Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 193,317,000, an increase of 59.7% compared to HKD 121,109,000 for the same period in 2023[3] - Gross profit for the same period was HKD 57,941,000, up from HKD 50,884,000, reflecting a gross margin improvement[3] - Operating loss increased to HKD 58,762,000 from HKD 5,153,000 year-on-year, indicating a significant rise in operational challenges[3] - The total loss for the period was HKD 134,239,000, compared to HKD 82,446,000 in the previous year, representing a 62.9% increase in losses[4] - Basic and diluted loss per share was HKD 5.57, compared to HKD 3.35 for the same period last year[3] - The company reported a pre-tax loss of HKD 133,833 thousand for the six months ended June 30, 2024, compared to a loss of HKD 81,463 thousand in the same period of 2023[12] - The company reported a loss attributable to owners of HKD 135,480,000 for the six months ended June 30, 2024, compared to a loss of HKD 82,426,000 in the same period of 2023, indicating a deterioration in performance[26] Assets and Liabilities - Non-current assets increased significantly to HKD 526,468,000 from HKD 271,172,000, primarily due to investments in property and equipment[5] - Total assets decreased to HKD 5,080,727,000 from HKD 5,184,596,000, indicating a reduction in overall asset base[6] - The company’s total liabilities increased to HKD 2,580,831,000 from HKD 2,524,113,000, indicating a rise in financial obligations[6] - The total assets as of June 30, 2024, were HKD 5,080,727 thousand, slightly down from HKD 5,184,596 thousand as of December 31, 2023[14] - The total liabilities decreased to HKD 2,580,831 thousand as of June 30, 2024, from HKD 2,524,113 thousand as of December 31, 2023[15] - The net current assets were HKD 3,247,485,000, down from HKD 3,833,363,000, resulting in a current ratio of 3.5 compared to 4.5 previously[51] - Total borrowings increased to HKD 1,828,762,000 from HKD 1,803,257,000, with a debt-to-equity ratio of 73%, up from 68%[52][53] Revenue Breakdown - The property development and investment business generated revenue of HKD 179,147 thousand for the six months ended June 30, 2024, compared to HKD 87,728 thousand in 2023, marking an increase of 104.4%[12] - Revenue from customer contracts reached HKD 193,317,000 for the six months ended June 30, 2024, compared to HKD 121,109,000 in the same period of 2023, representing a growth of 59.6%[20] - Revenue from property sales was HKD 178,681 thousand for the six months ended June 30, 2024, compared to HKD 87,728 thousand in 2023, indicating a growth of 103.5%[19] - The multimedia and entertainment business reported a revenue decline to HKD 13,004 thousand from HKD 32,510 thousand, a decrease of 60%[12] Expenses and Costs - Financing costs totaled HKD 78,164,000 for the six months ended June 30, 2024, slightly increasing from HKD 76,310,000 in the same period of 2023[22] - Employee benefits expenses, including director remuneration, rose to HKD 43,620,000 for the six months ended June 30, 2024, compared to HKD 25,736,000 in the same period of 2023, marking an increase of 69.5%[23] - Marketing, sales, and distribution expenses surged to HKD 49,464,000, compared to HKD 12,360,000 in the same period last year[34] - Administrative expenses increased by 27% to HKD 63,697,000 in the first half of 2024, compared to HKD 50,304,000 in the same period of 2023[48] Strategic Plans and Outlook - The company plans to focus on market expansion and new product development to improve future performance[2] - The company expects to continue its market expansion efforts, although specific strategies were not detailed in the conference call[24] - The company anticipates a long-term positive outlook for the Macau property market despite short-term volatility, with the first phase of the Dapengni House nearing sell-out and plans to launch the second phase soon[61] - The company plans to expand its e-commerce platform by sourcing high-quality products to meet customer demands and enhance its brand portfolio[62] - The company aims to launch more proprietary brand products in the coming months to enhance competitiveness in the multimedia and entertainment sector[45] Corporate Governance and Compliance - The company has adhered to the corporate governance code principles and applicable rules during the reporting period[64] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and regulations[65] - The mid-term report will be sent to shareholders by September 30, 2024, and will be available on the Hong Kong Stock Exchange website[67] Other Information - The company did not declare or propose any interim dividends for the six months ended June 30, 2024, and 2023[28] - The company has not engaged in any significant investments, acquisitions, or disposals during the period[58] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ending June 30, 2024[63] - The group has outstanding commitments of HKD 815,581,000, primarily for the development costs of properties in Macau[57] - The company has cash and bank balances totaling HKD 96,474,000, down from HKD 130,581,000[51]

[Supplemental Announcement Regarding the 2023 Annual Report](index=1&type=section&id=Supplemental%20Announcement%20Regarding%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202023) [Details of Share Award Scheme](index=1&type=section&id=Details%20of%20Share%20Award%20Scheme) This supplemental announcement provides further details of the Share Award Scheme, primarily focusing on the 164 million award shares granted to Executive Director Ms. Chan on July 12, 2023, which have no vesting period, exercise period, or exercise price Share Award Details | Grantee | Grant Date | Share Awards During the Year | Awarded Shares as of December 31, 2023 | | :--- | :--- | :--- | :--- | | Executive Director: Ms. Chan | July 12, 2023 | 164,000,000 | 164,000,000 | - The **164 million** award shares granted to Executive Director Ms. Chan have no vesting period, exercise period, or requirement to pay an exercise price[2](index=2&type=chunk) - The closing price of the shares immediately preceding the grant date of the award shares was **HK$0.81 per share**[3](index=3&type=chunk) [Scheme Authorization Limit and Utilization](index=2&type=section&id=Scheme%20Authorization%20Limit%20and%20Utilization) Based on the scheme authorization limit approved by shareholders on June 29, 2023, the company can issue up to approximately 246 million shares for the Share Award Scheme and other share schemes, with 164 million shares granted by the end of 2023, representing about 6.67% of total issued shares, leaving approximately 82.09 million shares available for future grants Scheme Authorization and Utilization Summary | Item | Number of Shares | Percentage | | :--- | :--- | :--- | | Total Scheme Authorization Limit | 246,085,047 | Approximately 10% of total issued shares as of the annual report date | | Shares Granted in 2023 | 164,000,000 | 6.67% of weighted average issued shares | | Remaining Available for Grant as of End of 2023 | 82,085,047 | - | - At the Annual General Meeting on June 29, 2023, shareholders approved an updated scheme authorization limit, allowing the company to allot and issue a maximum of **246,085,047 shares** for the Share Award Scheme, the amended share option scheme, and any other share schemes[4](index=4&type=chunk)

