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 | | | 致：香港交易及結算所有限公司 公司名稱: 傳遞娛樂有限公司 呈交日期: 2025年9月2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) | 01326 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 32,000,000,000 | HKD | | 0.0025 | HKD | | 80,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 32,000,000,000 | HKD | | 0.0025 | HKD | | 80,000,000 | FF301 II. 已發行股份及/或庫存股 ...

Core Viewpoint - The Hong Kong Securities and Futures Commission has initiated insider trading charges against businessman Huang Baoming, with a preliminary hearing set for November 20 to December 12, 2025, following his denial of the charges [1] Company Summary - Huang Baoming is accused of insider trading related to shares of Transmission Entertainment Limited, previously known as Tianma Film and Television Culture Holdings Limited [1]

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 | | | 致：香港交易及結算所有限公司 公司名稱: 傳遞娛樂有限公司 呈交日期: 2025年8月4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) | 01326 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 32,000,000,000 | HKD | | 0.0025 | HKD | | 80,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 32,000,000,000 | HKD | | 0.0025 | HKD | | 80,000,000 | 本月底法定/註冊股本總額： HKD 80, ...

Group 1 - China's Q2 GDP growth reached 5.2%, exceeding expectations, leading to a rally in Hong Kong stocks [1] - The Hang Seng Technology Index surged by 2.8%, while the Hang Seng Index and the National Enterprises Index rose by 1.6% and 1.65% respectively [1][2] - Major technology stocks performed strongly, with Alibaba rising nearly 7%, Meituan and Baidu up over 4%, and Tencent increasing by 3.5% [2][4] Group 2 - The cryptocurrency sector faced challenges, with Bitcoin dropping below $117,000, leading to a decline in related stocks [2] - Real estate development investment in China fell by 11.2% year-on-year in the first half of the year, impacting domestic property stocks significantly [2][13] - The construction materials and cement stocks also saw declines, with major players like Jinyu Group and Anhui Conch Cement dropping over 6% and 4% respectively [11][12] Group 3 - The innovative drug sector showed strength, with companies like BeiGene and CSPC Pharmaceutical rising over 7% [7][8] - Stablecoin-related stocks performed well, with Yunfeng Financial increasing by 19.5% and Weishi Jiajie up by 11% [9][10] - The entertainment sector saw gains, with China Star Group rising over 10% and Tencent Music increasing by over 5% [15] Group 4 - Southbound funds recorded a net inflow of HKD 3.824 billion, indicating strong interest in Hong Kong stocks [18] - Analysts noted a shift in investor sentiment towards undervalued stocks, with some funds looking to capitalize on recent price corrections in major internet companies [17]

Group 1 - The core viewpoint of the news highlights the recent performance of Transmit Entertainment, which saw a significant stock price increase of 33.33% to HKD 0.056 per share, with a trading volume of 7.832 million shares and a turnover of HKD 377,800 [1] - Over the past month, Transmit Entertainment has achieved a cumulative increase of 23.53%, and a year-to-date increase of 20%, outperforming the Hang Seng Index by 4.97% [1] - Financial data indicates that as of December 31, 2024, Transmit Entertainment reported total revenue of HKD 28.6517 million, a year-on-year decrease of 21.76%, and a net profit attributable to shareholders of -HKD 8.5159 million, reflecting a year-on-year increase of 61.13% [1] Group 2 - The company operates as a diversified film and cultural industry group, engaging in film and television production, distribution, and licensing, as well as cinema operations and various entertainment-related businesses [2] - Transmit Entertainment focuses on the Chinese mainland and Hong Kong markets, producing Chinese-language variety shows and dramas while pursuing a strategy of brand diversification [2] - The company aims to integrate resources from writers, directors, and artists to create quality content and develop popular film copyrights, establishing a unique full-industry chain model [2] Group 3 - Currently, there are no institutional investment ratings for Transmit Entertainment [1] - The media and entertainment industry has an average price-to-earnings (P/E) ratio of -5.78 times, with a median of -1.08 times, while Transmit Entertainment's P/E ratio stands at -0.32 times, ranking 104th in the industry [1] - Comparatively, other companies in the industry have P/E ratios such as Huashi Group Holdings at 1.73 times, Yaoxing Technology Group at 2.85 times, and others ranging from 3.66 to 5.92 times [1]

