“-” for loss) 103702.54 180389.09
3. Operating profit (“-” for loss) 1621479317.48 1470736869.47
Add: Non-operating income 1140329.45 1426343.47
Less: Non-operating expenses 13276351.01 4615650.36
4. Profit before income tax expenses (“-” for loss) 1609343295.92 1467547562.58
Less: Income tax expenses 208478502.79 202945190.16
5. Net profit (“-” for net loss) 1400864793.13 1264602372.42
5.1 Classified by continuity of operations
5.1.1 Net profit from continuing operations (“-” for net loss) 1400864793.13 1264602372.42
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
475.1.2 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 loss) 1400246950.03 1264633578.95
5.2.2 Net profit attributable to non-controlling
interests (“-” for net loss) 617843.10 -31206.53
6. Other comprehensive income net of tax -15725349.02 9364108.68
Other comprehensive income attributable to
shareholders of the Company net of tax -15725349.02 9364108.68
6.1 Other comprehensive income that will not
be reclassified subsequently to profit or loss -7105553.20 807.00
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 -7105553.20 807.00
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 profit or loss -8619795.82 9363301.68
6.2.1 Share of the other comprehensive
income of the investee accounted for using
equity method that will be reclassified 32846.75
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 translation of
foreign currency financial statements -8652642.57 9363301.68
6.2.7 Others
Other comprehensive income attributable to
non-controlling interests net of tax
7. Total comprehensive income 1385139444.11 1273966481.10
Total comprehensive income attributable to
shareholders of the Company 1384521601.01 1273997687.63
Total comprehensive income attributable to
non-controlling interests 617843.10 -31206.53
8. Earnings per share:
8.1 Basic earnings per share 0.64 0.57
8.2 Diluted earnings per share 0.64 0.57
Where business combinations under common control occurred in the current period the net profit achieved
by the acquirees before the combinations was RMB 0.00 with the amount for the same period of last year
being RMB 0.00.Legal representative: Zeng Kaitian Chief Financial Officer: Ye Wei
Board Secretary: Ye Wei
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
484. Income Statement of the Company
Unit: RMB
Item H1 2025 H1 2024
1. Operating revenue 0.00 0.00
Less: Cost of sales 0.00 0.00
Taxes and surcharges 22500.00 23538.06
Distribution and selling expenses
General and administrative expenses 10040386.71 3549968.63
Research and development expenses
Financial expenses 3924444.04 5367745.74
Including: Interest expense 4122626.79 12328004.75
Interest income 560708.75 7710432.20
Add: Other income 2148111.38 2294998.75
Investments income (“-” for loss) 2429511791.54 2448220.44
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) 11167932.85 13939894.49
Impairment loss on credit (“-” for loss)
Impairment loss on assets (“-” for loss)
Gain on disposal of assets (“-” for loss)
2. Operating profit (“-” for loss) 2428840505.02 9741861.25
Add: Non-operating income 158401.12 98521.32
Less: Non-operating expenses 1.80
3. Profit before income tax expenses (“-” for loss) 2428998906.14 9840380.77
Less: Income tax expenses 728066.84 1198368.27
4. Net profit (“-” for net loss) 2428270839.30 8642012.50
4.1 Net profit from continuing operations (“-”
for net loss) 2428270839.30 8642012.50
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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
495.2.3 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 2428270839.30 8642012.50
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 2025 H1 2024
1. Cash flows from operating activities:
Cash received from the sales of goods or
rendering services 8799176336.06 9620114536.93
Net increase in customer deposits and interbank
deposits
Net increase in loans from the 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 1495944.11 719485.79
Cash received relating to other operating
activities 48851788.95 139944356.80
Sub-total of cash inflows from operating activities 8849524069.12 9760778379.52
Cash paid for purchases of goods and services 1807591425.24 1702546188.13
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 901658510.47 927266621.10
Payments of taxes and levies 338618589.43 398069513.84
Cash paid relating to other operating activities 4048312877.30 4603712541.46
Sub-total of cash outflows used in operating activities 7096181402.44 7631594864.53
Net cash flows from operating activities 1753342666.68 2129183514.99
