Company Rebranding and Strategic Focus - The company rebranded from "Modern Media Holdings Limited" to "Meta Media Holdings Limited" on January 14, 2022, signaling a shift towards a focus on the metaverse and advanced technologies[4] - The group changed its name to "Meta Media Holdings Limited" to reflect its focus on the metaverse and AI chatbot technologies[48] Acquisitions and Partnerships - The company has acquired controlling stakes in influential platforms such as Nowness and ArtReview, enhancing its global market presence and brand recognition[3] - The company has made strategic acquisitions, including NOWNESS and ArtReview, to enhance its international presence and build a strong ecosystem[28] - In 2023, the company formed a strategic partnership with Baidu's ERNIE Bot, gaining access to advanced AI technologies for product development and user interaction solutions[11] - The partnership with BV Baidu Venture will involve multiple specific field collaborations to design and complete the construction and operational planning of Meta City[51] Metaverse Initiatives - The company is actively expanding its influence in the metaverse, having established China's first metaverse magazine house and a cyber-aesthetic city called Meta City[9] - The group aims to expand its influence in the metaverse ecosystem, having created China's first metaverse magazine house and a cyber-aesthetic city[50] - The Yuanbang APP, a metaverse city platform, was officially launched on December 20, 2022, marking a significant milestone in the integration of art, culture, and technology in China[57] - The company is focusing on five new business models within the metaverse, including education, lifestyle, entertainment, advertising, and industrial applications[67] - The company plans to establish a comprehensive metaverse educational system, including universities and museums, to stimulate knowledge production and dissemination[68] Financial Performance - The group's total revenue for 2022 decreased by approximately 12% to RMB 373,028,000 compared to RMB 422,808,000 in 2021[47] - The group recorded a loss of approximately RMB 72,233,000 in 2022, compared to a profit of RMB 4,374,000 in 2021[47] - The EBITDA for the digital platform was RMB 32,134,000 in 2022, while the art platform recorded an EBITDA loss of RMB 42,439,000[47] - The company's return on equity decreased from 1.2% in 2021 to -22.8% in 2022 due to the global economic downturn caused by the COVID-19 pandemic[173] - The company's debt-to-equity ratio increased to 32.9% as of December 31, 2022, compared to 26.7% on December 31, 2021[173] Digital and App Development - The iWeekly APP attracted 15 million users by the end of 2022, enhancing its competitiveness with upgraded features[21] - The INSTYLE iLady APP accumulated approximately 7.2 million users by the end of 2022, becoming a major revenue source for the digital platform[21] - The Commercial Weekly Chinese version APP expanded its user base to about 12.2 million, with paid content becoming a significant revenue growth point[21] - The NOWNESS application saw a profit increase of 59% from January 1 to December 31, 2022, compared to the same period in 2021, with a total download count reaching approximately 5,100,000[63] Social Responsibility and Community Engagement - The company has been involved in social responsibility initiatives, including the establishment of a special education school and foundation, reflecting its commitment to societal contributions[4] - The company has committed to social responsibility and has established the "Shaozhong Special Education Fund Award" to support special education initiatives[36] - The company aims to enhance the attractiveness of special education and increase awareness through its initiatives[36] - The company operates a non-profit organization, the "Shaozhong Art Development Foundation," which supports modern art initiatives[38] Corporate Governance - The board of directors consists of seven members, with four executive directors and three independent non-executive directors, ensuring independent oversight[93] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with best practices[91] - The board has established various committees under the board to handle corporate governance matters, with each committee having a written terms of reference[121] - The company has established a board independence assessment mechanism to enhance board efficiency and protect shareholder interests[118] Future Business Development - The group aims to enhance shareholder value through sustainable profit growth and stable dividends, depending on capital adequacy and liquidity[187] - Future business development will focus on vertical industry chain integration, enhancing e-commerce features, and expanding marketing consulting services[189] - The group plans to invest more resources to strengthen the influence of the Nowness brand and achieve orderly growth in 2023 and beyond[72] - The group aims to expand its business in the European market by establishing new distribution channels and enhancing the influence of its products in the region[73] Employee and Stakeholder Relations - The total employee cost for the group as of December 31, 2022, was approximately RMB 96,827,000, with a total of 420 employees, compared to 414 employees in 2021[86] - The company aims to provide competitive compensation packages to attract and retain employees, regularly reviewing compensation against market standards[178] - The company maintains good relationships with key stakeholders, including employees, customers, service providers, and regulatory bodies, to ensure long-term business interests[180] Environmental and Sustainability Efforts - The company is committed to maintaining a sustainable environment and has implemented internal recycling programs to minimize operational impact[175] - The Environmental, Social, and Governance (ESG) Committee was formed in 2016 and is responsible for developing and implementing ESG policies and strategies[133]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Meta Media Holdings Limited 超媒體控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：72） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 財務摘要 二零二二年 二零二一年 變化 人民幣千元 人民幣千元 收益 370,891 422,895 -12% 年內（虧損）╱溢利 (72,233) 4,374 不適用 每股虧損 — 基本及攤薄（人民幣） (0.1625) (0.0232) 600% 資產總值 716,680 705,107 2% ...

Company Information This section details the company's board of directors, key personnel, principal offices, and contact information [Board of Directors and Key Personnel](index=3&type=section&id=Board%20of%20Directors%20and%20Key%20Personnel) The company's board comprises executive directors Shao Zhong (Chairman and CEO), Yang Ying, Li Jian, Deroche Alain, Jean-Marie, Jacques, and independent non-executive directors Wei Wei, Wan Jie, and Yi Yongfa, with Chan Sze Ting as company secretary and authorized representative - Mr. Shao Zhong serves as Chairman and Chief Executive Officer[4](index=4&type=chunk) - Mr. Wan Jie was appointed as an independent non-executive director on May 20, 2021, with Dr. Gao Hao resigning on the same day[4](index=4&type=chunk) [Principal Place of Business and Contact Information](index=3&type=section&id=Principal%20Place%20of%20Business%20and%20Contact%20Information) The company maintains principal offices in Zhuhai, China, and Hong Kong, with stock code 72 and a list of primary banks - The principal place of business in China is located at 2nd Floor, No. 2 Convention and Exhibition Center, No. 1 Software Park Road, Zhuhai, Guangdong Province[4](index=4&type=chunk) - The principal place of business in Hong Kong is located at 7th Floor, Global Trade Square, 21 Wong Chuk Hang Road, Aberdeen, Hong Kong[4](index=4&type=chunk) - The company's stock code is **72**, and its website is www.modernmedia.com.cn[6](index=6&type=chunk) Management Discussion and Analysis This section provides an in-depth review of the group's financial performance, business operations, future outlook, and financial position [Performance Highlights](index=5&type=section&id=Performance%20Highlights) For the six months ended June 30, 2021, the Group's revenue increased by **66.5%** to **RMB181,005,000**, achieving a turnaround in overall EBITDA from a loss of **RMB41,500,000** to a profit of **RMB13,433,000** Performance Summary | Indicator | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | YoY Growth Rate | | :--- | :--- | :--- | :--- | | **Total Revenue** | 181,005 | 108,688 | 66.5% | | **Total EBITDA** | 13,433 | (41,500) | Turned to profit | Segment Revenue | Segment | H1 2021 Revenue (RMB thousands) | H1 2020 Revenue (RMB thousands) | YoY Growth Rate | | :--- | :--- | :--- | :--- | | Print