Core Insights - The company reported a significant decline in both revenue and net profit for Q1 2025, with total revenue of 35.52 million yuan, down 27.48% year-on-year, and a net loss of 21.74 million yuan, representing a 230.55% decrease compared to the same period last year [1][3] Financial Performance - Total revenue for Q1 2025 was 35.52 million yuan, ranking 18th among peers, a decrease of 13.46 million yuan from the previous year [1] - Net profit attributable to shareholders was -21.74 million yuan, ranking 16th among peers, a decline of 38.39 million yuan year-on-year [1] - Operating cash flow was -32.54 million yuan, ranking 15th among peers, a decrease of 1.87 million yuan compared to the same period last year [1] Key Ratios - The latest debt-to-asset ratio is 78.91%, ranking 17th among peers, down 18.32 percentage points from the previous quarter and 15.85 percentage points year-on-year [3] - Gross margin stood at 22.77%, ranking 12th among peers, a decrease of 20.25 percentage points from the previous quarter and 70.95 percentage points year-on-year [3] - Return on equity (ROE) was -4.42%, ranking 17th among peers, a decline of 15.23 percentage points compared to the same period last year [3] Earnings Per Share - The diluted earnings per share was -0.05 yuan, ranking 16th among peers, a decrease of 0.09 yuan year-on-year, reflecting a 229.00% decline [3] Asset Turnover - The total asset turnover ratio was 0.02 times, ranking 19th among peers, a decrease of 0.01 times year-on-year, down 28.86% [3] - The inventory turnover ratio was 0.03 times, ranking 19th among peers, an increase of 0.03 times year-on-year, up 760.53% [3] Shareholder Structure - The number of shareholders is 14,900, with the top ten shareholders holding 251 million shares, accounting for 55.12% of the total share capital [3] - The largest shareholder is Zhejiang Yitong Media Investment Co., Ltd., holding 23.83% of the shares [3]

Financial Performance - For the three months ended December 31, 2024, the company reported a revenue of HKD 8,812,000, a decrease of 24.4% compared to HKD 11,719,000 in the same period of 2023[3] - The cost of goods sold for the same period was HKD 7,805,000, resulting in a gross profit of HKD 1,007,000, down 67.7% from HKD 3,117,000 year-over-year[3] - Operating loss increased to HKD 4,703,000 from HKD 2,600,000, reflecting a year-over-year increase of 80.8%[3] - The net loss for the period was HKD 5,849,000, compared to a net loss of HKD 3,515,000 in the prior year, representing a 66.3% increase in losses[4] - The company reported a total comprehensive loss of HKD 6,042,000 for the period, compared to HKD 4,463,000 in the same period last year, indicating a 35.4% increase in comprehensive losses[4] - The company reported a loss of HKD 5,849,000 for the quarter, compared to a loss of HKD 3,515,000 in the same quarter of the previous fiscal year, primarily due to the decrease in revenue[34] Share Performance - The company reported a basic and diluted loss per share of HKD 1.46, compared to HKD 0.88 in the previous year, representing a 65.9% increase in loss per share[3] - The average number of issued ordinary shares was 400,900,000, resulting in a basic and diluted loss per share of HKD 1.46, compared to HKD 0.88 in the same quarter of the previous fiscal year[24] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 41,342,000, an increase from HKD 40,091,000 as of March 31, 2024[6] - The company's total liabilities increased to HKD 108,424,000 from HKD 89,251,000, reflecting a rise of 21.5%[6] - Cash and cash equivalents stood at HKD 30,173,000, up from HKD 29,580,000, indicating a 2% increase[6] Revenue Breakdown - The media business generated revenue of HKD 5,406,000, while the watch and automotive business contributed HKD 3,406,000, leading to a total revenue of HKD 8,812,000 for the group[14] Other Financial Metrics - Interest income for the quarter was HKD 56,000, down from HKD 65,000 in the same quarter of the previous fiscal year[18] - The company did not declare any dividends for the quarter ended December 31, 2023, consistent with the previous year[25] - The depreciation of property, plant, and equipment for the quarter was HKD 24,000, compared to HKD 37,000 in the same quarter of the previous fiscal year[19] - The company incurred net unallocated expenses of HKD 1,299,000, contributing to the pre-tax loss of HKD 3,512,000[34] - Financial expenses for the quarter totaled HKD 875,000, with HKD 726,000 attributed to the media business and HKD 149,000 to the automotive business[34] - The company reported a fair value loss of HKD 300,000 on equity investments classified as other comprehensive income[27] - The company holds 12,000,000 shares of a strategic investment, representing 4.4% of the equity, with a fair value of HKD 4,200,000 as of December 31, 2023[32]

Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 16,662,000, a decrease of 2.1% from HKD 17,017,000 in the same period of 2023[3] - Gross profit increased to HKD 992,000, representing a 27% increase compared to HKD 781,000 in the previous year[3] - Operating loss for the period was HKD 9,770,000, an improvement from a loss of HKD 10,928,000 in the prior year, indicating a reduction of 10.6%[3] - Net loss attributable to shareholders was HKD 11,769,000, compared to HKD 12,320,000 in the same period last year, reflecting a decrease of 4.5%[3] - The company reported a total comprehensive loss of HKD 11,880,000 for the period, compared to HKD 16,050,000 in the previous year, marking a significant improvement[7] - The basic and diluted loss per share was HKD 2.94, down from HKD 3.07 in the same period last year[3] - Other income increased to HKD 200,000 from HKD 108,000, showing a growth of 85.2% year-on-year[3] - The company reported a net loss of HKD 11,769,000 for the six months ended September 30, 2024, compared to a net loss of HKD 12,320,000 in the same period of 2023[67] - The entertainment and lifestyle segment generated revenue of HKD 10,685,000, while the watch and automotive segment contributed HKD 5,977,000, resulting in a total segment loss of HKD 9,466,000[62] - Unallocated expenses amounted to HKD 2,295,000, leading to a total loss before tax of HKD 11,761,000 for the period[62] Cash Flow and Investments - Operating cash flow