Group 1 - The Hong Kong film and television stocks experienced a general rise, with notable increases in several companies' stock prices [1] - Fengde Li Holdings saw a rise of over 12%, while Ningmeng Film and Television increased by over 10% [1] - New Stone Culture, Damai Entertainment, and Yaoxing Technology Group also reported gains of 5.49%, 4.07%, and nearly 4% respectively [1] Group 2 - Fengde Li Holdings' latest price is 0.064 with a market capitalization of 112 million and a year-to-date increase of 20.75% [2] - Ningmeng Film and Television's stock price is 4.820, with a market cap of 1.743 billion and a year-to-date increase of 72.14% [2] - Damai Entertainment has a stock price of 1.280, a market cap of 38.241 billion, and a significant year-to-date increase of 169.47% [2]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 豐德麗控股有限公司 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00571 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,755,876,866 | | 0 | | 1,755,876,866 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 1,755,876,866 | | 0 | | 1,755,876,866 | 第 2 頁 共 10 頁 v 1.1.1 呈交日期: 2025年8月6 ...

Financial Performance - The company's revenue for the six months ended January 31, 2025, was HKD 355,359,000, a decrease of 28.0% compared to HKD 493,358,000 for the same period in 2024[5]. - Gross profit for the same period was HKD 198,992,000, slightly up from HKD 198,874,000, indicating a stable gross margin despite lower sales[5]. - The operating loss for the six months was HKD 16,818,000, significantly improved from a loss of HKD 73,049,000 in the previous year, reflecting better cost management[5]. - The net loss attributable to the company's owners was HKD 42,596,000, compared to HKD 105,775,000 in the prior year, showing a reduction of 59.7%[5]. - The company reported a total comprehensive loss of HKD 38,989,000 for the period, compared to HKD 107,986,000 in the previous year, reflecting improved overall performance[6]. - The group reported a loss before tax of HKD 40,584,000 for the six months ended January 31, 2025, compared to a loss of HKD 107,540,000 for the same period in 2024[16]. - The operating loss for the group was HKD 42,743,000 for the six months ended January 31, 2025, compared to HKD 82,751,000 for the same period in 2024, indicating a significant reduction in losses[19]. Assets and Liabilities - Total assets decreased to HKD 1,676,568,000 from HKD 1,836,303,000, while total liabilities also decreased to HKD 1,667,479,000 from HKD 1,788,225,000[7][8]. - The company's non-current assets decreased to HKD 695,310,000 from HKD 746,911,000, primarily due to depreciation and amortization[7]. - The company's current liabilities exceeded its current assets by HKD 147,593,000 as of January 31, 2025, indicating potential liquidity concerns[12]. - The group’s total liabilities as of January 31, 2025, were HKD 1,667,479,000, compared to HKD 1,788,225,000 as of July 31, 2024[17]. Cash Flow and Liquidity - Cash flow from operating activities generated HKD 41,134,000, a significant improvement from the cash outflow of HKD 96,186,000 in the previous year[11]. - The company's cash and cash equivalents increased to HKD 359,991,000 from HKD 354,272,000, indicating a stable liquidity position[7]. - The company plans to manage its working capital and improve its financial position through various measures, including cash flow forecasting for the next twelve months[13]. - The group will seek financial support from its intermediate holding company, Lai Sun Development Company Limited, to ensure continued operations over the next twelve months[15]. Revenue Sources - The group generated ticket sales and related revenue of HKD 220,204,000 for the six months ended January 31, 2025, an increase of 16.5% from HKD 188,896,000 in the same period of 2024[18]. - Revenue from film and television programs dropped significantly by about 74.6%, primarily due to a lack of releases from the group during the review period[41]. - Revenue from cinema operations increased by approximately 16.6%, mainly driven by the success of the blockbuster film "The Infernal Affairs" during the review period[42]. - The group recorded revenue of HKD 103.4 million in the media and entertainment segment, a decrease from HKD 179.3 million in the previous year, with segment profit declining from HKD 25.5 million to HKD 18.9 million[46]. Cost Management - The company has maintained a strong focus on cost control, with selling and marketing expenses reduced to HKD 3,403,000 from HKD 10,350,000[5]. - The group will continue to implement cost-saving measures and streamline existing operations to reduce operating and administrative costs[15]. - Financing costs totaled HKD 21,129,000 for the six months ended January 31, 2025, down from HKD 22,846,000 in the previous year, reflecting a decrease of approximately 7.5%[20]. Shareholder Information - The total number of shares available for issuance under both the 2015 and 2022 share option schemes is 149,585,459 shares, representing approximately 8.52% of the total issued shares[66]. - Major shareholders include Lishin Development Limited and Dr. Lin Jianyue, holding approximately 63.40% and 63.56% of shares respectively[75][76][78]. - The total remuneration for directors for the six months ending January 31, 2025, amounted to HKD 4,973,000[80]. - The company employed approximately 440 employees as of January 31, 2025, down from 510 employees a year earlier[82]. Corporate Governance - The board of directors has established specific committees to oversee corporate governance and ensure alignment with shareholder interests[56]. - The Audit Committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[84]. - The company actively engages with investors through regular communication with analysts and institutional investors[83].

