Core Viewpoint - The strategic partnership between Qianxun Technology and Luhua Securities aims to integrate virtual assets with the physical industry, enhancing business opportunities and driving innovation in the market [1][2]. Group 1: Partnership Details - Qianxun Technology and Luhua Securities signed a strategic cooperation agreement to collaborate on virtual asset trading license applications, RWA (mobile and tablet leasing) business, and stablecoin payment solutions in resource machine transactions [1]. - The collaboration is expected to allow both companies to enter the rapidly growing virtual asset trading market, expand their business boundaries, increase revenue sources, and enhance profitability [1]. Group 2: Market Potential and Innovation - The partnership is anticipated to innovate asset operation models in the RWA mobile and tablet leasing sector, providing new investment products and revitalizing the leasing market [1]. - The cooperation in stablecoin settlement payment for resource machines is expected to enhance the group's competitiveness in the supply chain and optimize transaction processes [1]. Group 3: Industry Insights - The founder of Qianxun Technology emphasized the importance of integrating virtual assets with the physical industry as a future trend, highlighting the significant market potential in Hong Kong, which has an annual trading volume exceeding HKD 100 billion [2]. - Industry experts noted that the collaboration represents a model for the deep integration of technology and finance, potentially leading to upgrades in related industrial chains and creating new economic growth points [2].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 356.8 million, a decrease of 5.8% compared to RMB 378.7 million in 2023[4]. - The Group reported a loss before tax of RMB 123.1 million for 2024, compared to a loss of RMB 32.1 million in 2023, representing an increase of 283.7%[4]. - The Group's loss for the year increased to RMB 123.7 million in 2024, compared to RMB 23.4 million in 2023, marking a 429.8% increase[4]. - The Group's gross profit was approximately RMB 22.5 million with a gross profit margin of approximately 6.3%, stable compared to the previous year's gross profit of RMB 23.6 million and margin of 6.2%[51]. - The loss attributable to the owners of the Company was approximately RMB 123.7 million, compared to a loss of approximately RMB 23.5 million for the previous year[50]. Advertising Revenue - The advertising revenue from television services decreased by 75.8% to RMB 39.2 million, while online advertising services fell by 72.4% to RMB 51.9 million[5]. - Revenue from TV advertising services for the year ended December 31, 2024, was approximately RMB 39.2 million, reflecting a significant decline due to intense market competition[29][35]. - Online advertising services revenue also saw a significant decline, amounting to approximately RMB 51.9 million during the same period, as the group reduced its efforts in this area[31][37]. - Revenue from outdoor advertising services was approximately RMB 12.3 million, indicating ongoing efforts to strengthen market penetration in this segment[33]. - Revenue from outdoor advertising services was approximately RMB 12.3 million, a decrease of approximately 31.7% from RMB 18.0 million for the previous year[48]. - Revenue from other advertising services amounted to approximately RMB 4.2 million, representing a decrease of approximately 58.8% from RMB 10.2 million for the previous year[60]. Strategic Initiatives - The Group aims to restructure its revenue model towards the second-hand economy sector over the next three years, focusing on sustainable growth[15]. - The Group plans to offset weaknesses in the advertising business with high growth in the second-hand e-commerce business, aiming for a fundamental restructuring of its revenue sources over the next three years[19][23]. - The Group is expanding its used electronic product supply chain business in the Asia Pacific region, North America, and the Middle East[17]. - The company plans to offset weaknesses in the advertising business with high growth in the second-hand e-commerce business in the short term[108]. - The group expects a brighter outlook for its advertising business in 2025, driven by improved macro-economic conditions and market environment[99]. Acquisitions and Investments - The acquisition of "Qian Xun Technology" in August 2024 contributed approximately RMB 246.2 million in sales turnover from used electronic products and RMB 3.0 million from SaaS services[14]. - The acquisition of the second-hand electronic product trading platform "Qian Xun Technology" in August 2024 has generated approximately RMB 246.2 million in sales and RMB 3.0 million in SaaS service revenue, contributing to segment profit[18]. - The company acquired Charm Linkage Holdings Limited for a total consideration of HK$82,600,000, completed on 13 August 2024, with part of the payment settled through the issuance of new shares[79][84]. Financial Position - The successful placement of convertible bonds amounting to HK$257 million on February 28, 2025, has strengthened the Group's financial position[17]. - The group successfully placed convertible bonds totaling HKD 257 million on February 28, 2025, enhancing its financial position to support advertising and second-hand electronic product platform business expansion[20]. - As of 31 December 2024, cash and cash equivalents amounted to approximately RMB 34.0 million, an increase from approximately RMB 17.9 million in the previous year[88]. - The Group's total assets as of 31 December 2024 were approximately RMB 459.2 million, with equity attributable to the owners of the Company at approximately RMB 153.8 million[88]. - The company's gearing ratio decreased from approximately 81.5% as of December 31, 2023, to approximately 53.3% as of December 31, 2024[96]. Corporate Governance - The company is committed to high standards of corporate governance and has complied with the Corporate Governance Code during the reporting period[123]. - The Group emphasizes high standards of business ethics and corporate governance, with training materials reinforcing required standards for all staff[150]. - The Company has adopted the Model Code for Directors' securities transactions, confirming compliance during the Reporting Period[153]. - The Board currently comprises two executive Directors and three Independent Non-executive Directors, ensuring a diverse skill set relevant to the Group's management[159]. - The Company has established a comprehensive corporate governance framework, including policies for training and continuous professional development of Directors and senior management[185]. Legal Matters - Legal action has been initiated against Ms. Wang for alleged misconduct, including forgery and unauthorized changes to legal representatives[118]. - The court has accepted the legal proceedings, but the trial date has not yet been notified[119]. - The company lost control and ownership of a subsidiary, Lingyu Beijing, due to unauthorized changes in legal representation and a secret sale of equity[116]. - The equity of Lingyu Beijing has undergone three transfers, complicating the legal recovery process[117]. - The company has engaged legal advisors to explore the possibility of recovering equity from Lingyu Beijing[117].