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2022年12月31日止年度年度業績公告 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」、「我們的」或「我們」）根據國際財務報告準則（「國際財務報告準則」）編製截至2022年 12月31日止年度（「報告期間」）經審核的綜合年度業績（「年度業績」），連同2021年同期的比較數字。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 223,405,000, a decrease of 8.9% compared to RMB 245,241,000 for the same period in 2021[18]. - Gross profit for the same period was RMB 7,348,000, reflecting a significant decline of 72.9% from RMB 27,091,000 in the prior year[18]. - The company reported a loss before tax of RMB 4,087,000, compared to a profit of RMB 9,751,000 in the previous year, marking a 141.9% change[18]. - Total comprehensive income attributable to owners of the company was a loss of RMB 3,401,000, a 159.7% decrease from a profit of RMB 5,699,000 in the same period last year[19]. - Basic and diluted loss per share was RMB (0.01), a 200.0% decline from earnings of RMB 0.01 per share in the prior year[19]. Advertising Revenue Breakdown - Television advertising services generated RMB 67,287,000, a decrease of 4.35% from RMB 70,346,000 in the previous year[22]. - Online advertising services revenue increased by 38.43% to RMB 125,962,000 from RMB 90,991,000 year-on-year[22]. - Outdoor advertising services saw a significant decline of 60.50%, generating RMB 29,721,000 compared to RMB 75,246,000 in the prior year[22]. - The overall advertising market saw a year-on-year decrease of 11.8% in the first half of 2022, with a 12.3% decrease from January to May[29]. - Despite the challenges, there was a month-on-month increase in advertising spending in May and June, with growth rates of 9.5% and 6.9% respectively[29]. Cost Management - The advertising expenses in the first half of 2022 decreased by 11.8% year-on-year, indicating a challenging market environment[26]. - Selling and marketing expenses amounted to approximately RMB 2.3 million, representing a decrease of 30.9% from RMB 3.4 million for the corresponding period last year[53]. - Administrative expenses were approximately RMB 4.2 million, a decrease of approximately 8.5% from RMB 4.5 million for the corresponding period last year[53]. - Finance costs amounted to approximately RMB 2.5 million, a year-on-year decrease of approximately 38.9% from RMB 4.0 million[53]. Cash Flow and Financial Position - As of June 30, 2022, the net cash used in operating activities was RMB (23,535,000), a significant decrease compared to RMB 3,287,000 for the same period in 2021[126]. - The company reported a net cash from investing activities of RMB 8,000 for the six months ended June 30, 2022, down from RMB 16,246,000 in the previous year[126]. - Financing activities generated a net cash inflow of RMB 3,902,000 in the first half of 2022, compared to a net cash outflow of RMB (11,127,000) in the same period of 2021[126]. - Cash and cash equivalents at the end of the period were RMB 15,240,000, an increase from RMB 9,478,000 at the end of the previous year[126]. Employee and Operational Changes - As of June 30, 2022, the Group employed a total of 33 full-time employees, a decrease of 7 from 40 full-time employees as of June 30, 2021[67]. - Staff costs for the period amounted to approximately RMB 3.7 million, representing a decrease of RMB 1.3 million or approximately 27% compared to RMB 5.0 million for the same period last year[68]. - The resurgence of the pandemic from March to May 2022 significantly impacted the Group's operating activities, but demand for advertising began to rebound in June 2022[71]. Future Outlook and Strategy - The company expects recovery and improvement in results in the second half of 2022 due to stabilization of the pandemic and recovery of consumption[26]. - The Group plans to maintain its strengths in television communications and enhance brand influence through efficient communications in television advertising[72]. - The Group will continue to increase its Internet advertising services in line with the current trend of Internet media development and advertisers' demand[77]. - The Group has fully utilized the IPO Net Proceeds of approximately HK$78.8 million by the end of 2021[65]. Corporate Governance and Compliance - The company has maintained compliance with the Corporate Governance Code and the Model Code for Securities Transactions by Directors for the six months ended June 30, 2022[82][83]. - The Audit Committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting principles and standards[108]. Shareholder Information - As of June 30, 2022, Yingheng Co., Ltd. holds 161,704,734 shares, representing approximately 40.43% of the company's total issued share capital[101]. - The company did not declare any interim dividend for the six months ended June 30, 2022[107]. - The weighted average number of ordinary shares remained constant at 400,000,000 for both periods[177].