Corporate Governance - The company has maintained a high level of business integrity and corporate governance practices, which is one of its key objectives[2] - The Board consists of three independent non-executive Directors, with at least one possessing appropriate financial management expertise, in compliance with Listing Rules[12] - Each independent non-executive Director received a remuneration of HK$240,000 for the year ended December 31, 2023[12] - 50% of the Board members are independent non-executive Directors, ensuring a strong independent element within the Board[12] - The company has implemented mechanisms to ensure independent views and input are available to the Board, including annual meetings with independent Directors[12] - The company has a strong focus on internal control and transparency to enhance shareholder confidence[3] - The company has established a framework for effective management and business development, which is crucial for building a good corporate culture[2] - The company is committed to continuous improvement in corporate governance practices to ensure compliance with regulations[3] - The company has received annual confirmations of independence from all independent non-executive Directors[12] - The remuneration committee is responsible for formulating and recommending remuneration policies for all directors and senior management, ensuring proper compensation structures are in place[18] - The audit committee held three meetings during the year to review the group's annual and interim reports, ensuring compliance with accounting principles and internal controls[38] - The nomination committee conducted one meeting to review the board's structure, composition, and diversity policies, ensuring ongoing gender diversity with two female representatives on the board[26][33] - The board considers its current structure and composition appropriate for balanced and independent monitoring of management practices, achieving diversity through a range of backgrounds[35] - The company held eight board meetings during the year, with all executive directors attending at least 87.5% of the meetings[14] - The company has established an audit committee in compliance with listing rules, ensuring at least three non-executive directors are part of the committee[37] - The remuneration committee has access to professional advice if deemed necessary to fulfill its responsibilities effectively[19] - The board's diversity policy aims to ensure a continuous flow of potential successors, maintaining gender diversity within the board[27] - The external auditors, HLB Hodgson Impey Cheng Limited, provided audit services amounting to HKD 1,100,000 and non-audit services amounting to HKD 180,000 for the year ended December 31, 2023[41] - The audit committee has recommended the re-appointment of HLB Hodgson Impey Cheng Limited as the auditor at the forthcoming annual general meeting[41] - The company has reviewed the implementation and effectiveness of its Board Diversity Policy during the year[64] - The Nomination Committee is empowered to seek independent professional advice as needed to fulfill its responsibilities[53] - The company emphasizes meritocracy in Board appointments while considering the benefits of diversity[60] - The Nomination Committee will conduct adequate due diligence for each proposed candidate to ensure a thorough evaluation process[54] - The board has reviewed corporate governance policies and practices during the financial year ended December 31, 2023, ensuring compliance with legal and regulatory requirements[103] - The company has established a whistleblowing policy and an anti-corruption policy to maintain high standards of business conduct and zero tolerance for corruption[103] - The board is responsible for corporate governance functions, including the development and monitoring of policies and practices[103] - The company encourages shareholder participation in annual general meetings, providing corporate information and addressing shareholder inquiries[107] - The company has committed to ongoing professional development for directors and senior management to enhance governance practices[103] - The Group's risk management and internal control system is considered adequate and effective as of December 31, 2023[3] - The Group engaged an external professional consultant for risk management and independent internal control review, which was completed for the year ended December 31, 2023[3] - The Board has reviewed the effectiveness of the internal control system and sees no immediate need for an internal audit function due to the size and complexity of the business[3] Financial Performance - The financial position of the Group as of December 31, 2023, is detailed in the consolidated statement of financial position on pages 75 and 76[68] - The directors do not recommend the payment of a final dividend for the year ended December 31, 2023[68] - No charitable donations were made by the Group during the year[68] - The Group's business review and analysis of its development, operating performance, and financial position are discussed in sections on pages 4 to 7, 8 to 21, and 258 to 259[68] - The Group's financial performance and assets and liabilities summary for the last five financial years is detailed on pages 258 and 259 of the annual report[139] - The Group's property, plant, and equipment movements during the year are detailed in notes 16 and 17 to the consolidated financial statements[139] - The stock of properties movements during the year are set out in note 22 to the consolidated financial