股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01046 | 說明 | 寰宇娯樂文化 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,000,000 FF301 致：香港交易及結算所有限公司 公司名稱: 寰宇娛 ...

Group 1 - The core viewpoint of the article indicates that Huanyu Entertainment Culture (01046.HK) reported a revenue of approximately HKD 473 million for the fiscal year ending June 30, 2025, representing a year-on-year increase of 29.39% [1] - The company recorded an annual loss of approximately HKD 63.4 million, compared to a loss of about HKD 31.2 million in the previous year, indicating a significant increase in losses [1] - The increase in losses is primarily attributed to a rise in impairment losses related to film copyrights, films in production, and film-related deposits, which increased by approximately HKD 46.7 million compared to the previous year due to changes in market conditions and lower-than-expected box office performance [1]

[Company Information and Financial Summary](index=1&type=section&id=Company%20Information%20and%20Financial%20Summary) [General Information](index=6&type=section&id=General%20Information) Universe Entertainment and Culture Group, listed on HKEX, operates in film distribution, property rental, securities investment, and financial printing services - The Group's principal businesses include video distribution, film distribution and exhibition, licensing and sub-licensing of film rights, investment property leasing, securities investment, trading, wholesale and retail of optical and watch products, and financial printing services[8](index=8&type=chunk) - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited[9](index=9&type=chunk) - The consolidated financial statements are presented in **thousand Hong Kong Dollars (HKD)**[10](index=10&type=chunk) [Consolidated Statement of Comprehensive Income](index=1&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total revenue increased, but loss for the year significantly expanded, primarily due to substantial impairment losses on film rights Key Data from Consolidated Statement of Comprehensive Income | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | | | | | Sales of goods | 11,957 | 19,590 | -39.0% | | Film distribution business income | 421,433 | 309,579 | +36.1% | | Other business income | 39,202 | 36,088 | +8.6% | | **Total Revenue** | **472,592** | **365,257** | **+29.4%** | | Total cost of revenue | (404,499) | (302,292) | +33.8% | | Selling expenses | (7,382) | (8,043) | -8.2% | | Administrative expenses | (52,144) | (59,341) | -12.1% | | Reversal of impairment loss on film-related deposits/(Impairment loss) | 223 | (5,122) | -104.3% | | Impairment loss on film rights and films in progress | (69,067) | (17,032) | +305.5% | | Impairment loss on trading securities | (1,350) | – | N/A | | Loss before tax | (58,454) | (26,009) | +124.7% | | Income tax expense | (4,976) | (5,187) | -4.1% | | **Loss for the year** | **(63,430)** | **(31,196)** | **+103.3%** | | Total comprehensive expense for the year | (63,432) | (31,171) | +103.5% | | Loss attributable to owners of the Company | (63,190) | (30,441) | +107.6% | | Loss attributable to non-controlling interests | (240) | (755) | -68.2% | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total assets and liabilities decreased significantly, mainly due to reduced film rights, while the current ratio improved to **1.4** Key Data from Consolidated Statement of Financial Position | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Property, plant and equipment | 34,643 | 38,473 | -9.9% | | Investment properties | 28,740 | 29,840 | -3.7% | | Film rights and films in progress | 40,778 | 409,116 | -90.0% | | Film-related deposits | 58,538 | 57,809 | +1.3% | | Total non-current assets | 167,111 | 540,507 | -69.1% | | Inventories | 1,234 | 2,716 | -54.6% | | Trade and other receivables | 90,570 | 27,170 | +233.3% | | Cash and cash equivalents | 135,245 | 132,324 | +2.2% | | Total current assets | 268,593 | 196,905 | +36.4% | | **Total Assets** | **435,704** | **737,412** | **-40.9%** | | **Equity** | | | | | Equity attributable to owners of the Company | 241,304 | 306,824 | -21.4% | | Non-controlling interests | (3,548) | (4,436) | -20.0% | | **Total Equity** | **237,756** | **302,388** | **-21.4%** | | **Liabilities** | | | | | Total non-current liabilities | 2,865 | 6,163 | -53.5% | | Trade and other payables | 10,189 | 11,102 | -8.3% | | Contract liabilities | 58,350 | 305,088 | -80.9% | | Total current liabilities | 195,083 | 428,861 | -54.5% | | **Total Liabilities** | **197,948** | **435,024** | **-54.5%** | | **Total Equity and Liabilities** | **435,704** | **737,412** | **-40.9%** | | Net current assets/(liabilities) | 73,510 | (231,956) | N/A | | Gearing ratio | 3.0% | 3.7% | -0.7% | | Current ratio | 1.4 | 0.5 | +0.9 | - Total assets significantly decreased by **40.9%**, primarily due to the book value of film rights and films in progress falling from **HKD 409.1 million** to **HKD 40.8 million**[6](index=6&type=chunk) - The current ratio significantly improved from **0.5** to **1.4**, indicating enhanced short-term solvency[55](index=55&type=chunk) [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) Income tax expense for the year was **HKD 4.976 million**, a slight decrease from last year, primarily comprising PRC Enterprise Income Tax and PRC Withholding Tax Income Tax Expense | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | PRC Enterprise Income Tax (expense for the year) | 2,746 | – | | PRC Enterprise Income Tax (over-provision for the year) | (46) | (367) | | PRC Withholding Tax (expense for the year) | 2,262 | 5,568 | | PRC Withholding Tax (under-provision for the year) | 28 | – | | Deferred tax (origination and reversal of temporary differences) | (14) | (14) | | **Income Tax Expense** | **4,976** | **5,187** | - Provision for Hong Kong Profits Tax is calculated at **16.5%** of the estimated assessable profit for the year[24](index=24&type=chunk) - Provision for PRC Enterprise Income Tax is calculated at **25%** of the estimated assessable profit for the year[25](index=25&type=chunk) - Net income derived from film distribution and exhibition, licensing and sub-licensing of film rights in the PRC is subject to a **10%** PRC Withholding Tax[25](index=25&type=chunk) [Loss Per Share](index=14&type=section&id=Loss%20Per%20Share) Basic and diluted loss per share for the year expanded to **HKD 0.0697**, up from **HKD 0.0336** last year, due to increased loss for the year with an unchanged weighted average number of ordinary shares outstanding Loss Per Share | Metric | 2025 (HKD) | 2024 (HKD) | | :--- | :--- | :--- | | Loss attributable to owners of the Company (thousand HKD) | (63,190) | (30,441) | | Weighted average number of ordinary shares in issue | 906,632,276 | 906,632,276 | | **Basic loss per ordinary share** | **(0.0697)** | **(0.0336)** | | **Diluted loss per ordinary share** | **(0.0697)** | **(0.0336)** | - Diluted loss per share is the same as basic loss per share because there were no potential dilutive ordinary shares in issue during the year[27](index=27&type=chunk) [Dividends](index=14&type=section&id=Dividends) The Board does not recommend the payment of a final dividend for the year ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of a final dividend for the year ended June 30, 2025 (2024: nil)[28](index=28&type=chunk) [Trade and Other Receivables](index=15&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, net trade and other receivables significantly increased by **233.3%** to **HKD 90.57 million**, with a notable rise in receivables over 180 days old Ageing Analysis of Trade and Other Receivables | Ageing | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | 1 to 90 days | 60,402 | 14,655 | | 91 to 180 days | 2,317 | 7,922 | | Over 180 days | 27,851 | 4,593 | | **Net** | **90,570** | **27,170** | - Net trade and other receivables increased by **233.3%** year-on-year to **HKD 90.57 million**[29](index=29&type=chunk) - Trade receivables over 180 days old increased more than **5 times** from **HKD 4.593 million** to **HKD 27.851 million**[30](index=30&type=chunk) - The Company grants credit periods ranging from **0 to 180 days** for sales of video products, film exhibition, licensing and sub-licensing of film rights, trading and wholesale of optical and watch products, and financial printing services, with regular credit assessments of customers[30](index=30&type=chunk) [Trade and Other