Financial Performance - For the six months ended January 31, 2025, the company reported a revenue of HKD 355,359,000, a decrease of 28% compared to HKD 493,358,000 for the same period in 2024[4] - The gross profit for the same period was HKD 198,992,000, slightly up from HKD 198,874,000 year-on-year[4] - The company incurred a net loss of HKD 41,383,000, significantly improved from a loss of HKD 108,334,000 in the previous year, representing a reduction of approximately 62%[5] - The total comprehensive loss for the period was HKD 38,989,000, compared to HKD 107,986,000 in the previous year, reflecting a significant improvement[5] - The group reported a total operating loss of HKD 41,383,000 for the six months ended January 31, 2025, compared to a loss of HKD 108,334,000 in the previous year[20] - The group reported a net loss attributable to shareholders of approximately HKD 42,600,000 for the six months ended January 31, 2025, a significant reduction from a net loss of HKD 105,800,000 in 2024[41] Revenue Breakdown - Total revenue for the six months ended January 31, 2025, was HKD 367,493,000, a decrease from HKD 510,350,000 in the same period of 2024, representing a decline of approximately 28%[14] - Revenue from ticket sales and related cinema income was HKD 220,204,000 for the six months ended January 31, 2025, compared to HKD 188,896,000 in the previous year, showing an increase of approximately 16.5%[18] - The group reported a significant decrease in revenue from entertainment activities, which fell to HKD 42,011,000 from HKD 101,830,000 year-over-year, representing a decline of approximately 58.8%[18] - Revenue from film and television programs dropped significantly by approximately 74.6%, mainly due to a lack of releases of the group's produced/invested television programs during the review period[40] - The cinema operations segment recorded revenue of HKD 220,200,000, an increase of about 16.6% compared to HKD 188,900,000 in 2024, supported by the success of the blockbuster "破．地獄"[41] - The media and entertainment segment's revenue was HKD 103,400,000, down from HKD 179,300,000 in 2024, with segment profit decreasing from HKD 25,500,000 to HKD 18,900,000[46] Assets and Liabilities - The total current liabilities as of January 31, 2025, were HKD 1,128,851,000, exceeding current assets by HKD 147,593,000, indicating potential liquidity concerns[11] - The company's total equity as of January 31, 2025, was HKD 9,089,000, down from HKD 48,078,000 as of July 31, 2024[8] - The group's total assets as of January 31, 2025, were HKD 1,676,568,000, compared to HKD 1,836,303,000 as of July 31, 2024[15] - The group's total liabilities as of January 31, 2025, were HKD 1,667,479,000, a decrease from HKD 1,788,225,000 as of July 31, 2024[15] - Trade receivables as of January 31, 2025, total HKD 120,917,000, a decrease from HKD 191,195,000 as of July 31, 2024[32] - Trade payables as of January 31, 2025, total HKD 514,539,000, down from HKD 574,623,000 as of July 31, 2024[34] Cash Flow and Financing - The company’s cash and cash equivalents stood at HKD 359,991,000 as of January 31, 2025, compared to HKD 354,272,000 as of July 31, 2024[7] - As of January 31, 2025, the group has cash and bank deposits of HKD 360,000,000, with net cash of HKD 117,200,000 after offsetting total borrowings of HKD 242,800,000[39] - The total outstanding loans amounted to HKD 242,800,000 as of January 31, 2025, with a significant portion being unsecured loans[52] - Financing costs for the six months ended January 31, 2025, were HKD 21,129,000, down from HKD 22,846,000 in the same period of 2024[26] Operational Strategies - The group will continue to implement cost-saving measures and streamline existing operations to reduce operating and administrative costs[13] - The group plans to consider the sale of certain non-core assets to improve financial stability[13] - The group is actively implementing cost optimization measures in cinema operations to address pressures from market conditions and changing consumer behavior[41] - The company has implemented plans to manage working capital and improve financial conditions in light of the liquidity concerns[11] Employee and Corporate Governance - The company employed approximately 440 employees as of January 31, 2025, down from 510 employees as of January 31, 2024, indicating a reduction of about 13.7% in workforce size[57] - The company maintains competitive salary levels and adjusts compensation based on employee performance, with additional benefits including stock option plans and medical allowances[57] - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim results for the six months ending January 31, 2025[60] - The company actively engages with investors through regular communication with analysts and institutional investors, enhancing transparency regarding operations and financial performance[59] - The company encourages feedback from investors and stakeholders, providing multiple contact methods for inquiries[59] Future Outlook - The group will seek financial support from its intermediate holding company to ensure sustainable operations over the next twelve months[13] - The company aims to seek collaboration and investment opportunities to diversify its business and maximize shareholder value[37] - The overall box office in Hong Kong has declined due to various factors, despite the success of the film "破．地獄," which contributed positively to theater revenue growth[36] - The company continues to invest in high-quality original film production in China, responding to strong demand from television stations and online video platforms[37] - The group produced/invested in a total of 6 films and 0 television programs during the review period, compared to 1 film and 1 television program in 2024[50]