for the six months ended September 30, 2024, was HKD (9,992) thousand, slightly improved from HKD (10,031) thousand in the same period last year[18] - Cash used in investing activities was HKD (275) thousand, compared to HKD (13) thousand in the previous year, indicating increased investment outflows[18] - Cash flow from financing activities resulted in a net inflow of HKD 10,328 thousand, a significant increase from HKD 4,962 thousand in the prior period[18] - Total cash and cash equivalents at the end of the period were HKD 29,650 thousand, down from HKD 31,388 thousand year-over-year[18] - The group received total financing of HKD 100 million from a subsidiary, with utilized financing increasing to HKD 88 million from HKD 78 million[30] - Interest income for the period was HKD 124 thousand, a notable increase from HKD 28 thousand in the previous year[18] - The group reported a decrease in cash used for operating activities, with cash outflows of HKD (8,084) thousand compared to HKD (8,746) thousand last year[18] - The group’s cash flow from financing activities included loan proceeds of HKD 40,000 thousand, down from HKD 45,000 thousand in the previous year[18] - The group experienced a net decrease in cash and cash equivalents of HKD 61 thousand, contrasting with a significant decrease of HKD (5,082) thousand in the same period last year[18] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 41,006,000, unchanged from the previous reporting period[12] - Cash and cash equivalents stood at HKD 29,650,000, contributing to total current assets of HKD 35,953,000[12] - Total liabilities were HKD 102,046,000, with current liabilities accounting for HKD 12,077,000[12] - Total liabilities as of September 30, 2024, were HKD 112,225,000, compared to HKD 99,264,000 as of March 31, 2024, reflecting an increase in financial obligations[70] - The company reported a total lease liability of HKD 336,000 as of September 30, 2024, with current liabilities at HKD 71,000 and non-current liabilities at HKD 265,000[105] - Loans from a related company amounted to HKD 88,000,000 as of September 30, 2024, an increase from HKD 78,000,000 as of March 31, 2024, reflecting a growth of 12.8%[106] - The total contract liabilities increased to HKD 3,347,000 as of September 30, 2024, compared to HKD 2,596,000 as of March 31, 2024, marking an increase of approximately 28.9%[101] Operational Highlights - The company incurred financial expenses of HKD 1,908,000 for the six months ended September 30, 2024, up from HKD 1,285,000 in the previous year[75] - Depreciation expenses for property, plant, and equipment were HKD 50,000 in 2024, down from HKD 75,000 in 2023, suggesting cost management efforts[74] - The estimated tax expense for the period was calculated at a rate of 16.5%, consistent with the previous year, indicating stable tax planning[79] - The company reported a fair value loss of HKD 120,000 on listed equity securities for the six months ended September 30, 2024[89] - The company’s investment in an associate showed a net loss of HKD 83,000 for the period, with a total investment value of HKD 157,000 as of September 30, 2024[92] - The company has engaged in related party transactions, including service fees totaling HKD 1,900,000 for loan interest expenses, reflecting ongoing financial interactions with affiliated entities[110] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the reporting period[144] - The board of directors confirmed compliance with the securities trading standards throughout the reporting period[146] - The audit committee has reviewed the interim financial data and discussed risk management and internal control systems[150] Future Outlook and Strategy - The group plans to expand its advertising client base by launching new brands under existing titles, targeting both male and female demographics[127] - The group aims to explore emerging technologies, including artificial intelligence, to develop new revenue streams and expand its readership[127]

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 16,662,000, compared to HKD 15,670,000 for the same period in 2023, representing an increase of approximately 6.34%[3] - The gross profit for the same period was HKD 992,000, up from HKD 781,000 in 2023, indicating a growth of about 27%[3] - The operating loss decreased to HKD 9,770,000 from HKD 10,928,000 year-over-year, reflecting an improvement of approximately 10.6%[3] - The net loss attributable to shareholders for the period was HKD 11,769,000, compared to HKD 12,320,000 in the previous year, showing a reduction of about 4.5%[5] - The company reported a total comprehensive loss of HKD 11,880,000 for the period, compared to HKD 16,050,000 in the same period last year, marking a decrease of about 26.5%[17] - The total loss before tax for the six months ending September 30, 2024, was HKD 11,761,000, compared to a loss of HKD 12,307,000 in the same period of the previous year, showing a slight improvement[34] - The company reported a net loss of HKD 11,769,000 for the current period, which is a decrease from the net loss of HKD 12,320,000 in the prior year[34] Revenue Breakdown - The media business generated revenue of HKD 10,685,000, while the watch and automotive segments contributed HKD 5,977,000, indicating a significant reliance on the media sector[34] - The total revenue for the media business decreased from HKD 12,269,000 in the previous year to HKD 10,685,000, reflecting a decline of approximately 12.9%[36] - As of September 30, 2024, the group's revenue decreased by 2.1% to HKD 16,662,000 compared to HKD 17,017,000 in the same period last year[72] - The entertainment and lifestyle segment's revenue decreased by 12.9% to HKD 10,685,000, while segment loss narrowed by 5.1% to HKD 9,430,000[73] - The watch and automotive segment's revenue increased by 25.9% to HKD 5,977,000, with losses reduced to HKD 36,000 from HKD 199,000 in the previous year[76] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 41,006,000, an increase from HKD 40,091,000 as of March 31, 2024[22] - Total liabilities increased to HKD 102,046,000 from HKD 89,251,000, indicating a rise of approximately 14.5%[22] - The company's equity attributable to shareholders was reported at HKD (61,040,000), compared to HKD (49,160,000) in the