Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 26,070,000, an increase of 4.3% from HKD 24,988,000 in the same period of 2023[3] - The gross profit for the same period was HKD 3,564,000, compared to HKD 3,738,000 in 2023, reflecting a decrease of 4.7%[3] - The company recorded a loss attributable to owners of HKD 1,281,000, significantly improved from a loss of HKD 7,323,000 in the previous year, representing an 82.5% reduction in losses[3] - The basic and diluted loss per share was HKD 1.64, compared to HKD 9.37 in the prior year, indicating a substantial improvement[3] - The total revenue for the group for the six months ended September 30, 2024, was HKD 26,070, down from HKD 24,988 in 2023[22] - The group recorded a pre-tax loss of HKD 1,281 for the six months ended September 30, 2024, compared to a loss of HKD 7,323 in the same period of 2023[36] - The group experienced a net loss from financial assets of HKD 1,259 for the six months ended September 30, 2024, compared to HKD 5,764 in 2023[32] Assets and Liabilities - Total assets decreased to HKD 25,690,000 as of September 30, 2024, down from HKD 32,039,000 as of March 31, 2024[7] - Current liabilities increased to HKD 12,228,000 from HKD 15,289,000, indicating a reduction in short-term obligations[8] - The total equity attributable to owners decreased to HKD 13,462,000 from HKD 16,750,000, reflecting the overall financial performance during the period[8] - Cash and cash equivalents at the end of the period were HKD 1,168,000, up from HKD 727,000 at the beginning of the period, showing a positive cash flow trend[14] - The company reported a total of HKD 13,443,000 in trading financial assets as of September 30, 2024, a slight decrease from HKD 13,914,000 as of March 31, 2024[42] - Total current assets were approximately HKD 24,901,000, while total current liabilities were approximately HKD 12,228,000 as of September 30, 2024[64] Cash Flow - The company experienced a net cash inflow from operating activities of HKD 441,000, a significant recovery from a cash outflow of HKD 4,219,000 in the previous year[14] - Cash and bank balances totaled approximately HKD 1,168,000 as of September 30, 2024, up from HKD 727,000 on March 31, 2024[64] - The company has no bank borrowings and maintains a capital debt ratio of zero as of September 30, 2024[64] Revenue Breakdown - For the six months ended September 30, 2024, the group reported revenue from advertising of HKD 8,580, a decrease from HKD 24,988 in the same period of 2023[22] - E-commerce revenue for the same period was HKD 17,490, compared to HKD 26,070 in 2023, indicating a decline[22] - Gross profit decreased to approximately HKD 3,564,000, with a gross margin of 13.7%, down from 15.0% in the previous year, primarily due to increased revenue from the lower-margin e-commerce segment[60] Dividends and Shareholder Information - The group did not declare any interim dividends for the six months ended September 30, 2024, consistent with the previous year[34] - The board of directors did not recommend the payment of an interim dividend for the current period[59] - As of September 30, 2024, no individuals were reported to hold or be deemed to hold interests or short positions in shares or related securities that require disclosure under the Securities and Futures Ordinance[82] Management and Governance - The audit committee, composed of three independent non-executive directors, reviewed and recommended the approval of the interim financial statements[89] - The group adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2024, with no significant changes to accounting policies[20] Future Plans and Strategy - The group aims to expand revenue sources and diversify its business, actively seeking new business opportunities in various industries and regions[75] - Future plans include continuous development of advertising, e-commerce, and film production-related businesses, as well as strategic investments in regional and overseas film production[77] Other Information - The company did not acquire any properties, plants, or equipment during the six months ended September 30, 2024[38] - The company continues to monitor investment performance and market trends to adjust its investment strategy accordingly[42] - The group has no significant contingent liabilities or major capital commitments as of September 30, 2024[71][69] - No arrangements were made for any directors or their spouses or minor children to benefit from purchasing shares of the company or any other corporate entity during the interim period[81] - The company did not engage in any trading of its listed securities during the interim period[85] - The company maintained a credit period of 180 days on average for advertising clients[43] - Short-term employee benefits for key management personnel amounted to HKD 348,000 for the six months ended September 30, 2024, unchanged from the previous year[57] - The company’s issued and paid-up capital as of September 30, 2024, was HKD 78,122,000, consistent with the previous period[47] - The fair value loss recognized in other comprehensive income for listed equity investments was approximately HKD 1,478,000 for the six months ended September 30, 2024, compared to HKD 1,181,000 in the previous year[41] - As of September 30, 2024, accounts receivable aged analysis showed HKD 49,511,000 overdue for more than 365 days, a decrease from HKD 60,511,000 as of March 31, 2024[43] - The group operates primarily in two regions: Hong Kong and China, with no significant revenue concentration from any single customer[26] - The group has not identified any single customer contributing more than 10% of total revenue for the periods ended September 30, 2024, and 2023[26] - The board proposed a capital reorganization on October 2, 2024, involving capital reduction and share split, along with a rights issue of two shares for every adjusted share held[90]