Payables](index=16&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables were **HKD 10.189 million**, a slight decrease from the prior year, with all amounts expected to be settled within one year Ageing Analysis of Trade and Other Payables | Ageing | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | 1 to 90 days | 5,060 | 5,738 | | 91 to 180 days | 636 | 1,436 | | Over 180 days | 4,493 | 3,928 | | **Total** | **10,189** | **11,102** | - Total trade and other payables decreased by **8.2%** year-on-year to **HKD 10.189 million**[31](index=31&type=chunk) - All trade and other payables are expected to be settled or recognized as income within one year or are repayable on demand[31](index=31&type=chunk) [Accounting Policies and Segment Information](index=6&type=section&id=Accounting%20Policies%20and%20Segment%20Information) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The Group's consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles, and the Hong Kong Companies Ordinance, adhering to HKEX Listing Rules - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance, and comply with the Listing Rules of the Stock Exchange[11](index=11&type=chunk) - The statements are prepared on a historical cost basis, modified for the fair value revaluation of other equity investments and investment properties[11](index=11&type=chunk) [Accounting Policies](index=7&type=section&id=Accounting%20Policies) The Group adopted all new and revised Hong Kong Financial Reporting Standards effective July 1, 2024, without significant changes to accounting policies or financial statement presentation, and is currently assessing the impact of new standards not yet in effect - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective for accounting periods beginning on July 1, 2024[12](index=12&type=chunk) - The adoption of these new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies, the presentation of the consolidated financial statements, or the reported amounts for the current and prior years[12](index=12&type=chunk) - The Group has commenced an assessment of the impact of new and revised Hong Kong Financial Reporting Standards that are not yet effective but is not yet in a position to state whether they will have a significant impact[12](index=12&type=chunk) [Segment Information](index=7&type=section&id=Segment%20Information) The Group is organized into six reportable segments based on business (products and services), with management independently monitoring each segment's performance and assessing it based on loss before tax - The Group is organized into departments based on business (products and services) and manages its businesses in a manner consistent with how information is reported internally to the chief operating decision-maker[13](index=13&type=chunk) - The Group has presented the following reportable segments: video distribution, film distribution and exhibition, licensing and sub-licensing of film rights; trading, wholesale and retail of optical and watch products; rental of investment properties; securities investment; financial printing services; and others (i.e., entertainment business)[14](index=14&type=chunk) - Segment performance is assessed based on reported segment loss, which is a measure of loss before tax, but excludes other income, unallocated finance income, unallocated finance costs, and unallocated corporate expenses[15](index=15&type=chunk) [Segment Revenue, Results, Assets, and Liabilities](index=8&type=section&id=Segment%20Revenue,%20Results,%20Assets,%20and%20Liabilities) In 2025, film distribution revenue significantly increased by **36.2%**, but segment loss expanded due to impairment losses; optical and watch product revenue decreased by **42.6%** but loss narrowed; financial printing services revenue grew by **9.6%** with improved loss; and the securities investment segment recorded an **HKD 1.35 million** impairment loss 2025 Segment Revenue and Results | Segment | Revenue (thousand HKD) | Results (thousand HKD) | | :--- | :--- | :--- | | Video distribution, film distribution and exhibition, licensing and sub-licensing of film rights | 422,505 | (52,532) | | Trading, wholesale and retail of optical and watch products | 10,885 | (2,088) | | Rental of investment properties | 645 | (717) | | Securities investment | – | (1,350) | | Financial printing | 36,608 | (323) | | Others | 1,949 | 956 | | **Total** | **472,592** | **(56,054)** | 2025 Segment Assets and Liabilities | Segment | Assets (thousand HKD) | Liabilities (thousand HKD) | | :--- | :--- | :--- | | Video distribution, film distribution and exhibition, licensing and sub-licensing of film rights | 230,391 | 158,366 | | Trading, wholesale and retail of optical and watch products | 3,371 | 5,148 | | Rental of investment properties | 28,799 | 153 | | Securities investment | – | – | | Financial printing | 19,219 | 14,513 | | Others | 9,035 | 1,577 | | **Total Segment** | **290,815** | **179,757** | | **Consolidated Total** | **435,704** | **197,948** | - Amortization of film rights and films in progress amounted to **HKD 315.824 million**, and impairment loss on film rights and films in progress was **HKD 69.067 million**[16](index=16&type=chunk) [Geographical Information](index=12&type=section&id=Geographical%20Information) The Group's operations are primarily located in Hong Kong and the PRC, with the PRC and other Asian countries contributing **87.0%** of revenue in 2025, and non-current assets mainly concentrated in Hong Kong Geographical Revenue and Non-Current Assets | Region | 2025 Revenue (thousand HKD) | 2025 Non-current Assets (thousand HKD) | 2024 Revenue (thousand HKD) | 2024 Non-current Assets (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | 56,515 | 139,757 | 70,703 | 512,502 | | PRC and other Asian countries | 411,370 | 24,952 | 286,926 | 24,793 | | Others | 4,707 | – | 7,628 | – | | **Total** | **472,592** | **164,709** | **365,257** | **537,295** | - The PRC and other Asian countries (excluding Hong Kong and Macau) contributed **87.0%** (**HKD 411.37 million**) of the total revenue for the year[21](index=21&type=chunk) - Non-current assets (excluding financial instruments and deferred tax assets) in Hong Kong amounted to **HKD 139.757 million**, representing **84.8%** of total non-current assets[21](index=21&type=chunk) [Major Customer Information](index=12&type=section&id=Major%20Customer%20Information) In 2025, one customer in the video distribution and film distribution business segment contributed **10% or more** of the Group's revenue, totaling approximately **HKD 168.07 million**, a significant increase from the prior year - For the year ended June 30, 2025, one customer in the video distribution, film distribution and exhibition, licensing and sub-licensing of film rights segment contributed **10% or more** of the Group's revenue, amounting to approximately **HKD 168.07 million** (2024: approximately **HKD 88.45 million**)[22](index=22&type=chunk) [Business and Operations Review](index=18&type=section&id=Business%20and%20Operations%20Review) [Overall Group Performance](index=18&type=section&id=Overall%20Group%20Performance) The Group's revenue for the year was approximately **HKD 472.6 million**, a **29.4%** increase year-on-year, but loss for the year expanded to approximately **HKD 63.4 million**, primarily due to an increase of approximately **HKD 46.7 million** in impairment losses on film rights, films in progress, and film-related deposits Overall Group Performance Overview | Metric | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 472.6 | 365.3 | +29.4% | | Loss for the year | 63.4 | 31.2 | +103.2% | - The increase in loss was primarily due to an increase of approximately **HKD 46.7 million** in impairment losses on film rights, films in progress, and film-related deposits compared to the prior year, driven by changes in comparable market conditions and lower-than-expected box office performance[37](index=37&type=chunk) [Video Distribution, Film Distribution and Exhibition, Licensing and Sub-licensing of Film Rights](index=18&type=section&id=Video%20Distribution,%20Film%20Distribution%20and%20Exhibition,%20Licensing%20and%20Sub-licensing%20of%20Film%20Rights) Revenue for this segment grew **36.2%** to **HKD 422.5 million**, accounting for **89.4%** of total Group revenue, mainly due to more Group-produced films premiering in cinemas, but segment loss expanded **205.2%** to **HKD 52.5 million** due to increased impairment losses on film rights - Revenue