statements[139] - As of December 31, 2023, the total issued share capital of the Company consisted of 2,460,850,479 ordinary shares of HK$0.01 each[79] - Distributable reserves of the Company amounted to approximately HK$1,868,881,000 as at December 31, 2023, compared to HK$1,993,796,000 in 2022[79] - Revenue attributable to the five largest customers accounted for approximately 25% of the Group's revenue, with the largest customer contributing about 10%[79] - Purchases from the five largest suppliers accounted for approximately 49% of the Group's total purchases, with the largest supplier contributing about 17%[79] - The Company has adopted a new dividend policy as of March 26, 2019, which does not specify a pre-determined dividend payout ratio[93] - The declaration and payment of dividends are subject to the Board's discretion, considering factors such as the Group's earnings, financial condition, and future plans[93] - The Company has complied with all applicable code provisions set out in the Corporate Governance Code for the year ended December 31, 2023[98] - The Company is committed to maintaining a high level of transparency and timely disclosure of relevant information to shareholders[96] - The Chairman actively organized and held the 2023 annual general meeting to ensure shareholders' views were communicated to the Board[98] - The Company’s annual general meeting provides a forum for shareholders to exchange views with the Board[98] - The Company’s website serves as a communication platform for shareholders and the public to access corporate governance information[96] Shareholder Relations - The company reported a significant interest in shares held by directors, with Mr. Heung Wah Keung and Ms. Chen Ming Yin each holding approximately 67.56% of the total shares through controlled corporations, totaling 1,640,375,595 shares[121] - The register of substantial shareholders shows that certain shareholders had an interest of 5% or more in the issued share capital of the Company as of December 31, 2023[143] - Best Combo Limited granted a fixed term loan of HK$500,000,000 to Ms. Chen Ming Yin, with a final repayment date extended to January 5, 2024[144] - The loan agreement allows Best Combo to exercise a call option to acquire shares from Ms. Chen at any time before the extended repayment date[144] - The independent non-executive directors confirmed that the terms of the third deed of variation were fair and reasonable, benefiting the company and its shareholders[146] - No other connected transactions occurred during the year, aside from those disclosed[149] - The company has no equity-linked agreements that may result in issuing shares, except for the share option and share award schemes[158] - The Heung Wah Keung Family holds approximately 67.56% of the company's issued share capital, with 1,640,375,595 shares held[174] - A related company provided a cash advance of HK$2,000,000 to the Group for short-term funding needs, which remains outstanding as of December 31, 2023[179] - The final repayment date for a major transaction was extended to January 5, 2024, following approval from independent shareholders[178] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[180] - The emolument policy for employees is based on merit, qualifications, and competence, as set by the Remuneration Committee[185] - The company adopted a new share option scheme in June 2022, which was amended in June 2023[187] - There were no provisions for pre-emptive rights under the company's Bye-laws or Bermuda laws[197] - The company maintained a collective liability insurance policy covering all directors and senior management during the year[195] Business Operations - The company is actively involved in the development of residential and commercial real estate projects in Macau[1] - The Group's principal activities include investment holding, production, distribution, and licensing of films and television drama series, as well as artist management services and e-commerce platform operations[68] - The performance and results of the Group's businesses are influenced by relationships with employees, customers, and suppliers, which are considered vital assets[70] - The Group emphasizes the importance of long-term relationships with customers and suppliers for continuous success and growth[70] - The possible business risks and uncertainties, including interest rate and foreign exchange risks, are outlined in the Management Discussion and Analysis section[70] - The Group's financial risk management objectives and policies are detailed in note 5 to the consolidated financial statements[70] - The Group has complied with relevant laws and regulations that significantly impact its business operations during the year[76] - The Group is committed to operating its various business segments in an environmentally-friendly manner, which is crucial for fulfilling corporate social responsibilities[138]

Financial Performance - The company reported a revenue of HKD 206,168,000 for the year ending December 31, 2023, a significant increase from HKD 3,879,000 in 2022[13]. - The gross profit for the year was HKD 69,331,000, compared to HKD 3,413,000 in the previous year[13]. - The company incurred a total loss of HKD 289,508,000 for the year, compared to a loss of HKD 94,120,000 in 2022[15]. - The basic and diluted loss per share was HKD 11.76, up from HKD 3.79 in the previous year[15]. - Total revenue for the group was HKD 206,168,000, with a total loss before tax of HKD 288,154,000, compared to a loss of HKD 93,655,000 in 2022, representing a substantial increase in losses[42]. - The loss attributable to the company's owners for the year was HKD 289,477,000, an increase of 208% from HKD 94,101,000 in the previous year[83]. - Financing costs surged to HKD 142,994,000, up from HKD 2,414,000 in the previous year, contributing to the increased loss[82]. Assets and Liabilities - Total assets decreased to HKD 5,184,596,000 from HKD 5,247,857,000 in 2022, while net current assets increased to HKD 3,833,363,000 from HKD 3,809,784,000[4]. - Total liabilities increased to HKD 2,524,113 thousand from HKD 2,298,105 thousand, reflecting a rise of about 9.8%[21]. - The company's equity attributable to owners decreased to HKD 2,661,142 thousand from HKD 2,950,433 thousand, a decline of approximately 9.8%[19]. - The current liabilities rose significantly, with bank and other borrowings increasing to HKD 350,312 thousand from HKD 50,000 thousand[21]. - The