Financial Performance - For the fiscal year ending July 31, 2024, the group recorded a revenue of HKD 1,167,500,000, representing an increase of approximately 15.1% compared to HKD 1,013,900,000 in the previous year[9]. - Revenue from film and television programs saw a significant increase of approximately 201.4%, driven by higher income from distribution commissions, royalties, and sales of film and television products[10]. - Revenue from media and entertainment increased by about 3.9%, primarily due to concerts featuring well-known local and Asian artists[10]. - Cinema operations revenue decreased by approximately 16.3%, attributed to various adverse conditions affecting Hong Kong box office performance[11]. - Gross profit decreased by about 5.3% to HKD 451,100,000, down from HKD 476,500,000 in the previous year[11]. - The company reported a net loss attributable to shareholders of approximately HKD 510.9 million for the year ending July 31, 2024, compared to a net loss of HKD 198.8 million in 2023, representing an increase in comprehensive losses due to higher asset impairments[12]. - The loss per share attributable to shareholders was HKD 0.291 for the year ending July 31, 2024, compared to HKD 0.126 in 2023[12]. - The company's equity attributable to shareholders decreased to HKD 118.5 million as of July 31, 2024, down from HKD 635.1 million in 2023[12]. - The company reported a net loss of HKD 525,729,000 for the fiscal year 2024, compared to a loss of HKD 222,945,000 in 2023[24]. - The pre-tax loss for the fiscal year 2024 was HKD 524,348,000, worsening from a loss of HKD 221,687,000 in 2023[24]. Strategic Initiatives - The company is actively implementing cost optimization measures for cinema operations to navigate current challenges[11]. - The group emphasizes small-scale investments in film and pre-selling television program rights to secure funding for production[10]. - The group continues to focus on growth in film and television production as a key strategic priority[10]. - The company plans to continue investing in high-quality film production with a focus on Chinese themes, including upcoming films such as "Murder 3" and "Detective Chinatown 1900"[17]. - The company is closely monitoring market conditions and will continue to seek opportunities for business expansion despite the uncertain economic environment[15]. Operational Insights - The overall performance in cinema operations remains unstable despite some successful releases, indicating a need for strategic adjustments[11]. - The number of theaters operated in Hong Kong is 16, with one additional theater in mainland China, indicating a stable operational footprint[31]. - The cinema segment recorded revenue of HKD 439.5 million, down from HKD 525.1 million in the previous year, with a segment loss of HKD 351.5 million[31]. - Media and entertainment segment revenue increased to HKD 387.1 million, up from HKD 372.5 million, with segment profit rising from HKD 13.3 million to HKD 35.1 million[33]. - The group produced and invested in a total of 3 films and 3 television programs during the review period, down from 6 films in 2023[37]. Environmental, Social, and Governance (ESG) Efforts - The company has issued an annual Environmental, Social, and Governance (ESG) report, aligning with the Hong Kong Stock Exchange's guidelines[43]. - The board emphasizes the importance of addressing environmental, social, and governance issues as key to long-term business success[45]. - The company aims to reduce its environmental impact while conducting business sustainably, focusing on effective management of carbon emissions, waste generation, water usage, and energy consumption[52]. - The company has committed to integrating environmental considerations into its business planning and decision-making processes[52]. - The company conducts regular assessments of its environmental measures and monitors performance to ensure compliance with relevant laws and regulations[52]. Employee and Workplace Dynamics - The group employed approximately 470 staff as of July 31, 2024, down from 530 in 2023, maintaining competitive salary levels and performance-based adjustments[42]. - Employee turnover rate stands at 59% as of July 31, 2023, indicating a significant focus on talent retention and development[66]. - The company has implemented effective policies and complaint mechanisms to promote inclusivity and diversity in the workplace[67]. - Employee benefits include medical or commercial insurance, social security, and housing provident fund, tailored to different regions[68]. - Regular safety training is provided to employees, and the company adheres strictly to labor department regulations regarding occupational safety and health[70]. Corporate Governance - The company is committed to maintaining high standards of corporate governance in accordance with the Hong Kong Stock Exchange listing rules[108]. - The company has established specific committees, including the Audit Committee and Executive Committee, to assist in effective governance[112]. - The board currently consists of ten members, including four executive directors and five independent non-executive directors, complying with the listing rules[116]. - The company has established a clear governance structure to facilitate decision-making processes regarding business transactions and investments[114]. - The company has implemented governance policies based on accountability, transparency, and fairness for many years[136]. Community Engagement - The company actively participates in community activities and supports charitable organizations through donations and volunteer work, including food donation projects[91]. - Cash donations and sponsorships for community investment rose to HKD 77,354 in 2024 from HKD 63,970 in 2023, reflecting a commitment to social responsibility[98]. - Volunteer hours increased to 8 hours in 2024 from 0 hours in 2023, indicating enhanced community engagement efforts[98]. Risk Management - The group has established a risk management framework to identify, assess, and manage significant risks, with a dedicated risk management team conducting annual assessments[168]. - The internal audit function was outsourced to an independent consultant to assist the board and audit committee in monitoring the risk management and internal control systems[169]. - The company has implemented policies to manage and mitigate identified significant risks, assigning responsibility for risk management[168]. Leadership and Management - The company has a strong leadership team with backgrounds in major financial institutions and public companies, enhancing its corporate governance[198]. - The company is actively pursuing market expansion and strategic acquisitions to enhance its competitive position[196]. - The leadership team has a proven track record in successful mergers and acquisitions, indicating a robust growth strategy[199]. - The recent appointments are expected to drive innovation and operational efficiency within the company[195].