for this business segment increased by approximately **36.2%** to approximately **HKD 422.5 million** (last year: approximately **HKD 310.2 million**), primarily due to a greater number of Group-produced films premiering in cinemas during the year[38](index=38&type=chunk) - This segment now accounts for approximately **89.4%** of the Group's total revenue (last year: approximately **84.9%**)[38](index=38&type=chunk) - The segment recorded a loss of approximately **HKD 52.5 million**, an increase of **205.2%** compared to a loss of approximately **HKD 17.2 million** last year, mainly due to an increase of approximately **HKD 46.7 million** in impairment losses on film rights, films in progress, and film-related deposits compared to the prior year[38](index=38&type=chunk) - Impairment losses on film rights of approximately **HKD 69.067 million** (2024: **HKD 17.032 million**) were recognized, and a reversal of impairment loss on film-related deposits of approximately **HKD 223,000** (2024: impairment loss of approximately **HKD 5.122 million**) was recorded[40](index=40&type=chunk) - The PRC film market saw a **22.6%** decrease in total box office in 2024 but a **22.9%** year-on-year increase in the first half of 2025[41](index=41&type=chunk) - Looking ahead, the Group plans to address market challenges by focusing on high-quality content creation, adopting more stringent investment strategies, and strict cost control, with plans to produce and distribute new films including "Shock Wave 3", "Ah Lung", and "The Birth of a Department"[42](index=42&type=chunk)[44](index=44&type=chunk) [Trading, Wholesale, and Retail of Optical and Watch Products](index=20&type=section&id=Trading,%20Wholesale,%20and%20Retail%20of%20Optical%20and%20Watch%20Products) Revenue for this segment decreased by **42.6%** to **HKD 10.9 million** due to a weak Hong Kong retail market, accounting for **2.3%** of total Group revenue, but segment loss decreased by **62.5%** to **HKD 2.1 million** after terminating PRC watch product business and closing unprofitable Hong Kong stores - The sustained pressure on the Hong Kong retail market led to a decrease in revenue for this business segment by approximately **42.6%** to approximately **HKD 10.9 million** (last year: approximately **HKD 19.0 million**)[43](index=43&type=chunk) - This segment now accounts for approximately **2.3%** of the Group's revenue for the year (last year: approximately **5.2%**)[43](index=43&type=chunk) - To address challenges, the Group terminated its trading, wholesale, and retail business of watch products in the PRC and closed several unprofitable stores in Hong Kong[43](index=43&type=chunk) - The segment loss for this business segment for the year was approximately **HKD 2.1 million**, a decrease of approximately **62.5%** compared to approximately **HKD 5.6 million** last year[43](index=43&type=chunk) - Looking ahead, the Group will maintain strict cost control measures and adjust its business scale to further reduce losses in this segment[43](index=43&type=chunk) [Rental of Investment Properties](index=21&type=section&id=Rental%20of%20Investment%20Properties) Rental income for the year was approximately **HKD 645,000**, a **25.3%** year-on-year decrease, accounting for **0.1%** of Group revenue, with an impairment loss on investment properties of approximately **HKD 1.1 million** leading to a segment loss of approximately **HKD 717,000** - Rental income for the year was approximately **HKD 645,000** (last year: approximately **HKD 863,000**), a year-on-year decrease of **25.3%**[45](index=45&type=chunk) - Fair value loss on investment properties was approximately **HKD 1.1 million** (2024: **HKD 1.6 million**)[45](index=45&type=chunk) - The Group recorded a segment loss from investment properties of approximately **HKD 717,000** for the year (last year: approximately **HKD 1.1 million**)[45](index=45&type=chunk) [Financial Printing Services](index=21&type=section&id=Financial%20Printing%20Services) Revenue for the financial printing segment increased by **9.6%** to **HKD 36.6 million**, driven by IPO projects and accounting for **7.7%** of total Group revenue, with segment loss improving to **HKD 323,000** as the Group transitions to electronic filing services amid a strong IPO market recovery - The Group provides one-stop financial printing services, including typesetting, translation, printing, design, distribution services, and other related services[46](index=46&type=chunk) - Segment revenue for the year increased by **9.6%** to approximately **HKD 36.6 million** (last year: approximately **HKD 33.4 million**), primarily driven by increased revenue from initial public offering projects[47](index=47&type=chunk) - This segment now accounts for approximately **7.7%** of the Group's total revenue (last year: approximately **9.2%**)[47](index=47&type=chunk) - The financial printing segment's loss for the year was approximately **HKD 323,000**, an improvement from a loss of approximately **HKD 361,000** last year[47](index=47&type=chunk) - The Hong Kong IPO market showed a strong recovery in the first half of 2025, with **42** listing transactions raising approximately **HKD 107.1 billion**, a **700%** increase compared to the same period last year[49](index=49&type=chunk) - The Group is accelerating its transition from paper-based filing services to electronic filing services and leveraging its team's expertise and experience to seize new opportunities in the booming IPO market[50](index=50&type=chunk) [Geographical Contribution](index=22&type=section&id=Geographical%20Contribution) Overseas markets contributed approximately **88.0%** of the Group's revenue for the year, an increase from the prior year, highlighting their growing importance to the Group's revenue - Overseas markets accounted for approximately **88.0%** of the Group's revenue for the year (2024: approximately **80.6%**)[51](index=51&type=chunk) [Selling Expenses](index=22&type=section&id=Selling%20Expenses) Selling expenses decreased by **7.5%** year-on-year to **HKD 7.4 million**, primarily due to the Group's scaling down of its optical and watch product trading, wholesale, and retail business Selling Expenses | Metric | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling expenses | 7.4 | 8.0 | -7.5% | - Selling expenses decreased by approximately **7.5%** year-on-year, primarily due to the Group's scaling down of its optical and watch product trading, wholesale, and retail business[52](index=52&type=chunk) [Administrative Expenses](index=22&type=section&id=Administrative%20Expenses) Administrative expenses decreased by **12.1%** year-on-year to **HKD 52.1 million**, mainly attributable to the implementation of cost control measures Administrative Expenses | Metric | 2025 (million HKD) | 2024 (million HKD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 52.1 | 59.3 | -12.1% | - The decrease in administrative expenses was due to the implementation of cost control measures during the year[53](index=53&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group remains cautiously optimistic about the prospects of its video distribution, film distribution, and financial printing businesses, managing these segments with a restrained and prudent strategy, while scaling down its optical and watch retail business to control costs and actively seeking new investment opportunities to diversify revenue streams - The Group remains cautiously optimistic about the prospects of its video distribution, film distribution and exhibition, film rights licensing, and financial printing businesses, and will maintain a restrained and prudent strategy in managing these segments[54](index=54&type=chunk) - Due to the shrinking Hong Kong retail market, the Group is scaling down its optical and watch retail business to control costs and conserve cash[54](index=54&type=chunk) - The Group will prudently seek and identify new potential investments and business opportunities to diversify its revenue sources[54](index=54&type=chunk) [Financial Resources, Liquidity, and Capital Structure](index=23&type=section&id=Financial%20Resources,%20Liquidity,%20and%20Capital%20Structure) [Financial Position](index=23&type=section&id=Financial%20Position) As of June 30, 2025, the Group had cash and cash equivalents of approximately **HKD 135.2 million** and total assets of approximately **HKD 435.7 million**, with the gearing ratio decreasing to **3.0%** and the current ratio improving