2. Cash flows from investing activities:
Cash received from disposal of investments 127980980.54 43752606.12
Cash received from investment income 274026030.77 210370371.13
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
50Cash received from disposal of fixed assets
intangible assets and other long-term assets 10356.00 469762.92
Net cash received from disposal of subsidiaries
and other business units
Cash received relating to other investing
activities 9270962040.85 9639667817.18
Sub-total of cash inflows from investing activities 9672979408.16 9894260557.35
Cash paid for acquisition of fixed assets
intangible assets and other long-term assets 227815426.77 342930122.81
Cash paid to acquire investments 58252981.87 327682116.26
Net increase in pledged loans granted
Net cash paid for the acquisition of subsidiaries
and other business units 1495.90 49991.06
Cash paid relating to other investing activities 9488976494.87 11476625020.38
Sub-total of cash outflows used in investing activities 9775046399.41 12147287250.51
Net cash flows from/used in investing activities -102066991.25 -2253026693.16
3. Cash flows from financing activities:
Cash received from capital contributions
Including: Cash received from capital
contributions by non-controlling interests of
subsidiaries
Cash received from borrowings 2225668707.76 1753000000.00
Cash received relating to other financing
activities 220000000.00 873000000.00
Sub-total of cash inflows from financing activities 2445668707.76 2626000000.00
Cash repayments of borrowings 2235168707.76 1894380000.00
Cash paid for interest and dividends 1304574913.29 1316399138.66
Including: Dividends paid by subsidiaries to non-
controlling interests
Cash paid relating to other financing activities 5925305.63 107878152.66
Sub-total of cash outflows used in financing activities 3545668926.68 3318657291.32
Net cash flows from/used in financing activities -1100000218.92 -692657291.32
4. Effect of foreign exchange rate changes on cash
and cash equivalents 3382539.80 -23853609.89
5. Net increase/decrease in cash and cash
equivalents 554657996.31 -840354079.38
Add: Cash and cash equivalents at beginning of
the period 1545506260.60 2745481726.82
6. Cash and cash equivalents at end of the period 2100164256.91 1905127647.44
6. Cash Flow Statement of the Company
Unit: RMB
Item H1 2025 H1 2024
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 1753296108.69 2098673269.47
Sub-total of cash inflows from operating activities 1754024620.68 2098673269.47
Cash paid for purchases of goods and services
Cash paid to and on behalf of employees 2856795.06 189244.00
Payments of taxes and levies 26280.57 2616846.16
Cash paid relating to other operating activities 2637861398.99 406244582.28
Sub-total of cash outflows used in operating activities 2640744474.62 409050672.44
Net cash flows from/used in operating activities -886719853.94 1689622597.03
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
512. Cash flows from investing activities:
Cash received from disposal of investments
Cash received from investment income 2440244687.41 14947619.87
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 3715000000.00 2400000000.00
Sub-total of cash inflows from investing activities 6155244687.41 2414947619.87
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 3645000000.00 2700000000.00
Sub-total of cash outflows used in investing activities 3660000000.00 2700000000.00
Net cash flows from/used in investing activities 2495244687.41 -285052380.13
3. Cash flows from financing activities:
Cash received from capital contributions
Cash received from borrowings 50000000.00 300000000.00
Cash received relating to other financing
activities
Sub-total of cash inflows from financing activities 50000000.00 300000000.00
Cash repayments of borrowings 400000000.00 650000000.00
Cash paid for interest and dividends 1280169889.95 1288380197.59
Cash paid relating to other financing activities 2816160.00 100704439.97
Sub-total of cash outflows used in financing activities 1682986049.95 2039084637.56
Net cash flows from/used in financing activities -1632986049.95 -1739084637.56
4. Effect of foreign exchange rate changes on cash
and cash equivalents
5. Net increase/decrease in cash and cash
equivalents -24461216.48 -334514420.66
Add: Cash and cash equivalents at beginning of
the period 45010430.49 499632019.23
6. Cash and cash equivalents at end of the period 20549214.01 165117598.57
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version
shall prevail.
