香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 SHAW BROTHERS HOLDINGS LIMITED 邵氏兄弟控股有限公司 （於開曼群島註冊成立之有限公司） 00953 （股份代號： ） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 二零二二年業務發展摘要 (cid:129) 因新型冠狀病毒肺炎疫情對電影製作業務造成不利影響而投放更多資 源於劇集製作。 (cid:129) 繼警匪動作劇集《飛虎》系列前兩輯取得成功後，於二零二二年二月在香 30 港播出 集的第三輯《飛虎之壯志英雄》。 (cid:129) 27 於二零二二年十二月，在中國內地首播 集反貪劇集《廉政狙擊》。 (cid:129) 警匪動作電影《無間一戰》計劃於二零二三年五月在中國內地的優酷首 映，並預計於同月於香港的戲院上映。 ...

Revenue Performance - The company's revenue decreased from RMB 41,201,000 to RMB 37,558,000, representing a decline of 9%[15] - Revenue from film, television, and non-television productions was RMB 25,060,000, down 14.4% from RMB 29,275,000 in the previous year[16] - Revenue from artist and event management increased by 5% to RMB 12,498,000, compared to RMB 11,926,000 in the previous year[18] - Revenue for the six months ended June 30, 2022, was RMB 37,558,000, a decrease of 9.9% compared to RMB 41,201,000 for the same period in 2021[66] - Total revenue for the six months ended June 30, 2022, was RMB 25,060 thousand, down from RMB 29,275 thousand in the same period of 2021, representing a decline of approximately 7.5%[93] - The revenue from film, television, and non-drama production amounted to RMB 11,552,000 for the six months ended June 30, 2022, with no prior year comparison available[134] Profitability and Loss - The total profit for the period was RMB 8,559,000, an increase of 36.8% from RMB 6,254,000 in the previous year[12] - The company reported a loss attributable to owners of the company of RMB 1,149,000, a significant improvement of 84.5% from a loss of RMB 7,412,000 in the previous year[12] - The loss attributable to the company's owners was RMB 1,149,000, an improvement from a loss of RMB 7,412,000 in the previous year[20] - The company reported a loss for the period of RMB 2,657,000, an improvement from a loss of RMB 9,161,000 in the previous year[69] - Basic and diluted loss per share was RMB 0.08, compared to RMB 0.52 for the same period last year[66] - Total comprehensive income for the period was RMB 14,052,000, compared to a comprehensive loss of RMB 13,165,000 in the previous year[69] Financial Position - The total assets amounted to RMB 580,873,000, while total liabilities were RMB 156,399,000, reflecting a decrease in liabilities by 9.2%[12] - The current ratio improved to 3.6 from 3.2, indicating better short-term financial health[12] - The company's equity attributable to owners increased to RMB 434,081,000 from RMB 418,983,000 at the end of 2021[71] - Current assets decreased to RMB 539,579,000 from RMB 541,465,000 at the end of 2021[71] - Current liabilities decreased to RMB 151,631,000 from RMB 166,921,000 at the end of 2021[71] - The company's cash and bank balances increased from RMB 312,059,000 to RMB 317,610,000[26] Investments and Projects - The company plans to continue investing in new talent and developing new projects in film and television to enhance profitability and maintain strong cash flow[19] - The company invested RMB 77,038,000 in films, series, and non-series productions as of June 30, 2022, down from RMB 84,061,000 as of December 31, 2021[114] - The company is collaborating with various online platforms to enhance its production capabilities and revenue streams[19] Shareholder Information - The company has a total of 425,000,000 shares held by major shareholders, representing approximately 29.94% of the total issued shares as of June 30, 2022[48] - Shine Investment, the beneficial owner, holds 425,000,000 shares, which is 29.94% of the total issued shares[50] - The total number of issued shares as of June 30, 2022, is 1,419,610,000[49] - The company has adopted a new share option scheme allowing the board to grant options to subscribe for up to 141,961,000 shares, equivalent to 10% of the total issued shares as of June 2, 2022[55] - The company’s major shareholders include Shine Investment, Shine Holdings, CMC Shine Acquisition, and others, all holding rights to the same 425,000,000 shares[50] Cash Flow and Expenses - The net cash used in operating activities for the six months ended June 30, 2022, was RMB (11,053) thousand, a significant decrease from RMB 42,698 thousand in the same period of 2021[79] - The company reported a total cash and cash equivalents balance of RMB 317,610 thousand as of June 30, 2022, down from RMB 327,230 thousand at the beginning of the year[79] - The financing activities net cash inflow was RMB 3,400 thousand for the six months ended June 30, 2022, compared to a net cash outflow of RMB (215) thousand in the same period of 2021[79] - The company incurred interest expenses of RMB 298 thousand for the six months ended June 30, 2022, compared to RMB 14 thousand in the same period of 2021, reflecting a substantial increase[97] - The income tax expense for the six months ended June 30, 2022, was RMB 59 thousand, a significant decrease from RMB 4,636 thousand in the same period of 2021[98] Employee and Management Costs - Total employee costs for the six months ended June 30, 2022, amounted to RMB 10,056,000, slightly up from RMB 10,008,000 in the same period of 2021[101] - Total compensation for directors and key management personnel was RMB 1,940,000 for the six months ended June 30, 2022, down from RMB 2,264,000 in the previous year, reflecting a decrease of approximately 14.3%[137] - Short-term benefits for management decreased to RMB 1,904,000 from RMB 2,226,000, indicating a decline of about 14.5%[137] Related Party Transactions - The company engaged in related party transactions with TVB Group, which included various income and expense categories[135] - The company’s related party transactions included a total of RMB (183,000) in short-term lease expenses[134] - The company reported a total of RMB 5,232,000 in receivables from related parties as of June 30, 2022, compared to RMB 920,000 as of December 31, 2021[128]