to **1.4**, indicating enhanced liquidity Key Financial Position Indicators | Metric | 2025 (million HKD) | 2024 (million HKD) | | :--- | :--- | :--- | | Cash and cash equivalents | 135.2 | 132.3 | | Total assets | 435.7 | 737.4 | | Gearing ratio | 3.0% | 3.7% | | Current ratio | 1.4 | 0.5 | - Management closely monitors the Group's current and anticipated liquidity position and believes the Group will have sufficient financial resources to meet its future working capital and other financing requirements in the foreseeable future[56](index=56&type=chunk) [Finance Costs and Currency Risk](index=23&type=section&id=Finance%20Costs%20and%20Currency%20Risk) Finance costs for the year were approximately **HKD 552,000**, primarily interest on lease liabilities, and the Group faces foreign exchange risk from transactions denominated in HKD, RMB, and USD, particularly RMB, which it actively monitors Finance Costs | Metric | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Finance costs | 552 | 535 | - The Group is exposed to foreign exchange risk arising from various currency risks, primarily related to RMB, and will continue to take proactive measures and monitor closely[56](index=56&type=chunk) [Fundraising Activities and Asset Pledges](index=23&type=section&id=Fundraising%20Activities%20and%20Asset%20Pledges) The Company did not undertake any fundraising activities through the issuance of new shares during the year, nor were any assets pledged to secure liabilities - The Company did not undertake any fundraising activities through the issuance of new shares during the year (2024: nil)[57](index=57&type=chunk) - As of June 30, 2025, no assets of the Group were pledged to secure any liabilities (2024: nil)[60](index=60&type=chunk) [Significant Acquisitions and Disposals of Assets](index=23&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Assets) The Group did not engage in any significant acquisitions or disposals of assets during the year - The Group did not undertake any significant acquisitions or disposals of assets during the year (2024: nil)[59](index=59&type=chunk) [Pending Litigation](index=16&type=section&id=Pending%20Litigation) The Group faces several pending lawsuits, including claims from Star Overseas Limited regarding film revenue sharing and copyright infringement for "Shaolin Soccer", and a patent infringement claim from Koninklijke Philips Electronics N.V. (KPE) concerning video compact discs, with the Board deeming it premature to predict outcomes and thus no provisions made for potential liabilities - Independent third party Star Overseas Limited filed a lawsuit against Universe Entertainment Limited, an indirect wholly-owned subsidiary of the Company, alleging payment of **USD 935,872** (approximately **HKD 7,299,799**) as revenue share for the film "Shaolin Soccer"[32](index=32&type=chunk) - Universe Entertainment has paid Star Overseas **HKD 5,495,700** plus related interest and fees, but a claim balance of approximately **HKD 1,804,099** remains[33](index=33&type=chunk) - Universe Entertainment and Universe Laser & Digital Company Limited also filed counterclaims against Star Overseas, alleging improper use of jointly owned film rights and infringement of licensed rights[34](index=34&type=chunk)[35](index=35&type=chunk) - Koninklijke Philips Electronics N.V. (KPE) previously filed claims against the Company, Universe Laser, and Mr. Lam Siu Ming concerning video compact disc patent infringement, with the lawsuits against the Company and Mr. Lam Siu Ming terminated, and the claim against Universe Laser settled by agreement[35](index=35&type=chunk) - Based on legal counsel's advice, the Board believes it is premature to predict the outcome of the aforementioned claims and that they will not have a significant financial impact on the Group, thus no provisions have been made in the consolidated financial statements for any potential liabilities[35](index=35&type=chunk) [Corporate Governance and Internal Control](index=24&type=section&id=Corporate%20Governance%20and%20Internal%20Control) [Employees and Remuneration Policy](index=24&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the Group had **116** employees, an increase of **9** from the prior year, with remuneration reviewed annually and employee benefits including discretionary bonuses, medical insurance, and a Mandatory Provident Fund Number of Employees | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of employees | 116 | 107 | - Remuneration is reviewed annually, and certain employees may receive commissions; in addition to basic salaries, employee benefits also include discretionary bonuses, medical insurance plans, and a Mandatory Provident Fund[61](index=61&type=chunk) [Share Option Scheme](index=24&type=section&id=Share%20Option%20Scheme) The Company adopted a new share option scheme on December 4, 2023, to recognize and incentivize eligible participants' contributions and performance, with terms governing subscription price, maximum share numbers (10% scheme mandate limit, 3% sub-limit for service providers), vesting periods, and performance targets, with no share options issued or outstanding during the year - The Company adopted a new share option scheme on December 4, 2023, to replace the old share option scheme which expired on December 1, 2023[62](index=62&type=chunk) - The new share option scheme aims to recognize and acknowledge the contributions of eligible participants (including employees, connected entities, and service providers) to the Group, incentivize them to optimize performance, and maintain or attract favorable business relationships[63](index=63&type=chunk)[65](index=65&type=chunk) - The subscription price for share options must be at least the highest of the closing price of the shares on the date of grant, the average closing price of the shares for the five (5) business days immediately preceding the date of grant, and the nominal value of the shares[67](index=67&type=chunk) - The total number of shares subject to all options granted under the new share option scheme and any other share option schemes of the Company shall not exceed **10%** of the total issued shares at the adoption date (scheme mandate limit)[68](index=68&type=chunk) - The sub-limit for service providers shall not exceed **3%** of the total issued shares, unless approved by shareholders[68](index=68&type=chunk) - The vesting period for share options shall not be less than **12 months** from the date of acceptance of the offer, but may be shortened at the discretion of the Board under specific circumstances (e.g., new joiners, termination of employment, or performance-based vesting conditions)[73](index=73&type=chunk) - The Board may specify performance targets, including financial and management objectives, for each offer to be achieved by the grantee to provide meaningful incentives[75](index=75&type=chunk) - Share options will automatically lapse upon the grantee's serious misconduct, bankruptcy, breach of service contract, or conviction of a criminal offense[76](index=76&type=chunk) - No share options under the old and new share option schemes were issued or outstanding during the year (last year: nil)[79](index=79&type=chunk) [Dividend Policy](index=31&type=section&id=Dividend%20Policy) The Company adopted a dividend policy on September 27, 2019, to allow shareholders to share in profits while retaining liquidity for growth opportunities, with the Board considering various factors before recommending dividends, subject to legal and regulatory compliance, and without guaranteeing any specific dividend amount - The Board adopted a dividend policy on September 27, 2019, aiming to allow shareholders to participate in the Company's profits through dividend distributions while preserving the Company's liquidity to seize future growth opportunities[80](index=80&type=chunk) - The Board shall consider factors such as the Company's operational and financial performance, liquidity position, capital requirements and future funding needs, contractual restrictions, available reserves, and the prevailing economic climate before recommending and declaring dividends[81](index=81&type=chunk)[82](index=82&type=chunk) - Dividend declarations are subject to any restrictions under the Bermuda Companies Act, the Listing Rules, the Bye-laws, and any applicable laws, rules, and regulations[81](index=81&type=chunk) - No guarantee is given that dividends will be paid for any specified period or at