previous period, reflecting a deeper loss in equity[20] - The group's total liabilities to total assets ratio as of September 30, 2024, was 248.9%, an increase from 222.6% as of March 31, 2024[82] Cash and Cash Equivalents - The company's cash and cash equivalents stood at HKD 29,650,000, slightly up from HKD 29,580,000 in the previous quarter[20] - The group has cash and cash equivalents amounting to HKD 29,650,000 as of September 30, 2024, slightly up from HKD 29,580,000 as of March 31, 2024[82] Expenses and Costs - The company’s financial expenses rose to HKD 1,908,000 from HKD 1,285,000, representing an increase of approximately 48.4%[3] - Interest income for the period was HKD 124,000, while financial expenses totaled HKD 1,908,000, indicating a net financial cost[34] - Employee benefit expenses, including sales commissions and directors' remuneration, were HKD 15,885,000 in 2024, down from HKD 16,921,000 in 2023, a reduction of 6.1%[38] - Interest expense on lease liabilities rose from HKD 1,000 in 2023 to HKD 8,000 in 2024, marking an increase of 700%[39] - Loan interest expense increased from HKD 1,284,000 in 2023 to HKD 1,900,000 in 2024, reflecting a rise of 48.1%[39] Trade Receivables and Payables - Trade receivables increased to HKD 4,583,000 as of September 30, 2024, compared to HKD 3,586,000 as of March 31, 2024, representing a growth of approximately 27.8%[56] - Net trade receivables after impairment provisions were HKD 4,428,000 as of September 30, 2024, up from HKD 3,447,000 as of March 31, 2024, indicating a 28.4% increase[56] - The company reported trade payables of HKD 1,672,000 as of September 30, 2024, down from HKD 1,864,000 as of March 31, 2024, showing a decrease of approximately 10.3%[62] - Total trade and other receivables amounted to HKD 6,119,000 as of September 30, 2024, compared to HKD 5,335,000 as of March 31, 2024, reflecting a growth of 14.7%[56] - Total liabilities related to trade and other payables were HKD 12,001,000 as of September 30, 2024, compared to HKD 9,539,000 as of March 31, 2024, representing a significant increase of 25.7%[62] Strategic Initiatives - The group is producing more instant and concise video content to attract audiences, reflecting a strategic shift in response to market trends[74] - The group is expanding its advertising client base by targeting non-retail customers such as banks and insurance companies[73] - The group is focusing on providing customized solutions to meet unique industry needs, reflecting a diversification strategy[77] - The group has extended the "MING Watch" brand to a new brand called "Ming Watch Plus" to enhance its advertising customer base[80] - The group plans to add a new brand named "MING'S Bro" under the "MING'S" brand to expand its advertising target audience from women to men[80] Compliance and Governance - The financial data presented is unaudited and prepared in accordance with international accounting standards, ensuring compliance and transparency[25] - The company has not experienced significant impacts from the adoption of new accounting standards during the interim period[27] - The company maintains a policy of conducting credit assessments for all customers before extending credit terms[59] Employee and Operational Metrics - The group maintained 88 employees as of September 30, 2024, consistent with the number as of March 31, 2024[86] - The company continues to evaluate its operational segments and resource allocation to improve performance metrics[32] Future Outlook - The group is committed to exploring emerging technologies, including artificial intelligence applications, to open new revenue streams and expand its readership[80] - The group anticipates that risks from currency fluctuations are not significant, as revenues and costs are primarily denominated in HKD[83]

Financial Performance - For the three months ended June 30, 2024, the company reported a loss of HKD 5,501,000 compared to a loss of HKD 5,070,000 for the same period in 2023, representing an increase in loss of approximately 8.5%[1] - Total comprehensive loss for the period was HKD 4,784,000, a decrease from HKD 6,041,000 in the prior year, indicating an improvement of about 20.8%[2] - The company's revenue for the quarter ended June 30, 2024, was HKD 8,552,000, a decrease of approximately 9% compared to HKD 9,353,000 in the same quarter of the previous fiscal year[21] - The company reported a loss of HKD 5,501,000 for the quarter, compared to a loss of HKD 5,070,000 in the same quarter of the previous fiscal year, primarily due to a slight decrease in revenue[21] - Basic and diluted loss per share was HKD 1.37 for the current quarter, compared to HKD 1.26 for the same quarter last year[14] Revenue Breakdown - The media business generated revenue of HKD 5,608,000, while the watch and automotive business contributed HKD 2,944,000, leading to a total revenue of HKD 8,552,000 for the period[7] Assets and Liabilities - The company's total assets as of June 30, 2024, were HKD 41,281,000, an increase from HKD 40,091,000 as of March 31, 2024, reflecting a growth of approximately 2.9%[3] - Cash and cash equivalents increased to HKD 30,175,000 from HKD 29,580,000, showing a rise of about 2%[3] - The company’s non-current assets totaled HKD 5,616,000, an increase from HKD 4,937,000, indicating a growth of approximately 13.8%[3] - The total liabilities increased to HKD 95,225,000 from HKD 89,251,000, representing an increase of about 6.5%[3] Operating Performance - The company reported an operating loss of HKD 4,472,000 for the total business segments, with the media segment showing a loss of HKD 4,556,000[7] - Operating expenses were reduced during the quarter, which partially offset the increase in losses[21] Strategic Investments and Financing - The company holds 12,000,000 shares of a strategic investment, representing 4.4% of the equity, with a fair value of HKD 5,220,000 as of June 30, 2024[20] - The company has received financing of HKD 83,000,000 from a subsidiary, with a total available financing of HKD 100,000,000[18] Other Financial Information - The company did not declare any dividends for the quarter ended June 30, 2024, consistent with the previous year[15] - The company recorded interest income of HKD 62,000 for the quarter, compared to HKD 5,000 in the same quarter of the previous year[10] - The company incurred finance costs of HKD 584,000 for the quarter, compared to HKD 485,000 in the previous year[9] - The company did not adopt any new accounting standards that would have a significant impact on the consolidated financial statements[5] - The company continues to evaluate its business segments, which include entertainment and lifestyle, watches, and automotive, to assess performance and allocate resources effectively[6] - The average number of issued ordinary shares was 400,900,000 for both the current and previous year[14]