Financial Performance - Revenue for the six months ended December 31, 2024, was HK$30,940,000, a decrease of 21.9% compared to HK$39,545,000 in the same period of 2023[6] - Gross profit for the period was HK$4,145,000, compared to a gross loss of HK$29,000 in the previous year[6] - Loss before tax from continuing operations was HK$7,991,000, significantly improved from a loss of HK$45,281,000 in the prior year[6] - Loss for the period from continuing operations was HK$7,901,000, compared to HK$40,715,000 in the same period last year[6] - Total comprehensive expense for the period was HK$8,000,000, an improvement from HK$24,304,000 in the previous year[6] - For the six months ended December 31, 2024, the loss attributable to owners of the Company was HK$9,196,000, a decrease from HK$23,660,000 in the same period of 2023, representing a 61.2% improvement[7] - Total comprehensive expense for the period attributable to owners of the Company was HK$7,191,000, down from HK$21,260,000 in the previous year, indicating a 66.1% reduction[7] - Basic loss per share from continuing operations was HK$0.27, compared to HK$1.42 in the prior year, reflecting an 81.0% improvement[7] Cost Management - Administrative expenses decreased to HK$10,148,000 from HK$25,943,000, reflecting a cost reduction strategy[6] - Total staff costs for continuing operations decreased to HK$5,399,000 in 2024 from HK$9,404,000 in 2023, reflecting a reduction of approximately 42.5%[78] - The company’s total costs for services provided for television series production amounted to HK$5,139,000 in 2024, down from HK$8,458,000 in 2023, representing a decrease of approximately 39.5%[78] - Administrative expenses decreased by approximately HK$15.8 million or approximately 60.9%, from approximately HK$26.0 million to approximately HK$10.1 million[189] Asset and Liability Management - Non-current assets decreased to HK$24,449,000 as of December 31, 2024, from HK$30,556,000 as of June 30, 2024, a decline of 19.9%[9] - Current assets totaled HK$330,593,000, down from HK$364,832,000, representing a decrease of 9.4%[9] - Current liabilities were HK$486,799,000, a slight decrease from HK$505,708,000, indicating a 3.7% reduction[10] - Net current liabilities increased to HK$156,206,000 from HK$140,876,000, reflecting a 10.9% increase[10] - Total equity showed a decline to HK$207,098,000 from HK$185,098,000, marking an increase in net liabilities by 11.9%[10] - The Company reported a decrease in trade and other receivables to HK$117,319,000 from HK$132,722,000, a reduction of 11.6%[9] Operational Focus and Strategy - The company is focusing on improving operational efficiency and reducing costs in the upcoming periods[6] - Future outlook includes potential market expansion and new product development initiatives[6] - The overall financial performance reflects a strategic shift following the cessation of the film exhibition business, allowing for a more concentrated focus on television and pan entertainment segments[50] - The Group plans to focus on developing film and TV series production and artiste agency business in Mainland China, aiming to create a pan entertainment ecosystem[175] - The Group is preparing several projects, including the development of popular copyrighted works, to enhance profitability and competitive edges in the industry[180] Discontinued Operations - The film exhibition segment ceased operations in July 2024 and is presented as a discontinued operation, with revenue from this segment at HK$4,192,000 for the six months ended December 31, 2024, down from HK$30,150,000 in 2023[31] - The film exhibition business was classified as discontinued, with revenue of approximately HK$4.2 million for the Period under Review[174] - The film exhibition business will cease operations after the lease at Langham Place Cinema expires on July 22, 2024, reallocating financial resources to higher potential growth areas, resulting in a revenue of approximately HK$4.2 million during the review period[192] Cash Flow and Financing - For the six months ended December 31, 2024, the net cash used in operating activities was HK$2,954,000, a decrease from HK$15,587,000 in the same period of 2023[18] - The net cash from investing activities was HK$28,984,000, compared to HK$30,535,000 in the prior year[18] - The net cash used in financing activities was