Be Friends Holding sees revenue rise amid profit decline

For the six months ended June 30, 2025, Be Friends Holding Limited's New Media Services Segment reported operating revenue of RMB618.9 million, a 9.8% increase from the prior year (RMB563.6 million). However, net profit for the period decreased by 37.4% year-on-year to RMB55.4 million (2024: RMB88.4 million). This profit decline was primarily attributed to rising platform traffic acquisition costs and increased research and development and operational investments in its "Friends Cloud" intelligent system.

Gross profit for the New Media Services Segment decreased from RMB303.2 million in 2024 to RMB270.7 million in 2025, with the gross profit margin falling from 53.8% to 43.7%. Selling expenses saw a slight increase to RMB153.6 million (2024: RMB151.1 million), while administrative expenses decreased to RMB61.9 million (2024: RMB64.7 million) due to digital management upgrades.

The group's liquidity improved, with net cash inflow from operating activities rising to RMB138.5 million (2024: RMB20.3 million). Total bank and other borrowings significantly decreased from RMB212.1 million as at December 31, 2024, to RMB20.0 million as at June 30, 2025, partly due to the reclassification of liabilities related to assets held for sale. The current ratio increased to approximately 2.46.