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 356,833,000, a decrease of 5.8% compared to RMB 378,707,000 in 2023[4] - Gross profit for the same period was RMB 22,496,000, down from RMB 23,565,000, reflecting a decline of 4.5%[4] - The company reported a net loss attributable to owners of the company of RMB 123,702,000, compared to a loss of RMB 23,471,000 in 2023, representing an increase in loss of 426.5%[4] - Basic and diluted loss per share for the year was RMB 25.81, compared to RMB 5.87 in the previous year[4] - The adjusted pre-tax loss for the group increased to RMB 123,060 thousand in 2024 from RMB 32,069 thousand in 2023, reflecting a deterioration in performance[14] - The company reported a total loss attributable to owners of approximately RMB 123.7 million for the year, compared to RMB 23.5 million last year[48] - Gross profit for the year was approximately RMB 22.5 million with a gross margin of about 6.3%, compared to RMB 23.6 million and 6.2% last year, indicating stable gross profit margins[49] Revenue Breakdown - The advertising segment generated revenue of RMB 107,646 thousand in 2024, down from RMB 378,707 thousand in 2023, indicating a significant decrease of about 71.6%[14] - The e-commerce segment, newly established in 2024, reported revenue of RMB 249,187 thousand, contributing to the overall revenue[14] - Revenue from television advertising services for the year was approximately RMB 39.2 million, reflecting a significant decline due to intense market competition[39] - Revenue from digital advertising services was approximately RMB 51.9 million, also showing a substantial decrease amid fierce competition[40] - Revenue from outdoor advertising services was approximately RMB 12.3 million, with continued efforts to enhance market presence in various advertising formats[42] - Revenue from other advertising services amounted to approximately RMB 4.2 million, focusing on diverse media advertising solutions[44] Assets and Liabilities - Total assets decreased to RMB 459,186,000 from RMB 575,656,000, a decline of 20.2%[5] - Non-current assets increased significantly to RMB 111,494,000 from RMB 21,101,000, primarily due to the acquisition of goodwill[5] - Current liabilities decreased to RMB 303,418,000 from RMB 362,883,000, a reduction of 16.4%[6] - Trade receivables decreased to RMB 81,043,000 in 2024 from RMB 321,377,000 in 2023, representing a decline of about 75%[30] - Trade payables decreased to RMB 97,873,000 in 2024 from RMB 195,476,000 in 2023, showing a reduction of approximately 50%[31] - The total assets of the group as of December 31, 2024, were approximately RMB 459.2 million, with equity attributable to the owners of the company at approximately RMB 153.8 million[68] - The group's debt-to-equity ratio decreased from approximately 81.5% as of December 31, 2023, to approximately 53.3% as of December 31, 2024[71] Acquisitions and Investments - The company completed the acquisition of 100% equity in Qianxun International Limited on August 13, 2024, for a total consideration of RMB 85,171,000[32] - The identifiable net assets acquired from Qianxun International were valued at RMB 17,694,000, with goodwill arising from the acquisition amounting to RMB 67,477,000[34] - The company completed the acquisition of a second-hand electronic product trading platform, generating sales of approximately RMB 246.2 million and SaaS service revenue of about RMB 3.0 million since the acquisition[38] - The company’s cash and cash equivalents acquired in the acquisition amounted to RMB 1,984,000[34] Expenses and Costs - Total employee costs for 2024 amounted to RMB 11,199,000, up from RMB 6,602,000 in 2023, reflecting a year-over-year increase of approximately 69%[26] - Selling and marketing expenses rose by approximately 130.8% to RMB 6.0 million, mainly due to increased employee travel costs[51] - Administrative expenses increased by approximately 108.5% to RMB 17.1 million, attributed to a rise in employee numbers[52] - The company’s depreciation and amortization expenses totaled RMB 1,253,000 in 2024, compared to RMB 29,000 in 2023, indicating a substantial increase[26] - Financing costs decreased by approximately 32.9% to RMB 4.9 million, due to changes in the borrowing structure and a reduction in bank loans[54] Governance and Compliance - The company has applied new and revised International Financial Reporting Standards, which did not have a significant impact on financial performance[9] - The company anticipates that the adoption of other new and revised International Financial Reporting Standards will not have a significant impact on its consolidated financial statements in the foreseeable future[10] - The group has not proposed a final dividend for the year ended December 31, 2024, consistent with the previous year[82] - The group has maintained the minimum public float of 25% as required by the listing rules during the reporting period[81] - The executive directors are Sun Changpeng and Leng Xuejun, with independent non-executive directors including Lin Aiyin, Huang Chengsi, and Niu Zhongjie[90] - The announcement date is March 31, 2025, indicating the company's ongoing operations and governance structure[90] Future Outlook - The company plans to leverage high growth in the second-hand e-commerce business to offset weakness in the advertising business in the short term[75] - The launch of the first industry-specific second-hand 3C intelligent decision engine "Fenhao Cloud AI Assistant" based on the DeepSeek AI model occurred in March 2025[74] - The group aims to build a "technology + supply chain + finance" triangular barrier to become a benchmark enterprise in the circular economy in the long term[75]

Financial Performance - Revenue for the six months ended 30 June 2024 was RMB 67.144 million, a decrease of 69.2% compared to RMB 217.735 million in the same period in 2023[5] - Gross profit for the six months ended 30 June 2024 was RMB 4.954 million, a decrease of 32.0% compared to RMB 7.281 million in the same period in 2023[5] - Profit before tax for the six months ended 30 June 2024 was RMB 9.527 million, a significant increase of 7,905.9% compared to RMB 0.119 million in the same period in 2023[5] - Profit and total comprehensive income attributable to owners of the Company for the six months ended 30 June 2024 was RMB 5.366 million, an increase of 5,059.6% compared to RMB 0.104 million in the same period in 2023[5] - Earnings per share for the six months ended 30 June 2024 were RMB 1.31 cents, an increase of 3,175.0% compared to RMB 0.04 cents in the same period in 2023[5] - Revenue for the six months ended 30 June 2024 was RMB 67.144 million, a significant decrease from RMB 217.735 million in the same period in 2023[92] - Gross profit for the six months ended 30 June 2024 was RMB 4.954 million, down from RMB 7.281 million in the same period in 2023[92] - Profit before tax for the six months ended 30 June 2024 was RMB 9.527 million, compared to RMB 119 thousand in the same period in 2023[92] - Income tax expenses for the six months ended 30 June 2024 were RMB 4.161 million, significantly higher than RMB 15 thousand in the same period in 2023[92] - Profit and total comprehensive income for the six months ended 30 June 2024 was RMB 5.366 million, compared to RMB 104 thousand in the