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Yeahka 移卡

YEAHKA LIMITED

移卡有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 9923)

INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED JUNE 30, 2025

The board (the "Board") of directors (the "Directors") of YEAHKA LIMITED (the "Company") is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the six months ended June 30, 2025 (the "Reporting Period" or "Period"). These interim results have been reviewed by the audit committee of the Company (the "Audit Committee").

In this announcement, "Yeahka," "we," "us," and "our" refer to the Company, and where the context otherwise requires, the Group.

BUSINESS REVIEW AND OUTLOOK

Business and Financial Summary

Following the successful acquisition of our U.S. MSB (Money Services Business) federal payment license, we have also secured the Arizona MTL (Money Transmitter License) state-level payment license, and continue to expand our footprint across major global economies;
We have also obtained formal approval from Japan’s Ministry of Economy, Trade and Industry to conduct online and offline QR code payment acceptance services in Japan, further consolidating our local team and existing business foundations to enhance our commercialization strengths, so as to provide Japanese merchants with one-stop digital commerce enablement solutions;
We supported our strategic partner The Hongkong and Shanghai Banking Corporation Limited (“HSBC”) to upgrade its payment acceptance management solutions, adding payment methods such as Alipay, Alipay HK, and WeChat Pay, demonstrating the penetration of our international products;
Our AI-driven precision marketing subsidiary Beijing Chuangxinzhong Technology Co., Ltd. (北京創信眾科技有限公司) (“Chuangxinzhong”) achieved approximately 40% month-on-month growth in AI-generated digital human video transaction volume, while reducing content production costs by as much as 80%. As of June 30, 2025, AI-generated content accounted for 20% of total video production. Chuangxinzhong has also become ByteDance Ltd.’s (字節跳動) (“ByteDance”) first partner capable of converting content into public digital humans, co-developing an intelligent commerce enablement ecosystem;
Our one-stop payment services continued to lead the industry, with daily transaction counts peaking at nearly 60 million;
Our gross payment volume (GPV) for the six months ended June 30, 2025 was RMB1,144.4 billion, representing a decrease of 1.9% compared to the same period last year. The transaction volume of our overseas businesses during the Reporting Period exceeded RMB1.5 billion, surpassing the transaction volume of approximately RMB1.1 billion for the full year of 2024;
Our payment fee rate for the six months ended June 30, 2025 was 12.5 basis points (bps), marking a 1.0 bps increase year-on-year, underscoring a stronger commercialization and business expansion capability than industry peers, out of which, our payment fee rate overseas reached 67.0 bps;
Revenue for the six months ended June 30, 2025 was RMB1,641.5 million, representing a year-on-year increase of 4.0%;
Gross profit for the six months ended June 30, 2025 was RMB383.0 million, representing a year-on-year increase of 27.6%. Gross profit margin for the same period rose from 19.0% to 23.3%;

Gross profit margin of business segments continued to improve. For the six months ended June 30, 2025, gross profit margin of one-stop payment services increased from 6.9% to 13.7%, among which gross profit margin of overseas business exceeded 50%. Gross profit margin of value-added services with higher gross profit margins (including merchant solutions and in-store e-commerce services) continued to maintain a high level of 88.5%;
Leveraging the broader application of artificial intelligence across all business lines of the Group, selling, administrative, and research and development expenses for the six months ended June 30, 2025 decreased by 19.3% compared to the same period last year, reflecting cost reduction across the board;
As a result of actively upgrading our equity structure and optimizing finance costs, the finance costs for the six months ended June 30, 2025 decreased by 52.7% compared to the same period last year; and
Profit for the Period amounted to RMB41.4 million for the six months ended June 30, 2025, representing an increase of 27.0% from the same period last year.

About Yeahka

Yeahka is a leading commerce enablement technology platform dedicated to creating value for merchants and consumers. We strive to expand an independent commercial digitalized ecosystem to (i) provide seamless, convenient and reliable payment services to both merchants and consumers through our one-stop payment services; (ii) enable merchants to better manage and drive business growth through our merchant solutions; and (iii) provide consumers with local lifestyle services of great value through our in-store e-commerce services.

Strategic Progress and Outlook

In the first half of 2025, we achieved robust overseas growth through business portfolio diversification while providing one-stop payment and value-added services for global brand clients, which demonstrates the strong scalability of our business model in the international markets. During the same period, the fee rate and profitability of our domestic payment business demonstrate gradual recovery. Our strengthened partner relationships and a more resilient digital ecosystem have provided a solid foundation for stable growth. Driven by strategic business model upgrades, our value-added services achieved sustained and high-quality growth. Among them, our precision marketing business achieved a record high transaction volume in the second quarter, and our in-store e-commerce business secured consecutive months of profitability, which further enhanced the sustainability of our overall profitability. Concurrently, all business lines optimized operational efficiency through deepened AI integration, which streamlined processes, reduced costs, and, for revenue-generating innovations like AI digital humans in automated marketing campaigns, earned us widespread industry and client recognition. Our diversified digital ecosystem built around payments, enriched by unique merchant-consumer interaction scenarios and bolstered by a proven track record of continuous product innovation, will unlock new opportunities for merchants to capitalize on the global digital currency trends.

Despite a decline in the average transaction amount per customer given macroeconomic volatility, which resulted in a 1.9% year-on-year decrease in our GPV from RMB1,166.2 billion for the six months ended June 30, 2024 to RMB1,144.4 billion for the same period in 2025, the GPV in the second quarter of 2025 rose quarter-on-quarter, indicating a start toward stabilization and recovery. Leveraging our pricing power as China's leading payment technology brand, our fee rate increased from 11.5 bps for the six months ended June 30, 2024 to 12.5 bps for the same period in 2025, driving revenue up by 4.0% from RMB1,577.7 million for the six months ended June 30, 2024 to RMB1,641.5 million for the same period in 2025.

Our gross profit increased by 27.6% from RMB300.2 million for the six months ended June 30, 2024 to RMB383.0 million for the same period in 2025. This growth is primarily attributable to the recovery and strong profit resilience of our domestic payment business. As a result, gross profit from our one-stop payment services surged by 110.3% from RMB92.9 million in the first half of 2024 to RMB195.3 million in the first half of 2025. Our gross profit margin increased from 19.0% for the six months ended June 30, 2024 to 23.3% for the same period in 2025, mainly due to the aforementioned increase in payment gross profit (payment gross profit margin increased from 6.9% in the first half of 2024 to 13.7% in the first half of 2025) and the gross profit margins from value-added services remaining at a high level overall (including merchant solutions and in-store e-commerce).

Notably, our overseas business achieved robust growth, with overseas GPV exceeding RMB1.5 billion in the first half of 2025, surpassing the transaction volume of approximately RMB1.1 billion for the full year of 2024 in total. This performance further solidified our globalization strategy. For the six months ended June 30, 2025, our overseas payment fee rate was 67.0 bps, with a gross profit margin over 50%, and the quarterly transaction volume per overseas merchant was significantly higher than domestic levels. The high-quality and sustainable development of overseas business continues to unlock significant profit potential for the Company.

In terms of business processes, we have proactively applied AI technology across various operational areas, including marketing content production, R&D processes, risk management, and customer service. Among these, the adoption rate of AI-assisted programming based on large language models has reached nearly 40%, accelerating the implementation and advancement of production and R&D projects. Implementation of artificial intelligence has also crucially enhanced the efficiency of transaction security and automated 60% of the previous manual customer service workflows. By widespread integration of AI tools to streamline internal processes, our operating expenses decreased by 19.3% for the six months ended June 30, 2025. Adjusted EBITDA for the same period was RMB173.3 million.

At the same time, our effective financial management slashed financial costs by 52.7% year-on-year for the six months ended June 30, 2025. Our profit for the Period rose by 27.0% from RMB32.6 million during the six months ended June 30, 2024 to RMB41.4 million for the same period in 2025. During the same period, our profit margin of the Period increased from 2.1% to 2.5%.

The following table sets forth the comparative figures for the six months ended June 30, 2025 and June 30, 2024, respectively:

For the six months ended June 30,
	2025
RMB’000	2024
RMB’000	Year-on-year
change
(%)
Revenue	1,641,526	1,577,719	4.0
—One-stop payment services	1,429,317	1,346,561	6.1
—Merchant solutions	186,527	202,319	(7.8)
—In-store e-commerce services	25,682	28,839	(10.9)
Gross profit	383,030	300,219	27.6
Gross profit margin	23.3%	19.0%	4.3^{(1)}
—One-stop payment services	13.7%	6.9%	6.8^{(1)}
—Merchant solutions	91.3%	90.9%	0.4^{(1)}
—In-store e-commerce services	68.0%	81.5%	(13.5)^{(1)}
Profit for the Period	41,373	32,580	27.0
Profit margin for the Period	2.5%	2.1%	0.4^{(1)}

Note:
(1) Percentage points

Below are the key highlights from our business lines during the Reporting Period:

Sustained Rapid Growth of Overseas Business and Deepened Global Penetration

In the first half of 2025, our overseas business achieved robust growth and established broader and deeper coverage of international channels. We also fulfilled customer demands across industry verticals as well as product-services more comprehensively, which solidified our Company’s globalization strategy. For the six months ended June 30, 2025, our overseas GPV exceeded RMB1.5 billion, surpassing the 2024’s full-year total of approximately RMB1.1 billion, which validated our strong market expansion capabilities and recognition from customers. This high-quality development continues to unlock long-term profit potential: for the six months ended June 30, 2025, the overseas payments fee rate reached 67.0 bps, with gross margin exceeded 50%, and quarterly transaction volume per overseas merchant significantly outperformed domestic levels.

Following the acquisition of our U.S. MSB (Money Services Business) federal payment license we have also secured the Arizona MTL (Money Transmitter License) state-level payment license, and continue to expand our footprint across major global economies. We have also obtained formal approval from Japan’s Ministry of Economy, Trade and Industry to conduct online and offline QR code payment acceptance services in Japan, further consolidating our local team and existing business foundations to enhance our commercialization strengths. With these critical licenses, we have further solidified our strategic layout and channel networks for serving overseas consumers and enterprises, enabling us to provide comprehensive payment services to overseas markets, including payment acceptance, card issuing, e-wallets, cross-border remittances, currency exchange, and corporate expense management. These licenses further strengthen our differentiated competitive edge against industry peers and build a unique and solid value proposition for overseas development.

Concurrently, we have supported our strategic partner, HSBC, to upgrade its payment acceptance management solutions, adding payment methods such as Alipay, Alipay HK, and WeChat Pay, and will jointly explore further cooperation in the digital currency and overseas market. This initiative not only showcases our extensive payment channel network and the market penetration of our internationalized products, but also reflects our strategic commitment to deepening alliances with leading global financial institutions amid the globalization journey of our business.

Furthermore, our payment and value-added service product lines continued to empower globally iconic brands. Through Fushi Technology (Shenzhen) Co., Ltd. (深圳市富匙科技有限公司) ("Fushi"), our investee company, we have expanded service coverage to deliver more customized services to international clients. Leveraging on our extensive domestic experience in lifestyle services and in-store e-commerce services, we accelerated business expansion across Japan, Singapore, and the Hong Kong SAR. By proactively securing necessary operational licenses and building specialized talent teams worldwide, we are committed to providing high-quality and convenient one-stop commerce enablement solutions to merchants around the world.

Integrating AI Technology with Unique Insights into Industry Verticals to Lead Industry Innovation

Leveraging the cutting-edge technologies and operational expertise of our AI Lab, we integrated diverse large language models with granular insights into merchant operations to transform consumer-merchant experiences. This cements our industry leadership in innovation while significantly enhancing clients' capabilities in cost reduction, efficiency improvement, and revenue growth.