Financial Performance - For the fiscal year ending July 31, 2024, the company reported a revenue of HKD 1,167,538,000, an increase of 15.2% from HKD 1,013,860,000 in the previous year[1] - The gross profit for the year was HKD 451,124,000, down 5.3% from HKD 476,505,000 in the prior year[1] - The company incurred a net loss of HKD 525,729,000, compared to a net loss of HKD 222,945,000 in the previous year, representing an increase in losses of 135.7%[2] - The total comprehensive loss for the year was HKD 531,144,000, significantly higher than HKD 221,717,000 in the previous year[2] - The company reported a basic and diluted loss per share of HKD 0.291 for the year[1] - The company recorded a total loss before tax of HKD 524,348,000 in 2024, compared to a loss of HKD 221,687,000 in 2023, indicating a significant increase in losses[8] - The company reported a net loss attributable to shareholders of approximately HKD 510,900,000 for the year, compared to a net loss of HKD 198,800,000 in 2023, with a loss per share of HKD 0.291[30] Assets and Liabilities - Non-current assets decreased to HKD 746,911,000 from HKD 1,131,595,000, a decline of 34%[3] - Current assets also decreased to HKD 1,089,392,000 from HKD 1,379,394,000, a reduction of 21%[3] - The company's total equity dropped to HKD 48,078,000 from HKD 577,967,000, a decrease of 91.7%[4] - The total assets decreased to HKD 1,836,303,000 in 2024 from HKD 2,510,989,000 in 2023, a decline of approximately 27%[9] - Total liabilities decreased to HKD 1,788,225,000 in 2024 from HKD 1,933,022,000 in 2023, a reduction of about 7.5%[9] - The company’s total liabilities increased, with current liabilities rising to HKD 922,895,000 from HKD 880,332,000, an increase of 4.8%[3] Cash and Financing - The company’s cash and cash equivalents decreased to HKD 354,272,000 from HKD 651,012,000, a decline of 45.6%[3] - The company reported a net cash position of HKD 114,600,000 as of July 31, 2024, down from HKD 427,200,000 the previous year, indicating a significant decrease in cash reserves[29] - The total outstanding loans amounted to HKD 239,700,000, including unsecured loans of HKD 113,000,000 with accrued interest of HKD 126,700,000[39] - The total financing costs for 2024 were HKD 45,035,000, down from HKD 49,480,000 in 2023, a decrease of approximately 9.9%[15] Revenue Segments - Total revenue for 2024 reached HKD 1,224,317,000, an increase from HKD 1,073,119,000 in 2023, representing a growth of approximately 14.1%[8] - The media and entertainment segment generated revenue of HKD 397,923,000 in 2024, compared to HKD 380,030,000 in 2023, reflecting a growth of about 4.9%[8] - The cinema operations segment reported a revenue decline to HKD 463,289,000 in 2024 from HKD 549,882,000 in 2023, a decrease of approximately 15.7%[8] - Revenue from external customers in Hong Kong for 2024 was HKD 769,348,000, down from HKD 865,188,000 in 2023, a decrease of about 11.1%[14] - Revenue from film and television programs increased significantly by approximately 201.4%, attributed to higher income from distribution commissions, royalties, and sales of film and television products[30] Investments and Productions - The company invested HKD 234,557,000 in film and television productions in 2024, a significant increase from HKD 70,446,000 in 2023[10] - The company managed to produce and invest in a total of 3 films and 3 television programs during the year, with notable releases including "Kowloon Walled City" and "Not You Not Love You"[37] - The film "Kowloon Walled City" achieved a global box office of over USD 110 million, becoming the second highest-grossing Chinese film in Hong Kong history[27] - The company plans to continue investing in original quality films with a focus on Chinese themes, including upcoming releases like "Murder 3" and "Detective Chinatown 1900"[27] Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the reporting period, ensuring high standards of governance[42] - The audit committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending July 31, 2024[45] - The independent auditor confirmed that the figures in the preliminary results announcement are consistent with the consolidated financial statements[46] Employee and Operational Insights - The group employed approximately 470 staff as of July 31, 2024, down from 530 in the previous year, highlighting a reduction in workforce[43] - The company offers competitive salary levels and various employee benefits, including stock option plans and medical allowances[43] - The company actively engages with investors and stakeholders to provide updates on operations, financial performance, and future prospects[44] Future Outlook and Strategy - The company is actively seeking collaboration and investment opportunities to diversify revenue sources and maximize shareholder value[28] - The strategic alliance with Alibaba's Youku and Alibaba Pictures Group aims to enhance production and investment in films and TV series[28] - The company will hold its annual general meeting on December 13, 2024, with related announcements to be published in mid-November 2024[47]