company has drawn HKD 100,000,000 to pay interest on term loans and has repaid HKD 119,688,000, meeting the minimum repayment requirement for the first twelve months[7]. Revenue Breakdown - Revenue contributions included HKD 148,230,000 (72%) from property development and investment operations, HKD 53,503,000 (26%) from multimedia and entertainment operations, and HKD 4,435,000 (2%) from film-related operations[85]. - Revenue from property sales amounted to HKD 147,298,000 in 2023, with no revenue reported in 2022[55]. - The property development and investment business generated revenue of HKD 148,230,000, with a significant loss of HKD 134,374,000, compared to a loss of HKD 34,066,000 in 2022[42]. - The multimedia and entertainment business reported revenue of HKD 53,503,000, with a loss of HKD 58,973,000, indicating a challenging year for this segment[42]. - For the year ending December 31, 2023, the group reported revenue from the film-related business of HKD 4,435,000, compared to HKD 3,879,000 in 2022, reflecting an increase of approximately 14.3%[42]. Investments and Projects - The C7 property development project in Macau has a site area of 4,669 square meters, with a maximum building height increased from 34.5 meters to 46.7 meters as per the new urban planning map released in June 2023[90]. - The C7 property development plan was conditionally approved on October 5, 2023, and construction commenced on December 14, 2023, with an expected occupancy permit by 2026[91]. - The Diphini Mansion has a total construction area of 31,192 square meters, including 230 residential units and 272 parking spaces, with the first sales transaction completed in January 2023[92]. - The company plans to accelerate the sales of the "Daphne House" project, leveraging the recent positive performance in Macau's tourism and gaming sectors[99]. Operational Changes - The group has three reportable segments: film-related business, property development and investment, and multimedia and entertainment, each managed independently due to differing market strategies[40]. - The group has not early adopted any of the recently issued but not yet effective Hong Kong Financial Reporting Standards, which will come into effect in 2024 and 2025[36]. - The company is actively exploring new strategies for market expansion and product development, although specific details were not disclosed in the financial report[25]. - The company has established a membership system to enhance customer relationships and has launched a Taobao live streaming channel and WeChat mini-program in January 2024 to increase sales channels[97]. Employee and Administrative Expenses - The group employed 236 staff as of December 31, 2023, up from 81 in 2022, with total employee benefits expenses amounting to HKD 58,404,000, a 32% increase from HKD 44,380,000 in 2022[94]. - Administrative expenses increased by 8% to HKD 95,408,000 in 2023, driven by costs associated with the new multimedia and entertainment business[108]. - Marketing, sales, and distribution expenses rose to HKD 79,108,000, compared to HKD 11,111,000 in the previous year, reflecting increased promotional activities[82]. Future Outlook - The company anticipates challenges in the live streaming business due to industry competition, which may limit growth and reduce profit margins[97]. - The company expects the C7 property construction to be completed by 2026, with confidence in its future sales due to its prime location[99]. - The group has two invested films expected to be released in 2024 or 2025, with a loss of HKD 7,265,000 attributed to changes in fair value of film investments and an expected credit loss provision of HKD 41,060,000[88]. Compliance and Governance - The audit committee, composed entirely of independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[127]. - The company confirms that all directors complied with the standards set forth in the Securities Trading Code during the year ended December 31, 2023[129]. - The company plans to issue its annual report by April 30, 2024, which will be available on the Hong Kong Stock Exchange website[123].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 121,109,000, compared to HKD 252,000 for the same period in 2022, indicating a significant increase[5] - The gross profit for the same period was HKD 50,884,000, up from HKD 31,518,000 in 2022, reflecting a growth of approximately 61.5%[5] - The operating loss for the six months was HKD 5,153,000, a decrease from a loss of HKD 34,224,000 in the previous year, showing an improvement in operational efficiency[5] - The total comprehensive loss for the period was HKD 82,841,000, compared to HKD 36,024,000 in 2022, indicating a widening of losses[20] - Basic and diluted loss per share was HKD 3.35, compared to HKD 1.44 in the same period last year, reflecting increased losses on a per-share basis[5] - The group reported a loss of HKD 82,446,000 for the six months ended June 30, 2023, compared to a loss of HKD 35,943,000 in the same period of 2022[49] Assets and Liabilities - Non-current liabilities, including bank borrowings, amounted to HKD 1,561,276,000 as of June 30, 2023, compared to HKD 1,550,000,000 at the end of 2022[7] - Total assets less current liabilities were HKD 4,430,768,000, a slight decrease from HKD 4,504,458,000 at the end of 2022[7] - The total equity attributable to owners of the company was HKD 2,867,612,000, down from HKD 2,925,825,000 at the end of 2022[7] - Total assets as of June 30, 2023, amounted to HKD 5,229,087,000, a slight decrease from HKD 5,247,857,000 as of December 31, 2022[37] - The group’s total liabilities decreased to HKD 5,229,087,000 as of June 30, 2023, from HKD 5,247,857,000 as of December 31, 2022[37] - The group reported a total debt of HKD 1,702,087,000 as of June 30, 2023, with a debt-to-equity ratio of 59%, up from 57% as of December 31, 2022[75] Revenue Sources - The company reported a significant increase in revenue from Macau, which reached HKD 87,728,000, compared to HKD 0 in the previous year[18] - For the six months ended June 30, 2023, the total revenue from the film-related business was HKD 871,000, compared to HKD 252,000 for the same period in 2022, indicating a significant increase[69] - The property development and investment business reported revenue of HKD 87,728,000, while the multimedia and entertainment business generated HKD 32,510,000[69] Cash Flow and Investments - Cash and cash equivalents at the end