Media | 88,646 | 61,166 | 44.9% | | Digital Platform | 80,069 | 40,169 | 99.3% | | Art Platform | 12,290 | 7,353 | 67.1% | - The Group implemented cost control measures since H2 2020, including strengthened budget management and optimized organizational structure, achieving significant development and innovation in digital and art platforms[10](index=10&type=chunk) [Business Review](index=5&type=section&id=Business%20Review) All three business segments—Print Media, Digital Platform, and Art Platform—achieved significant revenue growth through content innovation, platform upgrades, and strategic collaborations [Print Media Segment](index=5&type=section&id=Print%20Media%20Segment) Print media revenue grew by **44.9%** to **RMB88,646,000**, with flagship magazines maintaining leading positions in brand advertising and among business elites - Print media platform revenue increased by **44.9%** to **RMB88,646,000** from **RMB61,166,000** in the same period of 2020[11](index=11&type=chunk) - INSTYLE iLady maintains an irreplaceable position among print media brand advertisers and celebrates the power of Gen Z women[13](index=13&type=chunk) - Bloomberg Businessweek Chinese Edition ranks among the top in advertising revenue and plans to host more marketing events[14](index=14&type=chunk) [Digital Platform Segment](index=6&type=section&id=Digital%20Platform%20Segment) Digital platform revenue increased by **99.3%** to **RMB80,069,000**, driven by user growth in key apps and expansion through content upgrades and documentary production - Digital platform revenue increased by **99.3%** to **RMB80,069,000** from **RMB40,169,000** in the same period of 2020[15](index=15&type=chunk) Application Users | Application | Users (as of interim period end) | | :--- | :--- | | iWeekly | Approximately 14,974,990 | | INSTYLE iLady | Over approximately 7,314,000 users | | Bloomberg Businessweek Chinese Edition | Approximately 13,365,800 | | Nowness (Cumulative downloads) | Approximately 4,508,000 | - Bloomberg Businessweek Chinese Edition's documentary 'Business Geography' achieved **14,703,000** cumulative views and launched the media brand 'CITYLAB'[18](index=18&type=chunk) - Nowness China team's short video works won Best Director and Best Production awards at the 24th Shanghai International Film Festival[19](index=19&type=chunk) [Art Platform Segment](index=7&type=section&id=Art%20Platform%20Segment) Art platform revenue grew by **67.1%** to **RMB12,290,000**, expanding through art magazine advertising, sales, events, strategic partnerships, and exploring the NFT market - Art platform revenue increased by **67.1%** to **RMB12,290,000** from **RMB7,353,000** in the same period of 2020[20](index=20&type=chunk) - Art platform revenue sources include art magazine advertising, art sales, art-related event income, and cultural creative space income[20](index=20&type=chunk) - The Group established a strategic partnership with the Victoria & Albert Museum and opened Modern Media Gallery[22](index=22&type=chunk) - ZiWU Shanghai and Beijing spaces create integrated cultural and art venues through content curation, membership services, and diverse retail categories[23](index=23&type=chunk) - The Group actively explores the development potential of NFTs (Non-Fungible Tokens) as an emerging art market and plans to expand into the Chinese market in the second half of the year[25](index=25&type=chunk) [Business Outlook](index=9&type=section&id=Business%20Outlook) The Group plans to expand its customer base, seek investment opportunities, and transform its media platforms through resource integration and innovative business models, including video content, e-commerce, and NFT exploration - The Group will build a new business model for an integrated online and offline media platform[26](index=26&type=chunk) - The digital platform will actively produce video content through 'Nowness,' develop brand experience stores, derivative products, themed restaurants, and video courses, and explore e-commerce guided shopping with 'see now, buy now' functionality[26](index=26&type=chunk) - Art platform businesses will be launched in first-tier Chinese cities like Beijing, Guangzhou, and Shenzhen, including art exhibitions, high-end art clubs, art education, art travel, and art derivatives[27](index=27&type=chunk) - ZiWU Art Space will open another location in Shanghai and plans to expand to Guangzhou, forming a replicable business model[29](index=29&type=chunk) - Management will actively research specific operational development plans for NFTs in the second half of the year[30](index=30&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Board does not recommend an interim dividend for the period to retain financial resources, but will consider a final dividend after assessing full-year performance - The Board does not recommend the payment of any interim dividend for the interim period (2020: nil)[31](index=31&type=chunk) [Liquidity and Financial Resources](index=10&type=section&id=Liquidity%20and%20Financial%20Resources) The Group recorded net cash outflows from operating and investing activities, with the gearing ratio increasing to **17.2%** due to higher net debt, and employed **415** staff Cash Flow Summary | Indicator | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | | :--- | :--- | :--- | | Net cash outflow from operating activities | (11,900) | 15,900 (inflow) | | Net cash outflow from investing activities | (15,800) | (3,300) | Gearing Ratio | Indicator | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Gearing Ratio | 17.2% | 14.8% | - The increase in gearing ratio was primarily due to an increase in net debt[34](index=34&type=chunk) - As of June 30, 2021, the Group had **415** employees, with salaries and benefits determined based on market rates, national policies, and individual performance[39](index=39&type=chunk) Corporate Governance and Other Information This section covers directors' interests, substantial shareholders, share transactions, corporate governance practices, and directors' securities dealings [Directors' Interests in Shares, Underlying Shares, and Debentures](index=12&type=section&id=Directors%27%20Interests%20in%20Shares%2C%20Underlying%20Shares%2C%20and%20Debentures) As of June 30, 2021, Mr. Shao Zhong held **74.60%** of the company's ordinary shares, with Ms. Yang Ying and Mr. Deroche Alain, Jean-Marie, Jacques holding smaller stakes Directors' Shareholdings | Director's Name | Number of Ordinary Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | | Mr. Shao Zhong | 327,002,000 | 74.60% | | Ms. Yang Ying | 110,000 | 0.03% | | Mr. Deroche Alain, Jean-Marie, Jacques | 94,000 | 0.02% | - Mr. Shao Zhong holds **100%** equity interest in several associated corporations, including Beijing Modern Yage Advertising Co., Ltd. and Beijing Yage Zhimei Advertising Communication Co., Ltd., through controlled corporate interests[40](index=40&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) [Substantial Shareholders and Other Persons with Interests or Short Positions Discloseable Under Divisions 2 and 3 of Part XV of the SFO](index=15&type=section&id=Substantial%20Shareholders%20and%20Other%20Persons%20with%20Interests%20or%20Short%20Positions%20Discloseable%20Under%20Divisions%202%20and%203%20of%20Part%20XV%20of%20the%20SFO) Ms. Zhou Shaomin (Mr. Shao Zhong's spouse) is deemed to hold a **74.60%** interest, while Warburg Pincus & Co. holds a **5.71%** interest through United Achievement Limited Major Shareholder Interests | Shareholder Name/Person | Capacity | Number of Ordinary Shares Held | Percentage of Issued Ordinary Shares | | :--- | :--- | :--- | :--- | | Ms. Zhou Shaomin | Interest of spouse | 327,002,000 | 74.60% | | United Achievement Limited | Beneficial owner | 25,020,000 | 5.71% | | Warburg Pincus & Co. | Interest in controlled corporations of substantial shareholder | 25,020,000 | 5.71% | - Warburg Pincus & Co. indirectly holds equity interest in United Achievement Limited through its controlled entities[47](index=47&type=chunk) [Purchase, Sale or Redemption of the Company's Shares](index=15&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Shares) Neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the interim period - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the interim period[48](index=48&type=chunk) [Corporate Governance](index=16&type=section&id=Corporate%20Governance) The company adheres to high corporate governance standards, applying principles of the Corporate Governance Code, with established committees overseeing audit, remuneration, nomination, and ESG functions - The company has applied the principles of the Corporate Governance