Financial Performance - For the year ended December 31, 2021, total revenue was RMB 441,051,000, a decrease of 1.33% compared to RMB 446,993,000 in 2020[30]. - Profit before tax for the year was RMB 4,302,000, a slight decrease of 1.69% from RMB 4,376,000 in 2020[30]. - Profit for the year was RMB 463,000, down 83.62% from RMB 2,826,000 in the previous year[30]. - Earnings per share (basic) decreased by 84.51% to 0.11 cents from 0.71 cents in 2020[30]. - Other income, gains and losses decreased by approximately 62.01% to RMB3.939 million from RMB10.369 million in the same period last year[95]. - Selling and marketing expenses decreased by approximately 26.67% to RMB7.132 million from RMB9.726 million in the same period last year[96]. - Administrative expenses decreased by approximately 36.39% to RMB8.916 million from RMB14.016 million in the same period last year[97]. - Finance costs increased by approximately 39.36% to RMB11.872 million from RMB8.519 million in the same period last year[98]. - Income tax expenses increased by approximately 147.68% to RMB3.839 million from RMB1.550 million in the same period last year[105]. - Gross profit was approximately RMB 17.299 million with a gross profit margin of 3.92%, compared to RMB 40.299 million and 9.02% in the corresponding period last year[90]. Revenue Breakdown - TV advertising services revenue dropped significantly by 60.66% to RMB 91,821,000 from RMB 233,432,000 in the previous year[31]. - Digital advertising services revenue increased by 148.31% to RMB 221,491,000, up from RMB 89,200,000 in 2020[31]. - Outdoor advertising services revenue rose by 55.84% to RMB 112,325,000 compared to RMB 72,079,000 in 2020[31]. - Revenue from the television advertising services business amounted to approximately RMB 91.821 million[67]. - Revenue from digital advertising services amounted to approximately RMB 221.491 million during the Reporting Period[72]. - Revenue from outdoor advertising services amounted to approximately RMB 112.325 million during the Reporting Period[75]. - Revenue from other advertising services amounted to approximately RMB 15.414 million during the Reporting Period[76]. - Revenue from other advertising services fell to RMB 15.414 million, a decrease of 70.52% from RMB 52.282 million, attributed to declining consumer demand and economic pressures[88]. Market Trends and Outlook - The overall advertising market grew by 11.2% year-on-year in 2021, indicating a recovery from the pandemic[59]. - The advertising market is expected to have more room for growth in 2022, reflecting increased confidence among advertisers[59]. - The Group plans to increase its Internet advertising services in response to the growing demand for digital marketing[49]. - Outdoor advertising is expected to play a greater role as market demand picks up post-pandemic[50]. - The advertising market is expected to have significant growth potential in 2022, driven by improved consumer confidence[62]. - The Group will explore new technologies to develop new advertising businesses and open up market space[50]. Strategic Focus - The company plans to focus on expanding digital advertising services to leverage the growth in this segment[31]. - The company aims to improve operational efficiency and reduce costs in response to declining traditional advertising revenues[31]. - The Group will enhance its integrated marketing for Internet variety shows and outdoor scenes to meet customer needs[60]. - The company is focusing on developing integrated digital marketing solutions to meet the evolving needs of its clients in the advertising sector[82]. - The company aims to strengthen its strategy formulation and data analytical capabilities to enhance its market reputation[1]. - The company is focused on further developing its digital and outdoor advertising businesses to capture more market share[1]. Management and Leadership - The company has a strong management team with extensive experience in the advertising sector, enhancing its strategic planning and business development capabilities[167]. - The company aims to expand its market presence and enhance its business strategies through the leadership of its experienced executives[170]. - The management team has been recognized with various awards, including Mr. Feng's "Jinwang Annual Internet Marketing Individuals in the PRC" award in 2015 and Ms. Li's recognition as one of the "Ten Best and Most Influential Female Advertising Persons in China" in 2010[169][170]. - The company continues to prioritize strategic planning and business development to adapt to market changes and enhance its competitive edge[165]. - The group has a strong board with members holding significant experience in finance, accounting, and corporate governance[177][179][181]. Financial Position - Total assets amounted to approximately RMB404.266 million, with equity attributable to the owners of the Company at approximately RMB217.644 million[122]. - The group's cash and short-term bank deposits were approximately RMB34,865 thousand as of December 31, 2021, compared to RMB17,772 thousand as of December 31, 2020, representing an increase of approximately 96.5%[127]. - The gearing ratio decreased from approximately 58.32% as of December 31, 2020, to approximately 53.40% as of December 31, 2021[132]. - Trade receivables, prepayments, and other receivables decreased by approximately 0.60% to RMB341.100 million from RMB343.142 million in the previous year[108]. - Trade and other payables decreased by approximately 15.68% to RMB39.007 million from RMB46.260 million in the previous year[117]. IPO and Utilization of Proceeds - The company raised net proceeds of approximately HK$78.8 million from its initial public offering after deducting related expenses[150]. - The company allocated HK$37.6 million for enhancing its market position in TV advertising, which represents a 5.8 million increase from the previous allocation[1]. - The digital advertising business received an allocation of HK$33.3 million, reflecting a 17.8% increase compared to prior figures[1]. - The outdoor advertising business was allocated HK$9.7 million, consistent with previous allocations[1]. - The total amount of IPO net proceeds utilized between January 1, 2021, and December 31, 2021, was HK$65.3 million[1]. - The unutilized amount of IPO net proceeds as of December 31, 2021, was reported as zero[1].