527. Consolidated Statement of Changes in Shareholders’ Equity
H1 2025
Unit: RMB
H1 2025
Equity attributable to shareholders of the Company
Other equity Sp
Item instruments eci
Gen Non-
Less: Other eral controllin
Total
Share Prefe Perpe Ot Capital al Surplus Retained Oth
shareholde
capital rred tual he reserves
Treasury comprehensi risk Sub-total g
shar bond shares ve income
res reserves
erv reser
earnings ers interests rs' equity
es s rs es ves
1. Balance as at
the end of prior 22178642 267852981 4012290 666869 787836907 1292072984 95876401 130166062-119674167.70
year 81.00 6.16 96.75 940.33 1.34 4.38 .07 45.45
Add:
Adjustments for
changed
accounting
policies
Adjustments for
corrections of
previous errors
Others
2. Balance as at 22178642 267852981 4012290 666869 787836907 1292072984 95876401 130166062
beginning of year -119674167.7081.00 6.16 96.75 940.33 1.34 4.38 .07 45.45
3. Increase/ - - -
decrease in the 124335935. 30819338 109805487.period (“-” for 5626600.0 124702276. 1007044 -15725349.02 78986149.6648 .03 69
decrease) 0 77 39.97
3.1 Total
comprehensive 140024695 1384521601 138513944-15725349.02 617843.10
income 0.03 .01 4.11
3.2 Capital - - -
contribution and - 30229724
withdrawal by 5626600.0 125307604. 1007044 -40.0030229764.77 .77
shareholders 0 74 39.97
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
533.2.1 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 - 302297245626600.0 125307604. 1007044 -40.00
30229764.77.77
07439.97
---
3.3 Profit
distribution 127582491 1275824917 127582491
7.72.727.72
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
general risk
reserves
---
3.3.3 Distribution
to shareholders 127582491 1275824917 127582491
7.72.727.72
3.3.4 Others
3.4 Internal
transfers within
shareholders’
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.
54capital)
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 605327.97 -86096.83 519231.14 -28229.84 491001.30
4. Balance as at
the end of the 22122376 255382753 3005246 666869 800270500 1299971599 12669573 131264117-135399516.72
period 81.00 9.39 56.78 940.33 6.82 4.04 9.10 33.14
H1 2024
Unit: RMB
H1 2024
Equity attributable to shareholders of the Company
Other equity Gen Non-
Item
Share instruments Capital Less: Other
Spe
cial Surplus eral
O
Retained th controllin
Total
shareholders
capital Prefer Perpe Oth reserves Treasury comprehensiv reserve riskshares e income reser s reser earnings er
Sub-total g
interests ' equityred tual
share bond ers ves ves s
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
55s s
1. Balance as at
the end of prior 2217864 282304083 30052465 666869 74292066 1270694547 10541693 12812362408-129511563.25
year 281.00 2.04 6.78 940.33 42.53 5.87 2.47 .34
Add:
Adjustments for
changed
accounting
policies
Adjustments for
corrections of
previous errors
Others
2. Balance as at 2217864 282304083 30052465 666869 74292066 1270694547 10541693 12812362408
beginning of year -129511563.25281.00 2.04 6.78 940.33 42.53 5.87 2.47 .34
3. Increase/ -
decrease in the 40875956.3 10070443 - 4575943.period (“-” for 9364108.68 11192145. -57080577.328 9.97 61656520.68 36
decrease) 77
3.1 Total
comprehensive 12646335 1273996880 1273965674.9363301.68 -31206.53
income 78.95 .63 10
3.2 Capital
contribution and 40875956.3 10070443 - 4607149.withdrawal by -55221333.708 9.97 59828483.59 89
shareholders
3.2.1 Common
shares
contribution and - -140051.00
withdrawal by 140051.00
shareholders
3.2.2 Capital
contribution and
withdrawal by
holders of other
equity instruments
3.2.3 Share-based
payments 40875956.3
included in 40875956.38 89797.88 40965754.268
shareholders’
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
56equity
-
3.2.4 Others 10070443 4657403.100704439.9 -96047036.96
9.9701
7
---
3.3 Profit
distribution 12758249 1275824917 1275824917.