same period in 2023[92] - Basic and diluted earnings per share attributable to the owners of the Company for the six months ended 30 June 2024 were 1.31 cents, up from 0.04 cents in the same period in 2023[92] - Total revenue decreased by 69.2% to RMB 67,144 thousand in H1 2024 from RMB 217,735 thousand in H1 2023[106] - Revenue for the six months ended 30 June 2024 was RMB 67.144 million, a significant decrease from RMB 217.735 million in the same period in 2023[108] - Basic and diluted earnings per share for the six months ended 30 June 2024 were RMB 5,366 thousand, compared to RMB 146 thousand in the same period in 2023[121] Advertising Revenue Breakdown - Television advertising services revenue for the six months ended 30 June 2024 was RMB 16.255 million, a decrease of 83.6% compared to RMB 99.237 million in the same period in 2023[6] - Online advertising services revenue for the six months ended 30 June 2024 was RMB 17.877 million, a decrease of 83.8% compared to RMB 110.242 million in the same period in 2023[6] - Outdoor advertising services revenue for the six months ended 30 June 2024 was RMB 12.264 million, an increase of 53.8% compared to RMB 7.979 million in the same period in 2023[6] - Other advertising services revenue for the six months ended 30 June 2024 was RMB 20.748 million, a significant increase of 6,800% compared to RMB 0.277 million in the same period in 2023[6] - The company's TV advertising revenue declined significantly to approximately RMB 16.3 million due to intense market competition[15][17] - Online advertising revenue decreased significantly to approximately RMB 17.9 million as the company reduced its efforts in this area[19][21] - Outdoor advertising revenue increased significantly to approximately RMB 12.3 million, driven by the recovery of outdoor scenes and creative advertising solutions[22] - Revenue from other advertising services increased significantly to RMB20.7 million, up 6,800% from RMB0.3 million in the same period last year[31][37] - Outdoor advertising revenue rose to RMB12.3 million, a 53.8% increase from RMB8.0 million in the previous year[29][30] - TV advertising revenue dropped to RMB16.3 million, an 83.6% decrease from RMB99.2 million in the previous year[27][30] - Online advertising revenue fell to RMB17.9 million, an 83.8% decrease from RMB110.2 million in the same period last year[28][30] - Online advertising revenue dropped by 83.8% to RMB 17,877 thousand in H1 2024 from RMB 110,242 thousand in H1 2023[106] - Hard-sell TV advertising revenue declined by 83.6% to RMB 16,255 thousand in H1 2024 from RMB 99,237 thousand in H1 2023[106] - Outdoor advertising revenue increased by 53.7% to RMB 12,264 thousand in H1 2024 from RMB 7,979 thousand in H1 2023[106] - Other advertising services revenue surged to RMB 20,748 thousand in H1 2024 from RMB 277 thousand in H1 2023[106] - Revenue from advertisers decreased by 38.0% to RMB 19,635 thousand in H1 2024 from RMB 31,650 thousand in H1 2023[107] - Revenue from advertising agents dropped by 74.5% to RMB 47,509 thousand in H1 2024 from RMB 186,085 thousand in H1 2023[107] Market and Economic Environment - China's advertising market showed steady growth in the first half of 2024, with a year-on-year growth of 2.7%, reflecting the inherent resilience of the advertising industry and positive expectations for economic recovery[8] - China's GDP grew by 5.0% year-on-year in the first half of 2024, with the advertising market growing by 2.7% during the same period[12] - The company expects significant performance improvement in the second half of 2024, driven by steady development in the advertising market and growing market confidence[13][16] - The Group expects the global economy to show signs of recovery in 2024, but consumer confidence remains uncertain due to inflation and a weakening global economic environment[63] - The Group is optimistic about the medium-long-term prosperity and consumer upgrading of the domestic market, particularly in content marketing and integrated communications[65] Operational and Strategic Initiatives - The company provided TV advertising services for well-known brands in the food and beverage, furniture, and home appliance industries, gaining recognition from multiple clients[15][17] - The company enhanced its integrated Internet service capability, combining online advertising with traditional business experience to improve future Internet content integration[18][21] - The company leveraged its outdoor advertising resources to provide diversified scene-integrated communication solutions for clients in the furniture, home appliance, and technical services industries[20][21] - The Group plans to deepen its understanding of the evolving market environment and accelerate the adjustment and optimization of its business structure to strengthen core competencies in content marketing and integrated communication[60] - The Group will maintain and deepen its competitive advantages in TV communications and content marketing, while optimizing marketing strategies and media product mix[61] - The Group aims to enhance its Internet advertising communication service capabilities and provide clients with all-rounded digital marketing solutions[62] - The Group plans to deepen its brand promotion services in outdoor advertising by providing diversified and customized communication solutions[64] - The Group has launched a new second-hand electronic products trading business in China in August 2024, which has already generated revenue and profit[65] - The Group aims to improve operational efficiency and reduce costs through refined management, technological innovation, and process optimization[65] - The Group will continue to optimize its business structure and expand its brand operation business on internet platforms[65] Financial Position and Cash Flow - Gross profit margin improved to 7.4%, up from 3.3% in the previous year[32][38] - Administrative expenses rose to RMB5.5 million, a 32.7% increase from RMB3.7 million in the previous year[35][41] - Finance costs increased to RMB2.7 million, up 11.1% from RMB2.4 million in the same period last year[36][42] - Other income, gains, and losses decreased to RMB35,000, a 93.0% drop from RMB0.5 million in the previous year[33][39] - Reversal of impairment losses of financial assets was approximately RMB13.3 million, compared to an impairment loss of RMB0.5 million in the same period last year[43] - Income tax expenses were approximately RMB4.2 million, compared to RMB15,000 in the same period last year[43] - Profit and total comprehensive income amounted to approximately RMB5.4 million, compared to RMB0.1 million for the six months ended 30 June 2023[43] - Deferred tax assets decreased by 25.0% to approximately RMB15.6 million as of 30 June 2024, compared to RMB20.8 million as of 31 December 2023[43] - Trade receivables, prepayments, and other receivables increased by 5.6% to approximately RMB547.8 million as of 30 June 2024, compared to RMB518.6 million as of 31 December 2023[43] - Contract assets decreased by 100% to nil as of 30 June 2024, compared to RMB18.0 million as of 31 December 2023[43] - Trade and other payables increased by 12.6% to approximately RMB237.5 million as of 30 June 2024, compared to RMB210.9 million as of 31 December 2023[45] - Bank balances and cash increased to approximately