any particular amount[81](index=81&type=chunk) [Corporate Governance Code and Report](index=32&type=section&id=Corporate%20Governance%20Code%20and%20Report) The Company is committed to maintaining a high-quality Board, effective risk management, and internal control systems, and strictly adheres to disclosure practices, having complied with the Corporate Governance Code during the year with two deviations: the roles of Chairman and Chief Executive are not separated (Mr. Lam Siu Ming holds both), and the Chairman did not meet with non-executive directors without executive directors present - The Company has adopted and applied a set of corporate governance principles aimed at maintaining a high-quality Board, implementing effective risk management and internal control systems, strictly enforcing disclosure practices, transparent mechanisms, and accountability[83](index=83&type=chunk) - The Company has complied with the code provisions set out in the Corporate Governance Code during the year, with the following two exceptions: (i) code provision C.2.1 of the Corporate Governance Code regarding the separation of the roles of Chairman and Chief Executive; and (ii) code provision C.2.7 of the Corporate Governance Code requiring the Chairman to meet with non-executive directors[84](index=84&type=chunk) - Mr. Lam Siu Ming, the founder and Chairman of the Company, also performs the duties of the Chief Executive Officer, and the Board believes the current structure is more suitable for the Group[84](index=84&type=chunk) - As Chairman Mr. Lam Siu Ming is also an executive director, the Company deviated from the code provision requiring the Chairman to meet with non-executive directors at least annually without the presence of executive directors[85](index=85&type=chunk) [Risk Management and Internal Control System](index=33&type=section&id=Risk%20Management%20and%20Internal%20Control%20System) The Board is responsible for establishing, maintaining, and reviewing the Group's risk management and internal control systems, designed to manage rather than eliminate risk, based on the COSO framework, and annually reviewed for effectiveness; the Group engages external consultants for annual risk assessments and internal control reviews, and the Board considers the systems effective and adequate - The Board is responsible for establishing, maintaining, and reviewing the Group's risk management and internal control systems, which are designed to manage rather than eliminate risk, and to provide reasonable rather than absolute assurance[86](index=86&type=chunk) - The risk management and internal control systems are largely based on the framework established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)[86](index=86&type=chunk) - The Group does not have a separate internal audit department but engages external consultants to assist the Board and the Audit Committee in evaluating the risk management and internal control systems[87](index=87&type=chunk)[88](index=88&type=chunk) - External consultants assist in conducting annual risk assessments and developing a three-year rolling internal audit plan using a risk-based approach[88](index=88&type=chunk) - The Group has adopted an inside information disclosure policy to ensure insiders comply with confidentiality requirements and fulfill inside information disclosure obligations[88](index=88&type=chunk) - For the year, the Board considered the risk management and internal control systems to be effective and adequate[89](index=89&type=chunk) [Standard Code for Securities Transactions by Directors](index=34&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance during the year - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules as the code for directors to deal in the Company's securities[90](index=90&type=chunk) - All directors confirmed compliance with the Standard Code during the year[90](index=90&type=chunk) [Audit Committee](index=34&type=section&id=Audit%20Committee) The Company's Audit Committee, established on October 11, 1999, comprises three independent non-executive directors and meets at least twice annually with external auditors to oversee auditor appointments, financial information review, financial and accounting practices, internal controls, and risk management, and has reviewed the audited consolidated financial statements for the year - The Company established an Audit Committee on October 11, 1999, comprising three independent non-executive directors: Mr. Choi Wing Kwun (Chairman), Ms. Pang Suet Hing, and Mr. Tang Yiu Wing[91](index=91&type=chunk) - The Audit Committee meets with external auditors at least twice a year and is primarily responsible for appointing, re-appointing, and removing external auditors, reviewing the Group's financial information, and overseeing the Group's financial and accounting practices, internal controls, and risk management[91](index=91&type=chunk) - The audited consolidated financial statements for the year have been reviewed by the Audit Committee[92](index=92&type=chunk) [Purchase, Sale, or Redemption of Listed Securities](index=34&type=section&id=Purchase,%20Sale,%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year - The Company did not redeem any of its shares during the year; neither the Company nor any of its subsidiaries purchased or sold any of the Company's listed securities during the year[93](index=93&type=chunk) [Auditor's Scope of Work and Report Publication](index=35&type=section&id=Auditor's%20Scope%20of%20Work%20and%20Report%20Publication) [Auditor's Scope of Work](index=35&type=section&id=Auditor's%20Scope%20of%20Work) The Group's auditor, ZHONGHUI ANDA CPA Limited, has reconciled the amounts in the consolidated statement of financial position, consolidated statement of comprehensive income, and related notes in the preliminary results announcement with the audited consolidated financial statements, noting that this work does not constitute an assurance engagement and thus no assurance has been issued on the preliminary results announcement - The Group's auditor, ZHONGHUI ANDA CPA Limited, has reconciled the amounts presented in the consolidated statement of financial position, consolidated statement of comprehensive income, and related notes in the Group's preliminary results announcement for the year ended June 30, 2025, with the amounts presented in the Group's audited consolidated financial statements for the year ended June 30, 2025[94](index=94&type=chunk) - The work performed by ZHONGHUI ANDA CPA Limited in this regard does not constitute an assurance engagement in accordance with Hong Kong Standards on Auditing, Hong Kong Standards on Review Engagements, or Hong Kong Standards on Assurance Engagements issued by the Hong Kong Institute of Certified Public Accountants, and therefore no assurance has been issued on the preliminary results announcement[94](index=94&type=chunk) [Publication of Annual Results Announcement and Annual Report](index=35&type=section&id=Publication%20of%20Annual%20Results%20Announcement%20and%20Annual%20Report) This announcement has been published on the websites of the Stock Exchange and the Company, and the Company's 2025 Annual Report will be dispatched to shareholders and uploaded to the aforementioned websites in due course - This announcement has been published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (www.uih.com.hk)[95](index=95&type=chunk) - The Company's 2025 Annual Report will be dispatched to shareholders and uploaded to the aforementioned websites in due course[95](index=95&type=chunk)

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 明 確 表 示 概 不 就 因 本 公 佈 全 部 或任何部份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。 UNIVERSE ENTERTAINMENT AND CULTURE GROUP COMPANY LIMITED 寰宇娛樂文化集團有限公司 （於百慕達註冊成立之有限公司） （股份代號：1046） 董事會會議日期 寰 宇 娛 樂 文 化 集 團 有 限 公 司（「本公司」）之 董 事 會（「董事會」）宣 佈 將 於 二 零 二 五 年 九 月 二 十 九 日（星 期 一）舉 行 董 事 會 會 議，其 中 包 括 批 准 刊 發 本 公 司 及 其 附 屬 公 司 截 至 二 零 二 五 年 六 月 三 十 日 止 年 度 之 經 審 核 末 期 業 績 公 佈，以 及 考 慮 建 議 派 發 末 期 股 息（如 有）。 承董事會命 寰宇娛樂文化集團有限公司 主席兼執行董事 林小明 香港，二零二五年九月十日 於 本 公 佈 日 期，本 公 司 執 行 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 公司名稱: 寰宇娛樂文化集團有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01046 | 說明 | 寰宇娯樂文化 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,000,000 FF301 第 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 寰宇娛樂文化集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01046 | 說明 | 寰宇娯樂文化 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 ...