Financial Performance - Revenue for the six months ended January 31, 2024, was HKD 493,358,000, a decrease of 3.5% compared to HKD 513,260,000 for the same period in 2023[3]. - Gross profit decreased to HKD 198,874,000, down 18.1% from HKD 242,799,000 year-on-year[3]. - Operating loss for the period was HKD 73,049,000, compared to a loss of HKD 63,811,000 in the previous year, reflecting a deterioration of 14.4%[3]. - Loss attributable to owners of the company was HKD 105,775,000, an increase of 28.3% from HKD 82,431,000 in the prior year[3]. - Total comprehensive loss for the period was HKD 107,986,000, compared to a loss of HKD 90,907,000 in the same period last year, representing a 18.8% increase[4]. - The company reported a basic and diluted loss per share of HKD 0.060, compared to HKD 0.055 in the previous year, reflecting an increase of 9.1%[3]. - The company reported a net loss of HKD 105,775,000 for the six months ended January 31, 2024, compared to a loss of HKD 82,431,000 in the same period last year, representing a 28.4% increase in losses[9]. - Total comprehensive loss for the period was HKD 105,603,000, which includes a foreign exchange adjustment of HKD 172,000[9]. Assets and Liabilities - Non-current assets decreased to HKD 1,063,019,000 from HKD 1,131,595,000, a decline of 6.0%[6]. - Current assets decreased to HKD 1,265,075,000 from HKD 1,379,394,000, a reduction of 8.3%[6]. - Total liabilities increased to HKD 1,858,113,000 from HKD 1,760,022,000, indicating a rise of 5.6%[7]. - Net assets attributable to owners decreased to HKD 529,509,000 from HKD 635,112,000, a decline of 16.6%[7]. - The total assets of the company as of January 31, 2024, were HKD 2,328,094,000, down from HKD 2,510,989,000 as of July 31, 2023, reflecting a decrease of 7.3%[20]. - The total liabilities decreased to HKD 1,858,113,000 from HKD 1,933,022,000, a reduction of 3.9%[20]. - The company’s total equity attributable to owners decreased to HKD 529,509,000 from HKD 635,112,000, reflecting a decline of approximately 17%[9]. - The company’s accumulated losses increased to HKD 5,400,577,000 as of January 31, 2024, compared to HKD 5,294,932,000 at the end of the previous reporting period[9]. Cash Flow and Investments - Cash flow from operating activities showed a net outflow of HKD 96,186,000, a decline from a net inflow of HKD 48,163,000 in the previous year[13]. - Cash and cash equivalents decreased by HKD 208,578,000, ending the period at HKD 441,125,000 compared to HKD 724,894,000 at the end of the previous year[13]. - The company invested HKD 14,646,000 in property, plant, and equipment, up from HKD 11,056,000 in the prior year[13]. - The group reported a significant increase in revenue from film and television program distribution commissions, which rose to HKD 121,615,000 from HKD 68,416,000, marking a 77.9% increase[22]. - The investment amount increased significantly to HKD 97,439,000 compared to HKD 14,410,000 in the previous year, indicating a rise of 577.5%[38]. Revenue Breakdown - Revenue from external customers in the media and entertainment segment was HKD 179,298,000, up from HKD 176,048,000 year-over-year, representing a 1.3% increase[18]. - Revenue from ticket sales and related cinema income was HKD 188,896,000, down from HKD 263,127,000, a decline of 28.3%[22]. - Revenue from cinema operations fell by 28.2% year-on-year, primarily due to challenges in the Hong Kong box office, including economic conditions and consumer behavior shifting towards streaming platforms[54]. - Revenue from film and television programs increased significantly by 71.6%, driven by higher income from television program licensing fees and sales[55]. - For the six months ending January 31, 2024, the media and entertainment segment recorded revenue of HKD 179.3 million, an increase from HKD 176 million in the same period last year, with segment profit rising from HKD 17.9 million to HKD 25.5 million[60]. Employee and Governance - The group employed approximately 510 employees as of January 31, 2024, a decrease from 530 employees in the previous year[104]. - The total remuneration for directors for the six months ended January 31, 2024, amounted to approximately HKD 3,356,000[102]. - The board of directors has established specific committees to assist in effective governance and oversight of the company's operations and strategies[72]. - The board consists of ten members, including four executive directors and five independent non-executive directors, ensuring diversity in gender, nationality, and professional background[74]. - The company emphasizes the importance of a stable employee team for its ongoing success[104]. Strategic Initiatives - The group opened two new cinemas in Tsim Sha Tsui and Kai Tak, which began operations in September 2023, enhancing the cinema network and market position[47]. - The group continues to invest in original quality film productions focused on Chinese themes, with projects currently in production[47]. - A strategic alliance was formed with Alibaba's Youku and Alibaba Pictures Group for joint production and investment in films and TV series[48]. - The group is actively implementing cost optimization measures for cinema operations, including negotiations for rent reductions[54]. - The company plans to continue seeking collaboration and investment opportunities to diversify its business and maximize shareholder value[51]. Share Options and Management - The company has adopted a share option scheme allowing the issuance of up to 124,321,216 shares, representing 10% of the total issued shares at the time of approval[78]. - As of January 31, 2024, a total of 700,000 share options remain unexercised under the 2015 share option scheme, accounting for approximately 0.04% of the total issued shares[84]. - The 2022 share option scheme allows for the issuance of up to 149,185,459 shares, which is 10% of the total issued shares at the effective date[81]. - The company’s governance structure includes a clear separation of responsibilities between the chairman and the CEO, enhancing management accountability[76]. - The board meets at least four times a year, with additional meetings convened as necessary to ensure effective oversight[74].