17.72.7272
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
general risk
reserves
---
3.3.3 Distribution
to shareholders 12758249 1275824917 1275824917.
17.72.7272
3.3.4 Others
3.4 Internal
transfers within
shareholders’ 807.00 -807.00
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
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
573.4.5 Other
comprehensive
income 807.00 -807.00
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 2217864 286391678 40122909 666869 74180144 1264528895 10999287 12755281831-120147454.57
period 281.00 8.42 6.75 940.33 96.76 5.19 5.83 .02
8. Statement of Changes in Shareholders’ Equity of the Company
H1 2025
Unit: RMB
H1 2025
Other equity instruments
Item Share Preferr Perpet Capital Less: Other
Speci
Othe Treasury comprehen al Surplus Retained Othe
Total
capital ed ual reservesrs shares sive income reserv
reserves earnings rs shareholders'
shares bonds es equity
1. Balance as at the 221786 6345690695.3 401229096.7 1108932140.5 3522217783.2
end of prior year 12793475803.314281.00 2 5 0 4
Add: Adjustments
for changed
accounting policies
Adjustments
for corrections of
previous errors
Others
2. Balance as at 221786 6345690695.3 401229096.7 1108932140.5 3522217783.2
beginning of year 12793475803.314281.00 2 5 0 4
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
583. Increase/ decrease - -
in the period (“-” for 1152445921.5562660 -95077839.97 100704439.9 0.00 1152445921.58
decrease) 80.00 7
3.1 Total
comprehensive 2428270839.3 2428270839.30
income 0
3.2 Capital - -
contribution and
withdrawal by 562660 -95077839.97 100704439.9 0.00
shareholders 0.00 7
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 562660 -95077839.97 100704439.9
0.007
-
3.3 Profit distribution 1275824917.7 -1275824917.72
2
3.3.1 Appropriation to
surplus reserves
-
3.3.2 Distribution to
shareholders 1275824917.7 -1275824917.72
2
3.3.3 Others
3.4 Internal transfers
within shareholders’
equity
3.4.1 Capital reserves
transferred into capital
(or share capital)
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
593.4.2 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 the 221223 6250612855.3 300524656.7 1108932140.5 4674663704.8
end of the period 13945921724.897681.00 5 8 0 2
H1 2024
Unit: RMB
H1 2024
Other equity instruments Speci
Item Share Preferr Perpet Capital Less: OtherTreasury comprehen al Surplus Retained Othe
Total
capital ed ual Othe reserves reserv reserves earnings rs
shareholders'
shares bonds rs
shares sive income es equity
1. Balance as at the 2217864 6468587957.5 300524656.7 - 1108932140.5 4846565105.0 14281424827.2
end of prior year 281.00 0 8 60000000.00 0 7 9
Add: Adjustments
for changed
accounting policies
Adjustments
for corrections of
previous errors
Others
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
602. Balance as at 2217864 6468587957.5 300524656.7 - 1108932140.5 4846565105.0 14281424827.2
beginning of year 281.00 0 8 60000000.00 0 7 9
3. Increase/ decrease -
in the period (“-” for 100704439.940965754.26 1267182905.2 -1326921590.93
decrease) 7 2
3.1 Total
comprehensive 8642012.50 8642012.50
income
3.2 Capital
contribution and 100704439.9
withdrawal by 40965754.26 -59738685.717
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 40965754.26 40965754.26
shareholders’ equity
3.2.4 Others 100704439.9 -100704439.97
7
-
3.3 Profit distribution 1275824917.7 -1275824917.72
2
3.3.1 Appropriation to
surplus reserves
-
3.3.2 Distribution to
shareholders 1275824917.7 -1275824917.72
2
3.3.3 Others
3.4 Internal transfers
within shareholders’
equity
3.4.1 Capital reserves
transferred into
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
61capital (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 the 2217864 6509553711.7 401229096.7 - 1108932140.5 3579382199.8 12954503236.3
end of the period 281.00 6 5 60000000.00 0 5 6
Should there be any discrepancy between the English version and the Chinese version of this Report the Chinese version shall prevail.
62
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