HK$14,706,000, significantly reduced from HK$61,964,000 in the previous year[18] - The Group expects sufficient working capital to meet its financial obligations within the next twelve months, supported by future cash flows from TV series production and a loan facility of RMB183,000,000 (approximately HK$194,000,000)[20] Revenue Breakdown - Revenue from television series production and distribution decreased to HK$6,597,000, down 13.0% from HK$7,584,000 year-over-year[31] - Pan entertainment income fell to HK$24,343,000, a decline of 23.8% from HK$31,961,000 in the previous year[31] - Revenue from continuing operations in Mainland China decreased to HK$30,940,000 for the six months ended December 31, 2024, down 21.5% from HK$39,545,000 in the same period of 2023[61] Impairment and Losses - The company recognized impairment losses on intangible assets amounting to HK$12,088,000[64] - The impairment loss on intangible assets for the six months ended December 31, 2023, was approximately HK$12.1 million, determined based on the difference between recoverable amount and carrying value[199] - No impairment loss was recognized for intangible assets during the review period, as the carrying amount of approximately HK$0.9 million is considered insignificant and subject to amortization[197] Share Capital and Financing Instruments - The total issued and fully paid share capital as of December 31, 2024, is HK$6,489,000, with 2,595,613,733 shares issued[124] - The issuance of perpetual bonds on September 7, 2023, amounted to HK$6,000,000, with an annual interest rate of 4.5%[15] - The perpetual bond issued amounted to HK$5,750,000 with a fixed interest rate of 4.5% per annum, redeemable at the issuer's option on or after 14 January 2030[161]

Financial Performance - The group recorded revenue of approximately HKD 30.9 million for the six months ended December 31, 2024, a decrease of approximately HKD 8.6 million or 21.8% compared to the same period last year[3]. - Total revenue for the six months ended December 31, 2024, was HKD 30,940,000, a decrease of 21.9% compared to HKD 39,545,000 for the same period in 2023[20]. - Revenue from television production and distribution was HKD 6,597,000, down from HKD 7,584,000, representing a decline of 13.0%[20]. - Revenue from pan-entertainment services was HKD 24,343,000, a decrease of 23.7% from HKD 31,961,000[20]. - The company reported a net loss of HKD 23,660,000 for the six months ended December 31, 2024, compared to a loss of HKD 27,625,000 for the same period in 2023[11]. - The total comprehensive loss for the period attributable to owners of the company was HKD 23.66 million, compared to HKD 9.196 million in the previous year[7]. - The group reported a net cash inflow from operating activities of HKD 6.18 million for the six months ended December 31, 2024, down from HKD 33.23 million in 2023, representing a decrease of about 81.4%[64]. Expenses and Cost Management - Administrative expenses decreased to HKD 10.148 million from HKD 25.943 million year-on-year[5]. - Total employee costs decreased to HKD 5,399,000 in 2024 from HKD 9,404,000 in 2023, reflecting a reduction of approximately 42.5%[41]. - The gross profit for the period was HKD 4.145 million, compared to a gross loss of HKD 29,000 in the same period last year[5]. - The gross profit from continuing operations was approximately HKD 4.1 million, an increase of about HKD 4.2 million, resulting in a gross profit margin of approximately 13.4% due to effective internal cost control measures[78]. - Other income and losses amounted to approximately HKD 3.9 million, an increase of about HKD 14.3 million compared to the same period last year, mainly due to no impairment losses recognized for intangible assets during the review period[80]. - Administrative expenses decreased by approximately HKD 15.8 million or 60.9% to about HKD 10.1 million, benefiting from effective internal cost control measures[81]. Assets and Liabilities - The company's total assets decreased to HKD 330.593 million as of December 31, 2024, from HKD 364.832 million as of June 30, 2024[8]. - Current liabilities decreased to HKD 486.799 million from HKD 505.708 million as of June 30, 2024[10]. - The company's equity deficit increased to HKD 691.837 million as of December 31, 2024, compared to HKD 684.646 million as of June 30, 2024[10]. - The company's total equity attributable to owners decreased to HKD (691,837,000) as of December 31, 2024, from HKD (355,547,000) as of June 30, 