Financial Performance - The company's profit attributable to owners increased from RMB 2,263,000 to RMB 16,403,000 in the fiscal year ending December 31, 2021[8]. - Total revenue rose from RMB 114,373,000 in 2020 to RMB 215,518,000 in 2021, representing an increase of approximately 88.4%[14]. - Revenue from film, television, and non-drama production surged to RMB 180,813,000 in 2021, up from RMB 84,530,000 in 2020, marking a growth of about 113%[15]. - The artist and event management segment generated RMB 34,677,000 in 2021, compared to RMB 28,680,000 in 2020, reflecting an increase of approximately 21%[15]. - The group recorded a film investment impairment loss of RMB 20,824,000, compared to none in the previous year[22]. - The group's cash and short-term bank deposits totaled RMB 312,059,000, an increase from RMB 293,029,000 in the previous year[27]. - The group has no bank borrowings, maintaining a debt ratio of zero as of December 31, 2021[37]. - The group reported a profit attributable to equity shareholders of RMB 16,403,000 for the year, compared to RMB 2,263,000 in the previous year, reflecting a significant increase[149]. Business Operations - The company plans to continue exploring opportunities in film, television, and artist management in mainland China and Hong Kong[11]. - The new series "Flying Tiger: The Heroic Mission" premiered on Alibaba's Youku platform in December 2021, indicating successful collaboration with leading online video platforms in China[9]. - The company is in the post-production phase for the 30-episode anti-corruption series "Integrity Sniper," set to launch in the second half of 2022 on Youku[9]. - The ongoing impact of the COVID-19 pandemic has significantly affected the company's artist and event management operations, with many activities postponed or delayed[9]. - The company primarily engages in film, television series, and non-drama investments, as well as artist and event management[137]. Governance and Compliance - The company has complied with relevant laws and regulations without any significant violations during the year[39]. - The board consists of 6 directors, including 1 executive director, 2 non-executive directors, and 3 independent non-executive directors[62]. - The average age of the board members is 58 years, with a diverse background in management, finance, law, and media[62][63]. - The company has adopted an environmental policy focusing on resource efficiency, energy conservation, and waste reduction[41]. - The company has adhered to the corporate governance code and continuously reviews its governance practices[46]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[192]. Risk Management - The company has implemented a risk management system to identify, assess, and manage risks associated with its business operations[90]. - No significant risks were identified during the risk assessment conducted for the year[93]. - The internal control system aims to ensure operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[94]. - The board is responsible for the effectiveness of the risk management and internal control systems, which are reviewed annually[105]. - The board concluded that the risk management and internal control systems are effective and adequate, providing reasonable assurance against material misstatements or losses[105]. Shareholder Communication - The company emphasizes the importance of maintaining effective communication with investors and shareholders through financial reports and announcements[110]. - The company is committed to ongoing communication with shareholders, particularly through the annual general meeting, to encourage shareholder participation[113]. - Shareholders can request a special general meeting if they hold at least 10% of the paid-up capital with voting rights[115]. - The company will notify shareholders of any changes regarding the annual general meeting due to the evolving situation of the coronavirus pandemic[119]. Employee Relations - The company has established a competitive compensation structure to attract and motivate employees, regularly reviewing salaries against market standards[42]. - The company employed approximately 68 full-time employees as of December 31, 2021, with competitive salary levels reviewed annually based on market conditions[189]. - The company maintains a good relationship with its employees, ensuring equal opportunities and performance-based bonuses[189]. Board Activities - The board of directors held five meetings during the year, with full attendance at all meetings[71]. - The audit committee conducted two meetings, reviewing the group's 2020 annual performance and risk management systems[78]. - The executive committee held four meetings, discussing quarterly, interim, and annual financial and operational performance[77]. Shareholder Structure - The company’s major shareholder is Shine Investment Limited, which is represented by Ms. Lok Yee Ling[1]. - Mr. Li Ruigang holds 425,000,000 shares, representing approximately 29.94% of the company's total shares outstanding[176][178]. - The total number of shares outstanding as of December 31, 2021, was 1,419,610,000 shares[178]. - Shine Investment is the beneficial owner of the 425,000,000 shares, which is 29.94% of the total shares, and is owned 85% by Shine Holdings[186].