[Chairman's Report](index=4&type=section&id=Chairman's%20Report) [Business Summary and Transformation](index=4&type=section&id=Business%20Summary) The Group faced a 4% revenue decline and a loss after tax due to a slow Hong Kong economy and weak advertising, prompting a strategic transformation into an integrated media company focused on digital content, e-commerce, and AI application - Due to slow economic recovery in Hong Kong and weak advertiser spending, turnover for the current fiscal year decreased by **4%**, resulting in a **loss after tax**[6](index=6&type=chunk) - The Group is transforming from a traditional magazine publisher into an integrated media company, expanding its business into digital experiences, podcasts, short video content, e-commerce platforms, and artist management[9](index=9&type=chunk) - The Group's digital content production capabilities have been recognized, with its original short video program "Movie Boulevard" winning **two golds and two silvers** at The Spark Awards for Media Excellence 2023[6](index=6&type=chunk) [Future Outlook and Strategy](index=5&type=section&id=Future%20Outlook%20and%20Strategy) For FY2024/2025, the Group anticipates a brighter outlook, planning to integrate AI more broadly into content and digital platforms, enhance content creation and advertising solutions through talent development, and explore new technologies for revenue diversification - The Group plans to more broadly integrate Artificial Intelligence (AI) into its content and digital platforms to meet the evolving demands of advertisers and readers[10](index=10&type=chunk) - The Group will continue to invest in talent development, including upskilling programs and strategic recruitment, to enhance its capabilities in producing engaging content and innovative advertising solutions[10](index=10&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Summary](index=7&type=section&id=Performance%20Summary) For the year ended March 31, 2024, the Group's turnover decreased by 4% to HK$39.51 million, with loss after tax expanding by 14% to HK$21.01 million, primarily due to increased finance costs and no government grants Financial Performance Summary (HKD) | Indicator | Year Ended March 31, 2024 | Year Ended March 31, 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Turnover | 39,506,000 | 41,166,000 | -4% | | Loss After Tax | 21,011,000 | 18,507,000 | +14% | | Finance Costs | 3,084,000 | 1,293,000 | +138% | | Government Grants | 0 | 2,461,000 | -100% | [Business Review](index=7&type=section&id=Business%20Review) The Group's business segments showed mixed performance, with Entertainment and Lifestyle revenue declining and losses expanding, while Watches and Automotive saw slight growth and profit, alongside progress in digital transformation and virtual artist management Segment Performance (HKD) | Business Segment | Turnover (FY2024) (HKD) | Turnover (FY2023) (HKD) | (Loss)/Profit (FY2024) (HKD) | (Loss)/Profit (FY2023) (HKD) | | :--- | :--- | :--- | :--- | :--- | | Entertainment and Lifestyle | 28,594,000 | 30,452,000 | (16,752,000) | (13,995,000) | | Watches and Automotive | 10,912,000 | 10,714,000 | 431,000 | 589,000 | - The Group's "Ming Pao Weekly" short video program "Movie Boulevard" and digital platforms received multiple industry awards, demonstrating recognition for its media transformation efforts[17](index=17&type=chunk) - In artist management, the Group collaborates with technology companies to manage virtual AI artist "MonoC" in addition to human artists[18](index=18&type=chunk) [Liquidity and Capital Structure](index=8&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Gearing%20Ratio) As of March 31, 2024, the Group's net current assets decreased to HK$25.61 million, while its capital gearing ratio sharply rose from 141.7% to 222.6%, indicating significantly increased financial leverage Liquidity and Capital Gearing Ratio (HKD) | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Net Current Assets | 25,607,000 | 33,421,000 | | Cash and Cash Equivalents | 29,580,000 | 36,480,000 | | Loans from Fellow Subsidiaries | 78,000,000 | 65,000,000 | | Capital Gearing Ratio | 222.6% | 141.7% | [Significant Investments](index=8&type=section&id=Significant%20Investments) The Group's 4.4% equity stake in Mao G.K. Kwai Chung Limited saw its fair value drop significantly to HK$4.50 million as of March 31, 2024, representing 11.2% of total assets, with no dividends received Investment in Mao G.K. Kwai Chung Limited | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Equity Interest | 4.4% | 4.4% | | Fair Value (HKD) | 4,500,000 | 9,960,000 | | Percentage of Total Assets | 11.2% | 18.3% | [Directors' Report](index=10&type=section&id=Directors'%20Report) [Results and Dividend Distribution](index=10&type=section&id=Results%20and%20Dividend%20Distribution) Due to a loss for the year, the Board does not recommend a dividend for the year ended March 31, 2024, as the Company's distributable reserves are zero under Cayman Islands law - The Directors do not recommend the payment of a dividend for the year ended March 31, 2024[42](index=42&type=chunk) - As of March 31, 2024, the Company's distributable reserves were **zero**[44](index=44&type=chunk) [Directors' and Major Shareholders' Interests](index=11&type=section&id=Directors'%20and%20Major%20Shareholders'%20Interests) The report details directors' and major shareholders' interests, with Tan Sri Datuk Tiong Hiew King and Dato' Sri Tiong Ik King indirectly holding 73.01% of shares via Comwell Investment Limited, and Executive Director Mr. Lam Pak Cheung holding 0.75% - Major shareholders Tan Sri Datuk Tiong Hiew King and Dato' Sri Tiong Ik King, through Comwell