2024[11]. - The company's net current liabilities were HKD 156,206,000 as of December 31, 2024[16]. - Total debt as of December 31, 2024, was approximately HKD 175.1 million, compared to HKD 165.8 million as of June 30, 2024, indicating an increase in financial obligations[91]. - The group's debt-to-asset ratio was approximately 49.3% as of December 31, 2024, up from 41.9% as of June 30, 2024, reflecting a higher leverage position[91]. - The group's current ratio was approximately 0.68 as of December 31, 2024, a decrease from 0.72 as of June 30, 2024, indicating potential liquidity concerns[93]. Business Strategy and Operations - The company continues to focus on the development of its business in mainland China, which remains its primary source of revenue[3]. - The company plans to cease its film exhibition business by July 2024, which has been classified as discontinued operations[28]. - The group plans to focus on expanding its film and television production business in mainland China and enhancing its entertainment ecosystem, aiming to integrate resources across the industry chain[76]. - The film screening business will cease operations after the lease at Langham Place Cinema expires on July 22, 2024, allowing the company to reallocate financial resources to other higher-potential businesses[78]. - The company has not engaged in any significant acquisitions or disposals during the review period, aside from the terminated film exhibition business[94]. Financial Instruments and Funding - The company issued perpetual bonds amounting to HKD 6,000,000 during the period, with a fixed annual interest rate of 4.5%[14]. - The company plans to issue new perpetual bonds worth HKD 5,750,000 in January 2025 to support its financial obligations[16]. - The company issued perpetual bonds amounting to HKD 5.75 million to Mr. Zhang, with a fixed annual interest rate of 4.5% payable starting January 14, 2030[69]. Impairment and Valuation - The company recognized an impairment loss on intangible assets of HKD 12,088,000 in the six months ended December 31, 2023, which was not present in 2024[33]. - The carrying amount of intangible assets allocated to the cash-generating unit was approximately HKD 0.9 million as of December 31, 2024, down from approximately HKD 41.0 million as of December 31, 2023[84]. - The board believes that the impairment recognized in 2023 is fair and reasonable, considering the current severe environment in film and television production and distribution[90]. Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has complied with the relevant rules during the review period[100].

Business Strategy and Development - Transmit Entertainment Limited focuses on diversified development in film, television, and variety show content creation, aiming to enhance business value through a full industry chain model[2]. - The Group is actively expanding its revenue base by exploring opportunities in online streaming, short videos, celebrity cultivation, and traffic monetization[3]. - The company emphasizes collaboration with partners to enrich its industry layout and establish a comprehensive upstream and downstream industry chain[3]. - The Group aims to develop a pan entertainment ecosystem by integrating upstream and downstream industry chains, focusing on film and television production, and expanding revenue channels[76]. - The Group plans to leverage online collaboration platforms to create high-quality film and TV content while exploring business opportunities in online streaming and short videos[76]. - The strategy includes nurturing talented artistes and developing a self-owned full industry chain model to enhance profitability and competitive edges[78]. Financial Performance - For the year ended June 30, 2024, the revenue from TV series and variety show production and distribution was approximately HK$186.0 million, representing an increase of approximately 667.5% compared to the previous year[24]. - The Group's revenue for the year amounted to approximately HK$292.6 million, representing an increase of approximately HK$126.2 million or 75.8% compared to last year, mainly driven by the TV series production and distribution segment and the film exhibition segment, which contributed approximately HK$186.0 million and HK$55.9 million respectively[34]. - The Group's gross loss was approximately HK$71.4 million, a significant decline from a gross profit of approximately HK$46.2 million in the previous year, mainly due to impairments on several