Revenue Growth - The company's revenue increased from RMB 24,096,000 to RMB 41,201,000, representing a 71% growth[9] - Revenue from films, series, and non-drama content rose from RMB 12,449,000 to RMB 26,825,000, driven by the confirmation of several film and TV projects[17] - The group reported a total comprehensive loss of RMB 13,165,000 for the six months ended June 30, 2021, compared to a loss of RMB 2,565,000 for the same period in 2020, indicating a significant increase in losses[61] - Revenue from artist management services increased to RMB 11,918,000, up 10.3% from RMB 10,804,000 in the previous year[82] Profitability and Losses - The company reported a loss attributable to owners of RMB 7,412,000, an improvement from a loss of RMB 8,749,000 in the previous year[14] - The company incurred a loss before tax of RMB 4,636,000, compared to a loss of RMB 142,000 in the same period last year[59] - The net loss for the period was RMB 9,161,000, slightly improved from a loss of RMB 10,097,000 in the previous year[59] - The company reported a loss attributable to owners of RMB 7,412,000 for the six months ended June 30, 2021, compared to a loss of RMB 8,749,000 for the same period in 2020, representing a decrease of approximately 15.3%[97] Expenses and Cost Management - Administrative expenses decreased by 11% to RMB 16,413,000 due to cost-cutting measures implemented in response to the challenging operating environment[17] - Total sales and distribution expenses were RMB 6,114,000, a decrease from RMB 16,413,000 in the previous year[59] - Total employee costs amounted to RMB 10,008,000 for the six months ended June 30, 2021, slightly down from RMB 10,159,000 in 2020, indicating a reduction of about 1.5%[96] - The company incurred a net foreign exchange loss of RMB 1,827,000 in the first half of 2021, a significant improvement compared to a gain of RMB 3,503,000 in the same period of 2020[96] Financial Position and Assets - Cash and bank balances increased from RMB 293,029,000 to RMB 327,230,000, indicating improved liquidity[20] - The company's total assets decreased to RMB 600,225,000 as of June 30, 2021, compared to RMB 581,034,000 as of December 31, 2020[63] - The company’s cash and cash equivalents decreased to RMB 327,230,000 as of June 30, 2021, from RMB 381,106,000 at the end of the previous year[72] - Trade receivables decreased from RMB 84,285,000 to RMB 70,901,000, attributed to collections from film distributors[18] Investments and Projects - The company plans to continue identifying new talent and developing new projects in film and series production to enhance profitability and maintain strong cash flow[13] - Investments in films, series, and non-series decreased from RMB 95,456,000 to RMB 73,283,000 due to the cancellation of several investments[18] - Production in progress for films, series, and non-series increased from RMB 89,977,000 to RMB 110,474,000 due to ongoing projects[18] - The company has committed to further invest RMB 1,600,000 in its joint venture Guangdong Haimei Interactive Cultural Media Co., Ltd[100] Shareholder and Equity Information - Total equity attributable to owners decreased by 2.82% to RMB 401,938,000, with net asset value per share at RMB 0.2831[22] - Major shareholders, including Brilliant Spark and Gold Pioneer, each hold 29.94% of the company's shares, totaling 425,000,000 shares[41] - The company’s total equity attributable to owners decreased to RMB 401,938,000 as of June 30, 2021, from RMB 413,591,000 at the end of the previous year[63] Tax and Compliance - Income tax expenses increased from RMB 142,000 to RMB 4,636,000 due to tax impacts from the repayment of payables by a subsidiary in China[18] - The income tax expense for the six months ended June 30, 2021, was RMB 4,636,000, significantly higher than RMB 142,000 for the same period in 2020[91] - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, which did not have a significant impact on the financial performance and position[76] Employee and Workforce Changes - The number of employees decreased from 68 to 64, indicating a reduction in workforce[28] - Total remuneration for directors and key management personnel decreased from RMB 2,447,000 to RMB 2,264,000, a decline of about 7.5%[126]

Financial Performance - The company's profit attributable to owners decreased from RMB 17,891,000 in 2019 to RMB 2,263,000 in 2020, a decline of approximately 87% due to reduced revenue impacted by COVID-19[24]. - Total revenue fell from RMB 302,227,000 in 2019 to RMB 114,373,000 in 2020, representing a decrease of 62%[32]. - Revenue from film, series, and non-series production dropped from RMB 262,851,000 in 2019 to RMB 84,530,000 in 2020, a decline of 68%[32]. - The artist and event management segment's revenue decreased from RMB 34,717,000 in 2019 to RMB 28,680,000 in 2020, a reduction of 17%[32]. - Profit attributable to owners dropped by 87% to RMB 2,263,000 in 2020, compared to RMB 17,000,000 in 2019[38]. - The company's revenue decreased by 62% from RMB 302,227,000 in 2019 to RMB 114,373,000 in 2020[38]. - Revenue from films, series, and non-series was RMB 84,530,000 in 2020, down from RMB 262,851,000 in 2019, reflecting a significant decline in film release income[39]. - The number of managed artists decreased revenue from RMB 34,717,000 in 2019 to RMB 28,680,000 in 2020, a reduction of approximately 17%[35]. Operational Changes - The artist and event management division faced significant disruptions due to COVID-19, leading to a suspension or postponement of many activities[25]. - The anticipated film "夺冠" generated over RMB 800 million in box office revenue during the National Day holiday in 2020[25]. - The company continues to focus on producing high-quality films and television content, with projects like "飞虎之壮志英雄" in post-production[28]. - The management team aims to identify business opportunities in film, series, and artist management sectors in Hong Kong and mainland China[28]. - The company plans to enhance its competitive advantage by coordinating across business segments and collaborating with external partners[28]. Financial Management - Sales costs decreased by 62% to RMB 72,259,000 in 2020, down from RMB 189,064,000 in 2019[40]. - Other income increased to RMB 12,349,000 in 2020 from RMB 3,198,000 in 2019, mainly due to bank interest income and one-time subsidies[40]. - The company repaid all bank borrowings, which were RMB 13,424,000 as of December 31, 2019[45]. - Cash