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 26,070,000, an increase of 4.34% from HKD 24,988,000 in the same period of 2023[4] - The gross profit for the same period was HKD 3,564,000, compared to HKD 3,738,000 in 2023, reflecting a decrease of 4.66%[4] - The company recorded a loss attributable to owners of HKD 1,281,000, significantly improved from a loss of HKD 7,323,000 in the previous year, marking an improvement of 82.53%[4] - The basic and diluted loss per share was HKD 1.64, compared to HKD 9.37 in the prior year, indicating a substantial reduction in losses[4] - The group recorded a net loss before tax of HKD 1,259 for the six months ended September 30, 2024, compared to a loss of HKD 5,764 in the same period of 2023[33] - For the six months ended September 30, 2024, the company reported a loss attributable to shareholders of HKD 1,281,000, compared to a loss of HKD 7,323,000 for the same period in 2023, representing a decrease in loss of approximately 82.5%[37] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 25,690,000, down from HKD 32,039,000 as of March 31, 2024, representing a decrease of 19.73%[9] - The company's total equity decreased to HKD 13,462,000 from HKD 16,750,000, a decline of 19.38%[9] - Cash and cash equivalents at the end of the period were HKD 1,168,000, compared to HKD 2,063,000 at the end of the previous year, a decrease of 43.43%[15] - Current liabilities increased to HKD 12,228,000 from HKD 15,289,000, a decrease of 20.14%[9] - Current assets amounted to approximately HKD 24,901,000, while current liabilities were approximately HKD 12,228,000 as of September 30, 2024[65] - The company has no bank borrowings and maintains a capital debt ratio of zero as of September 30, 2024[65] Revenue Breakdown - For the six months ended September 30, 2024, the group reported revenue from advertising of HKD 8,580, a decrease from HKD 24,988 in the same period of 2023[23] - E-commerce revenue for the same period was HKD 17,490, compared to HKD 26,070 in the previous year, indicating a decline[23] - The total revenue for the group for the six months ended September 30, 2024, was HKD 26,070, down from HKD 24,988 in 2023[25] - Gross profit decreased to approximately HKD 3,564,000, with a gross margin of 13.7%, down from 15.0% in the previous year, primarily due to increased revenue from the lower-margin e-commerce segment[61] Cash Flow - The company reported a net cash inflow from operating activities of HKD 441,000, a recovery from a net outflow of HKD 4,219,000 in the same period last year[15] - Cash and bank balances totaled approximately HKD 1,168,000 as of September 30, 2024, up from HKD 727,000 on March 31, 2024[65] Corporate Governance and Compliance - The group adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2024, with no significant changes to accounting policies[21] - The audit committee, composed of three independent non-executive directors, reviewed and recommended the approval of the interim financial statements[90] - The company has adopted and complied with the corporate governance code, with some deviations noted regarding the roles of the chairman and CEO[88] - The company confirmed that all directors complied with the standard code of conduct for securities trading during the interim period[87] Future Plans and Strategy - The group aims to expand revenue sources and diversify its business, actively seeking new opportunities in various industries and regions[76] - Future plans include continuous development of advertising, e-commerce, and film production-related businesses, as well as strategic investments in regional and overseas film production[78] Shareholder Information - No dividends were declared or proposed for the six months ended September 30, 2024, consistent with the previous year[35] - The board proposed a capital reorganization involving capital reduction and share split on October 2, 2024[91] - The board expressed gratitude to shareholders, management, and employees for their efforts and support[92] Miscellaneous - The group has no significant contingent liabilities or major capital commitments as of September 30, 2024[72][70] - The company did not engage in any trading of its listed securities during the interim period[86] - No arrangements were made for any directors or their spouses or minor children to benefit from purchasing shares of the company or any other corporate entity during the interim period[82] - As of September 30, 2024, no individuals were reported to hold or be deemed to hold interests in shares or related shares that require disclosure under the Securities and Futures Ordinance[83] - The company has not issued any convertible preference shares as of September 30, 2024[52] - The group has no inter-segment sales reported for the periods under review[23] - Employee costs, excluding director remuneration, were HKD 1,699 for the six months ended September 30, 2024, down from HKD 2,179 in 2023[34] - Short-term employee benefits for key management personnel amounted to HKD 348,000 for the six months ended September 30, 2024, unchanged from the same period in 2023[58] - The company did not acquire any property, plant, or equipment during the six months ended September 30, 2024[39] - The company experienced a foreign exchange loss of HKD 529,000 related to overseas operations, compared to a gain of HKD 1,077,000 in the previous year[6] - The company maintained a diversified investment portfolio, with trading financial assets valued at HKD 13,443,000 as of September 30, 2024, down from HKD 13,914,000 as of March 31, 2024[43]