of the reporting period were HKD 114,558,000, down from HKD 209,597,000 at the beginning of the period[51] - The net cash generated from operating activities was HKD 101,695,000 for the six months ended June 30, 2023, compared to a cash outflow of HKD 21,758,000 in the same period of 2022[51] - The group’s film investments totaled HKD 103,252,000 as of June 30, 2023, slightly down from HKD 104,743,000 as of December 31, 2022[37] - The group’s investment properties provided a loan to a director amounting to HKD 143,123,000 as of June 30, 2023, compared to HKD 149,114,000 as of December 31, 2022[37] Corporate Governance and Compliance - The company has maintained compliance with corporate governance codes and standards throughout the reporting period[100] - The company has adopted new company bylaws as approved by shareholders on June 29, 2023[99] - The group has not issued or granted any reward shares during the reporting period[77] Employee and Operational Changes - The employee count increased to 126 as of June 30, 2023, compared to 81 a year earlier, with total employee benefit expenses rising by 19% to HKD 25,736,000[106] - The group has initiated multimedia and entertainment operations, which are considered a new segment for reporting purposes[42] Future Outlook and Commitments - The group anticipates a significant breakthrough in 2023, focusing resources on developing two business operations while remaining cautious about the film-related business[85] - As of June 30, 2023, the group has unfulfilled commitments amounting to HKD 113,445,000, with HKD 96,257,000 allocated for the development costs of properties in Macau[81] - The group plans to accelerate the development of the C7 property, with revised plans submitted for approval and construction expected to commence within the year[86] Financial Instruments and Fair Value - The fair value of listed equity securities held by the group was approximately HKD 41,086,000 as of June 30, 2023, compared to HKD 45,040,000 at the same date[76] - The group incurred a loss of HKD 5,022,000 due to changes in the fair value of financial assets measured at fair value through profit or loss[76] - The fair value of financial instruments classified as Level 3 was reported at HKD 491,865 as of June 30, 2023, compared to HKD 486,091 as of December 31, 2022[199]

Financial Performance - The company reported a total loss of HKD 82,446,000 for the six months ended June 30, 2023, compared to a loss of HKD 35,943,000 for the same period in 2022, representing an increase in loss of approximately 129%[11]. - Revenue for the six months ended June 30, 2023, was HKD 121,109,000, a significant decrease from HKD 252,000 in the same period of 2022[11]. - The company reported a basic and diluted loss per share of HKD 3.35 for the current period, compared to HKD 1.44 for the same period last year, indicating a worsening in per-share performance[11]. - The loss attributable to the company's owners for the six months ended June 30, 2023, was HKD 82,426,000, representing a 129% increase compared to HKD 35,933,000 in the prior year[91]. - The company recorded a pre-tax loss of HKD 81,463 thousand for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 35,293 thousand in the same period of 2022[53]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was HKD 121,109 thousand, a significant increase from HKD 252 thousand in the same period of 2022[50]. - Property development and investment business generated revenue of HKD 87,728 thousand, compared to no revenue in the same period last year[50]. - Multimedia and entertainment business reported revenue of HKD 32,510 thousand, with no revenue reported in the previous year[50]. - Revenue from property development and investment business was HKD 87,728,000, accounting for 72% of total revenue, while multimedia and entertainment business contributed HKD 32,510,000 or 27%[119]. Expenses and Liabilities - Administrative expenses increased to HKD 50,304,000 from HKD 44,360,000 year-on-year, reflecting a rise of approximately 13%[11]. - Financing costs for the six months ended June 30, 2023, amounted to HKD 76,310,000, a significant increase from HKD 27,634,000 in the prior year[79]. - The company experienced a gross loss of HKD 70,219,000 in property development and investment business, compared to a loss of HKD 10,383,000 in the same period last year[123]. - Employee benefit expenses, including director remuneration, increased to HKD 25,736 thousand from HKD 21,652 thousand year-on-year[53]. Assets and Equity - Total liabilities increased to HKD 2,362,176,000 as of June 30, 2023, compared to HKD 2,298,105,000 at the end of 2022, reflecting a growth of approximately 2.8%[24]. - The company's total equity attributable to owners decreased to HKD 2,867,612,000 from HKD 2,950,433,000, indicating a decline of about 2.8%[24]. - The total assets as of June 30, 2023, were HKD 5,229,087 thousand, slightly down from HKD 5,247,857 thousand as of December 31, 2022[62]. - The group’s cash and bank balances, along with fixed deposits, amounted to HKD 114,842,000 as of June 30, 2023, up from HKD 75,764,000 at the end of 2022[104]. Business Segments - The group has three reportable segments: (1) film-related business; (2) property development and investment; and (3) multimedia and entertainment business, which is a new addition for the period[93]. - The group currently holds a 50% indirect interest in the C7 property, with an option to acquire an additional 25% for HKD 500,000,000, which has been extended to January 4, 2024[97]. - The group plans to develop YMXT into a multi-channel network company, focusing on live e-commerce and product wholesale, with the first phase already initiated[125]. Market Outlook and Strategy - The group anticipates a rebound in the Macau property market in the latter half of 2023, driven by the recovery of the tourism and gaming industries[137]. - The group aims to enhance its presence in the new media e-commerce sector by recruiting and training more influencers and collaborating with suppliers to produce and sell proprietary products[138]. Shareholder Information - The group did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[92]. - The group has not declared or proposed any interim dividends for the periods ending June 30, 2023, and June 30, 2022[112]. - A new share option plan was adopted to replace the previous plan from June 28, 2012, as approved at the annual general meeting on June 29, 2022[161].