and short-term bank deposits totaled RMB 293,029,000 as of December 31, 2020, down from RMB 328,836,000 in 2019[46]. - The company's equity attributable to owners decreased by 5.2% to RMB 413,591,000 as of December 31, 2020[48]. - The board did not recommend the distribution of a final dividend for the year[51]. - The group has repaid all bank borrowings during the year, resulting in a debt ratio of 0% as of December 31, 2020, compared to 2.25% on December 31, 2019[55]. Governance and Compliance - The board consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[65]. - The company has adopted a board diversity policy to ensure a balanced skill set and diverse perspectives among board members[77]. - All directors received comprehensive training upon their appointment to understand the company's operations and their responsibilities under listing rules[79]. - The company has arranged appropriate insurance for potential legal claims against its directors and senior officers[80]. - The board held five meetings during the year, approving the full-year results for 2019 and the interim results for 2020[86]. - The audit committee conducted two meetings, reviewing the group's full-year results for 2019 and the risk management and internal control systems[95]. - The remuneration committee held one meeting to review the remuneration policies for directors and senior management[98]. - The executive committee held five meetings, discussing the group's quarterly, interim, and annual financial and operational performance[94]. - Independent non-executive directors constitute a majority on the board, ensuring compliance with listing rules[85]. - The board is responsible for overseeing the company's business management and ensuring alignment with shareholder interests[83]. - The company has adopted internal guidelines requiring board approval for major operational projects and investments[83]. - The audit committee confirmed that the annual results announcement and report comply with applicable standards and regulations[95]. - The company has established specific committees, including the executive, audit, remuneration, and nomination committees, to enhance governance[91]. - The board's governance policies and practices are reviewed regularly to ensure compliance with corporate governance codes[84]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the period from January 1, 2020, to December 31, 2020, detailing the company's efforts in sustainable development and corporate citizenship[146]. - The report focuses on key performance indicators related to environmental and social aspects of film, television, and artist management operations, particularly from the main office in Tseung Kwan O and its subsidiary in Kwun Tong[147]. - The company has identified seven key ESG-related issues for discussion in the report, based on stakeholder feedback and third-party assessments[158]. - The company has not reported any air or water pollutants due to the absence of vehicles or fixed emission sources, with greenhouse gas emissions primarily arising from daily operational activities[162]. - The board has delegated the audit committee to oversee ESG-related matters and ensure compliance with legal and regulatory requirements[152]. - A third-party professional consulting firm was engaged to assist in managing ESG matters, including data collection and analysis, and to provide recommendations on ESG performance[152]. - Stakeholder engagement is deemed crucial for long-term development, with diverse communication methods employed to gather feedback and improve sustainability strategies[153]. - The company emphasizes the importance of compliance operations, enhancing corporate value, and maintaining transparency in communications with stakeholders[154]. - The report adheres to the ESG reporting guidelines set forth by the Hong Kong Stock Exchange, ensuring consistency in reporting methods across different years[148]. - The company aims to strengthen internal management and increase stakeholder participation in future ESG initiatives[158]. Employee and Community Engagement - The company emphasizes the importance of employee rights and adheres to all labor laws in Hong Kong, ensuring fair treatment in recruitment[178]. - The employee distribution shows that 66% are aged between 30-50 years, while 5% are under 30 years old[180]. - The company emphasizes competitive compensation and benefits to enhance employee satisfaction and morale, ensuring compliance with minimum wage regulations and providing additional welfare beyond legal requirements[183]. - The company has not reported any work-related fatalities in the past three years, with zero workdays lost due to injuries this year, highlighting its commitment to employee health and safety[185]. - The company actively encourages employee participation in community service and charitable activities, including fundraising for youth development programs and providing masks during the pandemic[190]. - The company has implemented measures to reduce emissions and manage waste, with specific strategies outlined in their environmental report[193]. - The company has not received any complaints regarding service quality this year, indicating effective management and customer satisfaction[187]. - The company prioritizes internal promotions before external hiring to ensure employee development and career progression[184]. - The company provides comprehensive medical insurance for employees, ensuring additional protection in case of illness or injury[185]. - The company has established internal communication platforms to enhance interaction between employees and management, fostering a harmonious work environment[183]. Risk Management - The company has implemented a risk management system to identify, assess, and manage risks associated with its business operations[106]. - No significant risks were identified in the risk assessment conducted for the year[109]. - The internal control system aims to ensure operational effectiveness, reliability of financial reporting, and compliance with applicable laws[111]. Customer and Product Responsibility - The report discusses product responsibility, including the percentage of products recalled for safety and health reasons, and the number of complaints received regarding products and services[199]. - The company is committed to protecting customer data and privacy, implementing encryption and legal measures to prevent data breaches[188].