Code set out in Appendix 14 of the Listing Rules, except for the non-segregation of the roles of Chairman and Chief Executive Officer[50](index=50&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee are all composed of three independent non-executive directors[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - The Environmental, Social and Governance Committee comprises Executive Director Mr. Shao Zhong (Chairman), Independent Non-executive Director Mr. Wan Jie, and senior management member Ms. Zhong Yuanhong[54](index=54&type=chunk) [Directors' Securities Transactions](index=16&type=section&id=Directors%27%20Securities%20Transactions) The company has adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance during the interim period - All directors confirmed compliance with the company's code of conduct regarding directors' securities transactions during the interim period[55](index=55&type=chunk) Independent Review Report ZHONGHUI ANDA CPA Limited reviewed Modern Media Holdings Limited's interim financial report, concluding no material non-compliance with IAS 34 - The independent auditor is ZHONGHUI ANDA CPA Limited[60](index=60&type=chunk) - The review concluded that nothing has come to the auditor's attention that causes them to believe the interim financial report is not prepared, in all material respects, in accordance with IAS 34[59](index=59&type=chunk) Condensed Consolidated Interim Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2021, the Group's revenue significantly increased to **RMB182,275,000**, with a substantial improvement in gross profit and a narrowed loss for the period to **RMB10,585,000** Interim Consolidated Statement of Profit or Loss | Indicator | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | | :--- | :--- | :--- | | Revenue | 182,275 | 110,704 | | Cost of sales | (111,115) | (95,618) | | Gross profit | 71,160 | 15,086 | | Operating loss | (8,012) | (68,878) | | Loss for the period | (10,585) | (74,392) | | Total comprehensive expense for the period | (8,914) | (69,718) | Loss Per Share | Indicator | H1 2021 (RMB) | H1 2020 (Restated) (RMB) | | :--- | :--- | :--- | | Basic loss per share | (0.0405) | (0.1580) | | Diluted loss per share | (0.0405) | (0.1580) | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2021, total assets were **RMB625,713,000**, with net current assets of **RMB87,587,000** and total equity of **RMB367,588,000**, including **RMB295,842,000** attributable to owners Interim Consolidated Statement of Financial Position | Indicator | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Non-current assets | 298,862 | 315,997 | | Current assets | 326,851 | 321,558 | | Current liabilities | 239,264 | 235,965 | | Non-current liabilities | 18,861 | 25,088 | | Net assets | 367,588 | 376,502 | | Equity attributable to owners of the Company | 295,842 | 311,407 | | Non-controlling interests | 71,746 | 65,095 | | Total equity | 367,588 | 376,502 | Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2021, total equity attributable to owners decreased from **RMB311,407,000** to **RMB295,842,000**, primarily due to total comprehensive expense of **RMB15,565,000** Interim Consolidated Statement of Changes in Equity | Indicator | January 1, 2021 (Audited) (RMB thousands) | June 30, 2021 (Unaudited) (RMB thousands) | | :--- | :--- | :--- | | Equity attributable to owners of the Company | 311,407 | 295,842 | | Non-controlling interests | 65,095 | 71,746 | | Total equity | 376,502 | 367,588 | - Total comprehensive expense attributable to owners of the Company for the period was **RMB15,565,000**[70](index=70&type=chunk) Condensed Consolidated Interim Statement of Cash Flows For the six months ended June 30, 2021, the Group reported net cash outflows from operating and investing activities, with net cash inflow from financing activities, resulting in **RMB23,110,000** cash and cash equivalents at period-end Interim Consolidated Statement of Cash Flows | Cash Flow Category | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | (11,913) (outflow) | 15,945 (inflow) | | Net cash from investing activities | (15,835) (outflow) | (3,266) (outflow) | | Net cash from financing activities | 14,771 (inflow) | (12,907) (outflow) | | Net decrease in cash and cash equivalents | (12,977) | (228) | | Cash and cash equivalents at period end | 23,110 | 42,353 | Notes to the Condensed Consolidated Interim Financial Statements This section provides detailed notes on the basis of preparation, accounting policies, fair value measurements, segment reporting, and other financial disclosures [General Information](index=24&type=section&id=General%20Information) Modern Media Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, primarily engages in multimedia advertising, magazine publishing, art trading, and restaurant operations - The company was incorporated in the Cayman Islands on March 8, 2007, and its shares were listed on the Main Board of the Hong Kong Stock Exchange on September 9, 2009[75](index=75&type=chunk)[76](index=76&type=chunk) - The Group primarily engages in multimedia advertising services, magazine printing and distribution, advertising-related services, art trading and related services, and restaurant operations[76](index=76&type=chunk) [Basis of Preparation](index=24&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with IAS 34 and the Listing Rules, consistent with the accounting policies of the 2020 annual financial statements - These condensed consolidated financial statements are prepared in accordance with IAS 34 'Interim Financial Reporting' and the applicable disclosure provisions of the Listing Rules[79](index=79&type=chunk) - The accounting policies and methods of computation used are consistent with those used in the annual financial statements for the year ended December 31, 2020[79](index=79&type=chunk) [Adoption of New and Revised International Financial Reporting Standards](index=25&type=section&id=Adoption%20of%20New%20and%20Revised%20International%20Financial%20Reporting%20Standards) The Group adopted all new and revised IFRSs effective January 1, 2021, with no significant impact on accounting policies or reported amounts for current or prior periods - The Group has adopted all new and revised International Financial Reporting Standards effective for the accounting period beginning January 1, 2021[81](index=81&type=chunk) - The adoption of these new and revised IFRSs did not result in significant changes to the Group's accounting policies, financial statement preparation, or reported amounts for the current and prior periods[81](index=81&type=chunk) [Prior Period Adjustments](index=25&type=section&id=Prior%20Period%20Adjustments) The Group restated H1 2020 comparative figures due to a re-evaluation of the Art Review Ltd. acquisition date, impacting revenue, cost of sales, administrative expenses, and loss for the period - Management re-evaluated the acquisition progress of Art Review Ltd., confirming the Group was able to exercise control over it upon completion of the acquisition in June 2019[82](index=82&type=chunk) - The comparative figures for H1 2020 have been restated in accordance with IFRS 3 (Revised) Business Combinations[82](index=82&type=chunk) Impact of Prior Period Adjustment | Indicator | Previously reported (RMB thousands) | Impact of prior period adjustment (RMB thousands) | Restated (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 107,809 | 2,895 | 110,704 | | Cost of sales | (93,807) | (1,811) | (95,618) | | Administrative expenses | (48,639) | (3,905) | (52,544) | | Loss for the period | (71,590) | (2,802) | (74,392) | [Fair Value Measurement](index=27&type=section&id=Fair%20Value%20Measurement) The Group's financial assets and liabilities are measured at fair value using a three-level hierarchy, with investment properties and wealth management products valued using independent appraisals and discounted cash flow models - The Group's fair value measurements adopt a three-level input hierarchy: Level 1, Level 2, and Level 3[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) Fair Value Hierarchy | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (RMB thousands) | | :--- | :--- | :--- | | Investments at fair value through profit or loss – wealth management products | 41,730 | 25,307 | | Investment properties – residential units – China | 37,700 | 37,700 | | **Total** | **79,430** | **63,007** | - Investment properties are revalued by Shenzhen Cushman & Wakefield Land and Real Estate Appraisal Co., Ltd., an independent professional qualified valuer[108](index=108&type=chunk) - Wealth management products are valued using a discounted cash flow model, with expected returns ranging