Financial Performance - For the six months ended January 31, 2024, the company reported a revenue of HKD 493,358,000, a decrease of 3.5% compared to HKD 513,260,000 for the same period in 2023[4] - The gross profit for the same period was HKD 198,874,000, down 18.1% from HKD 242,799,000 year-on-year[4] - The operating loss increased to HKD 73,049,000, compared to a loss of HKD 63,811,000 in the previous year, reflecting a deterioration of 14.5%[4] - The net loss attributable to shareholders was HKD 105,775,000, compared to HKD 82,431,000 in the prior year, representing a 28.4% increase in losses[4] - The company reported a total comprehensive loss of HKD 107,986,000 for the period, compared to HKD 90,907,000 in the previous year, marking an increase of 18.8%[5] - Total revenue for the six months ended January 31, 2024, was HKD 510,350,000, a decrease of 3.4% from HKD 528,201,000 in the same period of 2023[13] - The operating loss for the six months ended January 31, 2024, was HKD 73,049,000, compared to a loss of HKD 63,811,000 in the prior year, indicating a worsening of 14.4%[19] - The company recorded a revenue of HKD 493.4 million for the six months ended January 31, 2024, a decrease of 3.9% compared to HKD 513.3 million in the same period last year[40] - Revenue from cinema operations fell by 28.2% year-on-year, primarily due to challenges such as overseas travel, poor economic conditions, and a shift in consumer behavior towards streaming platforms[40] - Revenue from film and television programs increased significantly by 71.6%, driven by higher income from television program licensing fees and sales commissions[41] - The company reported a net loss attributable to shareholders of HKD 105.8 million for the six months ended January 31, 2024, compared to a net loss of HKD 82.4 million in the previous year[41] Assets and Liabilities - The company's total assets decreased to HKD 2,668,094,000 from HKD 2,510,989,000, indicating a decline of 5.9%[7] - Current liabilities increased to HKD 924,097,000 from HKD 880,332,000, reflecting a rise of 5.0%[8] - The company's cash and cash equivalents decreased significantly to HKD 441,125,000 from HKD 651,012,000, a decline of 32.2%[7] - The company’s non-current assets decreased to HKD 1,063,019,000 from HKD 1,131,595,000, a reduction of 6.0%[7] - The company’s equity attributable to owners decreased to HKD 529,509,000 from HKD 635,112,000, a decline of 16.6%[8] - The total assets as of January 31, 2024, amounted to HKD 2,328,094,000, down from HKD 2,510,989,000 as of July 31, 2023[14] - The total liabilities as of January 31, 2024, were HKD 1,858,113,000, a decrease from HKD 1,933,022,000 in the previous period[14] - As of January 31, 2024, the company's cash and bank deposits amounted to HKD 442.7 million, down from HKD 660.3 million as of July 31, 2023[51] - The company's debt ratio increased to approximately 44.6% as of January 31, 2024, compared to 36.7% as of July 31, 2023[51] - The group recorded accrued interest of HKD 123,400,000 on unsecured loans as of January 31, 2024[52] - The group's debt-to-equity ratio was approximately 44.6% as of January 31, 2024, with net assets attributable to owners amounting to HKD 529,500,000[53] Operational Highlights - The company opened two new cinemas in Tsim Sha Tsui and Kai Tak, which began operations in September 2023, enhancing its cinema network[35] - The company is investing in original quality film production focused on Chinese themes, with projects currently in production including "Kowloon Walled City: Siege" directed by Derek Yee[35] - A strategic alliance was formed with Alibaba's Youku and Alibaba Pictures Group for joint production and investment in films and TV series, expanding the company's production capabilities[37] - Recent concerts, including "Leon Lai Concert 2023" and "Chan Kin On Live after Life 2024," received positive feedback, indicating strong audience engagement[37] - The company aims to leverage its comprehensive media platform across film, TV, music, artist management, and live performances to capture entertainment market opportunities and maximize shareholder value[37] - The media and entertainment segment recorded a revenue of HKD 179.3 million, a slight increase from HKD 176 million in the previous year, with segment profit rising from HKD 17.9 million to HKD 25.5 million[46] - The company produced and released a total of 26 films during the review period, compared to 17 films in the previous year[50] - The company plans to continue expanding its artist management team to support the growing television and film production business, currently managing 22 artists[49] - The group employed approximately 510 staff as of January 31, 2024, a decrease from 530 staff in the previous year[57] Governance and Compliance - The group has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange during the reporting period[56] - Management actively engages with investors to provide updates on operations, financial performance, and outlook[58] - The audit committee reviewed the unaudited interim results for the six months ended January 31, 2024[59] Other Financial Information - The financing costs for the six months ended January 31, 2024, were HKD 22,846,000, down from HKD 25,629,000 in the same period of 2023, reflecting a reduction of 10.9%[25] - The company recognized a government grant of HKD 2,677,000, down from HKD 4,472,000 in the previous year, indicating a reduction of 40.2%[23] - Total expenses for the six months ended January 31, 2024, were HKD 794,000, compared to HKD 924,000 for the same period in 2023, representing a decrease of approximately 14.1%[27] - The basic loss per share for the six months ended January 31, 2024, was calculated based on a weighted average of 1,755,876,866 shares, compared to 1,491,854,598 shares for the same period in 2023[28] - No interim dividend was recommended for the six months ended January 31, 2024, consistent with the previous period[29] - Trade receivables as of January 31, 2024, totaled HKD 98,666,000, down from HKD 135,706,000 as of July 31, 2023, indicating a decrease of approximately 27.3%[30] - Trade payables as of January 31, 2024, amounted to HKD 516,403,000, a slight decrease from HKD 529,100,000 as of July 31, 2023[32] - There were no significant changes in contingent liabilities since July 31, 2023[54] - The group did not purchase, sell, or redeem any listed securities during the six months ended January 31, 2024[55] - The group believes it has sufficient liquidity to meet current business needs and ongoing projects[53]