TV series in production and the sale of film and television copyrights[36][37]. - Other gains and losses and other income amounted to approximately HK$94.4 million, representing an increase of approximately HK$42.0 million or approximately 80.0% compared to last year, mainly including cinema operation right income and cinema promotion income[38][42]. - The Group's loss attributable to owners amounted to approximately HK$350.5 million, compared to a loss of approximately HK$186.9 million in the previous year, primarily due to the adverse impact of the post-pandemic restoration period and impairment of goodwill amounting to approximately HK$223.8 million[40][41]. Market Trends and Consumer Behavior - The number of internet users in China increased from 1.079 billion in June 2023 to 1.099 billion in June 2024, with online video users expanding from 1.044 billion to 1.068 billion, accounting for 97.1% of total internet users[17]. - The total retail sales of social consumer goods in China from January to August 2024 increased by 3.4% year-on-year, while retail sales of services increased by 6.9%[15]. - The total revenue of advertisement and consumer expenditure in the Chinese market is projected to reach US$362.5 billion by 2028, representing a compound growth rate of 7.1% per annum[17]. - The business activity index of various service industries, including telecommunications and broadcasting, was above 60%, indicating strong potential for service consumption growth[15]. Revenue Sources and Segments - The Group's revenue from film exhibition amounted to approximately HK$55.9 million, representing a decrease of approximately 21.9% compared to the last year, primarily due to weak consumer sentiment in the Hong Kong film industry[28]. - The revenue from pan entertainment recorded approximately HK$50.6 million, a decrease of approximately 28.3% compared to approximately HK$70.6 million last year, mainly due to a decline in revenue from artiste management[30]. - The Group's proportion of revenue from Mainland China was 80.9%, indicating that it remains the major source of income and business growth[23]. Management and Leadership - Ms. Zhao Wenzhu, aged 39, has over 14 years of experience in mass communications and has held various leadership roles in multiple media companies[88]. - Ms. Zhao has been the President of the Company since September 17, 2018, and was appointed as an executive Director on November 26, 2018[88]. - Ms. Zhao will resign from her positions as executive Director and President of the Company effective September 30, 2024[88]. - The Company has a diverse management team with extensive experience in various sectors, including mass communications and finance[88][90]. - The management team is focused on growth initiatives and strategic development within the media industry[88]. Corporate Governance and Compliance - The Company is committed to maintaining high standards of corporate governance practices, as detailed in the Corporate Governance Report[178]. - The Group has complied with relevant laws and regulations that significantly impact its business operations during the year ended June 30, 2024[113]. - The Group has obtained all necessary approvals, permits, and licenses for its business and operations for the year ended June 30, 2024[112]. - The Group respects the environment and is dedicated to sustainable development, as highlighted in the annual report[107]. Shareholding and Ownership - As of June 30, 2024, Mr. Zhang Liang, Johnson holds a total of 1,924,375,914 shares, representing approximately 74.14% of the company's issued shares[161]. - The total number of issued shares as of June 30, 2024, is 2,595,613,733[162]. - Nice Rich Group Limited, wholly owned by Mr. Zhang Liang, Johnson, holds 1,836,391,914 shares, accounting for 70.75% of the company's shares[165]. - The largest customer contributed approximately 29.0% of the Group's revenue for the year ended June 30, 2024, compared to 10.5% in the previous year[122]. Risk Management - The Group's capital risk management and financial risk management objectives and policies are detailed in notes 31 and 32 of the consolidated financial statements[106]. - The Group has not entered into any financial instruments for hedging purposes but will monitor foreign exchange and interest rate exposures closely[70]. - The Directors do not foresee significant risks from exchange rate fluctuations, as RMB fluctuations had no major impact on costs and operations during the year[70].