Investment Limited (an indirect wholly-owned subsidiary of Media Chinese International Limited), are deemed to jointly hold **292,700,000 shares**, representing **73.01%** of the Company's issued share capital[70](index=70&type=chunk) - Executive Director Mr. Lam Pak Cheung holds **3,000,000 shares**, representing **0.75%** of the Company's issued share capital, through his wholly-owned Venture Logic Investments Limited[65](index=65&type=chunk)[66](index=66&type=chunk) [Compliance Statement](index=16&type=section&id=Sufficiency%20of%20Public%20Float) The Board confirms the Company maintained a public float of at least 25% as per Listing Rules and had no material breaches or non-compliance with applicable laws and regulations during the year - As of the date of this report, the Company has maintained a sufficient public float of not less than **25%** as required by the Listing Rules[77](index=77&type=chunk) - During the year, the Group had no material breaches or non-compliance with applicable laws and regulations[82](index=82&type=chunk) [Corporate Governance Report](index=17&type=section&id=Corporate%20Governance%20Report) [Board and Committees](index=17&type=section&id=Board%20and%20Committees) The Board comprises six directors, including three independent non-executive directors, ensuring checks and balances, with four committees (Executive, Remuneration, Nomination, Audit) fulfilling their respective duties during the reporting period - The Board comprises **6 directors**, including **1 non-executive director (Chairman)**, **2 executive directors**, and **3 independent non-executive directors**, a composition the Board believes ensures effective checks and balances[89](index=89&type=chunk) - The Board has an Executive Committee, Remuneration Committee, Nomination Committee, and Audit Committee, with the chairpersons of the Remuneration, Nomination, and Audit Committees all being independent non-executive directors[97](index=97&type=chunk)[100](index=100&type=chunk)[102](index=102&type=chunk)[108](index=108&type=chunk) Annual Meeting Attendance | Director Name | AGM | Board Meetings | Audit Committee Meetings | Remuneration Committee Meetings | Nomination Committee Meetings | | :--- | :--- | :--- | :--- | :--- | :--- | | Ms. Tiong Choo | 1/1 | 4/4 | Not Applicable | Not Applicable | Not Applicable | | Mr. Tiong Kiu Chiong | 1/1 | 4/4 | Not Applicable | 1/1 | 1/1 | | Mr. Lam Pak Cheung | 1/1 | 4/4 | Not Applicable | Not Applicable | Not Applicable | | Mr. Yu Hon To, David | 1/1 | 4/4 | 4/4 | 1/1 | 1/1 | | Mr. Lau Chi Wah, Alex | 1/1 | 4/4 | 4/4 | 1/1 | 1/1 | | Ms. Wong Hung Wai Yee | 1/1 | 4/4 | 4/4 | 1/1 | 1/1 | [Risk Management and Internal Control](index=26&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board ensures robust risk management and internal control, with the Executive Committee leading systematic risk identification and management, supported by internal audit and policies on whistleblowing and anti-bribery, all deemed adequate and effective - The Board is responsible for ensuring the establishment and maintenance of robust and effective risk management and internal control systems, reviewing their effectiveness at least annually[125](index=125&type=chunk)[136](index=136&type=chunk) - The Executive Committee, acting as the Risk Management Committee, oversees the implementation of the risk management framework and reports to the Board, with risk management processes implemented hierarchically and recorded in a risk register[127](index=127&type=chunk)[128](index=128&type=chunk) - The Group has adopted whistleblowing and anti-bribery and corruption policies to encourage employees to report misconduct and maintain a zero-tolerance stance on bribery and corruption[130](index=130&type=chunk)[133](index=133&type=chunk) [Shareholders' Rights](index=28&type=section&id=Shareholders'%20Rights) The Company prioritizes shareholder communication through various channels and has established procedures for shareholders, holding at least 10% of voting share capital, to convene extraordinary general meetings and propose resolutions - One or more shareholders holding not less than **one-tenth of the paid-up capital** of the Company (carrying the right to vote) may request the Directors to convene an extraordinary general meeting by written requisition[141](index=141&type=chunk) - Shareholders can access information on the Company's key business matters through various communication channels, including general meetings, quarterly/interim/annual reports, announcements, and circulars, and can direct inquiries to the Company's head office or designated email address[138](index=138&type=chunk) [Independent Auditor's Report](index=30&type=section&id=Independent%20Auditor's%20Report) [Audit Opinion](index=30&type=section&id=Audit%20Opinion) PricewaterhouseCoopers issued an unmodified audit opinion, affirming the consolidated financial statements fairly present the Group's financial position, performance, and cash flows in accordance with IFRS and Hong Kong Companies Ordinance - The auditor believes that the consolidated financial statements truly and fairly reflect the Group's financial position, performance, and cash flows, and have been properly prepared in compliance with relevant accounting standards and regulations[146](index=146&type=chunk) [Key Audit Matters](index=31&type=section&id=Key%20Audit%20Matters) "Revenue Recognition" was a key audit matter due to its significant amount, and the auditor's procedures, including policy assessment and transaction testing, confirmed that the Group's revenue recognition was supported by evidence - The key audit matter for this period's audit was "Revenue Recognition," primarily due to its significant amount, with revenue mainly comprising advertising income and sales revenue from journal distribution and subscriptions[152](index=152&type=chunk)[154](index=154&type=chunk) - The auditor's procedures included evaluating policies, testing internal controls, and sampling contracts and supporting documents, concluding that the Group's revenue recognition was supported by evidence[155](index=155&type=chunk) [Consolidated Financial Statements](index=34&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=34&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended March 31, 2024, the