RMB37.6 million as of 30 June 2024, compared to RMB17.9 million as of 31 December 2023, with 9.1% in RMB and 90.9% in HKD and USD[48] - The company disposed of Shanghai Kailun Advertising Co., Ltd. for a consideration of RMB0.2 million on 28 June 2024[47] - The Group's gearing ratio decreased from 81.5% as at 31 December 2023 to 49.0% as at 30 June 2024, primarily due to a decrease in bank loans[52] - Operating cash flow improved significantly to RMB 30,043 thousand in H1 2024, compared to a negative RMB 56,986 thousand in H1 2023[98] - Net cash from operating activities turned positive at RMB 26,623 thousand in H1 2024, versus a negative RMB 59,746 thousand in H1 2023[98] - Cash and cash equivalents increased to RMB 37,629 thousand at the end of H1 2024 from RMB 822 thousand at the end of H1 2023[98] - Total assets increased to RMB 601,397,000 as of 30 June 2024, up from RMB 575,656,000 at the end of 2023[93] - Current assets rose to RMB 585,488,000, compared to RMB 554,555,000 at the end of 2023, driven by higher trade receivables and bank balances[93] - Bank balances and cash increased significantly to RMB 37,629,000 from RMB 17,854,000 at the end of 2023[93] - Total equity grew to RMB 224,088,000, up from RMB 182,773,000 at the end of 2023, primarily due to an increase in share capital and reserves[93] - Current liabilities decreased slightly to RMB 356,509,000 from RMB 362,883,000 at the end of 2023, with a reduction in bank borrowings[93] - Non-current liabilities decreased to RMB 20,800,000 from RMB 30,000,000 at the end of 2023, reflecting a reduction in long-term borrowings[93] - The company recorded a profit and total comprehensive income of RMB 5,366,000 for the period[95] - The statutory reserve requirement mandates transferring at least 10% of post-tax profit to a statutory reserve, which can be used to offset losses or increase capital[97] - The acquisition of Beijing Ruicheng in 2019 resulted in a merger reserve of RMB 90,734,000 and a capital reserve of RMB 80,800,000[96] - The company's subsidiaries are required to maintain a statutory reserve balance of up to 50% of their registered capital[97] - Trade receivables as of 30 June 2024 were RMB 224,426 thousand, a decrease from RMB 321,377 thousand as of 31 December 2023[124] - Prepayments to suppliers increased significantly to RMB 308,286 thousand as of 30 June 2024, compared to RMB 182,800 thousand as of 31 December 2023[124] - Total trade and other receivables as of 30 June 2024 amounted to RMB 547,759 thousand, up from RMB 518,563 thousand as of 31 December 2023[124] - Trade payables decreased to RMB 130,664 thousand as of 30 June 2024, down from RMB 195,476 thousand as of 31 December 2023[131] - Accrued expenses increased substantially to RMB 101,312 thousand as of 30 June 2024, compared to RMB 8,546 thousand as of 31 December 2023[131] - The company provides credit periods ranging from 15 to 90 days for TV advertising services and 1 to 90 days for online advertising services[126] - Contract assets were nil as of 30 June 2024, compared to RMB 18,038 thousand as of 31 December 2023[128] - Trade payables as of 30 June 2024 totaled RMB 130,664 thousand, a decrease from RMB 195,476 thousand as of 31 December 2023[133] - Bank and other borrowings as of 30 June 2024 amounted to RMB 109,784 thousand, down from RMB 148,984 thousand as of 31 December 2023[136] - The company completed a share placement on 7 June 2024, issuing 80,000,000 new shares at HK$0.50 per share, raising net proceeds of approximately HK$39,400,000 (RMB 35,949,000)[138][139] - On 28 June 2024, the company disposed of its subsidiary Shanghai Kailun Advertising Co., Ltd for a cash consideration of RMB 200,000, resulting in a net cash inflow of RMB 184,000[140][141] - On 24 July 2024, the company entered into an agreement to acquire Charm Linkage Holdings Limited and its subsidiaries for a total consideration of HK$82,600,000, partially settled by issuing 80,000,000 new shares at HK$0.60 per share[143] Corporate Governance and Shareholder Information - The Group employed 29 full-time employees as at 30 June 2024, a decrease of one employee compared to 30 employees as at 30 June 2023[55] - Staff costs for the period under review amounted to approximately RMB2.0 million, a decrease of RMB0.1 million or 5.0% compared to the same period last year[55] - The Group acquired Charm Linkage Holdings Limited for a total consideration of HK$82,600,000, settled partially by issuing 80,000,000 new shares and partially by cash payment[56] - The Group is committed to maintaining high standards of corporate governance and has complied with the Corporate Governance Code for the six months ended 30 June 2024[67] - The Group has adopted the Model Code for Securities Transactions by Directors and confirmed compliance during the six months ended 30 June 2024[68] - There have been no changes in the information of the Directors and chief executive of the Company since the publication of the 2023 annual report[69] - The Group has conditionally adopted a Share Option Scheme to motivate and retain eligible participants who contribute to the Group's long-term growth[70] - The number of options available for grant under the Share Option Scheme was 40,000,000 as of both January 1, 2024, and June 30, 2024, representing 10% of the total issued shares at the time of listing[75] - As of June 30, 2024, there were no outstanding, granted, cancelled, exercised, or lapsed options under the Share Option Scheme[75] - Ms. Wang Xin holds 25,246,606 shares, representing a 5.26% interest in the company[77] - Mr. Leng Xuejun holds 14,781,639 shares, representing a 3.08% interest in the company[77] - Mr. Sun Changpeng holds 362,000 shares through his spouse, representing a 0.08% interest in the company[77] - Yingheng Co., Ltd holds 161,704,734 shares, representing a 33.69% interest in the company[81] - Ms. Wang Lei holds 161,704,734 shares through a controlled corporation, representing a 33.69% interest in the company[81] - Jujia holds 36,761,102 shares, representing a 7.66% interest in the company[81] - Ruichengtianhe Co., Ltd holds 26,284,188 shares, representing a 5.48% interest in the company[81] - Youyi holds 25,246,606 shares, representing a 5.26% interest in the company[81] - The Company did not recommend the payment of an interim dividend for the six months ended 30 June 2024, consistent with the same period in 2023[85] - The Company did not purchase, sell, or redeem any of its listed securities for the six months ended 30 June 2024[84] - The Company did not hold any treasury shares as of 30 June 2024[84] - The Audit Committee confirmed that the unaudited interim results for the six months ended 30 June 2024 complied with all applicable accounting principles, standards, and requirements[87] - The weighted average number of ordinary shares for basic and diluted earnings per share was 410,549 thousand shares in 2024, up from