Tourism and Gaming Industry - In 2022, the total number of tourists visiting Macau was 5,700,339, representing a year-on-year decrease of 26.0%[16] - The gaming revenue in Macau for 2022 was MOP 42.198 billion, a decline of over 50% year-on-year, marking the lowest level in 18 years[16] - The average occupancy rate of hospitality premises in Macau reached 85.7%, an increase of 22.4% compared to the previous year[23] - The total number of tourists visiting Macau during the Spring Festival Golden Week reached 451,000, a significant increase of 297.0% compared to the previous year[23] - The property market in Macau is expected to rebound in Q2 2023 due to the recovery in tourism and gaming industries[110] Property Market and Development - The residential property market in Macau experienced a significant drop in transaction volume due to rising interest rates and other economic factors[17] - The shop market in Macau showed a correction of approximately 15% in residential districts and 30% to 60% in tourist districts compared to pre-pandemic levels[17] - The company anticipates a rebound in the Macau and Hengqin property markets in 2023 due to changes in national pandemic control policies and economic stabilization measures[17] - The first sale of a residential unit at Tiffany House was completed in January 2023, with sales plans resuming after the 2023 Lunar New Year[20] - The development plan for Lot C7 is awaiting response from the Land, Public Works and Transport Bureau of Macau[20] - The Group does not intend to sell commercial units and is considering converting them for rental purposes[20] - The development plan for Property C7 includes two residential buildings with a maximum permitted height of 34.5 meters and a maximum plot ratio of 5.58[50] - The development plan for Property C7 includes two residential buildings with a total gross floor area of 31,192 square meters, comprising 230 residential units and 11,250 square meters of parking[52][57] - The sales of Tiffany House resumed after the 2023 Chinese New Year, with sales starting at Tower 1[55][57] - The second tower of Tiffany House, expected to have higher unit prices, will be launched for sale later[55][57] - The Group is considering changing the commercial units of Tiffany House for rental purposes instead of sales[55][57] Financial Performance - For the year ended December 31, 2022, the Group recorded revenue from continuing operations of HK$3,879,000, representing an increase of 4% from HK$3,717,000 for the year ended December 31, 2021[29] - The loss for the year was HK$94,120,000, a decrease of 40% compared to the loss of HK$156,515,000 for the year ended December 31, 2021[31] - The loss attributable to owners from continuing operations was HK$94,101,000, a reduction of 37% from HK$148,630,000 in the previous year[32] - Revenue from film related business operations amounted to HK$3,879,000 (2021: HK$3,717,000) with a segment loss of HK$20,015,000 (2021: HK$43,526,000)[47] - The total China box office in 2022 is about 29.7 billion yuan, significantly lower than the total of 47 billion yuan in 2021[47] - The Group had banking facilities of HK$1,700,000,000, of which HK$1,600,000,000 was utilized as of December 31, 2022[82] - As of December 31, 2022, total assets were HK$5,247,857,000, a slight decrease from HK$5,285,909,000 in 2021, while net current assets increased to HK$3,809,784,000 from HK$2,849,594,000[76] - Total borrowings as of December 31, 2022, were HK$1,694,397,000, an increase from HK$1,576,191,000 in 2021, including a secured bank term loan of HK$1,600,000,000[77] - The Group's total debts amounted to HK$1,694,397,000, an increase from HK$1,576,191,000 in 2021, resulting in a gearing ratio of 57% compared to 51% in the previous year[81] Corporate Governance and Management - The Group emphasizes high standards of business ethics and corporate governance practices, which are essential for effective management and business growth[144] - The Group has complied with all applicable code provisions of the Corporate Governance Code as set out in the Listing Rules on The Stock Exchange of Hong Kong[146] - The Group's corporate governance principles focus on a quality Board, sound internal controls, and transparency to all shareholders[145] - The Board is responsible for the leadership and control of the Company, overseeing business, strategic decisions, and performance[157] - As of December 31, 2022, the Board comprises six Directors, including three executive Directors and three independent non-executive Directors[158] - The presence of three independent non-executive Directors provides a reasonable balance between executive and non-executive Directors, ensuring adequate checks and balances for safeguarding shareholder interests[165] - The Board's commitment to corporate governance practices aims to deliver satisfactory and sustainable returns to shareholders while safeguarding the interests of business partners[153] - The company has mechanisms in place to provide independent professional advice to independent non-executive Directors upon reasonable request[188] Future Outlook - The Group anticipates that 2023 will be a fruitful year as Tiffany House begins to generate revenue[110] - The film market is expected to recover in summer 2023, driven by an increase in blockbuster releases and audience attendance[111] - The Group plans to monitor the film industry and gradually start film production when suitable storylines are available[111] - The Group aims to achieve healthy and stable growth while maximizing investment returns and seeking appropriate business opportunities[112]

Financial Performance - The total comprehensive loss for the year ended December 31, 2022, was HKD 94,228,000, compared to a loss of HKD 156,300,000 in 2021, representing a 39.7% improvement[18]. - Revenue from continuing operations for the year was HKD 3,879,000, an increase of 4.4% from HKD 3,717,000 in 2021[17]. - The group reported a gross profit of HKD 3,413,000 for the year, down from HKD 3,588,000 in 2021, reflecting a decrease of 4.9%[17]. - Administrative expenses increased to HKD 88,174,000 from HKD 75,063,000, representing a rise of 17.4%[17]. - The company reported a loss attributable to owners of HKD 94,101,000 for the year 2022, compared to a loss of HKD 156,496,000 in 2021, indicating a reduction in losses[67]. - The loss for the year was HKD 94,120,000, a decrease of 40% from HKD 156,515,000 in the previous year, primarily due to a significant reduction in losses from fair value changes of financial assets[103]. - The company reported a loss from discontinued operations of HKD 7,866,000 for the year ended December 31, 2021[87]. - The company recorded a loss attributable to shareholders of HKD 94,101,000 in 2022, an improvement from a loss of HKD 148,630,000 in 2021[99]. Assets and Liabilities - The group's total assets as of December 31, 2022, amounted to HKD 5,247,857,000, a slight decrease from HKD 5,285,909,000 in 2021[20]. - Non-current assets increased to HKD 694,674,000 in 2022 from HKD 214,382,000 in 2021, indicating a significant growth in long-term investments[7]. - The group's total liabilities increased to HKD 2,298,105,000 in 2022 from HKD 2,221,933,000 in 2021, indicating a rise of 3.4%[20]. - The group's total equity decreased to HKD 803,752 million in 2022 from HKD 834,441 million in 2021, reflecting a decline in shareholder value[40]. - The total borrowings amounted to HKD 1,694,397,000, up from HKD 1,576,191,000 in 2021, including secured bank loans of HKD 1,600,000,000 and notes payable of HKD 86,898,000[129]. - The capital debt ratio