Group's turnover decreased by 4% to HK$39.51 million, resulting in a gross profit of HK$5.08 million, an operating loss of HK$17.73 million, and a total loss for the year of HK$21.01 million Consolidated Statement of Profit or Loss Summary (HK$ '000) | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Turnover | 39,506 | 41,166 | | Gross Profit | 5,081 | 7,242 | | Operating Loss | (17,733) | (17,190) | | Loss for the Year | (21,011) | (18,507) | | Basic and Diluted Loss Per Share (HK cents) | (5.2) | (4.6) | [Consolidated Statement of Financial Position](index=36&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the Group's total assets decreased to HK$40.09 million, while total liabilities increased to HK$89.25 million, primarily due to intercompany loans, expanding the total deficit to HK$49.16 million Consolidated Statement of Financial Position Summary (HK$ '000) | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Assets | 40,091 | 54,479 | | Total Liabilities | 89,251 | 77,210 | | - Of which: Loans from Fellow Subsidiaries | 78,000 | 65,000 | | Total Deficit | (49,160) | (22,731) | [Consolidated Statement of Cash Flows](index=39&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group used HK$19.65 million in operating activities, had minor investing outflows, and received HK$12.94 million from financing, primarily intercompany loans, resulting in a net decrease of HK$6.88 million in cash and equivalents, ending at HK$29.58 million Consolidated Statement of Cash Flows Summary (HK$ '000) | Indicator | FY2024 | FY2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (19,654) | (18,300) | | Net Cash Used in Investing Activities | (161) | (354) | | Net Cash From/(Used in) Financing Activities | 12,935 | (35,073) | | Net Decrease in Cash and Cash Equivalents | (6,880) | (53,727) | | Cash and Cash Equivalents at Year End | 29,580 | 36,480 | [Notes to the Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial items, highlighting the Group's media business, revenue sources, significant related party transactions including a HK$78 million loan, and unrecognised deferred tax assets due to tax losses - The Group has multiple related party transactions with its ultimate parent company, Media Chinese International Limited, and its fellow subsidiaries, including support services, leases, and interest expenses[359](index=359&type=chunk)[360](index=360&type=chunk)[361](index=361&type=chunk) - The Group obtained a **HK$100 million** loan facility from a fellow subsidiary, with **HK$78 million** utilized as of March 31, 2024, at an annual interest rate of HIBOR plus **1.4%**[349](index=349&type=chunk) - Due to uncertainty regarding future taxable profits, the Group has not recognized a deferred income tax asset of **HK$26.01 million** for deductible tax losses of **HK$158 million**[345](index=345&type=chunk) [Five-Year Financial Summary](index=89&type=section&id=Five-Year%20Financial%20Summary) [Five-Year Financial Data](index=89&type=section&id=Five-Year%20Financial%20Data) Over the past five years, the Group's turnover consistently declined from HK$70.13 million in 2020 to HK$39.51 million in 2024, consistently incurring losses attributable to owners, and its equity shifted from a positive HK$13.05 million to a HK$49.16 million deficit Five-Year Performance Summary (HK$ '000) | Year Ended March 31 | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Turnover | 39,506 | 41,166 | 45,039 | 45,943 | 70,129 | | Loss Attributable to Owners of the Company | (21,011) | (18,507) | (12,332) | (17,255) | (26,848) | Five-Year Assets and Liabilities Summary (HK$ '000) | As of March 31 | 2024 | 2023 | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 40,091 | 54,479 | 97,633 | 126,622 | 29,828 | | Total Liabilities | 89,251 | 77,210 | 106,670 | 121,109 | 16,774 | | Capital and Reserves Attributable to Owners of the Company | (49,160) | (22,731) | (9,037) | 5,513 | 13,054 |

Financial Performance - For the fiscal year ending March 31, 2024, the total revenue was HKD 39,506,000, a decrease of 4.0% from HKD 41,166,000 in the previous year[2]. - The cost of goods sold was HKD 34,425,000, resulting in a gross profit of HKD 5,081,000, down 29.9% from HKD 7,242,000 last year[2]. - The operating loss for the year was HKD 17,733,000, compared to a loss of HKD 17,190,000 in the previous year, indicating a slight increase in losses[2]. - The net loss attributable to the company's owners was HKD 21,011,000, compared to HKD 18,507,000 in the previous year, reflecting a 8.1% increase in losses[3]. - The basic and diluted loss per share was HKD 5.2, compared to HKD 4.6 in the previous year, indicating a worsening of per-share performance[3]. - Other income decreased significantly to HKD 326,000 from HKD 2,758,000, a decline of 88.2%[2]. - The company reported a total comprehensive loss of HKD 26,429,000 for the year, compared to HKD 13,694,000 in the previous year, indicating a significant increase in overall losses[5]. - The financial expenses increased to HKD 3,084,000 from HKD 1,293,000, marking a 138.5% rise[2]. - The operating loss before tax for the year ended March 31, 2024, was HKD 20,989 million, compared to a loss of HKD 18,626 million in the previous year[21]. - The group reported a 14% increase in net loss to HKD 21,011,000, compared to HKD 18,507,000 in the previous fiscal year, primarily due to an increase in financial expenses of HKD 1,791,000 and the absence of government subsidies amounting to HKD 2,461,000[49]. Revenue Breakdown - The entertainment and lifestyle business segment reported a revenue of HKD 28,594 million, while the watch and automotive segment generated HKD 10,912 million[19]. - The entertainment and lifestyle segment recorded revenue of HKD 28,594,000, down from HKD 30,452,000 in the previous fiscal year, with segment losses increasing by 20% to HKD 16,752,000[50]. - The watch and automotive business segment recorded a revenue of HKD 10,912,000, a slight increase of 2% compared to HKD 10,714,000 from the previous year[54]. Assets and Liabilities - Total assets decreased from HKD 54,479 million in 2023 to HKD 40,091 million in 2024, a decline of approximately 26.5%[9]. - Total liabilities increased from HKD 77,210 million in 2023 to HKD 89,251 million in 2024, an increase of about 15.6%[9]. - Non-current