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 67,144,000, a decrease of 69.1% compared to RMB 217,735,000 for the same period in 2023[2] - Gross profit for the same period was RMB 4,954,000, down 32.0% from RMB 7,281,000 in 2023[2] - The company reported a net profit of RMB 5,366,000 for the six months ended June 30, 2024, compared to RMB 104,000 in the previous year, representing a significant increase[2] - Basic and diluted earnings per share for the period were RMB 1.31, compared to RMB 0.04 in the same period last year[2] - The group recorded a gross profit of approximately RMB 5.0 million with a gross profit margin of 7.4%, compared to RMB 7.3 million and 3.3% respectively in the previous year[38] - The group’s total profit and comprehensive income for the review period was approximately RMB 5.4 million, compared to RMB 0.1 million in the same period last year[39] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 601,397,000, an increase from RMB 575,656,000 as of December 31, 2023[3] - The company’s total liabilities decreased to RMB 377,309,000 from RMB 392,883,000 as of December 31, 2023[5] - Trade receivables and other receivables increased to RMB 547,759,000 from RMB 518,563,000 year-over-year[3] - Cash and cash equivalents rose to RMB 37,629,000 from RMB 17,854,000 as of December 31, 2023[3] - As of June 30, 2024, trade receivables aged 0 to 30 days amounted to RMB 21,059,000, a significant decrease from RMB 95,333,000 as of December 31, 2023, representing a decline of approximately 77.9%[23] - The total trade payables as of June 30, 2024, were RMB 130,664,000, down from RMB 195,476,000 as of December 31, 2023, indicating a reduction of about 33.1%[24] - Bank and other borrowings totaled RMB 109,784,000 as of June 30, 2024, compared to RMB 148,984,000 as of December 31, 2023, reflecting a decrease of approximately 26.3%[26] Revenue Breakdown - Revenue from furniture and appliances was RMB 26,632 thousand, down from RMB 70,649 thousand year-over-year[11] - Revenue from food and beverage decreased to RMB 30,887 thousand from RMB 50,479 thousand[11] - The company is focused on expanding its advertising services, with notable revenue contributions from outdoor advertising services increasing to RMB 12,264,000 from RMB 7,979,000 in the previous year[9] - Television advertising service revenue decreased significantly to RMB 16.3 million due to intense market competition[32] - Digital advertising service revenue also saw a substantial decline, amounting to RMB 17.9 million, as the company reduced its investment in digital advertising[34] - Outdoor advertising service revenue increased significantly to RMB 12.3 million, reflecting a recovery in the market and growing urbanization[35] - Other advertising services revenue rose sharply to RMB 20.7 million, as advertisers diversified their spending amidst competitive pressures[36] Employee and Operational Costs - Total employee costs increased to RMB 1,980 thousand from RMB 1,877 thousand year-over-year[17] - Employee costs for the review period were approximately RMB 2.0 million, a decrease of about RMB 0.1 million or approximately 5.0% compared to RMB 1.9 million for the six months ended June 30, 2023[45] - Administrative expenses increased by 32.7% to approximately RMB 5.5 million, up from RMB 3.7 million year-on-year[38] Corporate Governance and Future Plans - The company has maintained high standards of corporate governance and has complied with the corporate governance code during the six months ended June 30, 2024[49] - The board of directors does not recommend the payment of an interim dividend for the six months ending June 30, 2024, consistent with the previous period ending June 30, 2023, which also had no dividend[50] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim results for the six months ending June 30, 2024, confirming compliance with applicable accounting principles and sufficient disclosures[50] - The company plans to enhance its core competitiveness in content marketing and integrated communication by optimizing marketing strategies and media product combinations[47] - The company aims to expand its internet variety integrated marketing business and improve service quality and efficiency through innovation[48] - The company has started a second-hand electronic product trading business in China in August 2024, which is expected to generate significant revenue and profitability for the year[48] Significant Transactions - The company issued 80,000,000 new shares at a placement price of HKD 0.50 per share, raising approximately HKD 39,400,000 (equivalent to about RMB 35,949,000) on June 7, 2024[28] - The company completed the sale of its subsidiary Shanghai Kairun Advertising Co., Ltd. for a cash consideration of RMB 200,000 on June 28, 2024[30] - The company has entered into an agreement to acquire all shares of Chuangling Group Limited for a total consideration of HKD 82,600,000, with part of the payment settled through the issuance of 80,000,000 new shares at HKD 0.60 each[30]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 378,707,000, a decrease of 8.2% compared to RMB 412,659,000 in 2022[4] - Gross profit increased significantly by 121.7% to RMB 23,565,000 from RMB 10,627,000 in the previous year[4] - The company reported a loss before tax of RMB 32,069,000, which is a slight decrease of 0.1% from RMB 32,073,000 in 2022[4] - The loss for the year was RMB 23,351,000, representing a 100.2% increase compared to RMB 11,662,000 in 2022[4] - Basic and diluted loss per share increased to RMB 5.87 from RMB 2.85, marking a 106.0% rise[4] Revenue Breakdown - Television advertising services revenue grew by 58.6% to RMB 162,407,000, while online advertising services revenue decreased by 36.3% to RMB 188,155,000[5] - Outdoor advertising services revenue increased by 65.6% to RMB 17,962,000, and other advertising services revenue surged by 143.1% to RMB 10,183,000[5] - Revenue from TV advertising services amounted to approximately RMB 162.407 million during the reporting period[37] - Revenue from online advertising services was approximately RMB 188.155 million during the reporting period[42] - Revenue from outdoor advertising services was approximately RMB 17.962 million during the reporting period[43] - Revenue from other advertising services was approximately RMB 10.2 million, representing an increase of approximately 142.9% from approximately RMB 4.2 million for the corresponding period last year[53] Market Environment - In 2023, China's GDP increased by 5.2% year-on-year, contributing to a recovery in the overall business environment and consumer willingness[18] - The advertising market in China grew by 6.0% year-on-year in 2023, driven by economic growth and improved market conditions[18] - Looking ahead to 2024, the advertising industry is expected to benefit from the continuous expansion and upgrading of the consumer market, alongside rapid technological advancements[19] - The Group remains cautiously optimistic about future growth opportunities despite uncertainties in the 2024 market, influenced by macro factors like inflation and global economic trends[99][104] Strategic Initiatives - The Group plans to optimize resource allocation and deepen its TV advertising business to enhance competitiveness in 2024[20] - The Group aims to provide personalized, high-quality communication strategies through innovative content placement and efficient execution to drive brand value growth[20] - The Group will strengthen its Internet advertising services by utilizing big data and precision placement technology to enhance marketing effectiveness[24] - The Group will explore new media advertising forms and develop new advertising businesses to expand market presence and provide