Our subsidiary Chuangxinzhong enabled merchants to automatically generate images and videos through inputting keywords. This capability not only significantly reduced labor costs for actors, editing, and so on, but also enabled the rapid production of many high-quality advertising materials, driving costs down while increasing efficiency for merchants. AI-generated digital human videos have revolutionized precision marketing. In the first half of 2025, the related transaction volume grew by approximately 40% month-on-month, while cost of materials dropped by 80%. As of June 30, 2025, AI-generated content accounted for 20% of the total video production volume. Chuangxinzhong has also become ByteDance's first partner for public digital human generation, co-developing an intelligent commerce enablement ecosystem.

On the merchant side, we utilized AI-driven merchant data analysis combined with natural language processing (NLP) to generate business analysis and recommendations for customers. This has significantly shortened business decision-making cycles, improved the efficiency of merchant data queries, reduced operation time by over 80%, and cut customer service labor costs by 60%. On the consumer side, through our investee company Fushi, we have created AI Shop to deliver a demand-driven immersive shopping journey for users. AI Shop is capable of dynamically generating product categories based on a user's description of their needs using conversational language they are familiar with, which delivers personalized shopping experiences. The entire process enables seamless switching between categorized interfaces. By predictively analyzing the personal preferences of consumers and their behavioral data, AI Shop can proactively and intelligently recommend optimal product bundles to boost sales conversion rates.

In terms of operational processes, we have actively deployed AI technology in KYC, risk control, customer service, and operations. The adoption rate of AI-assisted programming based on large language models has reached nearly 40%, accelerating the implementation and advancement of production and R&D projects. AI technology also helped us successfully perform risk interceptions more swiftly, enhancing transaction security efficiency. With AI tools streamlining processes, we reduced operating expenses by approximately 20%. We will continue to empower our business with AI and digital technologies to drive innovation and high-quality growth.

One-Stop Payment Service: Resilient Market Leadership Driving Quality Growth and Profitability

In the first half of 2025, macroeconomic volatility led to a decline in average transaction value per customer, resulting in a 1.9% year-on-year decrease in our GPV. Notably, a quarter-on-quarter increase in the second quarter compared to the first quarter signaled a start toward stabilisation and recovery. The peak daily transaction counts via our app-based payments remained robust at 60 million, which demonstrates our solid leading position in the industry. Concurrently, our fee rate during the Reporting Period increased from 11.5 bps to 12.5 bps year-on-year, demonstrating our pricing power as a leading payment technology brand in China and the strong recognition from merchant of our high-quality one-stop services. Revenue from payment services increased by 6.1% year-on-year, from RMB1,346.6 million for the six months ended June 30, 2024 to RMB1,429.3 million for the same period in 2025, validating the sustained business momentum of our payment services. Compared with the same period last year, the gross profit of our one-stop payment services business surged by 110.3% year-on-year to RMB195.3 million in the first half of 2025, with the gross profit margin climbing to 13.7%, significantly optimizing the profitability of our payment services.

We are committed to operational refinement and continuously enhancing the momentum for organic business growth: (i) dynamic pricing: we implement customers tiering and differentiated operations to flexibly adjust fee rates, strengthen customer management, boost revenue streams, and optimize charging standards; (ii) diversified channels and regional penetration: we collaborated with over 7,000 SaaS partners and deepened cooperation with leading agents to improve synergy efficiency and penetrate low-end markets and prefecture-level cities; and (iii) high-potential client acquisition: we actively target large clients in high-potential industries who exhibit deeper service needs and stronger payment capacity. Looking ahead to the second half of 2025, we will continue to advance our refined operations to sustain high-quality growth.

The overseas payment and payment acceptance market exhibited compelling long-term profit potential. For the six months ended June 30, 2025, the fee rate for our overseas payment business stood at 67.0 bps, with a gross profit margin over 50%, implying profits generated per transaction overseas were significantly higher than those domestically. Since the average transaction volume of overseas merchants is significantly higher than that in the domestic market, the average profit contribution per overseas customer also substantially outpaced domestic counterparts. We have established a relatively mature and scalable business model in overseas markets, backed by a strong track record. With continued acquisition of local payment licenses in major overseas markets including the United States and Japan, the contribution of overseas business to total payment gross profit is expected to keep rising from 3.5% for the six months ended June 30, 2025. Compared with industry peers, we maintain a distinctive competitive edge in product positioning and market footprint. By focusing on serving overseas merchants and consumers, we have strengthened our unique value proposition and solidified our competitive foundation in the global market.

We have established an extensive user network and diverse application scenarios covering retail and international trading across multiple countries in the digital payment domain, together with our investee company and strategic partners. We proactively promoted the implementation of digital currency use cases, including e-CNY in China, and introduced into local lifestyle domains, such as launching blockchain-powered dining vouchers which delivered new experiences for merchants and consumers. Relying on our cooperation network spanning various parties including banks and supply chain providers, we have been devoted to eliminating financial service barriers, optimizing currency circulation efficiency, and propelling high-quality industry development.

Merchant Solutions: Commercialization of AI and Data Technology with Profit Margin Further Improved

For the six months ended June 30, 2025, our merchant solutions generated revenue of RMB186.5 million, representing a 7.8% year-on-year decrease yet achieving a 35.8% period-on-period growth. Continuing enhancement of our merchant service capabilities has boosted customers' willingness to pay and the scale of business. The gross profit margin further increased from 90.9% for the six months ended June 30, 2024 to 91.3% in the same period of 2025, mainly driven by our increased application of AI technology, continuous improvement in product profitability, strict cost control, and targeting customers with higher profit margin.

Benefiting from expanded service adoption by major e-commerce clients including JD.com, Meituan, and Kuaishou, our precision marketing business achieved a semi-annual record-high transaction volume of over RMB1.7 billion in the first half of 2025, representing a year-on-year increase of more than 23%. Our subsidiary, Chuangxinzhong, specialized in precision marketing, saw approximately 40% month-on-month growth in transaction volume related to AI-generated digital human videos, with AI-generated transaction volume accounting for over 20% of total video production volume. These innovative services have significantly shortened the material production cycle and reduced material costs by approximately 80%. Chuangxinzhong has become the first partner within the ecosystem of ByteDance (the parent company of Douyin) capable of transforming content into public digital humans, supporting development of a digital intelligent commercial ecosystem.

When Chuangxinzhong produces digital human advertising videos, clients are only required to provide word prompts. The system then autonomously selects optimal advertising protagonists based on industry attributes and targeted demographics, designs facial expressions and movement details, and generates simulated videos. This eliminates the traditional cumbersome processes like live-action shooting and editing, and enables efficient production of personalized marketing content, allowing platform algorithms to recommend high-quality materials and amplify traffic and media exposure. Building on serving leading fintech enterprises, we have further expanded to prominent consumer and internet brands such as Haier, Hellobike, and Ele.me, extending our industry coverage across vertical sectors.

Merchant solutions' contribution to our total revenue continued to increase period-over-period from $9.1\%$ for the six months ended December 31, 2024 to $11.3\%$ for the six months ended June 30, 2025. Deepening AI applications and expanding cooperation with our domestic and international strategic partners will further amplify the commercialization capability of this segment and elevate the Company's revenue growth and profitability.

In-store E-commerce Services: Strategic Upgrades Significantly Improving Profitability

We executed a strategic upgrade of our in-store e-commerce services across the board, achieving break-even in the first half of 2025 and delivering consecutive monthly profitability in the second quarter. Besides, we focused on targeting high-quality and higher-margin customers, reducing our investment in direct sales teams and developed distribution networks. Against the backdrop of gradually phasing out customers with lower profitability contributions, revenue from our in-store e-commerce services in the first half of 2025 decreased. We stepped up our efforts to serve large-scale customers like Haidilao and Nayuki designing comprehensive marketing packages to enhance service upselling and quality execution, and enhanced customer satisfaction and repurchase rates. Our strategy drove year-on-year growth in the average revenue and profits of both merchants and employees in the first half of 2025. Furthermore, customers' willingness to pay continue to strengthen. As of June 30, 2025, our fees paid upfront contributed over $60\%$ of revenue in in-store e-commerce services, further ensuring profitability of each service offering.

Our in-store business intelligence open platform, Winsfor, integrated AI technology with digital marketing services to efficiently connect customers with mainstream platforms such as Douyin, Xiaohongshu, Dianping, and AMap, thereby boosting marketing transformation performance and driving the continuous year-on-year growth in the number of serviced stores, with new brands including China Telecom, Yili, and Midea. Our in-store e-commerce business has deepened its integration with our payment services, enabling resource sharing and complementary advantages to provide merchants with a one-stop experience featuring efficient marketing, seamless payment acceptance, and flexible coupon redemption. On top of our domestic operational experience, we have replicated our successful business model in offshore markets including Japan, Singapore, Hong Kong and Macau, assisting local food and beverage merchants and hospitality merchants in enhancing their operational efficiency and optimizing the shopping experience for Chinese consumers abroad.

The gross profit margin for our in-store e-commerce services decreased from 81.5% for the six months ended June 30, 2024 to 68.0% for the same period in 2025, primarily due to the increased focus on large and franchised customers with higher requirements for service content, which elevated operational costs during the Period. After strategic business upgrades, we have adopted refined operational strategies and deployed AI applications such as Winsfor's livestreaming scriptwriting tools. These strategies effectively reduced manual labor for marketing and production, thereby raising the average profit contribution from our merchants and employees in the first half of 2025.

With the in-store e-commerce business achieving profitability, its stabilized business foundation has become a new driver of the Company's overall profit growth. Our team continued to enlarge its geographical coverage to grow key cities; connect with additional platforms to boost customers' network expansion and repurchase rates; collaborate with agents to accelerate new client acquisition; and strengthen the export of in-store e-commerce services and operational models overseas to accelerate our business globalization.

Company Outlook

Looking ahead, we will persist in our long-term strategy, with international expansion and product innovation as our dual engines. From license applications to product launch and customer acquisitions, our overseas business model and service capabilities have been validated by the market while demonstrating significant potential for global expansion. We will further strengthen our global market presence.

As the cornerstone of the Company's development, our one-stop payment services will retain their foundational role, which generates synergies and resources for other business segments. While continuously optimizing our merchant solutions and in-store e-commerce businesses, we will also launch innovative products and services that are closely aligned with market trends, and integrate cutting-edge technologies, thereby enhancing profitability and market share.

Amid technological trends including artificial intelligence, blockchain and digital currencies, we will proactively adapt to these developments and advances and continue to deepen the innovative application of such technologies in our business operations. Through continuously improving our operational efficiency, product competitiveness and intelligent services, we will further advance our payment-based one-stop digital solutions for merchants that are highly efficient and innovative.

Share Purchase by our Controlling Shareholder, Share Repurchase by our Company and Share Purchase Pursuant to the RSU Scheme

We are informed by our controlling shareholder, Creative Brocade International Limited (an entity controlled by our founder, chairman of the Board, and chief executive officer, Mr. Liu Yingqi) ("Creative Brocade International"), that as of June 30, 2025, it has purchased a total of 1,158,800 shares of the Company (the "Shares") from the open market since January 1, 2025, representing 0.25% of the issued Shares as of June 30, 2025.

During the Reporting Period, the Company has also utilized an aggregate of approximately HKD4.0 million (including commission and transaction cost) to repurchase 546,000 Shares on market at a consideration ranging from HKD6.78 to HKD8.53 per share. The Shares repurchased during such period represent 0.12% of issued Shares as of June 30, 2025. All of the Shares repurchased during the Reporting Period were subsequently retained as treasury Shares by the Company.