assets rose from HKD 4,937 million in 2023 to HKD 10,391 million in 2024, reflecting a growth of approximately 110.5%[7]. - Current assets decreased from HKD 44,088 million in 2023 to HKD 35,154 million in 2024, a decline of about 20.2%[7]. - Cash and cash equivalents decreased from HKD 36,480 million in 2023 to HKD 29,580 million in 2024, a reduction of approximately 18.9%[7]. - Total equity attributable to owners of the company decreased from HKD 401 million in 2023 to HKD 401 million in 2024, remaining unchanged[9]. - Cumulative losses increased from HKD 151,606 million in 2023 to HKD 172,617 million in 2024, an increase of about 13.9%[9]. - Long-term service obligations increased from HKD 1,535 million in 2023 to HKD 1,704 million in 2024, an increase of approximately 11%[9]. - Trade and other payables decreased from HKD 4,904 million in 2023 to HKD 4,713 million in 2024, a decline of about 3.9%[9]. - Contract liabilities decreased from HKD 4,314 million in 2023 to HKD 2,596 million in 2024, a significant decrease of approximately 40%[9]. Operational Strategies and Future Outlook - The company plans to focus on new product development and market expansion strategies to improve future performance[2]. - The group aims to reduce operational expenses to improve segment losses in the entertainment and lifestyle division[50]. - The group plans to enhance its digital content creation skills and attract more new customers in the upcoming fiscal year[60]. - The group will continue to optimize its print version and strengthen collaboration with digital platforms starting in March 2024[53]. - The group aims to expand its men's fashion content under the new brand "Ming's" as part of its growth strategy[53]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with these standards throughout the year[68]. - The remuneration committee consists of three independent non-executive directors and one executive director, ensuring oversight of executive compensation[71]. - The audit committee reviewed the consolidated financial statements for the year ending March 31, 2024, discussing matters related to auditing, risk management, internal control systems, and financial reporting[70]. - The company’s financial statements have been preliminarily agreed upon by the auditor, confirming consistency with the draft financial statements[74]. - The company will publish its annual report for 2023/2024 on the Hong Kong Stock Exchange website and distribute it to shareholders by the end of July 2024[77]. Employee and Operational Metrics - As of March 31, 2024, the group had approximately 88 employees, a decrease from 103 employees in 2023[67]. - The group’s employee compensation is determined based on business performance, individual performance, and comparable market statistics[67]. - The group maintains a policy of credit verification for all customers to mitigate bad debt risk[42]. - The group has a diverse customer base, reducing the concentration risk associated with trade receivables[41]. - The management noted ongoing challenges in the operating environment due to rising inflation and interest rates despite the economic recovery in Hong Kong[48].

Financial Performance - For the three months ended December 31, 2023, the company reported a revenue of HKD 11,719,000, an increase of 6.4% compared to HKD 11,008,000 in the same period of 2022[2] - The gross profit for the same period was HKD 3,117,000, representing a gross margin of approximately 26.6%, up from HKD 2,729,000 in 2022[2] - The operating loss decreased to HKD 2,600,000 from HKD 4,225,000 year-over-year, indicating a 38.5% improvement[2] - The net loss for the period was HKD 3,515,000, compared to a net loss of HKD 4,735,000 in the previous year, reflecting a 25.8% reduction in losses[2] - The company reported a loss before tax of HKD 3,512,000, which is an improvement from the previous year's loss before tax of HKD 4,737,000[13] - The net loss for the quarter was HKD 3,515,000, an improvement from a net loss of HKD 4,735,000 in the same quarter of the previous year, primarily due to increased revenue and reduced operating expenses[33] Assets and Liabilities - The company's total assets as of December 31, 2023, were HKD 46,449,000, down from HKD 54,479,000 as of March 31, 2023[5] - Cash and cash equivalents decreased to HKD 31,268,000 from HKD 36,480,000, indicating a decline of 14.2%[5] - The company's total liabilities increased to HKD 89,693,000 from HKD 77,210,000, representing a rise of 16.2%[5] Revenue Breakdown - The media business generated revenue of HKD 8,447,000, while the watch and automotive business contributed HKD 3,272,000, totaling HKD 11,719,000[13] - The company's revenue for the quarter ended December 31, 2023, was HKD 11,719,000, representing an increase of approximately 6% compared to HKD 11,008,000 in the same quarter of the previous year[33] Share and Dividends - The average number of issued ordinary shares was 400,900,000, resulting in a basic and diluted loss per share of HKD 0.88, compared to HKD 1.18 in the same quarter of the previous year[22] - The company has not declared any dividends for the quarter ended December 31, 2023, consistent with the previous year[23] Other Financial Information - The company reported total administrative service income of HKD 102,000 for the quarter, up from HKD 39,000 in the same quarter of the previous year[17] - Interest income for the quarter was HKD 2,000, consistent with the previous year[17] - The company incurred depreciation expenses of HKD 36,000 for property, plant, and equipment, slightly down from HKD 37,000 in the same quarter of the previous year[18] - The company recorded finance costs of HKD 469,000 for the quarter, compared to HKD 389,000 in the previous year[18] Strategic Investments and Financing - The company holds 12,000,000 shares of a strategic investment, representing 4.4% of the investee, with a fair value of HKD 5,280,000 as of December 31, 2023, down from HKD 9,960,000 at the beginning of the year[31] - The company has received financing of HKD 100,000,000 from a related subsidiary, with HKD 75,000,000 drawn down as of December 31, 2023[29] Accounting Standards - The company has not adopted any new accounting standards that would significantly impact its financial statements for the period[9]