Financial Performance - Total revenue for the six months ended December 31, 2024, was HK$249,032,000, a decrease of 16% compared to HK$296,430,000 in the same period of 2023[18]. - Loss before tax for the period was HK$72,279,000, compared to a profit of HK$5,418,000 in the previous year[18]. - Total comprehensive loss for the period attributable to owners of the company was HK$74,338,000, compared to a comprehensive income of HK$518,000 in the same period last year[20]. - The company reported a net cash used in operating activities of HK$3,963,000, a significant decline from net cash generated of HK$115,852,000 in the prior period[26]. - The Group incurred a loss of approximately HK$74.7 million for the Period, compared to a profit of approximately HK$52,000 in the Last Period[181]. Assets and Liabilities - As of December 31, 2024, total assets decreased to HK$526,475,000 from HK$737,412,000 as of June 30, 2024, representing a decline of approximately 28.5%[12]. - Current liabilities decreased to HK$294,399,000 from HK$428,861,000, a reduction of about 31.3%[15]. - The net current liabilities improved to HK$78,181,000 from HK$231,956,000, indicating a significant reduction in financial strain[15]. - Total equity attributable to the owners of the Company decreased to HK$232,486,000 from HK$306,824,000, reflecting a decline of approximately 24.2%[12]. - The Group's total assets related to joint operations amounted to HK$69,683,000 as of December 31, 2024, compared to HK$51,523,000 as of June 30, 2024[110]. Revenue Breakdown - Income from film distribution and exhibition, licensing, and sub-licensing of film rights was HK$229,584,000, down from HK$273,388,000, reflecting a decline of 16%[18]. - The segment revenue from video distribution was HK$229,706,000, down 16.1% from HK$273,725,000 in the previous year[76][78]. - Revenue from the optical products trading segment was approximately HK$5.8 million, representing a decrease of approximately 45.8% compared to HK$10.7 million in the same period last year[196]. - Rental income from investment properties was approximately HK$371,000, down from approximately HK$506,000 in the last period[199]. Impairment and Losses - The company incurred an impairment loss of HK$64,540,000 related to film rights and films in progress[18]. - An impairment loss of approximately HK$64.5 million on film rights and films in progress was recorded during the Period, attributed to a decline in actual and expected income from these assets[182]. - The impairment loss for film rights and films in production totaled approximately HK$64.5 million, attributed to changes in expected performance of released films[193]. Cash and Cash Equivalents - The company's cash and cash equivalents decreased to HK$114,452,000 from HK$132,324,000, a reduction of about 13.5%[12]. - Cash and cash equivalents at the end of the period decreased to HK$114,452,000 from HK$175,233,000 at the end of the previous period[28]. Employee Expenses - Employee benefits expenses, including directors' emoluments, totaled HK$23,135,000 for the six months ended December 31, 2024, compared to HK$21,380,000 for the same period in 2023, representing an increase of 8.2%[134]. - The company's wages and salaries increased to HK$21,727,000 in the first half of 2024 from HK$19,038,000 in 2023, reflecting a growth of 14.1%[124]. Legal Matters - Universe Laser & Video Co. Limited ("ULV") claimed against Star for infringement of licensed rights, seeking recovery of all losses and damages[145]. - Koninklijke Philips Electronics N.V. ("KPE") has made claims against the Company and ULV regarding alleged patent infringements, with no reliable estimate of economic outflow at this time[150]. - The Group has no material pending litigations known to the Directors as of December 31, 2024[169]. Market Conditions - The film exhibition industry in the PRC experienced a total box office revenue of approximately RMB 42.5 billion in 2024, reflecting a year-over-year decline of approximately 22.6%[187]. - The Group's management noted that macroeconomic challenges and intense competition in the film industry adversely affected performance during the Period[188]. - The PRC film exhibition industry experienced a strong box office performance during the 2025 Chinese New Year season, indicating a recovery in market sentiment and new growth opportunities[192].