Meanwhile, during the Reporting Period, the trustee of the RSU Scheme has utilized an aggregate of approximately HKD0.7 million (including commissions and transaction costs) to purchase 82,000 Shares from the open market at a consideration ranging from HKD7.93 to HKD8.45 per Share. The Shares purchased during such period represent 0.02% of the issued Shares as of June 30, 2025 and will be used as share awards to incentivize key personnel of our Group and/or its related entities.

By increasing their holdings in the Company’s Shares, Mr. Liu, Creative Brocade International, and the Company expressed their confidence in the future development prospects of Yeahka and affirmed its intrinsic value.

Financing

Reference is made to the Company’s announcements dated January 6, 2025 and January 13, 2025 (the “Placing Announcements”). Unless otherwise defined, capitalized terms used in this section shall have the same meanings as those set out in the Placing Announcements. On January 6, 2025, the Company, the Top-up Vendor and the Placing Agent entered into the Placing and Subscription Agreement, pursuant to which, (i) the Top-up Vendor agreed to sell, and the Placing Agent agreed, as agent of the Top-up Vendor, to procure, on a best effort basis to purchase up to 19,150,000 Placing Shares held by the Top-up Vendor at a price of HK$10.10 per Placing Share; and (ii) the Top-up Vendor conditionally agreed to subscribe as principal for, and the Company conditionally agreed to issue, 19,150,000 Subscription Shares at the Subscription Price, which is equivalent to the Placing Price (collectively, the “Placing”). A total of 19,150,000 Subscription Shares (equal to the number of the Placing Shares successfully placed under the Vendor Placing) were subscribed by the Top-up Vendor at the Subscription Price of HK$10.10 per Subscription Share. The Subscription Shares represent approximately 4.14% of the issued share capital of the Company as enlarged by the Subscription. The net proceeds from the Subscription are estimated to be approximately HK$189.2 million, net of all applicable costs and expenses including commissions, professional fees and out-of-pocket expenses. The purpose of the Placing was to supplement the Group’s long-term funding of its expansion plan and growth strategies and also provide an opportunity to the Group to raise further capital whilst broadening the shareholder base and the capital base. For further details of the proceeds received by the Company and the use of such proceeds in relation to the Placing, please refer to the section headed “Use of Proceeds from the Placing” in this announcement.

Environmental, Social and Governance (“ESG”)

Yeahka upholds the philosophy of “continuously creating a better future”, aligns with the United Nations Sustainable Development Goals, and actively addresses stakeholder concerns. Yeahka has been committed to improving its ESG governance systems and advancing related initiatives, striving to be a responsible corporate citizen. During the Reporting Period, the Company was again included in the S&P Sustainability Yearbook (China Edition) 2025, highlighting its excellence in sustainable development.

On the environmental protection front, we have continued to advance the construction of private cloud computing infrastructure and a "half-cloud, half-physical" deployment approach. In addition, in compliance with the guidance of the Task Force on Climate-related Financial Disclosures (TCFD) and the "International Financial Reporting Standard S2 - Climate-related Disclosures" (IFRS S2), we will comprehensively disclose climate-related management practices across four dimensions: governance, strategy, risk management and metrics and targets, to further enhance our resilience to respond to climate changes.

Regarding social responsibility, the Group leverages digital technology to advance social welfare, proactively supporting the development of micro and small merchants, providing consumers with local lifestyle services, and improving the quality of community life. We focused on the deployment and application of AI technologies across diverse business scenarios, both domestically and internationally. For instance, through promoting the 'Winsfor' in-store intelligence platform, we connect customers to comprehensive traffic and maximize the empowering benefits from AI. Concurrently, we also continuously strengthened the transaction risk control system, intercepting risky transaction during the Reporting Period to ensure user transaction security. Additionally, Yeahka always recognized its employees essential to its sustainability by supporting their professional growth and offering comprehensive benefits with efforts to address their evolving needs.

In terms of corporate governance, our ESG Committee actively identified sustainable development opportunities and risks, supplemented by regular review of the governance structure and target progress to report on ESG-related matters to the Board. We specifically emphasized on information security through continuously optimizing our management systems. During the Reporting Period, we revised policies including "Personal Information Protection Specification" (《個人信息保護規範》) and "Information Security Management Measures" (《信息安全管理辦法》). We are also validated by authoritative third-party certifications, including certification by Grade 3 Certification under China's Multi-Level Protection Scheme (MLPS), Payment Card Industry Data Security Standard (PCI-DSS), and UnionPay Data Security Standard (UPDSS) - solidifying our business and customer data protection frameworks.

MANAGEMENT DISCUSSION AND ANALYSIS

RESULTS PERFORMANCE FOR THE SIX MONTHS ENDED JUNE 30, 2025

	For the six months ended June 30,
	2025 RMB'000 (unaudited)	2024 RMB'000 (unaudited)
Revenue	1,641,526	1,577,719
Including: interest revenue	86,575	84,365
Cost of revenue	(1,258,496)	(1,277,500)
Gross profit	383,030	300,219
Selling expenses	(47,248)	(52,280)
Administrative expenses	(136,555)	(155,705)
Research and development expenses	(87,557)	(128,286)
Net impairment losses on financial assets	(61,448)	(42,105)
Other income	9,748	18,626
Fair value changes of financial assets and financial liabilities at fair value through profit or loss	2,806	94,184
Other gains/(losses) – net	(3,977)	22,189
Operating profit	58,799	56,842
Finance costs	(19,804)	(41,872)
Share of net profits of investments accounted for using the equity method	6,110	21,408
Profit before income tax	45,105	36,378
Income tax expense	(3,732)	(3,798)
Profit for the Period	41,373	32,580
Profit for the Period attributable to:
Equity holders of the Company	43,075	31,628
Non-controlling interests	(1,702)	952

Revenue

We generate revenue primarily through our three main types of business, namely (i) one-stop payment services; (ii) merchant solutions; and (iii) in-store e-commerce services. Our revenue increased by 4.0% from RMB1,577.7 million for the six months ended June 30, 2024 to RMB1,641.5 million for the comparative period in 2025.

The following table sets forth our revenue by business type for the periods indicated:

	For the six months ended June 30,
	2025		2024
	RMB'000	%	RMB'000	%
	(unaudited)		(unaudited)
Revenue from one-stop payment services	1,429,317	87.1	1,346,561	85.4
Revenue from merchant solutions	186,527	11.3	202,319	12.8
Revenue from in-store e-commerce services	25,682	1.6	28,839	1.8
Total	1,641,526	100.0	1,577,719	100.0

One-stop payment services

Revenue from our one-stop payment services increased by 6.1% from RMB1,346.6 million for the six months ended June 30, 2024 to RMB1,429.3 million for the comparative period in 2025, primarily due to the increase in our fee rate.

Merchant solutions

Revenue from our merchant solutions decreased by 7.8% from RMB202.3 million for the six months ended June 30, 2024 to RMB186.5 million for the comparative period in 2025 due to the decrease in our user base, which was compensated by the growth in our precision marketing business.

In-store e-commerce services

Revenue from in-store e-commerce services decreased by 10.9% from RMB28.8 million for the six months ended June 30, 2024 to RMB25.7 million for the comparative period in 2025, as we focus on high-quality and higher-margin customers and gradually phasing out customers with lower profitability contributions.

Cost of Revenue

The following table sets forth a breakdown of our cost of revenue by nature for the periods indicated.

	For the six months ended June 30,
	2025		2024
	RMB'000	%	RMB'000	%
	(unaudited)		(unaudited)
Commission and fees	1,182,388	94.0	1,199,748	93.9
Amortization of non-current assets	51,172	4.0	52,783	4.1
Raw materials and consumables	2,563	0.2	4,568	0.4
Others	22,373	1.8	20,401	1.6
Total	1,258,496	100.0	1,277,500	100.0

Our cost of revenue decreased by 1.5% from RMB1,277.5 million for the six months ended June 30, 2024 to RMB1,258.5 million for the comparative period in 2025, primarily due to a decrease in commission and fees, which reflects our improved pricing power over our agents.

The following table sets forth a breakdown of our cost of revenue by business type for the periods indicated:

	For the six months ended June 30,
	2025		2024
	RMB'000	%	RMB'000	%
	(unaudited)		(unaudited)
One-stop payment services	1,234,020	98.0	1,253,703	98.1
Merchant solutions	16,250	1.3	18,465	1.5
In-store e-commerce services	8,226	0.7	5,332	0.4
Total	1,258,496	100.0	1,277,500	100.0

Gross Profit and Gross Profit Margin

The following table sets forth our gross profit and gross profit margin by business type for the periods indicated:

	2025		2024
	Gross profit RMB’000 (unaudited)	Gross profit margin %	Gross profit RMB’000 (unaudited)	Gross profit margin %
One-stop payment services	195,297	13.7	92,858	6.9
Merchant solutions	170,277	91.3	183,854	90.9
In-store e-commerce services	17,456	68.0	23,507	81.5
Total	383,030	23.3	300,219	19.0

Our gross profit increased by 27.6% from RMB300.2 million for the six months ended June 30, 2024 to RMB383.0 million for the comparative period in 2025 mainly as a result of the rapid recovery of our domestic payment business and the strong performance of our one-stop payment services during the Reporting Period.

Our gross profit margin increased from 19.0% for the six months ended June 30, 2024 to 23.3% for the comparative period in 2025 as a result of the increase in the gross profit margin of our one-stop payment services and the high gross profit margin of our merchant solutions.

Gross profit margin of our one-stop payment services increased from 6.9% for the six months ended June 30, 2024 to 13.7% for the comparative period in 2025 as we optimized the profitability of our payment service by increasing our fee rate.

Gross profit margin of merchant solutions increased from 90.9% for the six months ended June 30, 2024 to 91.3% for the comparative period in 2025, led by our increased application of AI technology, our continued effort to improve product profitability and costs control and our focus on customers with higher profit margin.

Gross profit margin of in-store e-commerce services decreased from 81.5% for the six months ended June 30, 2024 to 68.0% for the comparative period in 2025 as we became increasingly focus on large-scale and chain customers with higher requirements for service content, which has led to a corresponding increase in costs during the Reporting Period.

Selling Expenses

Our selling expenses decreased by 9.6% from RMB52.3 million for the six months ended June 30, 2024 to RMB47.2 million for the comparative period in 2025, primarily due to the decrease in the outsourcing service fees.

Administrative Expenses

Our administrative expenses decreased by 12.3% from RMB155.7 million for the six months ended June 30, 2024 to RMB136.6 million for the comparative period in 2025, primarily due to the decrease in the number of our employees as we extended the usage of AI technology in our operation.

Research and Development Expenses

Our research and development expenses decreased by 31.7% from RMB128.3 million for the six months ended June 30, 2024 to RMB87.6 million for the comparative period in 2025, primarily due to the wider adoption of AI tools which were more cost effective and the decrease in labor costs and outsourcing service fees.

Net Impairment Losses on Financial Assets

Our net impairment losses on financial assets increased by 45.9% from RMB42.1 million for the six months ended June 30, 2024 to RMB61.4 million for the comparative period in 2025. The increase was primarily due to macroeconomic fluctuations, which adversely affected the loan performance of customers. In response, the Group proactively implemented risk mitigation measures, including enhancing risk control and review processes, limiting transactions with high-risk customers, and adopting refined management of customer acquisition channels by granting credits to customers from high-quality channels only. For details, please refer to note 4.2(a) to the unaudited interim consolidated financial statements.

Other Income

Our other income decreased by 47.7% from RMB18.6 million for the six months ended June 30, 2024 to RMB9.7 million for the comparative period in 2025, primarily due to the decrease in interest income from bank deposits and the decrease in government grants.

Fair Value Changes of Financial Assets and Financial Liabilities at Fair Value Through Profit or Loss

We recorded fair value changes of financial assets and financial liabilities at fair value through profit or loss of a gain of RMB94.2 million for the six months ended June 30, 2024 and a gain of RMB2.8 million for the six months ended June 30, 2025 respectively, primarily due to the increase in fair value of our investments in listed companies.