between **2.72%** and **3.31%**[109](index=109&type=chunk) [Revenue and Segment Reporting](index=31&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's three reportable segments—Print Media, Art Platform, and Digital Platform—generated total revenue of **RMB181,005,000**, primarily from advertising, with all segments achieving positive EBITDA - The Group has three reportable segments: Print Media Platform, Art Platform, and Digital Platform[112](index=112&type=chunk) Revenue by Source | Revenue Source | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | | :--- | :--- | :--- | | Advertising income | 138,536 | 84,818 | | Distribution and subscription income | 9,251 | 5,641 | | Production, program and service income | 33,260 | 16,831 | | Sales of artworks and merchandise | – | 37 | | Restaurant operating income | 1,228 | 2,274 | | Rental income | – | 1,103 | | **Total Revenue** | **182,275** | **110,704** | Adjusted EBITDA by Segment | Segment | H1 2021 Adjusted EBITDA (RMB thousands) | H1 2020 Adjusted EBITDA (Restated) (RMB thousands) | | :--- | :--- | :--- | | Print Media Platform | (17,781) | (42,468) | | Digital Platform | 26,107 | 198 | | Art Platform | 5,107 | 770 | | **Total** | **13,433** | **(41,500)** | Total Assets by Segment | Segment | June 30, 2021 Total Assets (RMB thousands) | December 31, 2020 Total Assets (Audited) (RMB thousands) | | :--- | :--- | :--- | | Print Media Platform | 121,226 | 118,047 | | Digital Platform | 222,731 | 267,135 | | Art Platform | 113,175 | 94,102 | | **Total Assets** | **625,713** | **637,555** | [Other Income](index=36&type=section&id=Other%20Income) For the six months ended June 30, 2021, total other income was **RMB2,705,000**, primarily from Chinese government subsidies of **RMB2,344,000** and interest income from fair value investments Other Income Details | Income Source | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | | :--- | :--- | :--- | | Chinese government subsidies | 2,344 | 79 | | Interest income from investments at fair value through profit or loss | 255 | – | | Bank interest income | 73 | 17 | | Others | 33 | 320 | | **Total** | **2,705** | **416** | [Other (Losses)/Gains – Net](index=36&type=section&id=Other%20%28Losses%29%2FGains%20%E2%80%93%20Net) For the six months ended June 30, 2021, the Group recorded net other losses of **RMB62,000**, mainly from net loss on disposal of property, plant and equipment and exchange differences Other (Losses)/Gains – Net Details | Item | H1 2021 (RMB thousands) | H1 2020 (RMB thousands) | | :--- | :--- | :--- | | Net loss on disposal of property, plant and equipment | (38) | – | | Exchange differences | (24) | 394 | | **Total** | **(62)** | **394** | [Finance Costs](index=36&type=section&id=Finance%20Costs) For the six months ended June 30, 2021, total finance costs decreased to **RMB2,573,000**, primarily comprising interest expenses on borrowings and lease liabilities Finance Costs Details | Item | H1 2021 (RMB thousands) | H1 2020 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on borrowings | 2,036 | 3,047 | | Finance costs on lease liabilities | 537 | 1,231 | | **Total** | **2,573** | **4,278** | [Loss Before Income Tax](index=37&type=section&id=Loss%20Before%20Income%20Tax) For the six months ended June 30, 2021, the Group's loss before income tax was **RMB10,585,000**, influenced by depreciation, amortization, and expected credit loss provisions Loss Before Income Tax Components | Item | H1 2021 (RMB thousands) | H1 2020 (Restated) (RMB thousands) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment and right-of-use assets | 11,706 | 17,129 | | Amortisation of intangible assets | 5,501 | 6,387 | | Provision for expected credit losses on trade receivables | 817 | (386) | | Short-term lease payments for land and buildings | 416 | 68 | [Income Tax Expense](index=37&type=section&id=Income%20Tax%20Expense) The Group incurred no income tax expense for the period, as operating entities in various regions had sufficient tax losses or no taxable profits - The Group incurred no income tax expense during the interim period[128](index=128&type=chunk) - No income tax provision was made because operating entities had sufficient tax losses to offset taxable profits or generated no taxable profits[128](index=128&type=chunk) [Loss Per Share](index=37&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2021, loss attributable to owners was **RMB17,490,000**, with basic and diluted loss per share both at **RMB(0.0405)** due to no dilutive events Loss Per Share Calculation | Indicator | H1 2021 | | :--- | :--- | | Loss attributable to owners of the Company (RMB thousands) | (17,490) | | Weighted average number of ordinary shares in issue (thousands of shares) | 431,994 | | Basic loss per share (RMB) | (0.0405) | | Diluted loss per share (RMB) | (0.0405) | - Diluted loss per share was the same as basic loss per share as there were no dilutive events during the period[130](index=130&type=chunk) [Property, Plant and Equipment](index=38&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2021, the Group acquired property, plant and equipment worth **RMB313,000** and disposed of assets with a net book value of **RMB611,000**, incurring a net loss of **RMB38,000** - The Group acquired property, plant and equipment at a cost of approximately **RMB313,000**[132](index=132&type=chunk) - Disposal of property, plant and equipment with a net book value of approximately **RMB611,000** resulted in a net loss on disposal of approximately **RMB38,000**[132](index=132&type=chunk) [Goodwill](index=38&type=section&id=Goodwill) As of June 30, 2021, total goodwill was **RMB43,772,000**, primarily allocated to digital platforms in China and the UK, and the art platform in China, with recoverability determined by value-in-use method Goodwill Movement | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | At January 1 | 43,725 | 51,637 | | Exchange differences on translation | 47 | (274) | | **Goodwill at end of period** | **43,772** | **43,725** | Goodwill Allocation by Segment | Segment | June 30, 2021 Goodwill Allocation (RMB thousands) | | :--- | :--- | | Digital Platform – China | 28,203 | | Digital Platform – UK | 8,319 | | Art Platform – China | 7,250 | | **Total** | **43,772** | [Trade and Other Receivables](index=39&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2021, net current trade and other receivables totaled **RMB203,522,000**, with net trade receivables of **RMB134,483,000** and an expected credit loss provision of **RMB8,287,000** Trade and Other Receivables Summary | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Trade receivables, net | 134,483 | 143,514 | | Other receivables | 205,900 | 214,457 | | Less: Non-current portion | (2,378) | (9,015) | | **Current portion** | **203,522** | **205,442** | Trade Receivables Aging | Aging | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 53,074 | 43,813 | | Over 30 days and within 90 days | 23,644 | 44,837 | | Over 90 days and within 180 days | 29,279 | 25,840 | | Over 180 days | 36,718 | 33,904 | | **Trade receivables, gross** | **142,770** | **151,217** | Provision for Expected Credit Losses | Provision for expected credit losses | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | At January 1 | 7,703 | 7,045 | | Provision recognised | 817 | 1,445 | | Written off | (233) | (787) | | **Provision at end of period** | **8,287** | **7,703** | [Investments at Fair Value Through Profit or Loss](index=41&type=section&id=Investments%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) As of June 30, 2021, investments at fair value through profit or loss totaled **RMB41,730,000**, primarily comprising unlisted wealth management products from Chinese financial institutions Investments at Fair Value Through Profit or Loss | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Unlisted investments in certain wealth management products | 41,730 | 25,307 | - Wealth management product investments are open-ended products offered by Chinese financial institutions under wealth management schemes[140](index=140&type=chunk) [Trade and Other Payables](index=41&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2021, total trade and other payables decreased to **RMB86,256,000**, including trade payables of **RMB46,679,000** and various accrued expenses Trade and Other Payables Summary | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 46,679 | 56,451 | | Accrued taxes other than income tax | 8,155 | 6,151 | | Accrued expenses | 11,328 | 12,834 | | Accrued salaries, wages, bonuses and benefits | 10,456 | 16,330 | | Consideration payable for acquisition of a subsidiary | 6,019 | 6,088 | | Amount due to a director | – | 3,485 | | Amounts due to related companies | 1,520 | 1,511 | | Other liabilities | 2,099 | 3,921 | | **Total** | **86,256** | **106,771** | Trade Payables Aging | Aging | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 16,652 | 19,097 | | Over 30 days and within 90 days | 11,386 | 12,083 | | Over 90 days and within 180 days | 9,885 | 14,702 | | Over 180 days | 8,756 | 10,569 | | **Trade payables, gross** | **46,679** | **56,451** | [Borrowings](index=43&type=section&id=Borrowings) As of June 30, 2021, total borrowings were **RMB124,276,000**, primarily secured bank borrowings collateralized by Group properties with a book value of **RMB128,269,000** and guaranteed by Mr. Shao Zhong and related parties Borrowings Summary | Item | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Secured bank borrowings | 124,276 | 98,244 | | Unsecured other borrowings | – | 5,057 | | **Total** | **124,276** | **103,301** | - Bank borrowings are secured by certain properties of the Group with a total book value of approximately **RMB128,269,000**, including investment properties of approximately **RMB37,700,000** and property, plant and equipment of approximately **RMB90,569,000**[149](index=149&type=chunk) [Share Capital, Dividends and Reserves](index=43&type=section&id=Share%20Capital%2C%20Dividends%20and%20Reserves) As of June 30, 2021, the company's authorized share capital was **8,000,000** thousand shares at HKD0.01 each, with issued and fully paid share capital of **438,353** thousand shares, and no interim dividend was recommended Authorized Share Capital | Share Capital Category | Number of Shares (thousands of shares) | Share Capital (HKD thousands) | | :--- | :--- | :--- | | Authorised share capital (HKD0.01 per share) | 8,000,000 | 80,000 | Issued and Fully Paid Share Capital | Share Capital Category | Number of Shares (thousands of shares) | Share Capital (RMB thousands) | | :--- | :--- | :--- | | Issued and fully paid ordinary shares | 438,353 | 3,853 | - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2021 and 2020[153](index=153&type=chunk) [Commitments](index=44&type=section&id=Commitments) As of June 30, 2021, the Group had capital commitments of **RMB353,000** for property, plant and equipment, and future minimum payments of **RMB16,438,000** under licensing agreements Capital Commitments | Commitment Category | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Contracted but not provided for – property, plant and equipment | 353 | 2,340 | Licensing Agreement Commitments | Licensing agreement expiry period | June 30, 2021 (RMB thousands) | December 31, 2020 (Audited) (RMB thousands) | | :--- | :--- | :--- | | Within one year | 9,330 | 16,577 | | After one year but within five years | 7,108 | 9,829 | | **Total** | **16,438** | **26,406** | [Related Party Transactions](index=45&type=section&id=Related%20Party%20Transactions) For the six months ended June 30, 2021, the Group paid **RMB87,000** in interest to directors and **RMB6,558,000** in total key management personnel compensation Related Party Transactions Summary | Transaction Category | H1 2021 (RMB thousands) | H1 2020 (RMB thousands) | | :--- | :--- | :--- | | Interest expense payable to a director | 87 | 680 | | Key management personnel compensation – salaries and allowances | 6,343 | 6,656 | | Key management personnel compensation – retirement scheme contributions | 215 | 263 | | **Total key management personnel compensation** | **6,558** | **6,919** | - Mr. Shao Zhong holds certain subsidiaries and equity investments at fair value through other comprehensive income as a registered shareholder on behalf of the Group[158](index=158&type=chunk) [Comparative Figures](index=45&type=section&id=Comparative%20Figures) Certain comparative figures have been reclassified to align with the current year's presentation, in addition to the restatements detailed in Note 4 'Prior Period Adjustments' - Certain comparative figures have been reclassified to conform to the current year's presentation, in addition to the restated figures shown in Note 4 'Prior Period Adjustments'[159](index=159&type=chunk)

Corporate Acquisitions and Partnerships - Modern Media Holdings Limited has acquired controlling equity interests in Nowness, a leading online platform for creative and cultural video broadcasting, and Art Review, an art commentary magazine with over 70 years of history, enhancing its international presence and influence[10][11]. - The company has established long-term partnerships with renowned international institutions, including the British Museum V&A, where it built the "Modern Media Gallery" at the V&A Headquarters in London[10][11]. - The company has maintained partnerships with influential international media agencies, such as Bloomberg Media Group and Time Inc., to enhance its media capabilities[10][11]. - The company has acquired controlling equity interests in Nowness and Art Review, enhancing its international recognition and influence in the media market[19]. - The group acquired a majority stake in the internationally recognized art platform "ArtReview" and "ArtReview Asia," establishing a foundation for expansion in the art platform sector[124]. Social Responsibility and Community Engagement - Modern Media has been committed to social responsibility, having supported the development of special education in China for over 12 years, including the establishment of the "Modern Media Special Education School" in Songzi, Hubei Province[10][11]. - Modern Media's corporate ethos includes a commitment to social responsibility, aiming to contribute positively to society through various initiatives[10][11]. - The company has established a "Modern Media Special Education School" in Songzi, Hubei Province, which has received numerous government awards and honors[22]. - The company has been actively involved in social responsibility, supporting the Modern Media Special Education School for 11 years[89]. - In response to the COVID-19 pandemic, the company provided essential supplies to the Modern Media Special Education School, including non-contact temperature equipment and protective gear[92]. - The company has established the "Modern Media Special Education Foundation" to support special education initiatives[102]. - The company received the "Golden Pine Education Award" for its contributions to education and social responsibility[102]. Business Strategy and Innovation - Modern Media aims to position itself as a leading high-profile media group in China, focusing on innovative content across various sectors, including business, culture, art, fashion, and lifestyle[10][11]. - The company emphasizes continuous innovation and exploration, transitioning from print products to digital and space platforms, thereby integrating new cultural and creative connotations[10][11]. - The organizational structure of Modern Media is designed to be flexible, allowing for continuous innovation and exploration across different media formats[57]. - The Group will continue to expand its innovative business model, transitioning from print media to digital media and finally to platform media, recognizing the platform economy as a growth point in China's new economy[64]. - The development strategy has undergone three stages: from print media to digital platforms and then to art platforms, aiming to create a full media matrix through the integration of print, digital, and space[64]. - The company plans to build four major media platforms, including fashion, culture, art, and business, while integrating print, digital, and art space experiences to create a new media model[67]. - The focus on creative culture is identified as a new growth point, with initiatives aimed at creating a humanistic creative ecological community that blends art and fashion[67]. - The transformation and innovation of business models will be promoted through advancements in technology, cultural influences, and societal changes[66]. - The company aims to provide consumers with a one-stop leisure space that combines lifestyle and media, enhancing the consumer experience[67]. - The integration of online and offline platforms is a key strategy to spread a new popular culture lifestyle and provide happiness to consumers[67]. - The Group believes that continuous modernization and evolution are essential to remain relevant in the post-Internet era[65]. - The company aims to create a new media business model that integrates online and offline platforms, combining graphic, digital, and spatial experiences[86]. Financial Performance and Market Position - In the first half of 2020, the company recorded a loss of RMB 71,590,000, an increase of 106.9% compared to the