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 17,017,000, a decrease of 14.2% compared to HKD 19,824,000 in the same period of 2022[2] - Gross profit dropped to HKD 781,000, down 79.3% from HKD 3,772,000 year-on-year[2] - Operating loss increased to HKD 10,928,000, compared to a loss of HKD 6,763,000 in the previous year, reflecting a 61.4% increase in losses[2] - Net loss for the period was HKD 12,320,000, up 75.5% from HKD 7,014,000 in the same period last year[2] - The company reported a total comprehensive loss of HKD 16,050,000 for the period, compared to HKD 6,036,000 in the previous year, indicating a significant increase in overall losses[4] - The basic and diluted loss per share for the period was HKD 3.07, compared to HKD 1.75 in the previous year, reflecting a worsening financial position[2] - The group incurred a net loss of HKD 12,320 thousand for the six months ended September 30, 2023, compared to a loss of HKD 7,014 thousand in the same period of 2022, representing a 75.5% increase in losses[40] - The group reported a post-tax loss of HKD 12,320,000, an increase of 76% compared to the same period last year, primarily due to reduced revenue and a lack of government subsidies amounting to approximately HKD 2,500,000[71] Assets and Liabilities - Total assets decreased to HKD 44,826,000 as of September 30, 2023, down from HKD 54,479,000 at the end of March 2023[6] - The company’s total liabilities increased to HKD 83,607,000 from HKD 77,210,000, indicating a rise in financial obligations[6] - Cash and cash equivalents at the end of the period were HKD 31,388,000, a decrease from HKD 36,480,000 at the beginning of the period[9] - Trade receivables decreased to HKD 3,180,000 as of September 30, 2023, from HKD 3,978,000 at the end of March 2023, indicating a decline of approximately 20%[53] - Total trade and other payables increased to HKD 12,022,000 as of September 30, 2023, compared to HKD 10,595,000 at the end of March 2023, representing an increase of about 13.4%[57] - The total contract liabilities rose to HKD 5,441,000 as of September 30, 2023, compared to HKD 4,314,000 at the end of March 2023, indicating a growth of approximately 26%[57] - The group’s other receivables, deposits, and prepayments decreased to HKD 3,180,000 as of September 30, 2023, from HKD 3,978,000 at the end of March 2023[53] - The group’s equity investments in associates were valued at HKD 68,000 as of September 30, 2023, down from HKD 162,000 at the end of March 2023[48] Segment Performance - For the six months ended September 30, 2023, the total revenue from media business was HKD 12,269,000, while the watch and automotive business generated HKD 4,748,000, leading to a total revenue of HKD 17,017,000[26] - The total segment loss for the media business was HKD (9,933,000), and the watch and automotive business reported a loss of HKD (199,000), resulting in an overall segment loss of HKD (10,132,000)[26] - The media business reported a loss of HKD 5,432 thousand, while the automotive business generated a profit of HKD 736 thousand, leading to an overall loss of HKD 4,696 thousand for the total segments[28] - The entertainment and lifestyle business segment's revenue decreased by 16% to HKD 12,269,000, with segment losses increasing by 83% to HKD 9,933,000[72] - The watch and automotive business segment's revenue decreased by 10% to HKD 4,748,000, resulting in a loss of HKD 199,000 compared to a profit of HKD 736,000 in the previous year[74] Cash Flow and Financing - Operating cash flow for the period was negative HKD 10,031,000, compared to negative HKD 8,000,000 in the same period last year[9] - As of September 30, 2023, the company had total financing of HKD 100,000,000, with utilized financing of HKD 70,000,000 and unutilized financing of HKD 30,000,000[18] - The group had a total financing of HKD 100,000,000 from a related company, with HKD 70,000,000 drawn down as of September 30, 2023, compared to HKD 65,000,000 at the end of March 2023[61] - Loans from a subsidiary amounted to HKD 70,000,000 as of September 30, 2023, up from HKD 65,000,000 as of March 31, 2023[67] Management and Governance - The company did not declare an interim dividend for the six months ended September 30, 2023, consistent with the previous year[41] - Management compensation for the six months ended September 30, 2023, totaled HKD 981,000, a decrease from HKD 1,606,000 in the previous year[68] - The company has established a remuneration committee to review the compensation of directors and senior management regularly[94] - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the reporting period[90] Operational Insights - The group plans to focus on improving operational efficiency and adopting technology-driven approaches, including new business developments in artificial intelligence applications[77] - There were no significant changes in risk management policies since March 31, 2023[17] - The company’s financial liabilities did not show any significant changes compared to March 31, 2023[18] - The company’s accounting policies remain consistent with those applied in the annual financial statements for the year ended March 31, 2023[13] - The group expects that the risk from exchange rate fluctuations is not significant, as revenues and costs are primarily denominated in HKD[80] Employee and Shareholder Information - The group had 100 employees as of September 30, 2023, a decrease from 103 employees as of March 31, 2023[89] - The major shareholders, including Sir Dato' Zhang Xiaoqing and Dr. Dato' Zhang Yiqing, each hold 292,700,000 shares, representing 73.01% of the issued share capital[87] - The company did not repurchase any shares during the period and did not buy or sell any of its shares[88]

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布之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公布全部或任何部分內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 萬 華 媒 體 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：426） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 之 中 期 業 績 公 布 萬華媒體集團有限公司（「本公司」）董事（「董事」）宣布本公司及其附屬公司 （統稱「本集團」）截至二零二三年九月三十日止六個月之未經審核綜合中 期業績，連同於二零二二年同期之比較數字如下： 簡明綜合收益表 截至二零二三年九月三十日止六個月 （未經審核） 截至九月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 營業額 4 17,017 19,824 已售貨品成本 (16,236) (16,052) ...