Financial Performance - For the fiscal year ending July 31, 2023, the group recorded a revenue of HKD 1,013,900,000, representing a 22.1% increase from HKD 830,200,000 in the previous year[11]. - Gross profit increased by approximately 36.6% to HKD 476,500,000, up from HKD 348,900,000 in the previous year[11]. - The net loss attributable to shareholders was approximately HKD 198,800,000, a reduction from a net loss of HKD 328,700,000 in the previous year[12]. - The net loss per share was HKD 0.126, compared to HKD 0.220 in the previous year[12]. - The operating loss decreased to HKD 160.4 million from HKD 334.6 million year-over-year, indicating improved operational efficiency[33]. - The group's revenue for the fiscal year ended July 31, 2023, was HKD 1,013.9 million, an increase of 22.1% compared to HKD 830.2 million in the previous year[30]. - The gross profit for the same period was HKD 476.5 million, resulting in a gross margin of 47.0%, up from 42.0% in the prior year[33]. - For the fiscal year ending July 31, 2023, the cinema operations segment recorded revenue of HKD 525.1 million, a significant increase from HKD 385 million in 2022, with a reduced loss of HKD 25.9 million compared to a loss of HKD 128.6 million in the previous year[42]. - The media and entertainment segment achieved revenue of HKD 372.5 million, up from HKD 256.8 million in 2022, turning a loss of HKD 7.7 million into a profit of HKD 13.3 million[44]. Cash and Debt Management - As of July 31, 2023, the group's consolidated cash and bank deposits amounted to HKD 660.3 million, down from HKD 1,202.9 million a year earlier[25]. - The group's debt ratio was approximately 36.7% as of July 31, 2023, compared to 38.4% a year earlier, indicating improved financial management[25]. - The total outstanding consolidated loans amounted to HKD 233.1 million as of July 31, 2023, with an additional HKD 113 million in unsecured loans[51]. - The company's net asset value attributable to owners was HKD 635.1 million, down from HKD 965.2 million in the prior year[33]. - The debt-to-equity ratio improved to 36.7% from 38.4% year-over-year, indicating a stronger balance sheet[33]. Business Operations and Expansion - The group successfully expanded its cinema network by opening four new cinemas in Hong Kong, including MCL Cinemas Plus+ in July 2022 and two new cinemas in September 2023[16]. - The group's cinema operations in Hong Kong have fully resumed with all seats open, following the lifting of COVID-19 restrictions[15]. - The group is cautiously optimistic about long-term entertainment demand and will continue to assess business opportunities to maintain its market position as a leading multi-screen cinema operator in Hong Kong[15]. - The group is investing in original high-quality film productions, including the action film "Kowloon Walled City" and the romantic comedy "It's Not That You Don't Love You"[17]. Employee Management and Workplace Culture - As of July 31, 2023, the group employed approximately 530 employees, a decrease from 560 employees in 2022[54]. - The company has established competitive salary levels for employees, with performance-based promotions and discretionary bonuses based on contributions and industry practices[54]. - Employee turnover rate was reported at 17% as of July 31, 2023[96]. - The company has implemented effective policies to promote a diverse and inclusive workplace, ensuring confidentiality for employees reporting misconduct[99]. - The company provides various non-wage benefits, including vaccination leave, additional holidays, and annual health check-ups[101]. Environmental, Social, and Governance (ESG) Initiatives - The company has committed to disclosing climate-related actions in accordance with the TCFD recommendations, aiming to develop climate response strategies[57]. - The report covers the group's environmental, social, and governance (ESG) management and performance from August 1, 2022, to July 31, 2023[58]. - The company aims to reduce its environmental impact while conducting business sustainably, managing carbon emissions, waste generation, water usage, and energy consumption effectively[73]. - The company has adopted the TCFD framework for climate risk management, focusing on governance, strategy, risk management, and metrics and targets[74]. - The company has established emergency response plans for natural disasters and regularly inspects critical machinery to ensure operational continuity during emergencies[81]. Corporate Governance - The board of directors consists of eight members as of July 31, 2023, including three executive directors, one non-executive director, and four independent non-executive directors[168]. - The company has established a nomination committee to oversee the selection and reappointment of directors, ensuring compliance with listing rules[174]. - The board has delegated daily business management to the executive committee and management, focusing on long-term goals and overall business strategies[166]. - The company is committed to enhancing corporate governance practices in line with the latest guidelines and regulations[181]. - The audit committee, established on April 29, 1999, consists of three independent non-executive directors, ensuring compliance with listing rules[191].