Revenue Performance - The company's interim revenue decreased by 34% from RMB 36,367,000 to RMB 24,096,000[20] - Revenue from film, series, and non-series production dropped from RMB 15,215,000 to RMB 12,449,000, a decrease of 18%[27] - Revenue from artist and event management fell from RMB 18,158,000 to RMB 11,368,000, a decline of 37%[27] - Revenue for the six months ended June 30, 2020, was RMB 24,096 thousand, a decrease of 33.9% from RMB 36,367 thousand in the same period of 2019[69] - Total revenue for the six months ended June 30, 2020, was RMB 24,096,000, a decrease of 34% from RMB 36,367,000 in 2019[111] - Revenue from film, television, and non-dramatic productions increased to RMB 12,449,000, up 98% from RMB 6,289,000 in the previous year[111] - Artist management service revenue decreased by 37% to RMB 10,804,000 from RMB 17,186,000 in the prior year[111] Financial Losses - The company reported a loss attributable to shareholders of RMB 8,749,000, compared to a profit of RMB 1,450,000 in the same period last year[24] - The earnings per share for the period was a loss of RMB 0.62, compared to a profit of RMB 0.10 in the previous year[24] - The company reported a loss before tax of RMB (9,955) thousand compared to a profit of RMB 2,127 thousand in the previous year[69] - The net loss attributable to the owners of the company for the period was RMB (10,097) thousand, compared to a profit of RMB 1,271 thousand in 2019[69] - The group incurred a loss attributable to owners of the company of RMB (8,749,000) for the six months ended June 30, 2020, compared to a profit of RMB 1,450,000 in 2019[127] Expenses and Costs - Sales costs decreased by 36% to RMB 12,501,000, down from RMB 19,484,000[27] - Administrative expenses increased by 25% to RMB 18,531,000, primarily due to foreign exchange losses[29] - The total employee costs for the six months ended June 30, 2020, were RMB 10,159,000, an increase of 3.4% from RMB 9,827,000 in 2019[126] - The financing costs for the six months ended June 30, 2020, were RMB 333,000, a decrease of 27.6% from RMB 460,000 in 2019[121] - The income tax expense for the six months ended June 30, 2020, was RMB 142,000, down 83.4% from RMB 856,000 in 2019[122] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 635,744 thousand, an increase from RMB 595,022 thousand as of December 31, 2019[76] - Current liabilities decreased to RMB 209,614 thousand from RMB 166,482 thousand at the end of 2019[76] - Trade receivables decreased from RMB 146,769,000 to RMB 89,800,000 due to ticket revenue collection during the period[29] - The total trade and other receivables as of June 30, 2020, were RMB 107,735,000, a decrease of 34% from RMB 163,339,000 as of December 31, 2019[131] - Trade payables decreased to RMB 43,058,000 as of June 30, 2020, from RMB 69,118,000 as of December 31, 2019, a decline of 37.7%[140] Cash Flow - Cash and short-term bank deposits rose from RMB 328,836,000 as of December 31, 2019, to RMB 381,106,000 as of June 30, 2020[31] - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 48,247,000, a decrease of 58% compared to RMB 115,831,000 for the same period in 2019[98] - The net cash generated from investing activities was RMB 1,676,000, down from RMB 5,858,000 in the previous year, reflecting a decline of approximately 71%[98] - Financing activities resulted in a net cash outflow of RMB 562,000, compared to a net inflow of RMB 3,719,000 in the same period last year[98] Shareholder Information - The total number of issued shares remained at 1,419,610,000 as of June 30, 2020[35] - Brilliant Spark, Gold Pioneer, and other entities each hold 425,000,000 shares, representing 29.94% ownership[52] - Mr. Xie Qingyu holds 88,052,000 shares, which is 6.20% of the total[52] - The company has not issued, exercised, canceled, or expired any share options during the period[58] - The company has a share option plan that allows for the issuance of options up to 10% of the total issued shares as of the listing date[57] COVID-19 Impact - The company recorded an expected credit loss provision of RMB 2,844,000 due to the adverse impact of COVID-19 on the credit environment[105] - The company has assessed the recoverability of trade receivables and conducted impairment assessments on film and television productions due to the uncertainties caused by COVID-19[105] - The company has experienced delays in the release and development of several film and television projects due to the COVID-19 pandemic, significantly impacting revenue and operating cash flow[104] Other Comprehensive Income - The company recorded other comprehensive income of RMB 7,532 thousand for the period, which will not be reclassified to profit or loss[72] - The total comprehensive loss for the period was RMB (2,565) thousand, compared to a total comprehensive income of RMB 1,906 thousand in 2019[72]