same period last year[110]. - The company's total revenue for 2020 was RMB 311,504,000, with a reported loss of RMB 72,410,000, compared to a profit of RMB 2,706,000 in 2019[112][114]. - The digital platform segment's profit increased by 49.9% compared to 2019, with EBITDA rising by 28.8%[114]. - The revenue from the print media and art platform segment decreased by 32.5%, while the digital platform segment saw a decline of 29.8% compared to 2019[114]. - Effective cost control measures implemented in the second half of 2020 contributed to a net profit of RMB 1,615,000, showing steady improvement in operations[110]. - The group recorded a net cash inflow from operating activities of approximately RMB 60,758,000, compared to RMB 45,179,000 in 2019[142]. - The total outstanding borrowings as of December 31, 2020, were approximately RMB 103,301,000, down from RMB 131,790,000 in 2019[143]. - The debt-to-equity ratio as of December 31, 2020, was 14.8%, a decrease from 22.5% in the previous year[143]. - The company aims to actively expand its customer base and identify potential investment opportunities in 2021, despite ongoing challenges from the COVID-19 pandemic[131]. - The company expects continued ideal growth in its digital platform segment in 2021, driven by increased advertising spending from brands[132]. Governance and Board Structure - The board consists of seven directors, with four executive directors and three independent non-executive directors, ensuring independent oversight[159]. - The board held a total of 4 meetings in 2020, with all executive directors attending all meetings[162]. - The company’s governance report indicates that independent non-executive directors are appointed for a term of two years, with a requirement for re-election at the first annual general meeting following their appointment[168]. - The board is responsible for approving major investments, acquisitions, financing, and risk management strategies[160]. - The company has implemented a training program for directors to ensure they are updated on governance and regulatory issues[171]. - The board's composition includes a significant number of independent directors, exceeding one-third of the total[159]. - The company has established procedures for seeking independent professional advice, with costs covered by the company[167]. - The audit committee, consisting of three independent non-executive directors, is responsible for overseeing the financial reporting process and risk management[178]. - The audit committee held meetings where members reviewed the financial reporting, internal controls, and risk management processes[182]. - The company has established a clear separation of roles between the chairman and the CEO to enhance operational efficiency[176]. - The audit committee's responsibilities include reviewing the external auditor's independence and the effectiveness of the audit process[180]. - The company has a robust governance structure with a balanced power dynamic among board members, including three independent non-executive directors[176]. - The board includes two female members, enhancing board diversity in terms of gender[198]. - The company adopted a board diversity policy in August 2013, recognizing the benefits of a diverse board for sustainable development[198].

Revenue Performance - For the six months ended June 30, 2020, the group's revenue decreased by approximately 39.4% to RMB 1,078 million compared to RMB 1,779 million in the same period of 2019[11] - The reported segment revenue for the print media and arts platform fell by 44.2%, while the digital media platform's revenue decreased by 39.4% compared to the same period in 2019[11] - Revenue for the six months ended June 30, 2020, was RMB 107,809 thousand, a decrease of 39.3% compared to RMB 177,863 thousand for the same period in 2019[65] - Advertising revenue decreased to RMB 83,808 thousand, down 36.1% from RMB 131,120 thousand year-on-year[101] - Revenue from digital media platforms was RMB 38,251 thousand, down 39.4% from RMB 63,137 thousand year-on-year[101] User Engagement and Digital Platforms - The digital media platform "iWeekly" reached 14.9 million users by the end of the reporting period, recognized as one of the most successful Chinese media applications on Apple and Android platforms[13] - "INSTYLE iLady" accumulated over 7.3 million users, providing a "see-use-buy" digital media experience, becoming a major revenue source for the digital business[15] - "Bloomberg Businessweek Chinese Edition" expanded its user base to approximately 12.6 million, recognized as one of the best apps on the App Store in 2019[16] - "Nowness" generated advertising and production revenue of RMB 14.3 million during the reporting period, an increase from RMB 12.7 million in the same period of 2019[17] Financial Losses and Challenges - The total reported segment loss for the group was RMB 70.164 million, with an EBITDA loss of RMB 43.779 million for the reporting period[11] - The company reported a net loss of RMB 71,590 thousand for the six months ended June 30, 2020, compared to a net loss of RMB 34,595 thousand in 2019[67] - Operating loss increased to RMB 66,076 thousand, compared to a loss of RMB 28,842 thousand in the previous year, reflecting a significant decline in profitability[65] - The company reported a loss attributable to owners of RMB 65,857,000 for the six months ended June 30, 2020, compared to a loss of RMB 33,611,000 for the same period in 2019, representing a 96% increase in losses year-over-year[125] Cash Flow and Financial Management - The group recorded a net cash inflow from operating activities of RMB 25.8 million during the reporting period, an increase from RMB 8.3 million in the same period last year, due to effective accounts receivable management[30] - The company reported a net cash outflow from investing activities of RMB 12,470 thousand, an improvement compared to RMB 16,620 thousand in the previous year[80] - Operating cash flow for the six months ended June 30, 2020, was RMB 25,829 thousand, significantly up from RMB 8,318 thousand in the same period of 2019, representing a year-over-year increase of 210.5%[80] Corporate Governance and Structure - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial matters[53] - The company has maintained compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO[51] - The company has a strong commitment to high levels of corporate governance, regularly reviewing practices to meet shareholder expectations[51] - The company operates primarily in China, Hong Kong, and the UK, with most transactions denominated in RMB, HKD, or GBP, and faces no significant foreign currency risk as of June 30, 2020[37] Strategic Initiatives and Future Plans - The group aims to leverage social media to enhance user interaction and increase brand recognition for its digital platforms[15] - The diverse digital matrix constructed by the group is expected to generate significant revenue and substantial business development in the future[17] - The group is acquiring significant stakes in "ArtReview" and "ArtReview Asia," both of which are authoritative international platforms with a 70-year history, to enhance its art platform segment[21] - The group aims to create a multi-dimensional sharing lifestyle platform "ZiWU" to meet diverse consumer needs, integrating art, design, fashion, and food exhibitions[21] Asset and Liability Management - As of June 30, 2020, the company's debt-to-equity ratio was 25.0%, an increase from 23.1% on December 31, 2019, primarily due to a decrease in total assets[31] - Total liabilities decreased to RMB 247,253 thousand from RMB 258,026 thousand, a decline of 4.2%[69] - The company's borrowings increased slightly to RMB 133,690 thousand from RMB 130,001 thousand, an increase of 2.1%[69] - The company has no significant contingent liabilities or guarantees as of June 30, 2020, except as disclosed[34] Employee and Operational Changes - As of June 30, 2020, the company had 415 employees, a decrease from 488 employees as of December 31, 2019, due to organizational restructuring[38] - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[144]

MODERN MEDIA HOLDINGS LIMITED ANNUAL REPORT 2019 現代傳播控股有限公司 2019年 年報 Stock Code:72 股份代號: 72 現代傳播 1 目 錄 第2頁 現代傳播簡介 第3頁 現代傳播公司架構 第4頁 現代傳播大平台 第5頁 平面平台 第6頁 數碼平台 第7頁 空間平台 第10頁 主席報告 第16頁 公司花絮 第18頁 公司資料 第19頁 管理層討論及分析 | --- | --- | |-------|-------| | | | | | | | | 第28頁 企業管治報告 | | | 第44頁 董事會報告 | | | 第68頁 董事及高級管理層的履歷 | | | 第72頁 環境、社會及管治報告 | | | 第92頁 獨立核數師報告 | | | 第98頁 綜合損益及其他全面收益表 | | | 第100頁 綜合財務狀況表 | | | 第102頁 綜合權益變動表 | | | 第103頁 綜合現金流量表 | | | 第104頁 綜合財務報表附註 | | | 第208頁 五年財務摘要 | 现 代 传 播 简 介 Groups. Joining hands, ...