Financial Performance - For the six months ended December 31, 2023, the Group's salaries and other allowances decreased to HK$3,351,000 from HK$4,401,000, representing a decline of approximately 24%[6] - The remuneration of directors and key management personnel was determined based on individual performance and market trends, with total compensation for the period being HK$3,651,000 compared to HK$4,753,000 in the previous period, a decrease of approximately 23%[6] - The Group's revenue during the Period under Review amounted to approximately HK$69.7 million, representing a decrease of approximately HK$8.1 million or approximately 10.4% compared to the corresponding period last year[70] - Revenue from the pan entertainment and other segments was approximately HK$32.0 million, a decrease of approximately 19.9% compared to approximately HK$39.9 million for the same period last year[63] - The Group recorded a gross profit of approximately HK$17.2 million, a decrease of approximately HK$18.9 million or approximately 52.3% compared to the corresponding period last year, with a gross profit margin of approximately 24.7%[72] - Other gains and losses and other income amounted to approximately HK$23.2 million, representing a decrease of approximately HK$17.9 million or approximately 43.6% compared to the corresponding period last year[79] - The Group's loss attributable to the owners during the Period under Review was approximately HK$23.7 million, compared to a loss of approximately HK$16.9 million in the same period last year[82] Revenue Sources - For the six months ended December 31, 2023, the revenue from TV series and variety show production and distribution was approximately HK$7.6 million[48] - The film exhibition revenue during the same period was approximately HK$30.2 million, representing a decrease of approximately 13.9% compared to the previous year[49] - The proportion of revenue from Mainland China was approximately 56.7%, continuing to be the major source of revenue for the Group[47] Financial Assets and Liabilities - Financial assets at fair value through profit or loss (FVTPL) decreased to HK$6,632,000 as of December 31, 2023, down from HK$10,850,000 as of June 30, 2023, indicating a decline of approximately 39%[13] - The total fair value of financial assets as of December 31, 2023, was HK$6,632,000, with a notable decrease from the previous reporting period[13] - The Group's financial liabilities and assets are assessed using valuation techniques that include discounted cash flow methods, reflecting the credit risk of counterparties[13] - The Group's significant unobservable inputs for fair value measurements include discount rates used in estimating future cash flows[27] - The fair value measurement hierarchy for financial assets includes Level 2 for certain financial assets and Level 3 for others, indicating varying degrees of input observability[15] Impairment and Intangible Assets - An impairment loss of intangible assets amounting to approximately HK$12.1 million was recognized during the review period, primarily due to the adverse impact of the post-pandemic recovery phase on the company's operations[89] - The carrying amount of intangible assets allocated to the cash-generating unit of Wenlan was approximately HK$41.0 million as of December 31, 2023, down from approximately HK$48.8 million as of June 30, 2023[89] - The estimated recoverable amount of the cash-generating unit related to Wenlan was below its carrying amount, leading to the recognition of an impairment loss[98] Cost Control and Expenses - Administrative expenses decreased by approximately HK$13.9 million or approximately 34.9% to approximately HK$26.0 million, primarily due to effective internal cost control measures[81] - During the review period, the Group's total salaries and wages amounted to approximately HK$11.5 million, a decrease from approximately HK$17.8 million in the same period of the previous year[154] - The Group employed a total of 82 permanent employees as of December 31, 2023, down from 90 as of June 30, 2023[154] Future Strategies and Market Conditions - The Group is actively exploring innovative business models such as web series, online movies, and short videos[48] - The Group's strategy includes advancing brand diversification development[47] - The company anticipates intensified market competition in the post-pandemic era, which may further squeeze revenues and profit margins[95] - The implementation of government regulations, such as caps on actor salaries and episode limits, is expected to impact revenue and profit margins[131] Cash Flow and Financial Position - As of December 31, 2023, the Group's bank balances and cash amounted to approximately HK$71.4 million, a decrease from approximately HK$85.1 million as of June 30, 2023[143] - The Group's total debts were approximately HK$53.6 million and HK$110.1 million for bank and other borrowings and loans from related companies, respectively, compared to approximately HK$98.3 million and HK$83.4 million as of June 30, 2023[144] - The Group's gearing ratio was approximately 18.7% as of December 31, 2023, down from approximately 19.7% as of June 30, 2023[144] - The current ratio was approximately 0.87 as of December 31, 2023, compared to approximately 0.83 as of June 30, 2023[145] Shareholder Information - The Group's major shareholder, Nice Rich Group Limited, holds 1,836,391,914 shares, representing a 70.75% interest in the Company[191] - Mr. Zhang Liang, Johnson, is deemed to be interested in all shares registered in the name of Nice Rich, which he wholly owns[194] Compliance and Governance - The Group's financial statements are prepared in accordance with HKAS 34, ensuring compliance with relevant regulations[173] - The review of the condensed consolidated financial statements was conducted in accordance with Hong Kong Standard on Review Engagements 2410[172] - The Group's management discussion and analysis section provides insights into operational strategies and market conditions[163]