Other Gains/(Losses) – Net

We recorded other gains – net of RMB22.2 million for the six months ended June 30, 2024 and other losses – net of RMB4.0 million for the six months ended June 30, 2025 respectively, this decrease was primarily because, unlike in the first half of 2024, there was no repurchase of our convertible bonds, nor any associated gain, during the Reporting Period.

Operating Profit

As a result of the foregoing, we recorded operating profit of RMB56.8 million for the six months ended June 30, 2024 and RMB58.8 million for the comparative period in 2025.

Finance Costs

Our finance costs decreased by 52.7% from RMB41.9 million for the six months ended June 30, 2024 to RMB19.8 million for the comparative period in 2025, primarily because, unlike in the first half of 2024, there was no interest expense related to our convertible bonds in the Reporting Period.

Share of Net Profits of Investments Accounted for Using the Equity Method

We recorded share of net profits of investments accounted for using the equity method of a profit of RMB21.4 million for the six months ended June 30, 2024 and a profit of RMB6.1 million for the comparative period in 2025, primarily due to the increase in the net profit of an associate of the Group.

Profit Before Income Tax

As a result of the foregoing, our profit before income tax increased by 24.0% from RMB36.4 million for the six months ended June 30, 2024 to RMB45.1 million for the comparative period in 2025.

Income Tax Expenses

Our income tax expenses decreased slightly by 1.7% from RMB3.8 million for the six months ended June 30, 2024 to RMB3.7 million for the comparative period in 2025. Our effective tax rate was 10.4% for the six months ended June 30, 2024 and 8.3% for the six months ended June 30, 2025, which was relatively stable.

Profit for the Period

As a result of the foregoing, our profit increased by 27.0% from RMB32.6 million for the six months ended June 30, 2024 to RMB41.4 million for the six months ended June 30, 2025.

Non-IFRS Measures

We adopt adjusted EBITDA, which is not required by or presented in accordance with IFRS, as an additional financial measure to supplement our consolidated financial statements. We believe that EBITDA facilitates comparisons of operating performance from period to period and company to company, by eliminating potential impacts of items that our management does not consider indicative of our operating performance. In addition, our adjusted EBITDA excludes certain non-cash or non-recurrent items such as share-based compensation expenses, and fair value changes of financial assets and financial liabilities at fair value through profit or loss. We believe that the non-IFRS measure is commonly adopted by our industry peers and provide useful information to investors and others in understanding and evaluating our consolidated results of operations in the same manner as they help our management. However, our presentation of adjusted EBITDA may not be comparable to similarly titled measures presented by other companies. The use of the non-IFRS measures has limitations as an analytical tool, and the investors and shareholders of the Company (the "Shareholders") should not consider them in isolation from, or as substitute for analysis of, our results of operations or financial condition as reported under IFRS.

The following table illustrates reconciliations to our adjusted EBITDA from our profit for the periods indicated:

	For the six months ended June 30,
	2025 RMB'000	2024 RMB'000
Profit for the period	41,373	32,580
Add:
Finance costs	19,804	41,872
Amortization of non-current assets	51,172	52,783
Depreciation of property, plant and equipment	12,284	15,191
Amortization of intangible assets	8,550	9,055
Income tax expense	3,732	3,798
EBITDA	136,915	155,279
Add:
Share-based compensation expenses	39,220	40,803
Non-Recurring Adjustment on Revenue(Note)	-	86,100
Deduct:
Gain on repurchase of Convertible Bonds	-	(24,727)
Fair value changes of financial assets and financial liabilities at fair value through profit or loss	(2,806)	(94,184)
Adjusted EBITDA	173,329	163,271

Note:

During the six months ended June 30, 2024, we paid approximately RMB86.1 million to a suspense account of the payment networks in relation to interchange fee rate adjustments as requested by the payment networks. We netted off such payments made to the suspense account from our one-stop payment services revenue in accordance with the Group's accounting policies of revenue recognition and based on our communications with the payment networks. Such non-recurring adjustment ceased in the first half of 2024.

Our adjusted EBITDA for the Reporting Period increased by 6.2% from RMB163.3 million for the six months ended June 30, 2024 to RMB173.3 million for the comparative period in 2025, primarily due to the increase in our net profit for the Reporting Period.

Capital Structure

Our total assets increased from RMB7,705.5 million as of December 31, 2024 to RMB7,761.4 million as of June 30, 2025. Our total liabilities decreased from RMB5,116.0 million as of December 31, 2024 to RMB4,937.0 million as of June 30, 2025. Liabilities-to-assets ratio decreased from 66.4% as of December 31, 2024 to 63.6% as of June 30, 2025.

Our current ratio, being current assets divided by current liabilities as of the respective date increased from 1.18 as of December 31, 2024 to 1.24 as of June 30, 2025.

Liquidity, Capital Resources and Gearing

The Group has adopted a prudent approach in financial resources management. For the six months ended June 30, 2025, we financed our operations primarily through cash generated from business operations, bank borrowings and proceeds from fundraising activity. Our cash and cash equivalents increased by 14.8% from RMB595.7 million as of December 31, 2024 to RMB684.2 million as of June 30, 2025, primarily attributable to the placing of shares in January 2025. As of June 30, 2025, the cash and cash equivalents of the Group were mainly denominated in RMB, USD and HKD. The Group maintains a strong cash position to meet potential needs for business expansion and development.

Our gearing ratio, being total debt (which includes total borrowings) divided by total equity and multiplied by 100%, decreased from 35.9% as of December 31, 2024 to 33.4% as of June 30, 2025.

Capital Expenditures

Our capital expenditures primarily consist of payments for purchasing property, plant and equipment, intangible assets and payment terminals. Our total capital expenditures increased by 133.7% from RMB13.6 million for the six months ended June 30, 2024 to RMB31.9 million for the six months ended June 30, 2025, as we increased our purchase of payment terminals in the Reporting Period compared to that of the comparable period in 2024 following the rapid recovery of our domestic payment business.

Indebtedness

Our indebtedness mainly includes interest-bearing bank borrowings denominated in RMB and HKD. The following table sets forth a breakdown of our interest-bearing borrowings and lease liabilities as of the dates indicated:

	As of June 30, 2025 RMB'000 (unaudited)	As of December 31, 2024 RMB'000 (audited)
Non-current
Bank borrowings	12,000	3,000
Lease liabilities	17,122	16,767
Current
Bank and other borrowings	944,341	928,993
Lease liabilities	12,836	19,165
Total	986,299	967,925

Please refer to Note 19 to the unaudited interim consolidated financial statements to this announcement for details of our bank and other borrowings and their interest rates.

Contingent Liabilities

As of June 30, 2025, we did not have any material contingent liabilities, guarantees or any litigations or claims of material importance, pending or threatened against any member of our Group that was likely to have a material and adverse effect on our business, financial condition or results of operations.

Pledge of Assets

As of June 30, 2025, we pledged account receivables of approximately RMB15.0 million to one bank.

Foreign Exchange Risk and Hedging

As we operate mainly in the PRC with most of the transactions settled in RMB, we consider that our business is not exposed to any significant foreign exchange risk as there are no significant financial assets or liabilities that are denominated in the currencies other than the respective functional currencies of our Group's entities. We do not use any derivative contracts to hedge against our exposure to foreign exchange risk. We manage currency risk by closely monitoring the movement of the foreign currency rates and will take prudent measures to minimize the currency translation risk.

Material Acquisitions and Disposals and Future Plans for Major Investments

During the six months ended June 30, 2025, we did not conduct any material investments, acquisitions or disposals.

Significant Investment Held

As of June 30, 2025, we were interested in 4,500,000 (15.1%) of the ordinary shares in Fushi Technology (Shenzhen) Co., Ltd. (深圳市富匙科技有限公司) (“Fushi”), our associate company, and held 8,899,914 (29.8%) of preferred shares of Fushi, which was classified as financial assets at fair value through profit or loss. The carrying amount of our investment in Fushi’s ordinary shares and the fair value of the preferred shares amounted to approximately RMB834,957,000 (as of December 31, 2024: RMB834,957,000), which accounted for approximately 10.8% of our total assets as of June 30, 2025. The investment costs for our investment in the preferred shares of Fushi was approximately RMB351,600,000. No net unrealized fair value gains or losses were recognized by us for the six months ended June 30, 2025 in respect of our investment in the preferred shares of Fushi. No dividend has been received from Fushi for the six months ended June 30, 2025.

Fushi is a company established in the PRC on April 12, 2016 with limited liability. It is a one-stop SaaS digital platform for merchants. The Board believes that Fushi will continue to be an important member within Yeahka’s ecosystem of expanding its merchant base and providing merchant services.

Significant Events After the Reporting Period

Except as disclosed in this announcement, there were no material events subsequent to June 30, 2025 which could have a material impact on our operating and financial performance as of the date of this announcement.

Interim Dividend

The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: Nil).

Employees

As of June 30, 2025, we had a total of 808 employees, most of whom were based in China.

Our success depends on our ability to attract, retain and motivate qualified personnel. The remuneration package for our employees generally includes salary and bonuses. We determine employee remuneration based on factors such as qualifications and years of experience. Employees also receive welfare benefits, including medical care, retirement benefits, occupational injury insurance and other miscellaneous items. We make contributions to mandatory social security funds for our employees to provide for retirement, medical, work-related injury, maternity and unemployment benefits.

ROUNDING

Certain amounts and percentage figures included in this announcement have been subject to rounding adjustments. Any discrepancies in any table between totals and sums of amounts listed therein are due to rounding.

RSU SCHEME

A RSU Scheme was adopted by the Company on August 1, 2019. The RSU Scheme will be valid and effective for a period of ten years, commencing from the date of the first grant of the RSUs, being August 1, 2019. Further details of the RSU Scheme are set out in the 2024 Annual Report. Starting from June 5, 2024, being the date of the second annual general meeting after January 1, 2023, the Company will not grant any new Shares under the RSU Scheme and the RSU Scheme shall be entirely funded by existing Shares received from any Shareholder or purchased (either on-market or off-market) by the trustee of the RSU Scheme (the "RSU Trustee") in accordance with the rules of the RSU Scheme.