was 57% as of December 31, 2022, compared to 51% in 2021, with total debt of HKD 1,694,397,000 and equity attributable to owners of HKD 2,950,433,000[144]. Revenue Streams - The group's revenue from film-related operations for 2022 was HKD 3,879 million, an increase from HKD 3,717 million in 2021, while the property development and investment segment reported a loss of HKD 34,066 million in 2022 compared to a loss of HKD 38,441 million in 2021[28]. - Total revenue for the year was entirely derived from film-related business, amounting to HKD 3,879,000, with no revenue from property development and investment[89]. - Revenue from artist management services increased to HKD 888,000 in 2022 from HKD 449,000 in 2021[58]. - The total interest income from loans decreased to HKD 46,079,000 in 2022 from HKD 86,102,000 in 2021[60]. Cash Flow and Expenses - The group's cash and bank balances decreased to HKD 75,484,000 from HKD 102,021,000, reflecting a decline of 26.0%[7]. - The company incurred a loss of HKD 13,046,000 due to the termination of a loan provided to a director, which was not present in the previous year[62]. - The depreciation expense for property, plant, and equipment was HKD 6,810,000 in 2022, down from HKD 9,503,000 in 2021[62]. - Marketing and issuance expenses rose significantly to HKD 11,111,000 from HKD 158,000 in the previous year, driven by promotional activities for the "Daphne's House" project[127]. Impairments and Provisions - The company recognized an impairment loss of HKD 256,000 related to film copyrights in 2022, significantly lower than the HKD 2,862,000 recorded in 2021[62]. - The expected credit loss provision for trade receivables was HKD 4,000 in 2022, compared to HKD 46,000 in 2021[62]. - The expected credit loss provision for film-related business was HKD 6,887,000 in 2022, up from HKD 3,339,000 in 2021[92]. Strategic Focus and Future Outlook - The company aims to achieve healthy and stable growth while seeking appropriate business opportunities for maximum investment returns[153]. - The company plans to gradually expand film production when suitable storylines are available, indicating a strategic focus on content creation[153]. - The Macau property market is expected to rebound in Q2 2023 due to the gradual relaxation of pandemic policies and a recovery in tourism and gaming industries[153]. - The company anticipates improved cash flow and revenue in 2023, driven by the commencement of earnings from the new project, Diphany House[153]. Corporate Governance - The company’s audit committee consists of independent non-executive directors, ensuring oversight of financial reporting and risk management[156]. - The group has applied new Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the financial statements in the foreseeable future[15]. - The group has not adopted new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[24].

Financial Performance - For the six months ended June 30, 2022, the company reported a total revenue of HKD 252,000, compared to HKD 35,000 for the same period in 2021, indicating a significant increase[3]. - The operating loss for the same period was HKD 34,224, which is slightly higher than the operating loss of HKD 33,598 in 2021, reflecting ongoing challenges[3]. - The total comprehensive loss for the period was HKD 36,024, compared to HKD 35,918 in the previous year, showing a marginal increase in losses[5]. - The company reported a basic and diluted loss per share of HKD 1.44 for the period, compared to HKD 1.42 in the same period last year, suggesting a consistent loss per share[4]. - The company reported a loss attributable to owners of the company of HKD 35,933,000, compared to a loss of HKD 34,560,000 for the same period in 2021[40]. - The loss for the period was HKD 35,943,000, which is relatively stable compared to HKD 35,997,000 for the same period last year[76]. - The loss attributable to owners from continuing operations was HKD 35,933,000, an increase of 4% from HKD 34,560,000 in the previous year[77]. Assets and Liabilities - The company's total assets as of June 30, 2022, amounted to HKD 5,336,984, up from HKD 5,285,909 at the end of 2021, indicating a slight growth in asset base[6]. - The company's total liabilities increased to HKD 2,309,032 thousand from HKD 2,221,933 thousand, representing an increase of about 3.9%[8]. - As of June 30, 2022, total equity amounted to HKD 3,027,952 thousand, a decrease from HKD 3,063,976 thousand as of December 31, 2021, reflecting a decline of approximately 1.2%[8]. - The total assets less current liabilities stood at HKD 3,034,476 thousand, down from HKD 3,063,976 thousand, indicating a decrease of approximately 1%[8]. - The company’s equity attributable to owners decreased to HKD 3,028,624 thousand from HKD 3,064,638 thousand, reflecting a decline of about 1.2%[9]. Cash Flow and Liquidity - The company’s cash and bank balances increased to HKD 209,597 from HKD 102,021, reflecting improved liquidity[6]. - Cash flow from operating activities showed a net outflow of HKD 21,758 thousand, compared to a net outflow of HKD 110,692 thousand in the previous year, indicating an improvement in operational cash flow[10]. - Cash generated from investing activities was HKD 11,495 thousand, a significant recovery from a net outflow of HKD 114,588 thousand in the prior period[10]. - Financing activities generated a net cash inflow of HKD 117,684 thousand, contrasting with a net outflow of HKD 72,679 thousand in the previous year, highlighting a positive shift in financing[10]. Business Operations and Strategy - The company has plans for market expansion and new product development, although specific figures and timelines were not disclosed during the call[3]. - The company continues to explore strategic partnerships and potential acquisitions to enhance its market position and operational capabilities[3]. - The group has not commenced production of any new films or television series during the reporting period[80]. - The group plans to focus on marketing and promotional strategies for "Daphne House" in mainland China and Hong Kong during the delay in sales due to COVID-19[83]. - The group anticipates that the marketing and sales expenses will continue to increase after the launch of "Daphne House" sales[88]. Employee and Administrative Expenses - Employee benefit expenses, including directors' remuneration, amounted to HKD 21,652,000 for the six months ended June 30, 2022, down from HKD 21,983,000 in the previous year, representing a decrease of approximately 1.5%[28]. - Administrative expenses increased by 15% to HKD 44,360,000 for the first half of 2022, up from HKD 38,530,000 in the same period of 2021[87]. Market and Economic Outlook - The group plans to wait for clear signs of economic recovery before further investing in film-related businesses due to ongoing impacts from COVID-19[102]. - The group remains optimistic about the mid-term outlook for the Macau property market, anticipating gradual economic recovery as COVID-19 measures are lifted[102]. Share Capital and Financial Instruments - The company’s issued and fully paid share capital remained at 2,485,851,000 shares as of June 30, 2022, unchanged from December 31, 2021[56]. - The fair value of financial instruments measured at fair value through profit or loss totaled HKD 179,259,000 as of June 30, 2022, compared to HKD 175,998,000 as of December 31, 2021, indicating a slight increase of 1.3%[62]. - The fair value loss from warrants was HKD 57,526 thousand for the six months ended June 30, 2022, with a total fair value of HKD 3,488 thousand as of that date[65].