new value for customers[26] - The focus on innovation and technological advancements will be key to the Group's strategy in adapting to market changes and enhancing service offerings[29] Management and Governance - The Group's overall management and business development are led by experienced directors, including Mr. Leng and Ms. Li, who have held various significant positions within the company[125] - The company has expanded its management team with directors holding key roles in different subsidiaries, enhancing overall operational efficiency[125] - The Group's leadership structure includes independent non-executive directors who provide independent advice and judgment to the Board, ensuring governance and accountability[126] - The management team is committed to continuous improvement and adaptation in the advertising industry, which is essential for maintaining competitive advantage[120] - The Group's strategic initiatives are supported by a well-rounded team with diverse expertise, positioning the company for future opportunities in the market[125] Financial Oversight - The Group's focus on sustainable development and service quality is essential to cope with intensified market competition[31] - The Group's gearing ratio increased from approximately 56.9% to 81.5%[87] - The Group faces cash flow interest rate risks due to fluctuations in market interest rates, with no current hedging policies in place[103] - The Group expresses confidence in creating outstanding value for enterprises and society through professional communication services and business strategies[27] Awards and Recognition - The company received the 2023 Annual Gold Case for Content Marketing at the 30th China International Advertising Festival for its project cooperation with Casarte[13] - The company also won the 2023 Annual Gold Case for Campaign Marketing for its collaboration with Haier Smart Home at the same festival[14] - Ms. Lin was awarded the "Eighth China Advertising Golden Vision Awards: Leader in China's Marketing" in 2016, highlighting her leadership in the industry[147]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 378.707 million, a decrease of 8.2% compared to RMB 412.659 million in 2022[5] - Gross profit increased to RMB 23.565 million, up 121.5% from RMB 10.627 million in the previous year[5] - The net loss attributable to the owners of the company for the year was RMB 23.471 million, compared to a loss of RMB 11.384 million in 2022, representing a 106.5% increase in loss[5] - Basic and diluted loss per share for the year was RMB 5.87, compared to RMB 2.85 in 2022[5] - The company reported a net loss for the year, with total employee costs amounting to RMB 6,602 thousand, down from RMB 7,509 thousand in 2022[36] - The group recorded a net loss and total comprehensive expenses of approximately RMB 23.4 million, compared to RMB 11.7 million in the same period last year, mainly due to a decrease in accounts receivable turnover[70] Revenue Breakdown - Revenue from television advertising services decreased significantly to RMB 162,407 thousand in 2023 from RMB 102,390 thousand in 2022, with a notable increase in flexible television advertising solutions[19] - Digital advertising services revenue dropped to RMB 188,155 thousand in 2023, down from RMB 295,237 thousand in 2022, indicating a decline of 36.2%[19] - Revenue from advertising clients was RMB 378,707 thousand, with advertising agencies contributing RMB 319,558 thousand, up 28.8% from RMB 248,156 thousand in 2022[20] - Outdoor advertising service revenue increased by approximately 66.7% to RMB 18.0 million from RMB 10.8 million in the previous year, driven by increased outdoor advertising placements[61] - Other advertising service revenue rose by approximately 142.9% to RMB 10.2 million from RMB 4.2 million year-on-year, reflecting increased business volume from clients[61] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 575.656 million, slightly up from RMB 574.165 million in 2022[7] - Total liabilities increased to RMB 392.883 million from RMB 368.041 million, marking a 6.7% rise[9] - Trade receivables and other receivables increased to RMB 518.563 million from RMB 426.262 million, reflecting a 21.6% increase[7] - Trade receivables increased to RMB 403,410,000 in 2023 from RMB 281,508,000 in 2022, with a provision for impairment of RMB 82,033,000[39] - The net trade receivables as of December 31, 2023, amounted to RMB 321,377,000, up from RMB 249,047,000 in 2022, indicating a growth of approximately 29%[45] - The asset-liability ratio increased from approximately 56.9% as of December 31, 2022, to approximately 81.5% as of December 31, 2023, indicating a significant rise in financial leverage[82] Cash Flow and Liquidity - Cash and cash equivalents rose to RMB 17.854 million from RMB 5.081 million, indicating a significant improvement in liquidity[7] - Cash and bank balances were approximately RMB 17.9 million as of December 31, 2023, compared to RMB 5.1 million as of December 31, 2022, reflecting improved liquidity[79] Cost Management and Future Outlook - The company plans to continue cost control measures and optimize human resources to improve cash flow and financial condition[13] - The company anticipates continued challenges in the advertising market, impacting future revenue growth prospects[19] - The company maintains a cautious optimism regarding future market conditions, planning to diversify strategies to seize growth opportunities while optimizing business structure[86] - In the digital advertising sector, the company aims to enhance its internet advertising services and provide integrated marketing solutions to improve client brand impact[86] Dividends and Financial Reporting - No final dividend was proposed for the years ended December 31, 2023, and 2022[37] - The board does not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[93] - The consolidated financial statements for the year ended December 31, 2023, have been verified by the auditor, but no audit opinion has been issued due to the nature of the work performed[98] - The performance announcement and annual report will be published on the Hong Kong Stock Exchange website and the company's website[99] - The annual report containing all information required by the listing rules will be timely published on the aforementioned websites[100]

Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 217,735,000, a decrease of 2.5% compared to RMB 223,405,000 for the same period in 2022[11]. - Gross profit for the same period was RMB 7,281,000, reflecting a slight decrease of 0.9% from RMB 7,348,000 in the previous year[11]. - The company reported a profit before tax of RMB 119,000, a significant improvement from a loss of RMB 4,087,000 in the prior year, marking a 102.9% increase[11]. - Total comprehensive income for the period was RMB 104,000, compared to a loss of RMB 3,433,000 in the same period last year, representing a 103.0% increase[11]. - Profit attributable to the owners of the Company amounted to approximately RMB 0.1 million, a significant improvement from a loss of approximately RMB 3.4 million for the same period last year[40]. - Basic and diluted earnings per share for the period were 0.04 cents, recovering from a loss of 0.85 cents per share in the previous year[140]. - The company reported a profit of RMB 146,000 for the period, compared to a loss of RMB 3,413,000 in the same period last year[144]. - The Company does not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[193]. Revenue Breakdown - Television advertising services revenue increased by 47.48% to RMB 99,237,000, while online advertising services revenue decreased by 12.48% to RMB 110,242,000[11]. - Revenue from TV advertising services amounted to approximately RMB 99.2 million during the review period[21]. - Revenue from online advertising services reached approximately RMB 110.2 million, reflecting strong demand from major brand clients[27]. - Revenue from outdoor advertising services declined to approximately RMB 8.0 million due to cautious spending by advertisers[29]. - Revenue from other advertising services was approximately RMB 0.3 million, indicating a decrease in auxiliary advertisement placements[31]. - Hard-sell TV advertising services generated revenue of RMB 99,237,000, up 47.5% from RMB 67,287,000 in the prior year[164]. - Online advertising services revenue decreased by 12.5% to RMB 110,242,000 from RMB 125,962,000 year-over-year[164]. - Revenue from advertisers increased significantly to RMB 31,650,000, up from RMB 8,488,000 in the previous year[166]. - Revenue from advertising agents decreased to RMB 186,085,000 from RMB 214,917,000 year-over-year[166]. - Furniture and household appliances revenue dropped to RMB 70,649,000 from RMB 124,301,000, representing a decline of 43.2% year-over-year[169]. - Food and beverages revenue decreased to RMB 50,479,000 from RMB 69,383,000, a decline of 27.2% year-over-year[169]. Market Outlook - The advertising market in China grew by 4.8% year-on-year in the first half of 2023, with a notable recovery in consumer spending[14]. - The company anticipates further improvement in performance in the second half of 2023, driven by stable development in the advertising market and increased customer trust[15]. - The World Bank raised its forecast for China's economic growth by 1.3 percentage points, indicating a positive economic outlook that may benefit advertising expenditures[14]. - The advertising market is expected to continue its upward trend, despite some short-term volatility, as the impact of the pandemic lessens[15]. - The advertising market showed signs of recovery, with a monthly spending increase of 8.9% in June 2023[17]. - The Chinese economy showed resilient growth in the advertising and consumer markets during the first half of 2023, although the advertising market remains volatile in the short term[99]. Operational Changes - The Group enhanced its Internet integration service capability through big data and precision placement technology[22]. - The Group provided customized TV advertising solutions, optimizing its media resources portfolio to enhance competitiveness[20]. - The outdoor advertising market is gradually recovering, but advertisers remain focused on cost reduction and efficiency enhancement[29]. - In the second half of 2023, the Group plans to enhance its Internet advertising and communication services, focusing on content marketing and integrated communication services[100]. - The Group aims to maintain its core competitiveness in TV advertising while optimizing operating strategies and media product portfolios to enhance competitiveness[101]. - The Group will strengthen its Internet variety show content communication services and enhance its Internet integration service capabilities to provide a one-stop digital marketing solution[102]. - The Group is committed to adjusting and optimizing its development strategies in response to market changes and consumer demand[99]. Financial Position - As of June 30, 2023, total assets decreased to RMB 542,777,000 from RMB 574,165,000 as of December 31, 2022, representing a decline of approximately 5.5%[142]. - Current assets fell to RMB 531,776,000, down from RMB 563,268,000, indicating a decrease of about 5.6%[142]. - Trade receivables, prepayments, and other receivables decreased to RMB 378,490,000 from RMB 426,262,000, a reduction of approximately 11.2%[142]. - Total equity attributable to owners of the Company increased slightly to RMB 206,406,000 from RMB 206,260,000, reflecting a growth of about 0.07%[144]. - Current liabilities decreased to RMB 306,549,000 from RMB 338,041,000, a decline of approximately 9.3%[142]. - Non-current liabilities decreased to RMB 30,000,000, remaining unchanged from the previous period[142]. - Cash and bank balances significantly decreased to RMB 822,000 from RMB 5,081,000, a drop of approximately 83.8%[142]. - The total liabilities decreased to RMB 336,549,000 from RMB 368,041,000, indicating a reduction of approximately 8.6%[142]. Employee and Cost Management - Staff costs for the period amounted to approximately RMB 1.9 million, a decrease of approximately 48.6% compared to RMB 3.7 million for the same period last year, attributed to a reduction in staff and restructuring efforts[92]. - The total number of full-time employees decreased to 30 as of June 30, 2023, from 33 as of June 30, 2022[91]. - Employee costs for the review period were approximately RMB 1.9 million, down about RMB 1.8 million or 48.6% compared to RMB 3.7 million for the six months ended June 30, 2022[95]. - Total staff costs decreased to RMB 1,877,000 from RMB 2,050,000, reflecting a reduction of 8.4% year-over-year[189]. Governance and Compliance - The Company has complied with the Corporate Governance Code and the Model Code for Securities Transactions during the six months ended June 30, 2023[108][109]. - The audit committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting principles and standards[138]. - The Group did not execute any significant investments or acquisitions during the review period, but will consider potential opportunities in the future[64][69]. - The Group did not have any significant capital expenditures or contingent liabilities during the review period[77][78]. - The Group is not currently engaged in foreign exchange hedging activities, as the impact of exchange rate fluctuations on cash flow is limited[79]. Shareholder Information - As of June 30, 2023, the number of options available for grant under the Share Option Scheme was 40,000,000, representing 10% of the total number of issued shares[118]. - There were no options outstanding, granted, cancelled, exercised, or lapsed as of June 30, 2023[120]. - Ms. Wang Xin holds 25,246,606 shares, representing approximately 6.31% of the company's shares[122]. - Ms. Li Na holds 36,761,102 shares, representing approximately 9.19% of the company's shares[122]. - Mr. Leng Xuejun holds 14,781,639 shares, representing approximately 3.70% of the company's shares[122]. - As of June 30, 2023, there were no interests or short positions in shares of associated corporations by the Directors and chief executives[124]. - No substantial shareholders other than Directors and chief executives had disclosed interests or short positions in shares as of June 30, 2023[125].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該等內 容而引致的任何損失承擔任何責任。 Ruicheng (China) Media Group Limited 瑞誠（中國）傳媒集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1640） 截至2023年6月30日止六個月的中期業績公告 瑞誠（中國）傳媒集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬公司 （統稱「本集團」）截至2023年6月30日止六個月（「回顧期」）未經審核綜合中期業績，連同2022年同期的 比較數字如下： ...