Details of the RSUs granted under the RSU Scheme and the movements in RSUs during the six months ended June 30, 2025 are set below:

Name of RSU grantee	Date of grant	Granted during the Period(1)	Closing price immediately before the date of grant during the Period (HKD)	Fair value of RSUs at the date of grant during the Period (HKD)	Vesting period	Number of Shares					Exercise price of RSUs vested or cancelled during the year (HKD)	Closing price immediately before the vesting date (HKD)
						As at January 1, 2025	Vested during the Period	Cancelled during the Period	Lapsed during the Period	As at June 30, 2025
Director of the Company
Luo Xiaohui	January 21, 2022	-	-	-	January 24, 2023 - January 24, 2026	40,000	20,000	-	-	20,000	0.01	7.66
	March 28, 2023	-	-	-	March 28, 2024 - March 28, 2027(1)	75,000	25,000	-	-	50,000	0.01	7.98
	June 5, 2024	-	-	-	June 5, 2025 - June 5, 2028(1)	200,000	50,000	-	-	150,000	0.01	12.08
	March 28, 2025	164,773	7.98	7.97	March 28, 2025 - March 28, 2029(1)	-	14,773	-	-	150,000	0.01	8.02
Yao Zhijian	January 21, 2022	-	-	-	January 24, 2023 - January 24, 2026	60,000	30,000	-	-	30,000	0.01	7.66
	March 28, 2023	-	-	-	March 28, 2024 - March 28, 2027(1)	150,000	50,000	-	-	100,000	0.01	7.98
	June 5, 2024	-	-	-	June 5, 2025 - June 5, 2028(1)	200,000	50,000	-	-	150,000	0.01	12.08
	March 28, 2025	165,248	7.98	7.97	March 28, 2025 - March 28, 2029(1)	-	15,248	-	-	150,000	0.01	8.02
Liang Shengtian	March 28, 2023	-	-	-	March 28, 2024 - March 28, 2027(1)	28,500	9,500	-	-	19,000	0.01	7.98
	June 5, 2024	-	-	-	June 5, 2025 - June 5, 2028(1)	95,000	23,750	-	-	71,250	0.01	12.08
	March 28, 2025	57,778	7.98	7.97	March 28, 2025 - March 28, 2029(1)	-	48,889	-	-	8,889	0.01	8.02
Other employee of the Group
6 other employees of the Group	January 7, 2021	-	-	-	July 7, 2021 - July 7, 2024	70,000	-	-	-	70,000(4)	16.64	-
63 other employees of the Group	January 21, 2022	-	-	-	January 24, 2023 - January 24, 2026	405,160	202,580	-	-	202,580	0.01	7.66
161 other employees of the Group	March 28, 2023	-	-	-	May 8, 2023 - March 28, 2027(1)	4,304,288	1,894,643	-	158,000	2,251,645	0.01	7.98
241 other employees of the Group	June 5, 2024	-	-	-	June 5, 2024 - June 5, 2028(1)	5,052,182	1,129,748	-	348,134	3,574,300	0.01	12.08
580 other employees of the Group	March 28, 2025	6,806,827	7.98	7.97	March 28, 2025 - March 28, 2029(1)	-	3,141,687	-	194,352	3,470,788	0.01	8.02
Total		7,194,626				10,680,130	6,705,818	-	700,406	10,468,452

Notes:

(1) Further details of the grants were set out in the Company's announcement dated March 28, 2025. The RSU Trustee will transfer the existing Shares purchased by the RSU Trustee directly to the RSU grantees and no new Shares will be issued as a result of the grant of RSUs.
(2) The exercise period of the RSUs is 15 years from their respective dates of grant.
(3) Upon each vesting date, the portion of the RSUs that vests shall depend on the RSU grantee meeting a specified threshold in their performance evaluations during the one-year period prior to each vesting date. The performance evaluations are based on a matrix of indicators that vary according to the roles and responsibilities of the RSU grantee. The indicators include, but are not limited to, work quality, efficiency, collaboration and management skills.
(4) All RSUs underlying these 70,000 Shares have satisfied the corresponding vesting conditions and are pending transfer upon receipt of the exercise price from the grantees.

The maximum number of RSUs that may be granted under the RSU Scheme in aggregate (excluding RSUs that have lapsed or been cancelled in accordance with the RSU Scheme) shall be such number of Shares held or to be held by the RSU Trustee for the purpose of the RSU Scheme from time to time. As of January 1, 2025 and June 30, 2025, the total number of Shares held by the RSU Trustee for the purpose of RSU Scheme were 77,598,548 and 73,116,345, respectively, representing 17.5% and 16.8% of the Shares in issue as of the relevant dates, respectively.

On March 28, 2025, the Company granted a total of 7,194,626 RSUs pursuant to the RSU Scheme to a total of 583 RSU Grantees. The RSUs granted represent 7,194,626 underlying Shares and approximately 1.6% of the issued Shares (excluding treasury shares) as at June 30, 2025. The RSU Trustee will transfer the Shares directly to the grantees and no new Shares will be issued as a result of the grant of RSUs. For further details, please refer to the Company's announcement dated March 28, 2025.

Save as disclosed above, for the six months ended June 30, 2025 and up to the date of this announcement, no further RSUs have been or would be granted by the Company pursuant to the RSU Scheme.

SHARE OPTION SCHEME

A share option scheme (the "Share Option Scheme") was adopted by the Company on October 13, 2020. The purpose of the Share Option Scheme is to attract, retain, and motivate talented employees to strive towards long term performance targets set by the Group and to provide them with an incentive to work better for the interest of the Group. The Share Option Scheme remains valid for a period of ten years commencing on October 13, 2020. Further details of the Share Option Scheme were set out in the circular of the Company dated September 24, 2020.

The table below sets out the movements of the share options of our Company during the period from January 1, 2025 to June 30, 2025 granted under the Share Option Scheme:

Name of grantee	Date of grant(4)	Number of Share Options						Exercise price per Share (HKD)	Closing price Of Shares immediately before the exercising date (HKD)	Fair value of share options at the date of grant during the year (HKD)	Vesting period(4)
		Outstanding as at January 1, 2025	Granted during the Period	Exercised during The Period	Cancelled during the Period	Lapsed during the Period	Outstanding as at June 30, 2025
Director of the Company
Yao Zhijian	January 7, 2021	300,000	-	-	-	-	300,000	44.20(1)	-	- July 1, 2021 - July 1, 2024	January 7, 2021 - January 6, 2031
Luo Xiaohui	January 7, 2021	100,000	-	-	-	-	100,000	44.20(1)	-	- July 1, 2021 - July 1, 2024	January 7, 2021 - January 6, 2031
Liang Shengtian	May 12, 2021	50,000	-	-	-	-	50,000	58.60(2)	-	- May 12, 2022 - May 12, 2025	May 12, 2021 - May 11, 2031
	January 21, 2022	40,000	-	-	-	-	40,000	25.56(3)	-	- January 24, 2023 - January 24, 2026	January 21, 2022 - January 20, 2032

Name of grantee	Date of grant(a)	Number of Share Options						Exercise price per Share (HKD)	Closing price Of Shares immediately before the exercising date (HKD)	Fair value of share options at the date of grant during the year (HKD)	Vesting period(b)	Exercise period
		Outstanding as at January 1, 2025	Granted during the Period	Exercised during The Period	Cancelled during the Period	Lapsed during the Period	Outstanding as at June 30, 2025
Employee of the Group
119 employees of the Group	January 7, 2021	2,861,000	-	-	-	-	2,861,000	44.20(c)	-	-	July 1, 2021 - July 1, 2024	January 7, 2021 - January 6, 2031
68 employees of the Group	May 12, 2021	1,087,000	-	-	-	1,750	1,085,250	58.60(c)	-	-	May 12, 2022 - May 12, 2025	May 12, 2021 - May 11, 2031
210 employees of the Group	January 21, 2022	819,250	-	-	-	22,750	796,500	25.56(c)	-	-	January 24, 2023 - January 24, 2026	January 21, 2022 - January 20, 2032
Total		5,257,250	-	-	-	24,500	5,232,750

(1) Being the highest of (i) HKD44.20 per Share, the closing price of the Shares on the date of grant as stated in the daily quotation sheet issued by the Stock Exchange, (ii) HKD39.45 per Share, the average closing price of the Shares for the five business days immediately preceding the date on which the options were granted, and (iii) US$0.000025 per Share, the nominal value. The closing price of the Shares immediately before the date on which the options were granted was HKD43.55.
(2) Being the highest of (i) HKD52.75 per Share, the closing price of the Shares on the date of grant as stated in the daily quotation sheet issued by the Stock Exchange, (ii) HKD58.60 per Share, the closing price of the Shares for the five business days immediately preceding the date on which the options were granted, and (iii) US$0.000025 per Share, the nominal value. The closing price of the Shares immediately before the date on which the options were granted was HKD53.60.
(3) Being the highest of (i) HKD24.70 per Share, the closing price of the Shares on the date of grant as stated in the daily quotation sheet issued by the Stock Exchange; (ii) HKD25.56 per Share, the average closing price of the Shares for the five business days immediately preceding the date on which the options were granted; and (iii) the nominal value of US$0.000025 per Share. The closing price of the Shares immediately before the date on which the options were granted was HKD25.10.
(4) Further details of the grants were set out in the Company's announcements dated January 7, 2021, May 12, 2021 and January 24, 2022.

As of June 30, 2025, the number of Shares in respect of which options had been granted and but not yet exercised/cancelled/lapsed under the Share Option Scheme was 5,232,750, representing $1.1\%$ of the Shares in issue as of that date. As at January 1, 2025 and June 30, 2025, the total number of Shares available for issue in respect of the options that can be further granted under the Share Option Scheme was 37,363,257 and 37,387,757 respectively, representing $8.4\%$ and $8.1\%$ of the total number of Shares in issue as of the relevant dates, respectively. The total number of Shares available for issue under the Share Option Scheme was 42,620,507 Shares, representing $9.2\%$ of the total number of issued Shares as of the date of this announcement.

For the six months ended June 30, 2025 and up to the date of this announcement, no further options have been or would be granted by the Company pursuant to the Share Option Scheme.

Save as disclosed above, no RSUs and/or options were granted to the Directors, chief executive, substantial Shareholders, related entity participants or service providers of the Company, or their respective associates. None of the participants of the RSU Scheme and/or the Share Option Scheme was granted or to be granted in excess of the 1% individual limit.

Disclosure under Rule 17.07(3) of the Listing Rules

As all awards granted will be satisfied by existing Shares and no options were granted during the six months ended June 30, 2025, no Shares may be issued in respect of options and awards granted under all schemes of the Company during the six months ended June 30, 2025.

USE OF PROCEEDS FROM THE PLACING

Reference is made to the Company’s announcements dated January 6, 2025 and January 13, 2025. The Group successfully raised total net proceeds (after deducting all applicable costs and expenses including commissions, professional fees and out-of-pocket expenses) of approximately HKD189.2 million through the Placing of 19,150,000 Shares to not less than six professional, institutional and/or individual investors at the placing price of HKD10.10 per share in January 2025. The following table sets forth the status of the use of net proceeds from the Placing up to June 30, 2025(1):

Intended use of proceeds	Percentage of intended use of proceeds (%)	Intended use of proceeds from the Placing (In HKD millions)	Actual usage for the six months ended 30 June, 2025 (In HKD millions)	Unutilized net proceeds as at June 30, 2025 (In HKD millions)	Expected timeline for utilizing the remaining net proceeds
Expansion of the Group’s overseas presence across business segments in Asia	40.0	75.7	12.9	12.9	By the end of 2027
Investment in research and development, including use of artificial intelligence in proprietary software, to strengthen the competitiveness of the Group’s commercial digitalized ecosystem	40.0	75.7	12.7	12.7	By the end of 2027
Working capital and general corporate purposes	20.0	37.8	6.3	6.3	By the end of 2027
Total	100.0	189.2	31.9	31.9

Note:
(1) the figures in the table are approximate figures.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

| | Note | Unaudited
For the six months ended
30 June | |
| --- | --- | --- | --- |
| | | 2025
RMB’000 | 2024
RMB’000 |
| Revenue | 6 | 1,641,526 | 1,577,719 |
| Including: interest revenue | 6 | 86,575 | 84,365 |
| Cost of revenue | 9 | (1,258,496) | (1,277,500) |
| Gross profit | | 383,030 | 300,219 |
| Selling expenses | 9 | (47,248) | (52,280) |
| Administrative expenses | 9 | (136,555) | (155,705) |
| Research and development expenses | 9 | (87,557) | (128,286) |
| Net impairment losses on financial assets | 4.2(a) | (61,448) | (42,105) |
| Other income | 7 | 9,748 | 18,626 |
| Fair value changes of financial assets at fair value
through profit | 13 | 2,806 | 94,184 |
| Other (losses)/gains-net | 8 | (3,977) | 22,189 |
| Operating profit | | 58,799 | 56,842 |
| Finance costs | 9 | (19,804) | (41,872) |
| Share of net profits of investments accounted for using
the equity method | | 6,110 | 21,408 |
| Profit before income tax | | 45,105 | 36,378 |
| Income tax expense | 10 | (3,732) | (3,798) |
| Profit for the period | | 41,373 | 32,580 |