Financial Performance - The company's profit attributable to owners increased from RMB 12,566,000 to RMB 17,891,000, representing a growth of approximately 42.5%[25] - Total revenue rose from RMB 217,997,000 to RMB 302,227,000, marking a significant increase of 39%[35] - Revenue from films and series reached RMB 262,851,000, while artist and event management generated RMB 34,717,000 in revenue for 2019[36] - The film "The Mission 2: The Operation" achieved box office revenue of RMB 650 million, surpassing the original film's RMB 600 million[26] - Profit attributable to owners from continuing and discontinued operations rose to RMB 17,891,000, compared to RMB 12,566,000 in the previous year[42] - Earnings per share from continuing and discontinued operations increased to RMB 1.260, up from RMB 0.885[42] - Revenue from films, series, and non-series grew from RMB 151,548,000 to RMB 262,851,000, attributed to high returns from co-produced series and confirmed box office income[42] - Revenue from artist and event management services decreased from RMB 58,714,000 to RMB 34,717,000, a decline of 41% due to reduced external commercial activities[41] - Cash and bank balances increased from RMB 135,351,000 to RMB 328,836,000 as of December 31, 2019[47] Operational Challenges - The COVID-19 pandemic has posed short-term challenges, delaying the release of films originally scheduled for the Lunar New Year[30] - The company manages approximately 80 artists, with a decrease in revenue from artist and event management attributed to reduced external commercial activities[27] - Sales costs increased by approximately 26% to RMB 189,064,000, driven by production costs from films, series, and non-series[42] - Administrative expenses rose by 6% to RMB 49,640,000, mainly due to exchange losses and salary increases[43] Governance and Compliance - The company has complied with relevant laws and regulations without any significant violations during the year[59] - The board consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[67] - The company has adopted a board diversity policy to ensure a balanced skill set and diverse perspectives among board members[81] - The company has provided comprehensive training for all directors upon their appointment to ensure understanding of business operations and regulatory responsibilities[83] - The company has established specific committees to assist in governance and oversight functions[99] - The audit committee confirmed that the annual report complies with applicable standards and regulations[103] - The company has implemented a risk management system that includes identifying, assessing, and managing risks related to its business operations[115][116][117] Environmental Sustainability - The group is committed to environmental sustainability and has implemented measures such as recycling used paper and energy conservation[60] - Total greenhouse gas emissions for the year 2019 were 33,153 kg, an increase from 32,670 kg in 2018[166] - Scope 2 emissions decreased to 15,626 kg in 2019 from 17,264 kg in 2018, while Scope 3 emissions increased to 17,527 kg from 15,406 kg[166] - Total energy consumption for 2019 was 30,639 kWh, down from 33,851 kWh in 2018, indicating a reduction of approximately 6.5%[170] - Total non-hazardous waste generated was 2,782 kg in 2019, a decrease from 2,970 kg in 2018, reflecting a reduction of about 6.3%[166] Employee and Community Engagement - The company strictly adheres to all labor laws in Hong Kong, ensuring the protection of employee rights and benefits[173] - The company emphasizes fair and open recruitment practices, ensuring equal opportunities regardless of race, nationality, or gender[174] - Employee distribution by age shows 26% are over 50 years old, while 68% are full-time employees[176] - The company provides competitive salaries and benefits, including medical insurance, to enhance employee satisfaction and morale[175] - The company actively engages in community service, with employees participating in various charitable activities, including a wheelchair parade and charity runs[184] Shareholder Communication - The company emphasizes the importance of maintaining effective communication with investors and shareholders through financial reports and announcements[135] - The company will continue to uphold a transparent investor communication policy to keep investors informed about business developments[140] - Shareholders can submit written inquiries directly to the company's main office in Hong Kong[142] - The company encourages shareholder participation in meetings and ensures that their opinions are communicated to the board[139] Future Outlook - The company plans to continue focusing on high-quality films and series, with upcoming productions including "Extraordinary Three Heroes" set to release on Youku[30] - The company aims to leverage its extensive artist team to enhance production capabilities and seek additional revenue opportunities[30] - The company is committed to advancing its core growth strategies despite market challenges, focusing on collaboration with major online platforms for production and distribution[30]

Financial Performance - The company's revenue for the first half of 2019 was approximately RMB 36,367,000, a decrease of RMB 11,019,000 compared to RMB 47,386,000 in the same period of 2018, representing a decline of about 23.2%[25] - Profit for the period was RMB 1,271,000, down from RMB 5,916,000 in the first half of 2018, indicating a significant decrease of approximately 78.5%[25] - The revenue from artist and event management was approximately RMB 18,158,000, a substantial drop of 48.2% from RMB 35,012,000 in the same period last year[24] - Revenue from film, television, and non-television production investments was approximately RMB 15,215,000, up from RMB 10,714,000 in the same period of 2018, representing an increase of 42%[30] - The company's net profit attributable to owners was approximately RMB 1,450,000, down from RMB 4,916,000 in the first half of 2018, a decline of 70%[44] - The total comprehensive income for the period was RMB 1,906,000, significantly lower than RMB 5,916,000 in the same period last year[84] - Basic earnings per share from continuing and discontinued operations was RMB 0.10, down from RMB 0.35 in the previous year[81] - For the six