Impact of COVID-19 and Geopolitical Tensions - The company reported a significant impact on its operations due to the COVID-19 pandemic, with revenues at their lowest point as industries suffered from depression [10]. - The anti-epidemic situation in Mainland China remained rigorous, with massive outbreaks in Hong Kong and Shanghai in early 2022, severely affecting the economy and people's livelihoods [10]. - The company faced challenges in resuming real economic activities and tourism, leading to a continued decline in related revenues [10]. - Internationally, Sino-US relations did not improve, and there were ongoing suppressive actions against Chinese enterprises [10]. - The ongoing Russian-Ukrainian War has created a stalemate, potentially destabilizing the global geopolitical landscape with far-reaching impacts [10]. - The company is focused on navigating the challenges posed by the pandemic and geopolitical tensions to ensure future growth and stability [9]. - The board of directors presented the annual results for the year ended December 31, 2021, highlighting the adverse effects of external factors on performance [9]. - The company is committed to exploring new strategies for market expansion and recovery in the post-pandemic environment [9]. - The company aims to enhance its resilience against future disruptions through innovation and strategic partnerships [9]. Financial Performance and Position - For the year ended 31st December 2021, the Group recorded revenue from continuing operations of HK$3,717,000, representing a decrease of 2% from HK$3,647,000 for the year ended 31st December 2020 [33]. - The loss for the year amounted to HK$156,515,000, representing an increase of 42% from HK$110,443,000 for the year ended 31st December 2020 [33]. - Loss attributable to owners of the Company from continuing operations for the year ended 31st December 2021 amounted to HK$148,630,000, representing an increase of 39% from HK$107,314,000 in the previous year [33]. - Revenue from film related business operations amounted to HK$3,717,000 (2020: HK$3,647,000) and its segment loss amounted to HK$43,526,000 (2020: HK$28,900,000) [37]. - The Group did not start own production shooting and distribute any new film during the year due to the COVID-19 pandemic [37]. - Impairment loss recognised in respect of films in progress and film rights amounted to HK$1,313,000 and HK$2,862,000 respectively [37]. - The Group's total assets were HK$5,285,909,000, down from HK$5,343,571,000 in 2020, with net current assets of HK$2,849,594,000 compared to HK$4,147,002,000 in 2020, resulting in a current ratio of 2.3, down from 7.8 in 2020 [48]. - The Group's total borrowings as of December 31, 2021, amounted to HK$1,576,191,000, an increase from HK$1,299,565,000 in 2020, with a gearing ratio of 51% compared to 38% in 2020 [49]. - The Group's owners' equity decreased to HK$3,064,638,000 in 2021 from HK$3,435,914,000 in 2020 [49]. Property Development and Market Conditions - The property market in Macau remains sluggish, but the Hengqin market is expected to improve due to government support and promotional efforts [13]. - The Group has two ongoing property development projects in Macau: Property C7 with a site area of 4,669 square meters and Tiffany House with a gross floor area of 31,192 square meters [40]. - Property C7 is planned for residential and parking use, with a maximum building height of 34.5 meters and a maximum utilization rate of 5.58, including 26,047 square meters for residential and 5,200 square meters for parking [40]. - Tiffany House offers 230 units across two towers, with a total gross floor area of 31,192 square meters for residential, 3,716 square meters for commercial, and 11,250 square meters for parking [41]. - The Group anticipates that sales for Tiffany House will launch in March 2022, contingent on the lifting of inbound control measures in Mainland China, Hong Kong, and Macau [41]. - The property market in Macau remains stagnant, with no significant improvement, despite signs of economic recovery in early 2021 [41]. Corporate Governance and Board Structure - The Company has complied with all applicable code provisions of the Corporate Governance Code, with one noted deviation explained in the report [82]. - The Board comprises six Directors, including three executive Directors and three independent non-executive Directors, ensuring a balance between executive and non-executive oversight [83]. - The independent non-executive Directors provide a wide range of expertise and experience, contributing to effective independent judgment and safeguarding shareholder interests [86]. - The Company emphasizes high standards of business ethics and corporate governance practices to enhance shareholder value [82]. - The Board actively monitors corporate governance practices to ensure compliance with the Listing Rules [82]. - The Company held multiple meetings throughout the year to discuss corporate governance issues and provide guidance to directors and senior management [82]. Environmental and Social Responsibility - The Group is committed to operating its various business segments in an environmentally-friendly manner and promotes a "green" environment among employees [154]. - The Group's environmental policies and performance will be disclosed in an environmental, social, and governance report to be published before 31st May 2022 [155]. - The Group's performance is influenced by relationships with employees, customers, and suppliers, emphasizing the importance of these relationships for business success [145]. Shareholder Engagement and Communication - The company encourages shareholders to attend general meetings or appoint proxies to vote on their behalf [98]. - The company maintains detailed records of training received by directors to ensure compliance with their duties [99]. - The company is dedicated to a policy of open and timely disclosure of corporate information to shareholders and investors [133]. - The annual general meeting serves as a practical discussion platform for the Board to communicate with shareholders, ensuring their views are conveyed [130].