	Note	Unaudited For the six months ended 30 June
		2025 RMB'000	2024 RMB'000
Attributable to:
Equity holders of the Company		43,075	31,628
Non-controlling interests		(1,702)	952
		41,373	32,580
Other comprehensive income/(loss):
Items that will not be subsequently reclassified to profit or loss
Currency translation differences		(3,171)	7,856
Items that may be subsequently reclassified to profit or loss
Share of other comprehensive income of investments accounted for using the equity method		1,702	553
Currency translation differences		1,252	(12,605)
		2,954	(12,052)
Other comprehensive loss for the period, net of tax		(217)	(4,196)
Total comprehensive income for the period		41,156	28,384
Attributable to:
Equity holders of the Company		42,858	27,432
Non-controlling interests		(1,702)	952
		41,156	28,384
Earnings per share attributable to equity holders of the Company (expressed in RMB per share)
- Basic	11	0.11	0.09
- Diluted	11	0.11	0.09

The above interim condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

| | Note | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at 31
December
2024
RMB’000 |
| --- | --- | --- | --- |
| | | | |
| ASSETS | | | |
| Non-current assets | | | |
| Property, plant and equipment | | 91,112 | 47,155 |
| Intangible assets | 12 | 470,956 | 479,506 |
| Investments accounted for using the equity method | | 175,492 | 167,953 |
| Prepayments and other receivables | 15(a) | 6,503 | 45,876 |
| Financial assets at fair value through profit or loss | 13 | 906,981 | 913,734 |
| Deferred tax assets | | 57,473 | 57,123 |
| Other non-current assets | | 77,325 | 102,132 |
| | | 1,785,842 | 1,813,479 |
| Current assets | | | |
| Inventories | | 1,558 | 1,551 |
| Loan receivables | 16 | 700,555 | 658,127 |
| Trade receivables | 14 | 422,600 | 380,966 |
| Prepayments and other receivables | 15(a) | 1,376,896 | 2,524,369 |
| Financial assets at fair value through profit or loss | 13 | 1,836 | 4,522 |
| Restricted cash | | 2,775,548 | 1,714,296 |
| Cash and cash equivalents | | 684,167 | 595,719 |
| Other current assets | | 12,396 | 12,447 |
| | | 5,975,556 | 5,891,997 |
| Total assets | | 7,761,398 | 7,705,476 |
| EQUITY | | | |
| Share capital and share premium | | 3,348,660 | 3,106,814 |
| Reserves | | (1,496,182) | (1,446,245) |
| Retained earnings | | 1,047,687 | 1,004,669 |
| Equity attributable to equity holders of the Company | | 2,900,165 | 2,665,238 |
| Non-controlling interests | | (75,784) | (75,735) |
| Total equity | | 2,824,381 | 2,589,503 |

| | Note | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at 31
December
2024
RMB’000 |
| --- | --- | --- | --- |
| LIABILITIES | | | |
| Non-current liabilities | | | |
| Lease liabilities | | 17,122 | 16,767 |
| Deferred tax liabilities | | 81,400 | 83,249 |
| Bank and other borrowings | 19 | 12,000 | 3,000 |
| | | 110,522 | 103,016 |
| Current liabilities | | | |
| Trade and other payables | 18 | 3,726,639 | 3,922,776 |
| Contract liabilities | | 22,302 | 23,393 |
| Current tax liabilities | | 120,377 | 118,630 |
| Lease liabilities | | 12,836 | 19,165 |
| Bank and other borrowings | 19 | 944,341 | 928,993 |
| | | 4,826,495 | 5,012,957 |
| Total liabilities | | 4,937,017 | 5,115,973 |
| Total equity and liabilities | | 7,761,398 | 7,705,476 |

The above interim condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

1 GENERAL INFORMATION, REORGANIZATION AND BASIS OF PRESENTATION

1.1 General information

Yeahka Limited (the “Company”) was incorporated in the Cayman Islands on 8 September 2011, as an exempted company with limited liability under the Companies Law (Cap. 22, Law 3 of 1961 as consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is Vistra (Cayman) Limited, P.O. Box 31119, Grand Pavilion, Hibiscus Way, 802 West Bay Road, Grand Cayman, KY1-1205, Cayman Islands. The Company’s shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited on 1 June 2020.

The Company is an investment holding company. The Company and its subsidiaries, including structured entities (collectively, the “Group”), are principally engaged in the provision of one-stop payment services, merchant solution services and in-store e-commerce services to retail merchants and consumers in the People’s Republic of China (the “PRC”).

This condensed consolidated interim financial report for the six months ended 30 June 2025 (the “Interim Financial Information”) is presented in RMB, unless otherwise stated. The Interim Financial Information was approved for issue on 21 August 2025.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The Interim Financial Information has been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting issued by the International Accounting Standards Board and should be read in conjunction with the annual consolidated financial statements of the Group for the year ended 31 December 2024, which have been prepared in accordance with IFRS Accounting Standards and interpretations issued by the IFRS Interpretations Committee (IFRS IC) applicable to companies reporting under IFRS, as set out in the 2024 annual report of the Company dated 27 March 2025 (the “2024 Financial Statements”).

2.2 Amended standards adopted by the Group

The Group has adopted the following amendments to existing standards which have been adopted by the Group for the first time for the financial year beginning on 1 January 2025:

Amendments to IAS 21 – Lack of Exchangeability

These amendments to existing standards did not result in significant impact on the Group’s financial position and results of operation.

2.3 New standards and amendments to existing standards not yet adopted

Standards and amendments to existing standards that have been issued but not yet effective on 1 January 2025 and not been early adopted by the Group as of 30 June 2025 are as follows:

		Effective for annual periods beginning on or after
Amendments to IFRS 9 and IFRS 7	Classification and Measurement of Financial Instruments	1 January 2026
Annual improvements to IFRS	Volume 11	1 January 2026
IFRS 19	Subsidiaries without Public Accountability: Disclosures	1 January 2027
IFRS 18	Presentation and Disclosure in Financial Statements	1 January 2027
Amendments to IFRS 10 and IAS 28	Sale or contribution of assets between an investor and its associate or joint venture	To be determined

The Group will adopt the above new standards and amendments to existing standards as and when they become effective. Management has performed preliminary assessment and does not anticipate any significant impact on the Group's financial position and results of operations upon adopting these standards and amendments to the existing IFRSs.

3 ESTIMATES

The preparation of the Interim Financial Information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.

In preparing the Interim Financial Information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the 2024 Financial Statements.

4 FINANCIAL RISK MANAGEMENT

4.1 Financial risk factors

The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk and cash flow interest rate risk), credit risk and liquidity risk. The Group's overall risk management programmer focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial performance. Risk management is carried out by the senior management of the Group.

The Interim Financial Information does not include all financial risk management information and disclosures required in the annual financial statements and should be read in conjunction with the 2024 Financial Statements. There have been no significant changes in the risk management policies since 31 December 2024.

4.2 Credit risk

The Group is exposed to credit risk in relation to its cash and cash equivalents, restricted cash, trade receivables, other receivables and loan receivables. The Group also provided guarantees in offering loan facilitation services for loans granted by certain of the Group’s loan facilitation partners. Pursuant to the terms of the guarantees, upon default in repayments by the debtors, the Group will be responsible to repay the outstanding loan principals together with accrued interest and penalty owed by the debtors to certain of the Group’s loan facilitation partners.

(a) Maximum exposure to credit risk

As at 30 June 2025, the maximum exposure arising from the provision of financial guarantee to certain loan facilitation parties amounted to approximately RMB827 million (31 December 2024: RMB888 million), being the principals and interests of the underlying loans, which were granted by the Group’s loan facilitation partners with terms ranging from 3 to 12 months.

The following table contains an analysis of the credit risk exposure subject to impairment. The amount of financial assets below also represents the Group’s maximum exposure to credit risk.

| | Unaudited
As at 30 June 2025 | | | Audited
As at 31 December 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Gross carrying amount RMB'000 | Loss allowance RMB'000 | Carrying amount RMB'000 | Gross carrying amount RMB'000 | Loss allowance RMB'000 | Carrying amount RMB'000 |
| Financial assets at amortised cost (IFRS 9) | | | | | | |
| Cash and cash equivalents | 684,167 | - | 684,167 | 595,719 | - | 595,719 |
| Restricted cash | 2,775,548 | - | 2,775,548 | 1,714,296 | - | 1,714,296 |
| Trade receivables (i) | 443,363 | (20,763) | 422,600 | 400,421 | (19,455) | 380,966 |
| Loan receivables (ii) | | | | | | |
| - Stage 1 | 708,451 | (8,658) | 699,793 | 663,896 | (6,575) | 657,321 |
| - Stage 2 | 3,572 | (2,913) | 659 | 3,961 | (3,401) | 560 |
| - Stage 3 | 2,479 | (2,376) | 103 | 10,078 | (9,832) | 246 |
| Other receivables (iii) | | | | | | |
| - Stage 1 | 1,338,253 | (2,283) | 1,335,970 | 2,529,797 | (7,804) | 2,521,993 |
| - Stage 3 | 36,411 | (36,411) | - | 29,595 | (29,595) | - |

(i) The following table contains an analysis of allowance for trade receivables based on overdue aging:

| Unaudited
30 June 2025 | Current | Less than
90 days
past due | 90-180 days
past due | 180-270 days
past due | more than
270 days
past due | Total |
| --- | --- | --- | --- | --- | --- | --- |
| Expected loss rate | 0.97% | 18.38% | 32.61% | 53.33% | 100.00% | 4.68% |
| Gross carrying amount (RMB’000) | 425,535 | 1,431 | 46 | 15 | 16,336 | 443,363 |
| Loss allowance (RMB’000) | 4,141 | 263 | 15 | 8 | 16,336 | 20,763 |
| | | | | Less than
90 days
past due | More than
270 days
past due | Total |
| 31 December 2024 | | | Current | | | |
| Expected loss rate | | | 0.77% | 14.36% | 100.00% | 4.86% |
| Gross carrying amount (RMB’000) | | | 383,070 | 968 | 16,383 | 400,421 |
| Loss allowance (RMB’000) | | | 2,933 | 139 | 16,383 | 19,455 |

As at 31 December 2024, there was no trade receivables which were past due by 90 to 270 days.

The loss allowances for trade receivables as at 30 June 2025 and 31 December 2024 reconcile to the opening loss allowances as follows:

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| At the beginning of the period/year | 19,455 | 20,953 |
| Provision/(reversal) for expected credit loss | 1,308 | (1,498) |
| At the end of the period/year | 20,763 | 19,455 |

(ii) Movement on the provision for expected credit loss allowance of loan receivables are set out as follows:

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| At the beginning of the period/year | 19,808 | 43,767 |
| Provision for expected credit loss | 58,837 | 89,144 |
| Write-off | (64,698) | (113,103) |
| At the end of the period/year | 13,947 | 19,808 |

(iii) Movement on the provision for expected credit loss allowance of other receivables are set out as follows:

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| At the beginning of the period/year | 37,399 | 43,719 |
| Provision for expected credit loss | 1,303 | 537 |
| Write off of bad debts | (8) | (6,865) |
| Currency translation difference | – | 8 |
| At the end of the period/year | 38,694 | 37,399 |

4.3 Fair value estimation

The table below analyses the Group’s financial instruments carried at fair value as at 30 June 2025 and 31 December 2024 by level of inputs adopted in the valuation techniques used for measuring fair value. Such inputs are categorised into three levels within a fair value hierarchy as follows:

Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2); and
Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

The following table presents the Group’s assets that are measured at fair value as at 30 June 2025.

| | Level 1
RMB’000 | Level 2
RMB’000 | Level 3
RMB’000 | Total
RMB’000 |
| --- | --- | --- | --- | --- |
| Financial assets at fair value
through profit or loss (“FVPL”) | 1,836 | – | 906,981 | 908,817 |

The following table presents the Group’s assets that are measured at fair value as at 31 December 2024.

| | Level 1
RMB’000 | Level 2
RMB’000 | Level 3
RMB’000 | Total
RMB’000 |
| --- | --- | --- | --- | --- |
| Financial assets at FVPL | 4,522 | – | 913,734 | 918,256 |

The fair value of financial instruments traded in active markets is determined based on quoted market prices at the end of the reporting period. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required for evaluating the fair value of a financial instrument are observable, the instrument is included in level 2.