months ended June 30, 2019, the company's profit attributable to owners was RMB 1,450,000 (unaudited), a decrease of 70.5% compared to RMB 4,916,000 for the same period in 2018[143] Production and Projects - The company completed the production of the film "The Mission" and the sequel to the police drama "The Thunder," with the former expected to be released in August 2019, potentially achieving significant box office success[19] - The production of the thriller series "The Thunder" is expected to air in the fourth quarter of 2019, featuring a collaboration with Youku, a major Chinese online video platform[23] - The company plans to invest more in films, television, and non-television productions, focusing on artist and event management, and exploring opportunities in the rapidly developing online video market in China[51] - The group continues to focus on film and television production as a key area for growth and revenue generation[131] Financial Position - The total assets increased to approximately RMB 564,294,000 from RMB 459,677,000 at the end of 2018, an increase of 23%[42] - The company's cash and bank balances increased to approximately RMB 260,759,000 from RMB 135,351,000 at the end of 2018, an increase of 93%[40] - The debt ratio as of June 30, 2019, was approximately 2.3%[48] - Non-current assets decreased from RMB 3,499 million as of December 31, 2018, to RMB 2,814 million as of June 30, 2019, representing a decline of approximately 19.5%[86] - Current assets increased significantly, with cash and cash equivalents rising from RMB 135,351 thousand to RMB 260,759 thousand, an increase of approximately 92.6%[86] - The company's total liabilities included bank borrowings of 88,800 thousand RMB as of June 30, 2019[187] Shareholder Information - As of June 30, 2019, Mr. Li Ruigang holds 425,000,000 shares, representing 29.94% of the total issued ordinary shares of 1,419,610,000[55] - The major shareholders, including Brilliant Spark, Gold Pioneer, and GLRG Holdings, each hold 425,000,000 shares, equating to 29.94% ownership[59] - The ownership structure indicates that Shine Investment, which holds 425,000,000 shares, is 85% owned by Shine Holdings, which is fully owned by CMC Shine Acquisition[56] Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the reporting period[66] - The company has adopted the standard code for securities transactions by directors, confirming compliance throughout the reporting period[67] - The interim financial data for the period has been reviewed by external auditors, ensuring adherence to accounting principles and practices[70] Market Conditions and Strategy - The company remains cautious and is continuously looking for development opportunities amidst the challenges posed by the US-China trade war and tightening regulations in the entertainment industry[18] - The domestic box office revenue in China decreased by 2.7% to RMB 31.2 billion, marking the first decline since 2011[18] - The company plans to strengthen collaborations with leading online video companies in China to maximize future production and revenue[23] Employee and Operational Costs - The total employee costs for the six months ended June 30, 2019, amounted to RMB 9,827,000, down 13.2% from RMB 11,325,000 in the previous year[141] - The depreciation of property, plant, and equipment for the six months ended June 30, 2019, was RMB 318,000, compared to RMB 457,000 in the same period of 2018[141] Lease and Financial Reporting - The company adopted the new Hong Kong Financial Reporting Standards (HKFRS) 16, which significantly changes the accounting treatment of leases, requiring the recognition of all leases (except short-term and low-value asset leases) as right-of-use assets and lease liabilities[106] - The adoption of HKFRS 16 did not have a significant impact on the company's financial performance and position for the current and prior periods[106] - The company will adjust lease liabilities and corresponding right-of-use assets if there are changes in lease terms or assessments regarding the exercise of purchase options[119] Investments and Financial Assets - The company recorded a total of RMB 91,727,000 in investments in films, series, and non-series as of June 30, 2019, an increase of 2% from RMB 89,588,000 at the end of 2018[154] - The company's financial assets measured at fair value included private equity investments valued at RMB 2,611,000 as of June 30, 2019, compared to RMB 1,676,000 as of December 31, 2018[162] - The company reported a net loss from financial assets measured at fair value through profit or loss of RMB 2,094,000 for the six months ended June 30, 2019[141]

Financial Performance - The company reported a net profit of approximately RMB 8,290,000 for the year ended December 31, 2018, a significant turnaround from a net loss of RMB 6,560,000 in 2017, primarily due to revenue growth in the entertainment business [10]. - The company's total revenue increased by 43% from approximately RMB 152,831,000 in 2017 to approximately RMB 217,997,000 in 2018 [19]. - Revenue from film and television production investments grew by 42% to approximately RMB 151,548,000, compared to approximately RMB 106,444,000 in 2017 [31]. - The artist and event management segment recorded revenue of approximately RMB 58,714,000, representing a 28% increase from approximately RMB 45,986,000 in 2017 [25]. - The company achieved a profit of approximately RMB 8,290,000 in 2018, reversing a loss of approximately RMB 6,561,000 in 2017 [30]. - The gross profit from film and television production investments surged by 223% to