Financial Performance - In 2022, the company's revenue decreased by 6.4% year-on-year to RMB 412,659,000 from RMB 441,051,000 in 2021[4]. - Gross profit fell by 38.6% to RMB 10,627,000 compared to RMB 17,299,000 in the previous year[4]. - The company reported a loss before tax of RMB 32,073,000, a significant decline from a profit of RMB 4,302,000 in 2021, representing a year-on-year change of 845.5%[4]. - The net loss for the year was RMB 11,662,000, compared to a profit of RMB 463,000 in 2021, marking a year-on-year change of 2,618.8%[4]. - Basic and diluted loss per share was RMB (2.85), a drastic decline from earnings of RMB 0.11 per share in the previous year, reflecting a year-on-year change of 2,690.9%[4]. Advertising Revenue Breakdown - Television advertising services revenue increased by 11.5% to RMB 102,390,000, while online advertising services revenue rose by 33.3% to RMB 295,237,000[5]. - Outdoor advertising services revenue plummeted by 90.3% to RMB 10,844,000, and other advertising services revenue decreased by 72.8% to RMB 4,188,000[5]. - Revenue from online advertising services amounted to approximately RMB 295.2 million during the Reporting Period[39]. - Revenue from TV advertising services was approximately RMB 102.4 million[37]. - Revenue from outdoor advertising services significantly dropped to approximately RMB 10.8 million due to pandemic-related restrictions[45]. - Revenue from other advertising services decreased to approximately RMB 4.2 million, reflecting reduced budgets from advertisers[47]. Market Conditions and Challenges - The advertising market in China decreased by 11.8% year-on-year in 2022, impacting the company's business operations negatively[17]. - The company faced unprecedented risks and challenges due to domestic and international factors, including the COVID-19 pandemic and natural disasters, leading to a cautious advertising spending attitude among advertisers[17]. - The overall advertising market in China declined by 11.8% year-on-year due to pandemic impacts and economic challenges[20]. - The advertising market showed signs of recovery in the second half of 2022, but faced volatility towards the end of the year due to pandemic-related restrictions[30]. - The overall advertising market in China decreased by 11.8% in 2022, with signs of recovery expected in 2023[33]. Strategic Initiatives and Future Plans - The company aims to adapt its corporate strategy to navigate the current economic landscape and improve its market position moving forward[17]. - The Group plans to enhance its TV advertising business by focusing on customer-oriented strategies and maintaining relationships with quality customers[19]. - The Group aims to strengthen its core competencies in content marketing and provide tailored communication solutions to enhance brand value for clients[19]. - The Group will increase its Internet advertising services by leveraging big data and precision placement technology to optimize marketing efficiency[24]. - The Group intends to expand its outdoor advertising services to meet the growing demand for brand-oriented advertising as consumers return to outdoor activities[25]. - The Group will explore new technologies to develop innovative advertising formats and open up new market opportunities[25]. - The Group is committed to maintaining stable operations and enhancing brand value for customers during the economic downturn[21]. - The Group's strategic adjustments included increasing internet advertising services and optimizing business structure to meet client needs[34]. - The Group plans to expand its online advertising services and integrated marketing business in 2023 to enhance core competitiveness in content marketing[98]. - The outlook for 2023 anticipates gradual recovery in market demand and economic growth in China, despite ongoing challenges in the advertising industry[97]. Management and Governance - Ms. Li Na has over 20 years of experience in the advertising industry and has been responsible for the overall management and strategic planning of the Group since 2003[119]. - Mr. Leng Xuejun has over 9 years of experience in the advertising industry and has held various management positions within the Group since joining in 2013[120]. - The Group's management team includes experienced professionals with backgrounds in finance, advertising, and business development, enhancing its strategic capabilities[125]. - The Group's leadership includes individuals with advanced degrees and professional certifications, enhancing its governance and operational effectiveness[127]. - The Company has complied with all code provisions set out in the Corporate Governance Code during the Reporting Period, maintaining high standards of corporate governance practices[161]. - The Independent Non-executive Directors represent more than one-third of the Board, providing checks and balances to safeguard the interests of shareholders[177]. - The Company emphasizes a culture of integrity and commitment to ethical business practices, with training provided to reinforce these standards[159]. - The Board has delegated day-to-day management and operation responsibilities to senior management, ensuring operational efficiency[183]. Financial Position and Risks - As of December 31, 2022, trade receivables, prepayments, and other receivables amounted to approximately RMB 426.3 million, representing a year-on-year increase of approximately 25.0%[69][76]. - The Group's gearing ratio increased from approximately 53.4% to 56.9% as of December 31, 2022, indicating a rise in financial leverage[94][99]. - The group faces cash flow interest rate risk due to fluctuations in current market interest rates, with no interest rate hedging policy in place[101]. - The company is considering strategic acquisitions to enhance its service offerings, with a budget of 10 million earmarked for potential mergers and acquisitions[141]. User Engagement and Market Expansion - User data showed a total of 1.5 million active users, an increase of 25% year-over-year, indicating strong user engagement and retention[141]. - Market expansion plans include entering two new provinces in China, aiming to increase market share by 8% in these regions[141]. - The management team emphasized the importance of digital transformation, aiming to increase online advertising revenue by 20% in the next fiscal year[141]. - The company has established partnerships with three major media outlets to enhance its advertising reach and effectiveness[141]. - A new marketing strategy is being implemented, focusing on social media platforms, which is expected to drive user growth by 15% in the upcoming quarters[141].