C hin a Natio nal C ulture Group Limite 業 集 團 d 中 國 國 家 文 化 產 有 限 公 司 ANNUAL REP O R T 2024 年 報 目錄 | 2 | 公司資料 | | --- | --- | | 3 | 主席報告 | | 4 | 管理層討論及分析 | | 9 | 董事會報告 | | 19 | 企業管治報告 | | 28 | 董事履歷 | | 30 | 環境、社會及管治報告 | | 47 | 獨立核數師報告 | | 52 | 綜合損益表 | | 53 | 綜合損益及其他全面收入表 | | 54 | 綜合財務狀況表 | | 56 | 綜合權益變動表 | | 57 | 綜合現金流量表 | | 58 | 綜合財務報表附註 | | 118 | 財務資料概要 | 01 中國國家文化產業集團有限公司 目錄 公司資料 董事 執行董事 孫薇女士 滿巧珍女士 獨立非執行董事 廖廣生先生 王妙君女士 王玉潔女士 審核委員會 廖廣生先生（ 主席） 王妙君女士 王玉潔女士 薪酬委員會 廖廣生先生（ 主席） 孫薇女士 王妙君女士 王玉潔女士 提名委員會 王妙君女士（ 主席） 孫 ...

[Supplementary Announcement Overview](index=1&type=section&id=Supplementary%20Announcement%20Overview) This announcement supplements the 2024 annual results, providing additional details for the business review and audit committee sections [Purpose and Scope of Announcement](index=1&type=section&id=Purpose%20and%20Scope%20of%20Announcement) This announcement supplements the China National Culture Group Co., Ltd.'s 2024 annual results, providing additional information for the "Business Review" and "Audit Committee" sections - This announcement supplements the annual results announcement published on June 28, 2024[3](index=3&type=chunk) - The supplementary content primarily addresses the "Business Review" and "Audit Committee" sections[3](index=3&type=chunk) [Supplementary Information on Business Review](index=1&type=section&id=Supplementary%20Information%20on%20Business%20Review) This section details the performance and strategic adjustments for the advertising and e-commerce businesses [Advertising Business](index=1&type=section&id=Advertising%20Business) The Group's advertising business revenue declined due to China's economic slowdown, stricter regulations, reduced consumer confidence, and increased industry competition; the Group is shifting its client base to Hong Kong to expand market share - The Chinese advertising market faces multiple challenges, including slowing economic growth, stricter internet industry regulations, reduced consumer confidence, and intensified industry competition, leading to decreased corporate advertising spending and compressed profit margins[3](index=3&type=chunk) - The Group decided to shift its client base to Hong Kong, leveraging Hong Kong's relatively stable economic environment, stronger consumer confidence, and diversified media landscape[3](index=3&type=chunk) - For the year ended March 31, 2024, advertising segment revenue decreased[3](index=3&type=chunk) - The Group will continue to expand its client base in Hong Kong's advertising business, provide customized services, and seek participation in exhibitions or collaborations with renowned companies to enhance visibility[4](index=4&type=chunk) [E-commerce Business](index=2&type=section&id=E-commerce%20Business) The Group's e-commerce wholesale business, primarily selling used iPhones and components, saw revenue growth due to increased market demand driven by frequent new iPhone releases, consumer focus on cost-effectiveness, and high iPhone repair costs; the Group plans to optimize its product portfolio and enhance its position in the Hong Kong market - The Group operates a wholesale business of used iPhones and components through its e-commerce platform, responsible for procurement, pricing, testing, packaging, and delivery[5](index=5&type=chunk) - E-commerce business revenue increased, primarily due to growing demand for used iPhones and components[5](index=5&type=chunk) - Demand growth is attributed to frequent new iPhone releases leading to older models entering the secondary market, consumers prioritizing cost-effectiveness, and high iPhone repair costs increasing demand for alternative components[5](index=5&type=chunk) - The Group will continue to allocate resources to provide customized services and products to enhance its position in the Hong Kong market, and regularly review its product portfolio to meet market demand[6](index=6&type=chunk) [Supplementary Information on Audit Committee](index=2&type=section&id=Supplementary%20Information%20on%20Audit%20Committee) The Audit Committee reviewed the annual results, accounting principles, and financial reporting matters for the year ended March 31, 2024 [Audit Committee Work](index=2&type=section&id=Audit%20Committee%20Work) The Audit Committee reviewed the Group's annual results, accounting principles, and practices for the year ended March 31, 2024, and discussed audit and financial reporting matters related to the consolidated financial statements - The Audit Committee reviewed the Group's annual results for the year ended March 31, 2024[7](index=7&type=chunk) - The