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 69,695,000, a decrease of 10.4% from HKD 77,775,000 in the same period of 2022[1] - Gross profit for the period was HKD 17,233,000, down from HKD 36,132,000, reflecting a significant decline in profitability[1] - The company reported a net loss of HKD 27,625,000 for the period, compared to a loss of HKD 13,412,000 in the previous year, indicating a worsening financial position[2] - The total comprehensive loss attributable to owners of the company was HKD 21,260,000, compared to a profit of HKD 30,475,000 in the prior period, highlighting a significant shift in overall performance[2] - Basic loss per share for the period was HKD 0.91, compared to HKD 0.65 in the same period last year, reflecting increased losses on a per-share basis[2] - The group reported a loss attributable to shareholders of approximately HKD 23.7 million, compared to a loss of approximately HKD 16.9 million for the same period in 2022[133] Income and Expenses - Other income increased to HKD 35,248,000 from HKD 26,559,000, showing a positive trend in non-operational revenue sources[1] - The company’s financing costs decreased to HKD 6,779,000 from HKD 9,341,000, suggesting improved management of debt obligations[1] - Total employee costs decreased to HKD 11,523 thousand in the six months ended December 31, 2023, down 35% from HKD 17,794 thousand in the same period of 2022[61] - Administrative expenses decreased by approximately HKD 13.9 million or 34.9% to about HKD 26.0 million, primarily due to effective internal cost control measures[156] Assets and Liabilities - The total assets as of December 31, 2023, were HKD 557,107,000, a slight increase from HKD 545,524,000 as of June 30, 2023[4] - The company’s cash and cash equivalents decreased to HKD 71,424,000 from HKD 85,108,000, indicating a reduction in liquidity[4] - The company reported a net current liability of HKD 83,817,000 as of December 31, 2023, indicating potential liquidity challenges[29] - The total equity as of December 31, 2023, was HKD 148,877,000, down from HKD 399,027,000 on July 1, 2022, reflecting a significant decrease in shareholder value[25] - The total liabilities as of December 31, 2023, were HKD 187,817,000, slightly down from HKD 190,071,000 as of June 30, 2023[114] Impairment and Losses - An impairment loss of intangible assets of approximately HKD 12.1 million was recognized during the review period due to the current market environment and increased competition post-pandemic[47] - The group recognized an impairment loss of approximately HKD 12.1 million on intangible assets during the review period due to adverse market conditions and increased competition post-COVID-19[162] - The company reported a loss of HKD 12,088,000 due to impairment of intangible assets for the six months ended December 31, 2023, compared to no impairment loss in the same period of 2022[88] Revenue Segments - Revenue from entertainment services, including influencer and actor services, is recognized at the point of service delivery, indicating a focus on timely revenue recognition[31] - The television production and distribution and pan-entertainment segments generated total revenue of approximately HKD 39.5 million, a decrease of about 7.5% year-on-year, with revenue from mainland China accounting for approximately 56.7% of total revenue[47] - Revenue from cinema operations was HKD 17,529,000 for the six months ended December 31, 2023, down from HKD 18,676,000 in the same period of 2022, indicating a decrease of approximately 6.1%[80] - Revenue from external customers for the television production and distribution segment was HKD 7,584 thousand, while the film screening segment generated HKD 30,150 thousand, totaling HKD 69,695 thousand for the six months ended December 31, 2023, a decrease of 10% from HKD 77,775 thousand in 2022[76] Future Outlook and Strategy - The group plans to develop and produce a series of popular IPs, including "Ideal City 2" and "Love Has Destiny," to enhance its content offerings[111] - The group aims to build a sustainable entertainment brand through the production of multiple seasons of "I Like You, I Am Too," leveraging strong viewership and online popularity[111] - The management anticipates no significant revenue growth in the artist management business during the forecast period, with expected declines compared to previous financial budgets[173] - The group plans to continue focusing on film and television production in mainland China and expand its entertainment ecosystem, exploring monetization channels from live streaming, short videos, and influencer incubation[129] Corporate Governance and Compliance - The company has adopted a set of rules regarding director securities trading, ensuring compliance with the listing rules[178] - The company will continue to review its corporate governance practices to meet increasing regulatory requirements and shareholder expectations[179] Miscellaneous - The board of directors did not recommend the payment of any interim dividend for the review period[47] - The company has not engaged in any significant investment projects or acquisitions during the review period[176] - The company has not purchased, sold, or redeemed any of its listed securities during the review period[177] - The management has expressed gratitude to employees and stakeholders for their support during the second half of 2023[181] - The company is committed to modernizing and maturing its operational levels for future growth[181]