Revenue Performance - Revenue for the six months ended June 30, 2021, was RMB 245,241,000, representing a 12.8% increase from RMB 217,395,000 in the same period of 2020[19]. - Revenue from online advertising services surged by 350.8% to RMB 90,991,000, compared to RMB 20,186,000 in the prior year[21]. - Outdoor advertising services revenue increased by 83.8% to RMB 75,246,000, up from RMB 40,950,000 in the previous year[21]. - Revenue from TV advertising services was approximately RMB 70.3 million during the review period[33]. - Revenue from online advertising services amounted to approximately RMB 91.0 million during the review period[35]. - Revenue from outdoor advertising services was approximately RMB 75.2 million during the review period[42]. - Revenue from other advertising services totaled approximately RMB 8.7 million during the review period[43]. - The Group recorded revenue of approximately RMB 245.2 million, representing an increase of approximately 12.8% compared to RMB 217.4 million for the corresponding period last year[50]. - Revenue from TV advertising services was RMB 70.3 million, a decrease of 46.4% from RMB 131.3 million for the corresponding period last year, primarily due to a shift to online and outdoor advertising[50]. - Revenue from online advertising services was RMB 91.0 million, an increase of approximately 350.5% from RMB 20.2 million for the corresponding period last year, driven by increased advertising investment from customers[50]. - Revenue from outdoor advertising services was RMB 75.2 million, an increase of 83.4% from RMB 41.0 million for the corresponding period last year, also due to increased advertising investment from customers[50]. Profitability and Income - Profit before tax for the period was RMB 9,751,000, reflecting a 16.9% increase from RMB 8,341,000 in the same period of 2020[19]. - The total comprehensive income attributable to owners of the company for the period was RMB 5,699,000, a decrease of 35.3% from RMB 8,809,000 in the previous year[20]. - Earnings per share decreased to RMB 0.01, down 50.0% from RMB 0.02 in the same period of 2020[20]. - The Group's profit for the period was RMB 5,699,000, compared to a loss in the previous period, indicating a positive turnaround in financial performance[153]. Market Conditions and Strategy - The advertising market in China grew by 27.3% year-on-year in the first quarter of 2021, indicating a recovery from the pandemic[24]. - The company aims to consolidate its market position amidst ongoing economic recovery and challenges posed by the pandemic[24]. - The company focused on providing high-quality tailored creative solutions and diversified advertising services to enhance competitiveness during the pandemic[28]. - The company aims to gradually recover and achieve better results in the post-pandemic era through its efforts[28]. - The advertising industry faces challenges due to global economic growth slowdown and trade frictions, but the Company remains confident in the medium to long-term prospects of China's economy[100]. - The advertising industry faces significant pressure and challenges in the post-pandemic era, impacting market conditions[105]. - The company plans to focus on its strengths in TV advertising and enhance its core competencies in content marketing communications in the second half of 2021[108]. - The group will continue to develop its online advertising business, leveraging big data and precision placement technology to improve service capabilities[109]. - The company aims to provide one-stop digital marketing solutions to enhance clients' placement effectiveness and brand influence on the internet[110]. Financial Position and Assets - As of June 30, 2021, the Group's trade receivables, prepayments, and other receivables amounted to approximately RMB 413.4 million, representing an increase of approximately 20.5% compared to RMB 343.1 million as of December 31, 2020[60]. - The Group's total assets as of June 30, 2021, increased to RMB 454,223,000, up from RMB 407,409,000 as of December 31, 2020, representing a growth of approximately 11.5%[149]. - Total equity attributable to the owners of the Company reached RMB 222,898,000 as of June 30, 2021, up from RMB 217,199,000 at the end of 2020, reflecting a growth of approximately 2.5%[149]. - The Company’s total liabilities increased to RMB 231,236,000 as of June 30, 2021, compared to RMB 190,086,000 at the end of 2020, representing an increase of approximately 21.7%[149]. Expenses and Cost Management - Selling and marketing expenses were approximately RMB 3.4 million, a decrease of approximately 39.3% from RMB 5.6 million for the corresponding period last year, mainly due to a reduction in employees and salary cuts[52]. - Administrative expenses amounted to approximately RMB 4.5 million, a decrease of approximately 48.9% from RMB 8.8 million for the corresponding period last year, primarily due to reduced consultancy fees and renovation costs[53]. - Staff costs for the period amounted to approximately RMB 5.0 million, a decrease of RMB 3.4 million or approximately 40.5% compared to RMB 8.4 million in the same period last year[98]. - The Group employed a total of 40 