review included the accounting principles and practices adopted by the Group[7](index=7&type=chunk) - The Audit Committee discussed audit and financial reporting matters related to the preparation of the consolidated financial statements of the Company and its subsidiaries[7](index=7&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section confirms the unchanged status of the main annual results announcement and lists the board of directors' composition [Conclusion of Announcement and Board Composition](index=2&type=section&id=Conclusion%20of%20Announcement%20and%20Board%20Composition) Except for the disclosures in this supplementary announcement, the remaining content of the annual results announcement remains unchanged; the announcement is signed by Executive Director Sun Wei and lists the board members - Except for the disclosures in this announcement, the remaining content of the annual results announcement remains unchanged[8](index=8&type=chunk) - The announcement is signed by Sun Wei, Executive Director of China National Culture Group Co., Ltd[9](index=9&type=chunk) - The Board of Directors comprises two Executive Directors (Ms. Sun Wei, Ms. Man Qiaozhen) and three Independent Non-executive Directors (Mr. Liao Guangsheng, Ms. Wang Miaojun, Ms. Wang Yujie)[10](index=10&type=chunk)

[Company Announcements and Financial Highlights](index=1&type=section&id=Company%20Announcements%20and%20Financial%20Highlights) This section presents the audited consolidated annual results and key financial statements, highlighting the company's significant losses [Annual Results Announcement](index=1&type=section&id=Annual%20Results%20Announcement) The company announced its audited consolidated results for the year ended March 31, 2024, indicating significant losses - The audited consolidated results of the Company and its subsidiaries (collectively, the "Group") for the year ended March 31, 2024, along with comparative figures, have been announced[1](index=1&type=chunk) - Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement[7](index=7&type=chunk) [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) Revenue significantly decreased, leading to a sharp reduction in gross profit and a substantial increase in both pre-tax and attributable losses Consolidated Statement of Profit or Loss Key Financial Data | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :----------- | :-------------- | :-------------- | | Revenue | 27,883 | 43,019 | | Cost of sales | (22,444) | (24,469) | | Gross profit | 5,439 | 18,550 | | Administrative expenses | (5,021) | (15,793) | | Other income or losses | (10,394) | (8,299) | | Impairment loss on trade receivables (provision) / reversal | (34,451) | 3,652 | | Loss before tax | (44,434) | (3,015) | | Income tax credit | 766 | 1,517 | | Loss for the year attributable to owners of the Company | (43,668) | (1,498) | | Loss per share (basic and diluted) | (55.90) HK cents | (1.96) HK cents | - Revenue decreased by **35% year-on-year**, primarily due to reduced turnover in the advertising segment[9](index=9&type=chunk)[117](index=117&type=chunk) - Gross profit margin declined from **43.1% to 19.5%**, mainly due to decreased revenue from higher-margin advertising business[117](index=117&type=chunk) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Total comprehensive expense attributable to owners significantly increased to HK$44,231 thousand, driven by the expanded annual loss Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :------------------------- | :-------------- | :-------------- | | Loss for the year | (43,668) | (1,498) | | Exchange differences on translation of overseas operations | (37) | (673) | | Fair value loss on equity instruments at fair value through other comprehensive income | (526) | (4,687) | | Other comprehensive expense for the year, net of tax | (563) | (5,360) | | Total comprehensive expense for the year attributable to owners of the Company | (44,231) | (6,858) | [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, total assets and equity significantly decreased, with intangible assets at zero and current assets shrinking due to reduced financial assets and cash Consolidated Statement of Financial Position Key Data | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :------------- | :-------------- | :-------------- | | **Assets** | | | | Intangible assets | – | 3,207 | | Equity instruments at fair value through other comprehensive income | 2,267 | 2,793 | | Financial assets held for trading | 13,914 | 21,309 | | Trade receivables | 11,294 | 43,276 | | Cash and cash equivalents | 727 | 6,282 | | Total assets | 32,039 | 78,006 | | **Equity** | | | | Share capital | 31,249 | 31,249 | | Reserves | (14,499) | 29,732 | | Total equity | 16,750 | 60,981 | | **Liabilities** | | | | Total liabilities | 15,289 | 17,025 | - Non-current assets decreased to approximately **HK$2,267 thousand** (2023: HK$6,000 thousand) due to impairment losses on intangible assets[118](index=118&type=chunk) - Total current assets significantly decreased from **HK$72,006 thousand to HK$29,772 thousand**, primarily due to reductions in financial assets held for trading and cash and cash equivalents[95](index=95&type=chunk) [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed notes on the company's accounting policies, segment information, revenue recognition, and