If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3.

Specific valuation techniques used to value financial instruments include:

Dealer quotes for similar instruments;
The fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves; and
Other techniques, such as discounted cash flow analysis, are used to determine fair value for financial instruments.

During the six months ended 30 June 2025 and 2024, there was no transfer between level 1 and 2 for recurring fair value measurements.

Valuation processes of the Group (Level 3)

A team in the finance department of the Group performs the valuations of financial instruments required for financial reporting purposes, including the Level 3 fair values. This team reports directly to the Chief Financial Officer ("CFO"). Discussions of valuation processes and results are held between the CFO and the valuation team at least twice a year.

At each half financial year end the finance department:

verifies all major inputs to the valuation report;
assesses valuation movements when compared to the prior valuation report; and
holds discussions with the independent valuer.

Changes in Level 3 fair values are analysed at each reporting date during the bi-annual valuation discussions between the CFO and the valuation team. As part of this discussion, the team presents a report that explains the reasons for the fair value movements.

The carrying amounts of the Group's financial assets and liabilities including cash and cash equivalents, trade and other receivables, trade and other payables and borrowings approximate to their fair values due to their short maturities.

5 SEGMENT INFORMATION

The Group's business activities, for which discrete financial statements are available, are regularly reviewed and evaluated by the chief operating decision-maker ("CODM"). The Group's CODM has been identified as the chief executive officer ("CEO") of the Company, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Group. As a result of this evaluation, the CEO considers that the Group's operations are operated and managed as a single segment; accordingly, no segment information is presented.

The Company is domiciled in the Cayman Islands while the Group's non-current assets and revenues are substantially located in and derived from the PRC. Therefore, no geographical segments are presented.

6 REVENUE

	Unaudited
	For the six months ended 30 June
	2025	2024
	RMB'000	RMB'000
One-stop payment services	1,429,317	1,346,561
Merchant solutions services	186,527	202,319
In-store e-commerce services	25,682	28,839
	1,641,526	1,577,719

For the six months ended 30 June 2025, interest income from entrusted loans and small-sized retail loans amounting to approximately RMB86,575,000 (six months ended 30 June 2024: approximately RMB84,365,000) was included in revenue derived from merchant solutions services. Except for interest income which is recognised over time, revenues of the Group are recognised at a point in time according to the related provisions prescribed under IFRS 15.

The Group has a large number of customers, none of whom contributed 10% or more of the Group's revenue during the six months ended 30 June 2025 and 2024.

7 OTHER INCOME

	Unaudited
	For the six months ended 30 June
	2025	2024
	RMB'000	RMB'000
Government grants	994	3,262
Interest income from bank deposits	7,798	14,403
Interest income from advance to an associate	956	961
	9,748	18,626

8 OTHER (LOSSES)/GAINS – NET

| | Unaudited
For the six months ended 30 June | |
| --- | --- | --- |
| | 2025
RMB’000 | 2024
RMB’000 |
| Gain on repurchase of convertible bond | – | 24,727 |
| Gains on disposal of property, plant and equipment | 842 | 163 |
| Impairment (provision)/reversal on prepayments | (53) | 293 |
| Net exchange losses | (1,020) | (599) |
| Regulatory fines | (5,150) | – |
| Others | 1,404 | (2,395) |
| | (3,977) | 22,189 |

9 EXPENSES BY NATURE

Costs and expenses included in cost of revenue, selling expenses, administrative expenses and research and development expenses are analysed as follows:

| | Unaudited
For the six months ended 30 June | |
| --- | --- | --- |
| | 2025
RMB’000 | 2024
RMB’000 |
| Commissions and marketing costs | 1,182,388 | 1,199,748 |
| Employee benefit expenses | 166,768 | 222,583 |
| Amortization of other non-current assets | 51,172 | 52,783 |
| Outsourcing service fees | 28,490 | 37,996 |
| Depreciation of property, plant and equipment | 12,284 | 15,191 |
| Office expenses | 10,994 | 12,128 |
| Advertising and promotion expenses | 10,193 | 9,598 |
| Amortization of intangible assets | 8,550 | 9,055 |
| Professional service fees | 7,868 | 6,271 |
| System development, consulting and data validation | 6,939 | 7,394 |
| Rental expenses relating to short-term leases | 6,861 | 6,612 |
| Travel and transportation | 4,812 | 6,016 |
| Raw materials and consumables | 2,563 | 4,568 |
| Others | 29,974 | 23,828 |
| | 1,529,856 | 1,613,771 |

10 INCOME TAX EXPENSES

| | Unaudited
For the six months ended 30 June | |
| --- | --- | --- |
| | 2025
RMB’000 | 2024
RMB’000 |
| Current income tax | 5,931 | 4,050 |
| Deferred income tax | (2,199) | (252) |
| | 3,732 | 3,798 |

11 EARNINGS PER SHARE

(a) Basic earnings per share

Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares in issue during the respective periods.

	Unaudited
	For the six months ended 30 June
	2025	2024
Profit attributable to equity holders of the Company (in RMB thousands)	43,075	31,628
Weighted average number of ordinary shares in issue (in thousands) (i)	396,143	364,535
Basic earnings per share (expressed in RMB per share)	0.11	0.09

(i) Weighted average number of ordinary shares in issue for the six months ended 30 June 2025 and 2024 has been determined based on the number of shares in issue, excluding the shares held for the purpose of share award schemes.

(b) Diluted earnings per share

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.

The Group has two categories of potential ordinary shares in the six months ended 30 June 2025 which were the share options and the restricted share units ("RSU").

A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price of the Company's shares during the period) based on the monetary value of the subscription rights attached to outstanding RSU and share options. The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options and the RSU.

| | Unaudited
For the six months ended 30 June | |
| --- | --- | --- |
| | 2025 | 2024 |
| Profit attributable to equity holders of the Company
(in RMB thousands) | 43,075 | 31,628 |
| Weighted average number of ordinary shares in issue
(in thousands) | 396,143 | 364,535 |
| Adjustments for unvested restricted share units and
share options (in thousands) | 5,760 | 1,739 |
| Weighted average number of ordinary shares for
the calculation of diluted earnings per share (in thousands) | 401,903 | 366,274 |
| Diluted earnings per share (expressed in RMB per share) | 0.11 | 0.09 |

12 INTANGIBLE ASSETS

| | Goodwill
RMB'000 | Customer relationship
RMB'000 | Software
RMB'000 | Platform
RMB'000 | Brand name
RMB'000 | Total
RMB'000 |
| --- | --- | --- | --- | --- | --- | --- |
| As at 31 December 2024 | | | | | | |
| Cost | 462,456 | 77,800 | 7,473 | 1,300 | 38,200 | 587,229 |
| Accumulated amortization and impairment | (5,524) | (69,799) | (5,161) | (1,300) | (25,939) | (107,723) |
| Net book amount | 456,932 | 8,001 | 2,312 | - | 12,261 | 479,506 |
| Unaudited | | | | | | |
| For the six months ended 30 June 2025 | | | | | | |
| Opening net book amount | 456,932 | 8,001 | 2,312 | - | 12,261 | 479,506 |
| Additions | - | - | - | - | - | - |
| Amortization charge | - | (4,800) | (248) | - | (3,502) | (8,550) |
| Closing net book amount | 456,932 | 3,201 | 2,064 | - | 8,759 | 470,956 |
| As at 30 June 2025 | | | | | | |
| Cost | 462,456 | 77,800 | 7,473 | 1,300 | 38,200 | 587,229 |
| Accumulated amortization and impairment | (5,524) | (74,599) | (5,409) | (1,300) | (29,441) | (116,273) |
| Net book amount | 456,932 | 3,201 | 2,064 | - | 8,759 | 470,956 |
| | Goodwill
RMB'000 | Customer relationship
RMB'000 | Software
RMB'000 | Platform
RMB'000 | Brand name
RMB'000 | Total
RMB'000 |
| As at 31 December 2023 | | | | | | |
| Cost | 444,641 | 77,800 | 6,589 | 1,300 | 38,200 | 568,530 |
| Accumulated amortization and impairment | (5,524) | (60,199) | (3,708) | (1,300) | (18,934) | (89,665) |
| Net book amount | 439,117 | 17,601 | 2,881 | - | 19,266 | 478,865 |
| Unaudited | | | | | | |
| For the six months ended 30 June 2024 | | | | | | |
| Opening net book amount | 439,117 | 17,601 | 2,881 | - | 19,266 | 478,865 |
| Additions | - | - | 885 | - | - | 885 |
| Business combination | 17,815 | - | - | - | - | 17,815 |
| Amortization charge | - | (4,800) | (752) | - | (3,503) | (9,055) |
| Closing net book amount | 456,932 | 12,801 | 3,014 | - | 15,763 | 488,510 |
| As at 30 June 2024 | | | | | | |
| Cost | 462,456 | 77,800 | 7,474 | 1,300 | 38,200 | 587,230 |
| Accumulated amortization and impairment | (5,524) | (64,999) | (4,460) | (1,300) | (22,437) | (98,720) |
| Net book amount | 456,932 | 12,801 | 3,014 | - | 15,763 | 488,510 |

The Group normally performs goodwill impairment assessment annually, or more frequently if events or changes in circumstances indicate that it might be impaired. For the period ended 30 June 2025, there were no such events or changes indicating that goodwill might be impaired. For details of goodwill impairment assessment for the year ended 31 December 2024, please refer to the 2024 Financial Statements.

The amortization of intangible assets has been charged to profit or loss as follows:

	Unaudited
	For the six months ended 30 June
	2025	2024
	RMB’000	RMB’000
Cost of revenue	3,600	3,600
Administrative expenses	4,950	5,455
	8,550	9,055
13 FINANCIAL ASSETS AT FVPL
	Unaudited	Audited
	As at	As at
	30 June	31 December
	2025	2024
	RMB’000	RMB’000
Current assets
Investment in listed entities (a)	1,836	4,522
Non-current assets
Investment in unlisted entities (b)	906,981	913,734
	908,817	918,256

The movement of the financial assets at FVPL is set out below:

	Unaudited
	As at 30 June
	2025 RMB’000	2024 RMB’000
At the beginning of the period	918,256	840,936
Acquisition of a subsidiary	-	7,113
Disposal	(12,124)	(1,019)
Changes in fair value through profit or loss	2,806	95,461
Currency translation differences	(121)	159
At the end of the period	908,817	942,650

(a) The balance represented the Group's investments in equity interests of several listed securities on the Hong Kong Main Board of The Stock Exchange of Hong Kong Limited and the New York Stock Exchange, USA.
(b) The balance primarily comprised the Group's investments in preferred shares related to Fushi Technology (Shenzhen) Co., Ltd ("Fushi") amounting to approximately RMB834,957,000 (as at 31 December 2024: RMB834,957,000).