Financial Performance - For the six months ended January 31, 2023, the company reported a revenue of HKD 513,260,000, a slight increase of 1.2% compared to HKD 506,653,000 for the same period in 2022[4] - The gross profit for the same period was HKD 242,799,000, representing a 10.2% increase from HKD 220,218,000 year-on-year[4] - The operating loss decreased to HKD 63,811,000 from HKD 100,707,000, showing an improvement of 36.6%[4] - The net loss for the period was HKD 92,707,000, down from HKD 133,812,000, indicating a reduction of 30.8%[5] - Basic and diluted loss per share improved to HKD 0.055 from HKD 0.086, reflecting a 36.0% decrease in loss per share[4] - The company reported a total comprehensive loss of HKD 90,907,000 for the period, compared to HKD 133,007,000 in the previous year, marking a 31.6% improvement[5] - Total revenue for the six months ended January 31, 2023, was HKD 528,201,000, an increase from HKD 518,761,000 in the same period of 2022, representing a growth of approximately 2.7%[18] - Revenue from ticket sales and related cinema income reached HKD 263,127,000, up from HKD 223,940,000, marking an increase of about 17.5% year-over-year[21] - The operating loss for the six months ended January 31, 2023, was HKD 63,811,000, a decrease from a loss of HKD 100,707,000 in the prior year, indicating an improvement of approximately 36.6%[22] - The net loss attributable to shareholders was approximately HKD 82,400,000, an improvement from a net loss of HKD 128,300,000 in the previous year[60] Assets and Liabilities - Total non-current assets decreased to HKD 1,149,992,000 from HKD 1,333,373,000, a decline of 13.7%[7] - Current assets also saw a decrease, totaling HKD 1,776,365,000 compared to HKD 1,837,311,000, a reduction of 3.3%[8] - The company's total liabilities decreased to HKD 1,014,882,000 from HKD 1,177,108,000, a decline of 13.9%[8] - The net asset value of the company was HKD 911,475,000, down from HKD 1,002,382,000, a decrease of 9.1%[8] - The company reported a total asset value of HKD 2,926,357,000 as of January 31, 2023, down from HKD 3,170,684,000 as of July 31, 2022[20] - Total liabilities decreased to HKD 2,014,882,000 from HKD 2,168,302,000, reflecting a reduction of about 7.1%[20] - The group’s debt ratio increased to approximately 41.3% as of January 31, 2023, compared to 38.4% as of July 31, 2022[58] - The group’s net asset value attributable to owners was HKD 883,200,000 as of January 31, 2023, down from HKD 965,200,000 on July 31, 2022[71] Cash Flow and Investments - For the six months ended January 31, 2023, the company reported a net cash inflow from operating activities of HKD 48,163,000, compared to a net outflow of HKD 190,767,000 in the same period last year[14] - Cash and cash equivalents decreased by HKD 328,396,000 during the period, ending with a balance of HKD 724,894,000[14] - The company invested HKD 11,056,000 in property, plant, and equipment during the period, compared to HKD 5,441,000 in the previous year[14] - The company made an additional investment of HKD 5,000,000 in a joint venture during the reporting period[14] - The company incurred financing costs of HKD 25,629,000 for the six months ended January 31, 2023, down from HKD 28,497,000 in the same period of 2022, representing a decrease of approximately 9.8%[24] Operational Developments - The group experienced a revival in social and economic activities following the lifting of COVID-19 restrictions, although the economic outlook for Hong Kong remains weaker than expected[48] - The group's cinema operations in Hong Kong have fully resumed with all seats open, following the easing of COVID-19 restrictions[49] - The Guangzhou May Flower Cinema ceased operations in October 2022 due to severe market conditions in mainland China[49] - The group plans to open two new cinemas in Kowloon, expected to start operations in Q3 2023[49] - The group continues to invest in original quality film production in China, with projects currently in production including "Kowloon Walled City" and psychological thrillers[50] - The group is developing a 30-episode modern drama for Alibaba's Youku platform[51] - The group has secured stable income from music product distribution rights with Tencent Music Entertainment and Hunan Broadcasting[52] - Recent concerts, including "Re: Grasshopper Concert" and "Super Junior World Tour," received positive public feedback[53] - The group plans to continue collaborating with local and Asian artists for future concerts[53] Shareholder and Governance Matters - The privatization plan for the group was approved, with 264,022,268 new shares issued and approximately HKD 194.3 million paid to shareholders[56] - The group has established specific committees to assist the board in effective governance and management oversight[75] - The board consists of nine members, including four executive directors and four independent non-executive directors, ensuring diversity in gender, nationality, and professional background[77] - The independent non-executive director serves as the chairman of the board, ensuring a clear separation of responsibilities between the chairman and the CEO[80] - The audit committee consists of three independent non-executive directors, chaired by Dr. Wu Liwen, overseeing the review of the interim report for the six months ending January 31, 2023[118] Employee and Compensation Information - The total remuneration for executive directors for the six months ending January 31, 2023, is approximately HKD 5,973,000[112] - The total remuneration for independent non-executive directors for the six months ending January 31, 2023, is approximately HKD 1,003,000[112] - The group employed approximately 530 employees as of January 31, 2023, down from 550 in the previous year[116] - The company actively engages in investor relations, conducting multiple virtual meetings with analysts and investors during the review period[117] - The company has established a competitive salary level for employees, with performance-based promotions and discretionary bonuses[116] Share Option Schemes - The 2015 Share Option Scheme allows for the issuance of a maximum of 124,321,216 shares, representing 10% of the total issued shares as of the approval date[82] - The 2015 Share Option Scheme was terminated on December 16, 2022, and no further options can be granted under this scheme[87] - The 2022 Share Option Scheme was approved on December 26, 2022, and will be effective for ten years from the effective date[86] - Under the 2022 Share Option Scheme, the maximum number of shares available for issuance is 149,185,459 shares, representing 10% of the total issued shares[86] - The 2022 share option plan allows for the issuance of up to 298,631,401 shares, representing 10% of the total issued shares, and 29,863,140 shares for service providers, representing 1% of the total issued shares[94] - No options were exercised, cancelled, or lapsed under the 2015 and 2022 Share Option Schemes during the review period[90] - The company aims to attract and retain qualified participants through the share option plan to achieve performance targets[94] - The share option plan is designed to reward contributions to the company and strengthen long-term relationships with participants[94]