approximately RMB 40,071,000, compared to approximately RMB 12,404,000 in 2017 [31]. - The company reported a net profit attributable to owners of approximately RMB 12,566,000, compared to a loss of RMB 7,225,000 in the previous year, resulting in a net profit margin of about 3.8% [50]. - Total revenue for the year reached approximately RMB 217,997,000, with a 27% increase in cost of sales to about RMB 149,764,000 [35]. Content Production and Distribution - The series "Flying Tiger" achieved over 4.6 billion views on the Youku platform, highlighting the potential of high-quality content and distribution arrangements [11]. - The company produced two film projects during the year, with the first film "I Love You, You're Perfect, Now Change!" receiving positive audience reception during the Chinese New Year [12]. - The sequel to "Flying Tiger" is expected to premiere in the second half of 2019, following the success of the original series [11]. - The company has already launched two series on major mainland online video platforms Youku and iQIYI, capitalizing on the rapid growth of the online video market in China [15]. - The company is collaborating with major online video platforms like iQIYI and Youku to produce series, with one series achieving over 4.6 billion views [24]. Artist and Event Management - The artist and event management segment recorded substantial growth, managing over 50 artists, doubling the number from 2017, which will drive continued expansion in film and series production [12]. - The artist management division has doubled its roster to over 50 artists, aiming to enhance revenue in the coming years [25]. Market Environment - The total box office revenue in mainland China grew by 9% year-on-year, exceeding RMB 60 billion, although ongoing US-China trade disputes may impact domestic consumption levels [15]. - The online video market in China has over 600 million users with a penetration rate of 76%, showing double-digit annual growth [18]. - The company has faced significant challenges in the investment environment, particularly in the Chinese market [187]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance with governance principles [60]. - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors [65]. - The company has established specific committees to enhance corporate governance, including the executive, audit, remuneration, and nomination committees [93]. - The board is responsible for overseeing the company's operations and ensuring that management aligns with the best interests of shareholders and stakeholders [81]. - The company emphasizes the importance of independent non-executive directors in its governance structure [84]. Risk Management and Compliance - The company has implemented a risk management and internal control system in compliance with the corporate governance code, with no significant risks identified in the 2018 risk assessment [112]. - The internal control system is based on the COSO framework, ensuring operational effectiveness, reliability of financial reporting, and compliance with applicable laws [115]. - The audit committee confirmed that the financial disclosures comply with applicable standards and regulations [96]. - The company is committed to compliance with relevant laws and regulations, as well as environmental policies impacting its operations [194]. Environmental Impact - Total greenhouse gas emissions increased to 32,670 kg in 2018 from 28,132 kg in 2017, representing a 9% rise [155]. - Total energy consumption rose to 33,851 kWh in 2018, up from 26,169 kWh in 2017, marking a 29% increase [159]. - The total amount of harmless waste remained constant at 216 kg for both 2017 and 2018, with a per employee harmless waste generation of 6.97 kg in 2018, down from 8.64 kg in 2017, indicating a 19% reduction [155]. - The company reported zero hazardous waste generation for both years, maintaining a consistent performance in waste management [155]. - The company emphasizes energy-saving measures, including the use of high-efficiency lighting and electronic communication to reduce paper usage [158]. Employee Management - Employee distribution shows 32% under 30 years old, 58% between 30-50 years old, and 10% over 50 years old, indicating a youthful workforce [165]. - The company adheres to all labor laws, ensuring employee rights and providing competitive compensation based on market conditions [162]. - The company has implemented various strategies to enhance employee satisfaction, including regular team-building activities and health insurance benefits [164]. - The company emphasizes employee training and development, providing opportunities for on-the-job training and regular performance reviews to identify talent for promotion [170]. - The company adheres strictly to occupational safety regulations, ensuring a safe working environment, with no work-related injuries or fatalities reported this year [171]. Shareholder Communication - The company emphasizes the importance of maintaining effective communication with investors and shareholders through financial reports and announcements [130]. - The company has established its own corporate website to facilitate communication with shareholders and the public [130]. - The company ensures that shareholder opinions are communicated to the board during annual general meetings [133]. - The company maintains a public and effective investor communication policy to keep investors informed about business developments [134]. - The company encourages shareholder participation in meetings to foster dialogue and engagement [133].