Revenue Performance - For the six months ended June 30, 2019, the company's revenue decreased by approximately 8.5% to RMB 177.9 million, down from RMB 194.3 million in the same period of 2018[9]. - The print media and arts segment reported a revenue decline of 14.0% compared to the same period in 2018, primarily due to stagnation in the print media industry and a challenging macroeconomic environment[10]. - The digital media segment experienced a slight revenue increase of 2.2% year-on-year, benefiting from stable advertising performance from the company's applications[10]. - Revenue for the six months ended June 30, 2019, was RMB 177,863 thousand, a decrease of 8.4% from RMB 194,331 thousand in the same period of 2018[180]. - Advertising revenue for the six months ended June 30, 2019, was RMB 131,120 thousand, a slight decrease of 2.4% from RMB 134,130 thousand in 2018[180]. Segment Performance - The company's total reported segment loss for the first half of 2019 was RMB 33.7 million, compared to RMB 29.1 million in the same period of 2018[10]. - The EBITDA for the print media and arts segment improved to RMB (16.6) million, while the digital media segment achieved an EBITDA of RMB 6.7 million[10]. - The flagship magazine "Weekend Weekly" maintained its top position in revenue among weekly magazines despite a decline in earnings[14]. - The "INSTYLE" magazine continued to be a popular choice among luxury brand advertisers, with its reader club membership increasing during the reporting period[14]. Digital Media Growth - The management believes that digital media will become the main source of revenue and profit center in the future[10]. - "iWeekly" reached 14,800,000 smartphone and tablet users, enhancing its global content and reader loyalty through selected content from renowned international media brands[17]. - "Bloomberg Businessweek Chinese Edition" expanded its user base to 11,400,000, with subscription revenue reaching RMB 2,500,000 during the interim period[18]. - "INSTYLE iLady" accumulated over 7,200,000 users, becoming a major revenue source by providing a "see-use-buy" digital media experience[19]. - "Nowness" achieved advertising revenue of RMB 12,700,000, representing a 24.5% increase year-on-year, with a user base nearing 3,000,000[20]. - "Urban Customer" generated revenue of RMB 7,300,000, reflecting a 48.5% year-on-year growth, driven by strong participation in online cosmetics sample testing programs[20]. Strategic Initiatives - The company has strategically restructured its business into two segments: print media and arts, and digital media, to adapt to market changes[9]. - The company plans to expand its innovative business model and develop four major media platforms: fashion, culture, art, and business[22]. - The strategy includes the "4M" approach: Modern Publishing, Modern Digital, Modern Space, and Modern Art, with expectations for a rebound in advertising spending on print magazines[23]. - The company aims to enhance its digital business through the integration of online and offline experiences, creating a new media business model[24]. - The "Modern Art" business will be launched in major Chinese cities such as Beijing, Guangzhou, and Shenzhen, becoming a key driver for future profit growth[26]. Financial Position - The group recorded a net cash inflow from operating activities of RMB 8,300,000, an increase from RMB 2,700,000 in the previous year, due to effective accounts receivable management[29]. - The capital debt ratio increased to 21.8% as of June 30, 2019, up from 15.8% at the end of 2018, primarily due to an increase in lease liabilities[31]. - The group did not recommend any interim dividend for 2019, similar to 2018, to retain more financial resources[28]. - Total capital expenditure during the interim period was approximately RMB 16,000,000, down from RMB 34,900,000 in the same period last year[33]. - The group’s bank loans amounted to RMB 28,000,000 secured by the Beijing office property, with additional loans of RMB 64,200,000 secured by the Hong Kong office unit[35]. Losses and Uncertainties - The company reported a net loss of RMB 34,595,000 for the six months ending June 30, 2019[70]. - The company has significant uncertainties regarding its ability to continue as a going concern due to the reported losses and cash position[70]. - The company reported a total comprehensive loss of RMB 36,428,000 for the six months ended June 30, 2019, compared to a loss of RMB 28,716,000 for the same period in 2018, indicating an increase in losses of approximately 27% year-over-year[108]. Cash Flow and Investments - Cash flow from operating activities for the six months ended June 30, 2019, was RMB 9,401,000, up from RMB 2,660,000 in the same period of 2018, representing a significant increase of approximately 253%[117]. - The company incurred a net cash outflow from investing activities of RMB 18,911,000 for the six months ended June 30, 2019, compared to RMB 35,128,000 in the same period of 2018, showing a reduction in cash outflow of about 46%[119]. - The company reported a net cash inflow from financing activities of RMB (4,042,000) for the six months ended June 30, 2019, compared to RMB (6,078,000) in the same period of 2018, indicating an improvement in financing cash flow[119]. Corporate Governance - The audit committee reviewed the interim results and had no objections to the accounting policies adopted by the company[59]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its practices[56]. - The board of directors consists of four independent non-executive directors overseeing the company's operations[56]. - The remuneration committee is responsible for recommending the remuneration policy for directors[60]. Accounting Policies and Standards - The company adopted the revised retrospective method for the first application of IFRS 16 on January 1, 2019, with no restatement of comparative information[76]. - The company has not early adopted any new or revised IFRS that are not yet effective during the reporting period[132]. - The transition to IFRS 16 has resulted in significant changes in accounting policies regarding lease measurement and recognition[150].