TRADE RECEIVABLES

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Trade receivables | 443,363 | 400,421 |
| Less: Allowance for expected credit loss (Note 4.2) | (20,763) | (19,455) |
| | 422,600 | 380,966 |

(a) The carrying amounts of the trade receivables balances were approximate to their fair value as at 30 June 2025. The trade receivables balances were mainly denominated in RMB.

(b) As at 30 June 2025, RMB15,000,000 of trade receivables were pledged for certain bank borrowings of the Group (Note 19).

(c) The Group generally allows a credit period within 90 days to its customers. Aging analysis of trade receivables based on invoice date is as follows:

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Up to 3 months | 425,535 | 383,070 |
| 3 to 6 months | 1,431 | 968 |
| 6 to 12 months | 61 | – |
| Over 1 year | 16,336 | 16,383 |
| | 443,363 | 400,421 |

PREPAYMENTS AND OTHER RECEIVABLES

(a) Prepayments and other receivables in non-current assets

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Prepayments | | |
| Construction of office building | – | 42,766 |
| Payment terminals | 1,653 | 139 |
| Sub-total | 1,653 | 42,905 |
| Other receivables | | |
| Deposits | 4,914 | 4,711 |
| Less: allowance for impairment of other receivables (Note 4.2) | (64) | (1,740) |
| Sub-total | 4,850 | 2,971 |
| | 6,503 | 45,876 |

(b) Prepayments and other receivables in current assets

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Prepayments | | |
| Prepayments for SaaS terminals | 539 | 1,300 |
| Prepayments to media publishers and advertising agents | 42,297 | 1,392 |
| Others | 6,646 | 6,308 |
| Less: allowance for impairment of prepayments | (3,706) | (3,653) |
| Sub-total | 45,776 | 5,347 |
| Other receivables | | |
| Receivables from payment networks (i) | 752,846 | 1,997,372 |
| Amounts due from related parties | 346,711 | 337,641 |
| Deposits on lease and others | 60,863 | 80,569 |
| Deposits placed with financial institutions | 504 | 1,947 |
| Amounts due from business partners (ii) | 61,483 | 19,400 |
| Payment network deposits | 2,457 | 2,457 |
| Others | 144,886 | 115,295 |
| Less: allowance for impairment of other receivables (Note 4.2) | (38,630) | (35,659) |
| Sub-total | 1,331,120 | 2,519,022 |
| | 1,376,896 | 2,524,369 |

(i) The balance mainly represents funds processed by the Group during the process of providing its one-stop payment services and in-store e-commerce services to merchants, which had been received by the payment networks, and would be then transferred to the respective merchants through the Group in accordance with the terms of agreements entered between the Group and the merchants.

(ii) The balance mainly represents advances made by the Group and utility fees to be received for the purpose of developing merchants to its business partners, which would be deducted from their commission fee or returned within contractual period.

(iii) The carrying amounts of the other receivables balances approximate their fair value as at 30 June 2025 and 31 December 2024. Prepayments and other receivables balances were mainly denominated in RMB.

16 LOAN RECEIVABLES

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Loan receivables (i) | 714,502 | 677,935 |
| Less: allowance for impairment of loan receivables (Note 4.2) | (13,947) | (19,808) |
| | 700,555 | 658,127 |

(i) The loan receivables mainly comprise micro-credit loans and small-sized loans to various borrowers provided by the Group itself or through various financial institutions. The loans bore interest rate from 6% to 36% per annum and with lending periods of less than one year. As at 30 June 2025, approximately RMB645,000,000 (2024: RMB627,000,000) of the loan receivables were either guaranteed or secured.

17 DIVIDENDS

No dividends have been paid or declared by the Company for the six months ended 30 June 2025 (for the six months ended 30 June 2024: Nil).

TRADE AND OTHER PAYABLES

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Trade payables (a) | 227,692 | 251,302 |
| Other payables | | |
| Payables to merchants (b) | 3,040,919 | 3,267,227 |
| Deposits from distribution channels (c) | 71,675 | 71,582 |
| Other taxes payables | 45,633 | 34,643 |
| Employee benefit payables | 28,156 | 41,508 |
| Amounts due to related parties | 30,835 | 27,207 |
| Dividends payable | 10,835 | 16,253 |
| Others | 270,894 | 213,054 |
| | 3,498,947 | 3,671,474 |
| | 3,726,639 | 3,922,776 |

(a) Trade payables mainly represent amounts due to media publisher, suppliers for purchase of payment terminals and other equipment; commission payable to distribution channels for one-stop payment services and in-store e-commerce services and processing fees payable to payment networks and financial institutions.

As at 30 June 2025 and 31 December 2024, the aging analysis of trade payables based on the invoice date was as follows:

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Up to 3 months | 118,537 | 123,336 |
| 3 to 6 months | 7,800 | 16,276 |
| Over 6 months | 101,355 | 111,690 |
| | 227,692 | 251,302 |

(b) The balance represents funds processed by the Group for merchants, which are required to be settled with merchants upon the respective contractual settlement clearance dates.

(c) The amount represents refundable deposits placed by distribution channels with the Group when they signed up the distribution channel agreements with the Group. It would be refunded to the respective distribution channel upon expiration of the agreements.

(d) As at 30 June 2025 and 31 December 2024, trade and other payables were mainly denominated in RMB and the fair values of these balances were approximated to their carrying amounts.

19 BANK AND OTHER BORROWINGS

| | Unaudited
As at
30 June
2025
RMB’000 | Audited
As at
31 December
2024
RMB’000 |
| --- | --- | --- |
| Current | | |
| Bank borrowings | | |
| – unsecured but guaranteed | 919,351 | 884,003 |
| – unsecured and unguaranteed | 9,990 | 9,990 |
| – secured and guaranteed | 15,000 | 15,000 |
| Borrowing from other non-banking financial institution | | |
| – secured and guaranteed | – | 20,000 |
| | 944,341 | 928,993 |
| Non-current | | |
| Bank borrowings | | |
| – unsecured but guaranteed | – | 3,000 |
| Borrowing from other non-banking financial institution | | |
| – secured and guaranteed | 12,000 | – |
| | 12,000 | 3,000 |

As at 30 June 2025, short-term borrowings of RMB854,361,000 (31 December 2024: RMB846,003,000) were guaranteed by the Company and certain subsidiaries of the Group, and RMB64,990,000 (31 December 2024: RMB38,000,000) were guaranteed by certain independent third parties and Mr. Qin Lingjin (“Mr. Qin”), a minority shareholder and key management person of a subsidiary.

As at 30 June 2025, bank borrowing of RMB15,000,000 (31 December 2024: RMB15,000,000) were secured by the pledge of certain trade receivables and guaranteed by Tianjin Chuangxinzhong Technology Co., Ltd., and Mr. Qin.

For the six months ended 30 June 2025, these short-term bank and other borrowings bore effective interest rate of 3.9% (31 December 2024: 3.8%) per annum.

OTHER INFORMATION

Purchase, Sale or Redemption of the Company’s Listed Securities

During the Reporting Period, the Company utilized an aggregate of approximately HKD4.0 million (including commission and transaction cost) to repurchase 546,000 Shares on market at a consideration ranging from HKD6.78 to HKD8.53 per share. The Shares repurchased during such period represent 0.12% of issued Shares as of June 30, 2025. All of the Shares repurchased during the Reporting Period were subsequently retained as treasury Shares by the Company. The Company may cancel, continue to hold or resell the treasury Shares subject to market conditions and the capital management needs of the Company.

Saved as disclosed above and the Placing, neither the Company nor any of its subsidiaries has redeemed, purchased or sold any of the Company’s listed securities (including any sale of treasury shares) during the Reporting Period.

Compliance with the Corporate Governance Code

The Company is committed to maintaining and promoting stringent corporate governance. The principle of the Company’s corporate governance is to promote effective internal control measures, uphold a high standard of ethics, transparency, responsibility and integrity in all aspects of business, to ensure that its affairs are conducted in accordance with applicable laws and regulations and to enhance the transparency and accountability of the Board to all Shareholders. The Company has applied the principles as set out in the Corporate Governance Code (the “CG Code”) contained in Appendix C1 of the Rules Governing the Listing of Securities of The Stock Exchange of Hong Kong Limited (the “Listing Rules”). The Board is of the view that for the six months ended June 30, 2025, the Company has complied with most of the code provisions as set out in the CG Code, except for the deviation from code provision C.2.1 of Part 2 of the CG Code as explained below.

Code provision C.2.1 of Part 2 of the CG Code stipulates that the roles of chairman of the Board and chief executive should be separate and should not be performed by the same individual. The roles of chairman of the Board and chief executive officer of the Company are held by Mr. Liu Yingqi. In view of Mr. Liu’s experience, personal profile and his roles in the Company, and the fact that Mr. Liu has assumed the role of chief executive officer of the Company since 2011, the Board considers it beneficial to the management and business development of our Group and will provide a strong and consistent leadership to our Group that Mr. Liu acts as the chairman of the Board and continues to act as the chief executive officer of the Company.

While this will constitute a deviation from code provision C.2.1 of Part 2 of the CG Code, the Board believes this structure will not impair the balance of power and authority between the Board and the management of the Company, given that: (i) decision to be made by the Board requires approval by at least a majority of our Directors; (ii) Mr. Liu and the other Directors are aware of and undertake to fulfil their fiduciary duties as Directors, which require, among other things, that they act for the benefit and in the best interests of our Company and will make decisions for our Company accordingly; and (iii) the balance of power and authority is ensured by the operations of the Board which comprises experienced and high caliber individuals who meet regularly to discuss issues affecting operations of the Company.

Compliance with the Model Code for Securities Transactions by Directors

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the "Model Code") as set out in Appendix C3 to the Listing Rules as the Group's code of conduct regarding the Directors' securities transactions. Having made specific enquiry of all the Directors of the Company, all the Directors confirmed that they have strictly complied with the Model Code since our last reporting and up to June 30, 2025.

The Board has also adopted written guidelines (the "Employees Written Guidelines") no less exacting than the Model Code to regulate all dealings by relevant employees who are likely to be in possession of unpublished inside information of the Company in respect of securities in the Company as referred to in code provision C.1.3 of Part 2 of the CG Code. No incident of non-compliance with the Employees Written Guidelines by the Company's relevant employees had been noted since our last reporting and up to June 30, 2025 and the date of this announcement after making reasonable enquiry.

Audit Committee and Review of Financial Information

The Company established the Audit Committee with written terms of reference in compliance with the CG Code. As at the date of this announcement, the Audit Committee consists of three independent non-executive Directors, namely Mr. Yao Wei (Chairman), Mr. Tam Bing Chung Benson and Mr. Ouyang Rihui (with Mr. Yao Wei possessing the appropriate professional qualifications and accounting and related financial management expertise). The main duties of the Audit Committee are to review and supervise the financial reporting process and internal control system of our Group, oversee the audit process, review and oversee the existing and potential risks of our Group and perform other duties and responsibilities as assigned by the Board.

The Audit Committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2025. The Audit Committee has also reviewed the accounting principles adopted by the Group and discussed auditing, internal control, risk management and financial reporting matters.

Publication of Interim Results Announcement and Interim Report

This interim results announcement is published on the website of the Stock Exchange (https://www.hkexnews.hk/) and the website of the Company (https://www.yeahka.com/). The interim report of the Company for the six months ended June 30, 2025 containing all the information required by the Listing Rules will be made available on the same websites in due course.

By order of the Board
YEAHKA LIMITED
移卡有限公司
LIU Yingqi
Chairman

Hong Kong, August 21, 2025

As of the date of this announcement, the Board comprises Mr. Liu Yingqi, Mr. Yao Zhijian, Mr. Luo Xiaohui and Ms. Liang Shengtian as executive directors, Mr. Tam Bing Chung Benson, Mr. Yao Wei and Mr. Ouyang Rihui as independent non-executive directors.