other financial disclosures [Company Information](index=5&type=section&id=Company%20Information) China National Culture Group Limited's principal activities include mobile device design services, advertising, e-commerce, and film production, with the company incorporated in the Cayman Islands and using HKD as its functional currency - The Group's principal activities are design services and advertising through mobile devices, e-commerce for product sales via the internet, film trading and production, and other film-related services[16](index=16&type=chunk) - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on August 27, 2002[40](index=40&type=chunk) - The consolidated financial statements are presented in Hong Kong Dollars ("HK$"), the Company's functional currency[41](index=41&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards](index=5&type=section&id=Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted new and revised HKFRS effective April 1, 2023, primarily impacting accounting policy disclosures without material effect on financial performance or position, and anticipates no significant future impact from other issued but not yet effective standards - The Group first applied Hong Kong Financial Reporting Standards mandatorily effective for the annual period beginning April 1, 2023[17](index=17&type=chunk) - The application of new and revised HKFRS had no material impact on the Group's financial performance and position for the current and prior years, except for affecting the disclosures of accounting policies in the consolidated financial statements[17](index=17&type=chunk)[20](index=20&type=chunk) - HKAS 1 (Amendments) replaced "significant accounting policies" with "material accounting policy information" and clarified materiality judgment criteria[18](index=18&type=chunk)[19](index=19&type=chunk)[45](index=45&type=chunk) [New and Revised Hong Kong Financial Reporting Standards Mandatorily Effective for the Current Year](index=5&type=section&id=New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards%20Mandatorily%20Effective%20for%20the%20Current%20Year) The Group adopted HKFRS 17 (Insurance Contracts) and amendments to HKAS 1 and HKFRS Practice Statement 2 (Disclosure of Accounting Policies) for the current year - Hong Kong Financial Reporting Standard 17 (Insurance Contracts) and Hong Kong Accounting Standard 1 and Hong Kong Financial Reporting Standards Practice Statement 2 (Disclosure of Accounting Policies Amendments) were first applied in the current year[42](index=42&type=chunk) - HKAS 1 (Amendments) replaced "significant accounting policies" with "material accounting policy information" and emphasized materiality judgment for accounting policy information[18](index=18&type=chunk)[19](index=19&type=chunk) [Revised Hong Kong Financial Reporting Standards Issued But Not Yet Effective](index=6&type=section&id=Revised%20Hong%20Kong%20Financial%20Reporting%20Standards%20Issued%20But%20Not%20Yet%20Effective) This section lists new and revised HKFRS issued but not yet effective, with no anticipated material impact on the Group's future financial position or performance - Issued but not yet effective amendments include HKFRS 10 and HKAS 28 (Sale or Contribution of Assets between an Investor and its Associate or Joint Venture), HKFRS 16 (Lease Liability in a Sale and Leaseback), among others[21](index=21&type=chunk) - The Directors of the Company do not expect the application of all revised HKFRS to have a material impact on the Group's financial position and performance or disclosures in the foreseeable future[46](index=46&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group's operating segments include advertising, film, and e-commerce, with advertising revenue and results significantly declining, while e-commerce revenue grew but profit decreased, and a major shift in revenue source from China to Hong Kong occurred - The Group's operating and reportable segments include: (a) the advertising segment (providing design services and advertising through mobile devices); (b) the film segment (film trading and production and providing other film-related services); and (c) the e-commerce segment (selling products on the internet)[24](index=24&type=chunk)[47](index=47&type=chunk) [Operating Segments](index=7&type=section&id=Operating%20Segments) The board of directors, as the chief operating decision maker, assesses resource allocation and segment performance based on product or service categories - The chief operating decision maker (the Board) assesses resource allocation and segment performance based on