Business Strategy and Innovation - Modern Media has established partnerships with influential international media agencies, including Bloomberg Media Group and Time Inc., enhancing its global presence[6]. - The company has acquired controlling equity interest in Nowness, a leading online platform for creative and cultural video broadcasting, expanding its market reach[6]. - Modern Media has founded over ten magazines in mainland China and Hong Kong, contributing to its extensive digital and social media development history[6]. - Modern Media's mission is to be a global trendsetter and cultivator of Chinese elites, focusing on modernization and internationalization[10]. - The company aims to continuously evolve and modernize, striving to become a leading high-profile media group in China[11]. - The company plans to continue expanding its innovative business model in 2019, transitioning from print media to digital media and then to platform media[35]. - The development strategy has undergone three phases: from PaperZine print media to Mobile Zine digital media to Space Zine platform media[35]. - The company aims to create a lifestyle that integrates photography and visual art into everyday life, enhancing aesthetic perception and inspiration[23]. - The company seeks to maintain youthfulness and vitality through the courage and ability to create new business ventures[36]. - The company aims to expand its innovative business model and improve the transformation from print media to digital media and finally to platform media[46]. - The company plans to establish four major media platforms, including fashion, culture, art, and business, to drive innovation and growth[40]. - The management believes that the development of physical space magazine-style experience will bring new opportunities and growth momentum[40]. - The company aims to create a one-stop leisure space for consumers that integrates online and offline experiences[40]. - The company is focused on creating a new media model that integrates online and offline platforms, enhancing user experience and engagement[48]. - The group plans to establish four major media platforms focusing on fashion, culture, art, and business in 2019, aiming for new growth opportunities[75]. - The strategy will continue to extend to the "4Ms" approach: Modern Publishing, Modern Digital, Modern Space, and Modern Art, with expectations of a rebound in print magazine advertising[76]. Financial Performance - The group's business revenue grew by 3.1% in 2018, with EBITDA turning profitable, attributed to the success of new platform operating strategies and innovative plans[60]. - The reported segment revenue for print media and arts was RMB 303.1 million, a decrease of 4.2% from 2017, while digital media segment revenue increased by 26.6% to RMB 154.5 million[60]. - The digital media segment achieved a profit of RMB 9.4 million in 2018, a significant increase of 195.2% compared to the previous year[60]. - The flagship magazine "Weekend Weekly" maintained its position as the top revenue-generating weekly magazine despite a decline in overall print media revenue[62]. - The magazine "InStyle" successfully hosted multiple events, enhancing its market recognition among brand advertisers, with only a slight decrease in advertising revenue compared to 2017[63]. - The advertising revenue from the flagship business magazine "Bloomberg Businessweek" (Chinese Simplified version) increased by 11.7% in 2018, unaffected by the overall decline in the magazine advertising industry[63]. - The print magazine segment contributed approximately RMB 272.7 million in advertising revenue, down 8.0% from RMB 296.5 million in 2017, aligning with the downward trend in the magazine advertising market[62]. - The group's digital media revenue increased by 26.6% year-on-year in 2018, outperforming the overall market growth of 7.3% in the internet advertising sector[67]. - The "iWeekly" app achieved approximately 14.8 million downloads, enhancing its global content and expanding its readership[69]. - "INSTYLE iLady" accumulated over 7.2 million users by the end of 2018, with advertising revenue soaring by approximately 50.9% compared to 2017[69]. - "Bloomberg Businessweek Chinese Edition" expanded its user base to about 10.9 million, a 25.3% increase from the previous year, with subscription revenue rising from RMB 5 million to RMB 6.5 million[70]. - The "Nowness" video platform generated advertising and production revenue of RMB 23.1 million in 2018, with an app download count of 2.9 million[71]. - The art business contributed RMB 10.2 million in revenue, with plans to develop membership services in 2019 for additional profits[65]. - The company aims to achieve after-tax earnings of at least HKD 140 million, HKD 162 million, and HKD 186 million for the fiscal years ending December 31, 2017, 2018, and 2019 respectively, as per the investment agreement with Seven Wolves Investment[186]. - The after-tax earnings for the fiscal year 2018 were approximately RMB 153.7 million, equivalent to about HKD 182.1 million, exceeding the expected performance of HKD 162 million[186]. Corporate Governance - The board of directors consists of nine members, with five executive directors and four independent non-executive directors, ensuring independent oversight[98]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange, ensuring compliance with best practices[96]. - The board will review the division of responsibilities with management to ensure alignment with the company's needs[101]. - The board of directors has received regular updates on the group's business, operations, risk management, and corporate governance matters[111]. - The independent non-executive directors have confirmed their independence according to the guidelines set out in the listing rules[113]. - The audit committee, established in 2009, consists of four independent non-executive directors and is responsible for overseeing the financial reporting process and internal controls[121]. - The audit committee reviews the group's financial statements before submission to the board, focusing on accounting policies, major estimates, and compliance with accounting standards[121]. - The company has a clear separation of roles between the chairman and the CEO, with the founder serving as both to enhance business strategy execution[118]. - The independent non-executive directors have extensive experience in their respective fields, contributing to the board's diversity and decision-making[114]. - The company has established various committees under the board to handle specific governance matters, ensuring thorough oversight[120]. - The independent non-executive directors will seek re-election at the upcoming annual general meeting, having served for over nine years[116]. - The Audit Committee held two meetings in 2018, with all members present at least once[124]. - The Compensation Committee reviewed and discussed the group's compensation policy and determined the compensation for executive directors in 2018[130]. - The Nomination Committee did not appoint any new directors during the year ending December 31, 2018[135]. - The Audit Committee reported no disagreements with the selection and appointment of external auditors for the year[128]. - The Compensation Committee approved share awards under the company's share incentive plan, as per the board's approval[130]. - The Nomination Committee evaluated the independence of independent non-executive directors during the year[136]. - The Audit Committee reviewed the financial reporting, internal controls, and risk management processes of the group[125]. - The Compensation Committee held three meetings in 2018, with two members attending all meetings[129]. - The Nomination Committee assessed the board's structure and composition, considering factors such as skills and experience[134]. - The company established an Environmental, Social, and Governance (ESG) Committee in 2016, consisting of three executive directors and one subsidiary director, to implement and monitor ESG policies and strategies[137]. - The internal control system covers all significant areas of the business, including financial, operational, compliance, and risk management, ensuring shareholder investment protection[143]. - The company’s audit services for the year ending December 31, 2018, amounted to RMB 1,423,000, an increase from RMB 1,318,000 in 2017, while other non-audit services totaled RMB 236,000, up from RMB 218,000[153]. - The board has reviewed the effectiveness of the internal control system and found it satisfactory, ensuring adequate resources and training for accounting and financial reporting functions[144]. - The company secretary received no less than 15 hours of relevant professional training during the year to assist the board in governance matters[151]. - The board will periodically review measurable goals related to diversity, including professional skills, gender, age, and cultural and ethnic backgrounds[140]. - The company has a commitment to maintaining a diverse board, recognizing it as key to sustainable development[138]. - The audit committee conducts preliminary reviews of the financial control, internal control, and risk management systems before the board's formal discussions[144]. Market Challenges and Future Outlook - The company has faced challenges in business and profitability growth due to fluctuations in the macroeconomic conditions in China and Hong Kong, impacting advertising budgets from brand advertisers[182]. - The company is focused on sustainable business expansion and market penetration, aiming to diversify revenue sources and improve cost efficiency to seek profitability growth[184]. - The company plans to continue integrating the vertical supply chain and enhancing its e-commerce features while expanding integrated marketing brand consulting services[184]. - The company is committed to prudent capital management and liquidity risk management to maintain sufficient buffers against future challenges[184]. - The management is optimistic about the future, expecting to provide shareholders with new development prospects and returns as it approaches its 10th anniversary on the Hong Kong main board[40]. - The company will not declare a final dividend for the year to retain more financial resources to address market challenges[80]. - The board aims to provide sustainable returns to shareholders through a stable dividend policy, with mid-term and final dividends proposed for each fiscal year[191]. - The board considers various factors, including liquidity and financial performance, when deciding on dividend declarations[192]. - The company will not declare dividends if it believes it may become unable to meet its debt obligations post-dividend payment[195]. - The group reported a loss for the year, with details on financial performance and reserves available in the consolidated financial statements[190]. - The company's return on equity improved from -8.3% to -7.6% due to better advertising performance and reduced losses[167]. - The company's debt-to-equity ratio increased slightly from 14.7% in 2017 to 15.8% in the review year[167]. - The total outstanding borrowings were approximately RMB 101,100,000, an increase from RMB 96,100,000 in 2017[84]. - The cash outflow for investment activities was RMB 51,600,000, significantly higher than RMB 10,900,000 in the previous year, primarily due to investments in properties and equipment[82]. - The operating cash inflow for the year was approximately RMB 3,900,000, maintaining a similar level compared to RMB 4,500,000 in the previous year[82]. - The company recognizes employees as its most valuable asset and aims to attract and retain skilled personnel through competitive compensation packages and performance evaluation systems[175]. - The company maintains strong relationships with key stakeholders, including employees, customers, service providers, regulatory bodies, and shareholders, to support its business success[173]. - The company entered into an investment agreement with Xiamen Feibo Technology Co., Ltd. to acquire shares in its wholly-owned subsidiary, Shanghai Xinxuefen Cultural Communication Co., Ltd., enhancing liquidity and optimizing sales networks[187]. - The company encourages ongoing professional development for its directors and senior management to keep their knowledge and skills updated[175]. - The company has established a compliance and risk management policy to ensure adherence to significant legal and regulatory requirements affecting its operations[172].