Financial Performance - Total revenue for the six months ended December 31, 2024, was HKD 249,032,000, a decrease of 16% compared to HKD 296,430,000 for the same period in 2023[2] - Revenue from film distribution and screening, as well as licensing income, was HKD 229,584,000, down 16% from HKD 273,388,000 year-on-year[2] - The company reported a loss before tax of HKD 72,279,000 compared to a profit of HKD 5,418,000 in the same period last year[3] - Total comprehensive loss for the period was HKD 74,776,000, compared to a total comprehensive income of HKD 52,000 in the prior year[5] - The company reported a basic and diluted loss per share of HKD (8.19) compared to earnings per share of HKD 0.06 in the previous year[5] - The company incurred a loss attributable to shareholders of HKD 74,277,000 for the six months ended December 31, 2024, compared to a profit of HKD 518,000 for the same period in 2023[31] - The company recorded revenue of approximately HKD 249.0 million for the six-month period ending December 31, 2024, a decrease of about 16.0% compared to approximately HKD 296.4 million in the previous period[58] - The company incurred a loss of approximately HKD 74.7 million during this period, compared to a profit of approximately HKD 52,000 in the previous period, primarily due to impairment losses of approximately HKD 64.5 million related to film rights and films in production[58] Assets and Liabilities - Non-current assets decreased to HKD 310,257,000 from HKD 540,507,000 as of June 30, 2024[7] - Current assets increased to HKD 216,218,000 from HKD 196,905,000 as of June 30, 2024[7] - Total liabilities decreased to HKD 298,863,000 from HKD 435,024,000 as of June 30, 2024[9] - The total assets as of December 31, 2023, amounted to HKD 610,744,000, while total liabilities were HKD 439,843,000[25] - Total assets as of December 31, 2024, were approximately HKD 526.5 million, a decrease from HKD 737.4 million as of June 30, 2024[75] - The current ratio (defined as total current assets divided by total current liabilities) was approximately 0.7 as of December 31, 2024, up from 0.5 as of June 30, 2024[76] - The debt-to-equity ratio as of December 31, 2024, was approximately 3.4%, slightly improved from 3.7% as of June 30, 2024[75] Segment Performance - The group reported external customer revenue of HKD 249,032 thousand for the six months ended December 31, 2024, with significant contributions from video distribution and eyewear products[24] - The group's pre-tax loss amounted to HKD 72,279 thousand, reflecting challenges in various segments, particularly in video distribution and financial printing services[24] - Total segment assets reached HKD 407,429 thousand, with the largest portion attributed to video distribution at HKD 351,576 thousand[24] - Segment liabilities totaled HKD 283,225 thousand, with video distribution accounting for HKD 266,125 thousand[24] - The group reported a segment performance loss of HKD 72,429 thousand, indicating operational challenges across various business segments[24] - Revenue recognized at a point in time was HKD 238,571 thousand, while revenue recognized over time was HKD 10,090 thousand[24] - Revenue from the eyewear trading, wholesale, and retail segment decreased by approximately 45.8% to HKD 5.8 million, accounting for about 2.3% of total group revenue[65] - Revenue from the financial printing segment increased by approximately 15.2% to HKD 12.9 million, driven by an increase in the number of listed clients and participation in IPO projects[68] Legal Matters - In a lawsuit initiated by Starry Overseas Limited, the company is claimed to owe USD 935,872 (equivalent to HKD 7,299,799) related to the film "Shaolin Soccer" revenue sharing[43] - The company has paid HKD 5,495,700 to Starry as part of the court order, leaving a remaining claim of approximately HKD 1,804,099[44] - The company has filed a counterclaim against Starry for unauthorized use of shared rights in the film, seeking damages for losses incurred[46] - The company is involved in ongoing litigation regarding the validity of an artist management contract, with a potential claim of approximately HKD 1.7 million for breach of contract[49] - A settlement was reached in July 2023, where the defendant agreed to pay a net amount of approximately HKD 500,000 to the company[50] - The company faced legal challenges, including a lawsuit from Chengdu Global Bona Cultural Media Limited claiming damages of approximately RMB 99.99 million (about HKD 113 million) for alleged copyright infringement, which was ultimately dismissed by the court[55] - The court ruled in favor of the company in a separate case, ordering Chengdu Global Bona to pay litigation costs of approximately RMB 549,800 (about HKD 605,000)[55] - The company is currently not facing any significant unresolved litigation or claims as of December 31, 2024[55] Corporate Governance and Compliance - The company has complied with the corporate governance code as of December 31, 2024, except for the separation of roles between the chairman and the CEO[103] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and internal controls of the group[104] - The company has adopted the standard code for securities trading by directors as per the listing rules appendix C3, confirming compliance during the specified period[106] Employee and Shareholder Matters - The company’s employee benefit expenses, including director remuneration, increased to HKD 23,135,000 for the six months ended December 31, 2024, from HKD 21,380,000 in 2023[27] - The group employed 116 staff as of December 31, 2024, an increase from 107 staff as of June 30, 2024[81] - The new share option plan was adopted on December 4, 2023, to recognize and incentivize eligible participants for their contributions to the group[82] - The new share option plan allows the company to grant options to eligible participants, including employees and related entities, to align their interests with the company's growth[85] - The maximum number of shares that can be issued under the new share option plan is capped at 10% of the total issued shares[90] - The service provider sub-limit for shares issued under the new share option plan is capped at 3% of the total issued shares[90] - The vesting period for stock options must not be less than 12 months, with flexibility for the compensation committee to shorten it based on performance criteria[95] - The board has the discretion to set performance targets for stock options, which may include financial and management goals based on individual and group performance[97] Future Outlook and Strategy - The group plans to adopt a more cautious investment approach for new films to meet audience expectations while reducing overall production costs[63] - The group will implement strict cost control measures and seek new opportunities to enhance operational and financial performance in response to a challenging environment[74] - The group maintains a cautiously optimistic outlook on the film distribution and exhibition business while closely monitoring market trends[74]

Financial Performance - The total box office of the film market in the PRC in 2023 was RMB 54.9 billion, representing a year-over-year increase of 82.6%[6] - Revenue from film distribution and exhibition, licensing, and sub-licensing of film rights increased by approximately 122.8% compared to the previous year[6] - The Group recorded a revenue of approximately HK$ 365.3 million during the year, representing a year-over-year increase of 84.1% compared to approximately HK$ 198.4 million in the last year[7] - The Group's loss for the year reduced significantly by approximately 66.6% to approximately HK$ 31.2 million, compared to a loss of approximately HK$ 93.4 million in the last year[7] - The narrowed loss is primarily attributable to the significant increase in revenue from video distribution and a decrease in total impairment loss of film rights[7] - For the year ended June 30, 2024, the Group recorded a revenue of approximately HK$365.3 million, a 84.1% increase from approximately HK$198.4 million in the previous year[12] - The Group's loss for the year was approximately HK$31.2 million, a significant reduction from a loss of approximately HK$93.4 million in the previous year, primarily due to increased revenue from film distribution and licensing[12] - Segment revenue from film distribution and exhibition, licensing, and sub-licensing of film rights was approximately HK$310.2 million, representing a 122.8% increase compared to approximately HK$139.2 million in the previous year[13] Market Challenges - The economic recovery pace will be affected by trade barriers and weak consumer sentiment, which will continue to pressure the Group's business[8] - The retail market in the PRC and Hong Kong faces challenges from global geopolitical conflicts, high interest rates, and a sluggish property market, impacting post-pandemic recovery efforts[22] - The total box office in the PRC for the first half of 2024 was RMB23.9 billion, a year-over-year decrease of 9.0%, but the market showed strong momentum with record box office performances during major holidays[18] Business Strategy - The Group will continue to operate prudently and explore new business and investment opportunities despite global geopolitical conflicts and economic