Financial Performance - For the six months ended September 30, 2023, the company reported a revenue of HKD 24,988,000, a decrease of 39.5% compared to HKD 41,321,000 for the same period in 2022[4] - The cost of sales for the same period was HKD 21,250,000, resulting in a gross profit of HKD 3,738,000, down from HKD 6,122,000 in 2022[4] - The company recorded a loss before tax of HKD 7,323,000, compared to a loss of HKD 261,000 in the previous year, indicating a significant increase in losses[4] - Total comprehensive loss for the period was HKD 7,427,000, compared to HKD 1,566,000 in the same period last year[6] - The company reported a basic and diluted loss per share of HKD 9.37 for the current period, compared to HKD 0.17 in the previous year[4] - The group reported a pre-tax loss of HKD 7,323,000 for the six months ended September 30, 2023, compared to a pre-tax loss of HKD 261,000 in the same period of 2022[23] - The group reported a total loss for the period of HKD 7,323,000 for the six months ended September 30, 2023, compared to a loss of HKD 128,000 in the same period of 2022[23] - The company reported a total employee cost (excluding directors' remuneration) of HKD 2,179,000 for the six months ended September 30, 2023, compared to HKD 1,895,000 in the previous year, reflecting an increase of approximately 15%[34] Assets and Equity - As of September 30, 2023, total assets amounted to HKD 65,816,000, down from HKD 78,006,000 as of March 31, 2023[8] - The company's total equity decreased to HKD 53,554,000 from HKD 60,981,000 at the end of the previous reporting period[10] - Cash and cash equivalents at the end of the period were HKD 2,063,000, a decrease from HKD 6,282,000 at the beginning of the period[14] - The total accounts receivable as of September 30, 2023, was HKD 66,640,000, with a provision for impairment losses of HKD 24,089,000[47] - Total cash and bank balances as of September 30, 2023, amounted to approximately HKD 2,063,000, down from HKD 6,282,000 as of March 31, 2023[65] - The company had no bank borrowings as of September 30, 2023, maintaining a capital debt ratio of zero[65] Revenue Segments - For the six months ended September 30, 2023, the advertising segment generated revenue of HKD 24,988,000, a decrease of 34% compared to HKD 37,905,000 in the same period of 2022[23] - The electronic commerce segment had no revenue for the six months ended September 30, 2023, compared to HKD 3,416,000 in the same period of 2022[27] - The group operates primarily in two regions: Hong Kong and China, with external customer revenue from Hong Kong being HKD 3,416,000 and from China being HKD 24,988,000 for the six months ended September 30, 2023[26] Expenses and Losses - The fair value loss on financial assets held for trading was HKD 5,764,000, a significant decrease from a gain of HKD 11,328,000 in the previous year[32] - Administrative expenses decreased to approximately HKD 5,297,000 from HKD 13,178,000 in the previous year, primarily due to reductions in share-based payment expenses, employee costs, and marketing expenses[61] - The group’s depreciation and amortization for the six months ended September 30, 2023, was HKD 807,000, with no new non-current assets acquired during the period[24] Corporate Governance and Compliance - The company has adopted and complied with all provisions of the Corporate Governance Code as of September 30, 2023, except for certain deviations regarding the separation of the roles of Chairman and CEO, and the appointment of non-executive directors[88] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim financial statements for the six months ending September 30, 2023, and recommended their approval to the Board[91] Future Plans and Strategies - The company aims to expand its revenue sources and diversify its business to enhance long-term growth potential and shareholder value[77] - Future plans include continuous reporting to shareholders regarding the group's latest developments[79] - The company is actively seeking new business opportunities, including in media and cultural-related sectors[77] - The e-commerce segment did not generate any revenue during the six months ended September 30, 2023, due to intense competition, prompting the company to consider new strategies to maintain market share[63] Employee and Shareholder Information - The group has 28 full-time employees as of September 30, 2023, all employed in Hong Kong and China[76] - The company has issued stock options to six employees, each holding 490,700 options, as part of its stock option plan[57] - There were no significant changes affecting the company's performance from April 1, 2023, to September 30, 2023[74] - No changes in director information have been disclosed since the annual report date on July 28, 2023, as per Listing Rule 13.51B[89] Miscellaneous - The group has no pledged assets as of September 30, 2023, consistent with the previous period[69] - There are no significant capital commitments or contingent liabilities reported as of September 30, 2023[70][72] - The company did not declare or propose any interim dividends for the six months ended September 30, 2023, consistent with the previous year[35] - The group has adopted a stock option plan since August 29, 2014, with no options granted, exercised, or canceled during the reporting period[75] - There were no significant events after the reporting period that required disclosure as of September 30, 2023[92] - The Board expresses gratitude to shareholders, management, and employees for their efforts and support[93]

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並表明概不就因本公佈全部或任何部分 內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CHINA NATIONAL CULTURE GROUP LIMITED 中 國 國 家 文 化 產 業 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：745） 截至二零二三年九月三十日止六個月之 中期業績公佈 中國國家文化產業集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）之 董事（「董事」）會（「董事會」）欣然宣佈本集團截至二零二三年九月三十日止六個 月之未經審核業績。本公佈載列本公司二零二三年中期報告全文，並符合香港聯 合交易所有限公司證券上市規則（「上市規則」）有關中期業績初步公佈附載資料 的相關規定。 承董事會命 中國國家文化產業集團有限公司 執行董事 孫薇 香港，二零二三年十一月二十九日 於本公佈日期，執行董事為孫薇女士及滿巧珍女士，及獨立非執行董事為廖廣生 先生、王妙君女士及王玉潔女士。 目錄 2 簡明綜合損益表 ...