uncertainties[8] - The Group plans to continue investing in original film production in the PRC and Hong Kong, with upcoming releases including "High Forces," "The Gilded Game," and "Shock Wave 3"[20] Financial Printing Segment - Revenue from the financial printing segment was approximately HK$33.4 million, representing an increase of approximately 23.2% compared to HK$27.1 million in the previous year[26] - The financial printing segment accounted for approximately 9.2% of the Group's revenue during the year, down from approximately 13.6% in the previous year[26] - Segmental loss from the financial printing segment decreased to approximately HK$361,000 from approximately HK$2.0 million in the previous year, mainly due to revenue and gross profit growth[26] Asset Management - As of June 30, 2024, the Group had cash and cash equivalents of approximately HK$132.3 million, an increase from approximately HK$80.9 million in 2023[40] - The Group's total assets as of June 30, 2024, were approximately HK$737.4 million, down from approximately HK$951.6 million in 2023[40] - The Group's gearing ratio increased to approximately 3.7% as of June 30, 2024, compared to approximately 3.1% in the previous year[40] - The current ratio improved to approximately 0.5 as of June 30, 2024, from approximately 0.3 in 2023[40] Corporate Governance - The Company has complied with the corporate governance code provisions throughout the year, except for the separation of roles between the Chairman and CEO, which is currently held by Mr. Lam Shiu Ming, Daneil[50] - The Board is collectively responsible for overseeing the management of business, strategic decisions, and financial performance for the best interests of shareholders[51] - The Board has delegated day-to-day management powers to executive Directors and senior management, regularly reviewing the delegation of responsibilities[54] - Financial controls include the approval of annual operating and capital expenditure budgets, consolidated financial statements, and internal control systems[55] - The Company has adopted corporate governance principles emphasizing a quality board, effective risk management, and stringent disclosure practices[49] Risk Management - The Group's risk management and internal control systems are based on the COSO framework, ensuring effective monitoring of risks associated with different business units[96] - An external consultant was engaged to evaluate the Group's risk management and internal control systems, leading to the identification of strategic, operational, financial, and compliance risks[99] - The Board reviews and approves the effectiveness and adequacy of the Group's risk management and internal control systems on an annual basis[97] Environmental, Social, and Governance (ESG) - The ESG Report covers the Group's entire range of business activities, including video distribution, film distribution and exhibition, retailing of optical products, and financial printing services for the year ended June 30, 2024[136] - The management intends to drive ESG initiatives throughout the Group and communicate ESG performance results with stakeholders[137] - The Group's ESG governance is prioritized by senior management, with the Board responsible for overall ESG policies and risk management[139] - An ESG working group has been established to implement strategies and assess risks related to environmental, social, and governance matters[139] Employee Management - The Group recognizes its employees as valuable assets and emphasizes the importance of teamwork in achieving success[169] - The Group is committed to equal opportunity employment, ensuring no discrimination against employees based on race, gender, or other protected characteristics[170] - The total workforce decreased from 128 employees in 2023 to 107 employees in 2024, resulting in a turnover rate of 54.5% for 2024 compared to 39.4% in 2023[181] - The Group provides appropriate safety guidelines and equipment, including Personal Protection Equipment (PPE), to workers exposed to safety risks[187] Sustainability Efforts - The Group aims to minimize non-hazardous waste generation and has implemented recycling initiatives, including placing recycling bins in accessible locations[156] - The Group has identified climate change risks, such as rising sea levels and extreme weather events, and is committed to monitoring relevant environmental issues[148] - The Group will continue to monitor climate change risks and adopt appropriate environmental protection measures as necessary[167]

Revenue Performance - Total revenue for the year ended June 30, 2024, was HKD 365,257,000, a significant increase of 84.2% compared to HKD 198,439,000 for the year ended June 30, 2023[1]. - Revenue from film distribution and screening, as well as licensing and sublicensing of film rights, surged to HKD 309,579,000, up from HKD 138,891,000, representing a growth of 122.4%[1]. - Total revenue for the year ending June 30, 2024, was HKD 365,257,000, with significant contributions from video distribution (HKD 310,176,000) and eyewear products (HKD 18,993,000) [11]. - Total revenue from major customers contributing 10% or more reached approximately HKD 88,450,000 for the year ending June 30, 2024, compared to HKD 77,788,000 in 2023, reflecting a growth of 8.5%[18]. - Total revenue for the year ended June 30, 2023, was HKD 198,439,000, with video distribution contributing HKD 139,201,000 and eyewear and watch products contributing HKD 21,891,000[13]. Financial Performance - The company reported a net loss of HKD 31,196,000 for the year, a reduction in loss compared to HKD 93,405,000 in the previous year, indicating an improvement of 66.7%[2]. - The company reported a pre-tax loss of HKD 26,009,000 for the year, with individual segment losses of HKD 17,226,000 from video distribution and HKD 5,647,000 from eyewear products [11]. - The company reported a basic loss per share of HKD (0.0336) for the year ending June 30, 2024, improving from a loss of HKD (0.1023) in 2023, indicating a reduction in losses by approximately 67%[22]. - The company recorded a total tax expense of HKD 5,187,000 for the year ending June 30, 2024, compared to a tax credit of HKD (2,450,000) in 2023, indicating a significant shift in tax position[20]. Assets and Liabilities - The total assets decreased to HKD 737,412,000 from HKD 951,565,000, reflecting a decline of 22.5%[4]. - The total liabilities decreased to HKD 435,024,000 from HKD 617,410,000, a reduction of 29.5%[5]. - The company’s accumulated losses rose to HKD 281,783,000 from HKD 251,342,000, indicating an increase of 12.1%[5]. - The company’s film rights and films in production decreased to HKD 409,116,000 from HKD 607,878,000, a decline of 32.7%[4]. Cash Flow and Financial Position - Cash and cash equivalents increased significantly to HKD 132,324,000 from HKD 80,854,000, marking a growth of 63.7%[4]. - The company’s financial income for the year was HKD 2,507,000, while financial costs amounted to HKD 535,000 [11]. - The debt-to-equity ratio was approximately 3.7% as of June 30, 2024, compared to 3.1% in the previous year[45]. Operational Changes and Strategies - The group plans to continue investing in the production of original quality films in China and Hong Kong to respond to the growing and challenging market environment[36]. - The group will cease its watch trading, wholesale, and retail business in China and gradually close unprofitable eyewear stores in Hong Kong to control operational expenses and cash outflow[37]. - The company has implemented policies to ensure sales on credit are made to customers with good credit records, conducting regular credit assessments[25]. Legal Matters - The company has a pending lawsuit from Starshine Overseas Limited, claiming a total of $935,872 (equivalent to HKD 7,299,799) related to the film "Shaolin Soccer" [27]. - The company is involved in another lawsuit with Koninklijke Philips Electronics N.V. regarding alleged patent infringement related to optical discs, but the outcome is currently uncertain [28]. - The company faced a civil claim from Chengdu Global Bona for approximately RMB 99.99 million (about HKD 110 million) regarding alleged copyright infringement, which was ultimately dismissed by the court[33]. Corporate Governance and Risk Management - The company has established a risk management and internal control system to protect shareholder interests and assets, ensuring effective monitoring of business risks[63]. - An external consultant has been hired to assist the board in evaluating the risk management and internal control system, identifying strategic, operational, financial, and compliance risks[64]. - The audit committee was established on October 11, 1999, and is composed of three independent non-executive directors[67]. Employee and Shareholder Matters - The number of employees decreased to 107 from 128 in the previous year, with annual salary reviews and additional benefits[48]. - The company has adopted a dividend policy effective from September 27, 2019, allowing shareholders to participate in profits while preserving liquidity for future growth opportunities[60]. - The board will periodically review the dividend policy and may adopt appropriate changes, but there is no guarantee of dividend payments for any specific period[61].