Financial Performance - The company recorded a revenue of approximately HKD 43,019,000 for the year ended March 31, 2023, a decrease of 36.2% compared to HKD 67,457,000 in the previous year[13]. - Gross profit for the year was approximately HKD 18,550,000, down from HKD 23,041,000 in the previous year, with a gross margin increase from 34.2% to 43.1%[13]. - The net loss attributable to owners of the company was approximately HKD 1,498,000, significantly reduced from HKD 34,551,000 in the previous year[13]. - The group recorded a total loss of HKD 4,687,000 for the year ended March 31, 2023, with a total realized and unrealized gain of HKD 7,480,000[19]. - Administrative expenses have decreased, contributing to the reduction in net loss for the year[13]. Business Strategy and Future Plans - The company aims to expand its revenue sources and diversify its business to enhance long-term growth potential and shareholder value[9]. - Future plans include strategic investments in film, web series, and television content production, as well as expanding into media and cultural-related businesses[12]. - The company is actively seeking new business opportunities to capture suitable market prospects and achieve stable growth[9]. - The group continues to focus on its existing advertising and e-commerce businesses while also developing its film division, which includes investments, acquisitions, and distribution of films and online series, expected to contribute positively in the future[157]. Assets and Liabilities - Non-current assets decreased to approximately HKD 6,000,000 due to impairment losses on intangible assets, down from HKD 17,499,000 in the previous year[14]. - As of March 31, 2023, the group's cash and bank balances totaled approximately HKD 6,282,000, an increase from HKD 3,651,000 in 2022[26]. - The group's current assets amounted to approximately HKD 72,006,000, compared to HKD 69,604,000 in 2022, while current liabilities decreased to approximately HKD 16,225,000 from HKD 28,265,000 in 2022[26]. - The group has not incurred any bank borrowings as of March 31, 2023, maintaining a capital debt ratio of zero[26]. Share Capital and Dividends - The issued share capital as of March 31, 2023, was 781,221,520 shares, with a nominal value of HKD 0.04 per share[23]. - The company did not recommend the payment of dividends for the year ended March 31, 2023[38]. - As of March 31, 2023, there are no distributable reserves according to the Cayman Islands Companies Law, consistent with the previous year[65]. Stock Options and Employee Incentives - A total of 73,100,000 options were granted under the share option scheme, with 50,049,000 options exercised during the year[42]. - The total number of stock options granted under the plan is 132,485,000, with 73,100,000 options granted and 50,049,000 options exercised[48]. - The stock option plan aims to reward participants who have contributed to the group and motivate them towards the company's success[49]. - The exercise price for options granted ranges from HKD 0.076 to HKD 0.40, with the latest options granted at HKD 0.159[48]. Customer and Supplier Relationships - Sales to the top five customers accounted for 18.47% of total sales for the year, down from 23.06% in the previous year, with the largest customer contributing 3.85%[66]. - Total purchases from the top five suppliers represented 70.58% of total purchases for the year, up from 65.77% in the previous year, with the largest supplier accounting for 49.04%[66]. Corporate Governance - The company is committed to effective corporate governance, establishing various committees to protect shareholder interests and enhance governance standards[74]. - The company has adopted and complied with all provisions of the Corporate Governance Code as of March 31, 2023[105]. - The company has established three committees: the Remuneration Committee, the Audit Committee, and the Nomination Committee, each with specific written terms of reference[115]. - The company’s independent non-executive directors have confirmed their independence according to the listing rules[111]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report emphasizes the importance of significant ESG issues that impact investors and stakeholders, ensuring transparency in the group's performance[160]. - The company has identified four key environmental, social, and governance (ESG) issues, including employee welfare, customer satisfaction, and corporate governance[165]. - The company has implemented waste management plans, including recycling paper, printer cartridges, and batteries[174]. - The company has set a target to reduce scope 2 emissions density by 5% by 2028 compared to the baseline year of 2023[171]. Employee Development and Welfare - The company emphasizes employee development through various internal and external training programs, including finance, accounting, and corporate governance[200]. - Free health check-ups are provided to all employees before joining and annually thereafter[198]. - The company promotes a healthy work-life balance through recreational activities such as badminton and basketball tournaments[198]. - Employee performance is assessed annually to determine any additional training or improvement plans needed[200].

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA NATIONAL CULTURE GROUP LIMITED 中 國 國 家 文 化 產 業 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：745） 截至二零二三年三月三十一日止年度之業績公佈 中國國家文化產業集團有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本 公司及其附屬公司（統稱「本集團」）截至二零二三年三月三十一日止年度之經審 核綜合業績連同比較數字如下： 綜合損益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 4 43,019 67,457 銷售成本 (24,469) (44,416) 毛利 18,550 23,041 行政開支 (15,793) (16,347) 其他收益或虧損 5 (5,772) (46,702) ...

Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 41,321,000, an increase of 13.9% compared to HKD 36,304,000 in the same period of 2021[3] - Gross profit for the same period was HKD 6,122,000, up from HKD 5,856,000, reflecting a gross margin improvement[3] - The company reported a loss before tax of HKD 261,000, significantly reduced from a loss of HKD 8,541,000 in the previous year[3] - Total comprehensive loss for the period was HKD 1,566,000, compared to a loss of HKD 5,592,000 in the same period last year[5] - The company reported a basic and diluted loss per share of HKD 0.02, an improvement from HKD 1.20 in the previous year[3] - The group reported a loss attributable to owners of the company of HKD 128,000 for the six months ended September 30, 2022, a significant improvement from a loss of HKD 8,408,000 in the same period of 2021[34] Revenue Segmentation - For the six months ended September 30, 2022, the total revenue from external customers was HKD 41,321,000, an increase of 13.9% compared to HKD 36,304,000 for the same period in 2021[21] - The advertising segment generated revenue of HKD 37,905,000, up from HKD 30,902,000, reflecting a growth of 22.6% year-over-year[25] - The e-commerce segment reported revenue of HKD 3,416,000, compared to HKD 2,402,000 in the previous year, marking a growth of 42.2%[25] - The film segment had no revenue for the current period, while it generated HKD 3,000,000 in the same period last year[21] Assets and Liabilities - Non-current assets decreased to HKD 16,159,000 from HKD 17,499,000, while current assets increased to HKD 72,373,000 from HKD 69,604,000[7] - Total equity increased to HKD 65,734,000 as of September 30, 2022, compared to HKD 56,335,000 at the end of March 2022[9] - Cash and cash equivalents at the end of the period were HKD 5,605,000, up from HKD 3,651,000 at the beginning of the period[13] - The total accounts receivable as of September 30, 2022, was HKD 77,040,000, down from HKD 83,223,000 at the end of March 2022[42] - Total current liabilities decreased to approximately HKD 19,888,000 as of September 30, 2022, from HKD 28,265,000 as of March 31, 2022, a reduction of 29.5%[60] Cash Flow - The company experienced a net cash outflow from operating activities of HKD 4,850,000, compared to HKD 3,117,000 in the previous year[13] - Financing activities generated a net cash inflow of HKD 6,807,000, down from HKD 18,516,000 in the same period last year[13] - As of September 30, 2022, the group's cash and bank balances totaled approximately HKD 5,605,000, compared to HKD 3,651,000 as of March 31, 2022, representing an increase of 53.5%[60] Expenses - The group incurred unallocated expenses of HKD 13,178,000 for the current period, compared to HKD 9,221,000 in the previous year[21] - Administrative expenses rose to approximately HKD 13,178,000 from HKD 9,221,000 in the previous year, primarily due to increases in share-based payments, employee costs, and marketing expenses[56] - Depreciation and amortization expenses for the group were HKD 807,000 for both periods, indicating no change[22] Share Capital and Dividends - As of September 30, 2022, the company had issued 781,221,000 shares with a par value of HKD 0.04 per share, an increase from 731,173,000 shares as of April 1, 2022[14] - The company does not recommend the payment of an interim dividend for the current interim period[55] - The group did not declare any interim dividends for the six months ended September 30, 2022, consistent with the previous year[33] Corporate Governance - The company has adopted and complied with all provisions of the Corporate Governance Code, except for deviations regarding the separation of the roles of Chairman and CEO, as no Chairman was appointed during the reporting period[81] - The Audit Committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and risk management processes[85] - The board of directors is composed of both executive and independent non-executive directors, ensuring a balanced governance structure[89] Future Plans and Business Development - The company aims to expand its revenue sources and diversify its business, actively seeking new business opportunities in media and culture-related sectors[71] - Future plans include continuous development in advertising, e-commerce, and film production, as well as strategic investments in regional and overseas film production[73] - The company is actively developing its mobile internet business and O2O marketing model, enhancing efficiency for restaurant operators through features like online ordering and reservations[57] - E-commerce sales revenue is growing due to the booming e-commerce market in China and the company's continuous expansion of e-commerce channels[58] Employee Information - As of September 30, 2022, the group employed 28 full-time employees, all based in Hong Kong and China, with compensation aligned with market levels[70] - The company’s short-term employee benefits for the six months ended September 30, 2022, were HKD 378,000, consistent with the previous year, while share-based payment expenses amounted to HKD 1,869,000[53] Miscellaneous - The company expresses gratitude to shareholders, management, and employees for their efforts and support during the reporting period[88] - There were no significant post-reporting period events that required disclosure as of September 30, 2022[87] - The group has no significant investments or acquisitions during the reporting period, nor plans for major investments or capital asset purchases[67]