full-time employees as of June 30, 2021, down from 62 employees a year earlier, reflecting a decrease of 22 employees due to the impact of the COVID-19 pandemic[97]. Shareholding and Corporate Governance - As of June 30, 2021, Yingheng Co., Ltd. holds 161,704,734 shares, representing approximately 40.43% of the company's interest[133]. - Ms. Wang Lei has an interest in a controlled corporation, also holding 161,704,734 shares, equating to approximately 40.43% of the company's interest[133]. - Jujia holds 36,761,102 shares, which is about 9.19% of the company's interest[133]. - The company has complied with the Corporate Governance Code and the Model Code for Securities Transactions during the six months ended June 30, 2021[113][117]. Cash Flow and Financing Activities - Net cash from operating activities for the six months ended June 30, 2021, was RMB 3,287,000, a significant improvement from a net cash used of RMB 50,472,000 in the same period of 2020[157]. - Cash and cash equivalents at the end of the period amounted to RMB 9,478,000, compared to RMB 70,365,000 at the end of June 30, 2020, showing a decrease of approximately 86.5%[157]. - The Company reported a net cash used in financing activities of RMB 11,127,000 for the first half of 2021, contrasting with a net cash inflow of RMB 32,754,000 in the same period of 2020[157]. - Long-term borrowings decreased to RMB 30,000,000 as of June 30, 2021, down from RMB 50,000,000 at the end of 2020, indicating a reduction of 40%[149]. Compliance and Reporting - The Group's unaudited interim financial statements were prepared in accordance with International Accounting Standard 34, indicating compliance with international financial reporting standards[163]. - The audit committee reviewed the unaudited interim results and confirmed compliance with applicable accounting principles and standards[142]. - The Group has applied new amendments to IFRSs, including those related to interest rate benchmark reform, effective from January 1, 2021, with no material impact on financial performance[170][172].

Financial Performance - Revenue for the year ended December 31, 2020, was RMB 446,993,000, a decrease of 47.15% compared to RMB 845,820,000 in 2019[13] - Gross profit for 2020 was RMB 40,299,000, down 62.28% from RMB 106,828,000 in the previous year[13] - Profit before tax decreased by 92.20% to RMB 4,376,000 in 2020 from RMB 56,134,000 in 2019[13] - Profit for the year was RMB 2,826,000, a decline of 92.22% compared to RMB 36,304,000 in 2019[13] - Basic earnings per share fell to 0.71 cents, down 93.87% from 11.59 cents in the previous year[13] - The Group's profit for the Reporting Period was approximately RMB 2.826 million, a decrease of 92.20% from RMB 36.304 million for the corresponding period last year[84] - Other income, gains, and losses amounted to approximately RMB 10.369 million, representing a decrease of 26.40% from RMB 14.088 million for the corresponding period last year[73] - Selling and marketing expenses were approximately RMB 9.726 million, a decrease of 35.58% from RMB 15.098 million for the corresponding period last year[74] - Administrative expenses were approximately RMB 14.016 million, a decrease of 1.63% from RMB 14.248 million for the corresponding period last year[75] - The income tax expense for the reporting period was approximately RMB 1.550 million, a decrease of approximately 92.18% compared to RMB 19.830 million in the same period last year[89] Revenue Breakdown - Revenue from TV advertising services was RMB 233,432,000, a decrease of 24.48% from RMB 309,082,000 in 2019[14] - Revenue from online advertising services dropped significantly by 79.43% to RMB 89,200,000 from RMB 433,593,000[14] - Outdoor advertising services revenue increased by 13.62% to RMB 72,079,000 compared to RMB 63,441,000 in 2019[14] - Other advertising services revenue rose by 31.68% to RMB 52,282,000 from RMB 39,704,000 in the previous year[14] - Revenue from digital advertising services amounted to approximately RMB 89.2 million[52] - Revenue from outdoor advertising services was approximately RMB 72.079 million[53] - Revenue from other advertising services totaled approximately RMB 52.282 million[59] - During the Reporting Period, revenue from online advertising services was RMB 89.200 million, representing a decrease of 79.43% from RMB 433.593 million for the corresponding period last year[62] Market Conditions - In 2020, the overall advertising market experienced a significant decline in spending due to the COVID-19 pandemic, impacting various sectors including consumer, transport, and entertainment[31] - The overall advertising market in China experienced a year-on-year decline of 11.6% in 2020 due to the COVID-19 pandemic[46] - The Group maintains confidence in the medium to long-term prosperity of China's economy despite challenges such as global economic slowdown and trade frictions between the United States and China[32] - The Group expects certain room for year-on-year growth in the advertising market in 2021, despite ongoing pressures on its own year-on-year growth[121] Strategic Focus and Future Plans - In 2021, the Group will focus on enhancing efficiency and maintaining stable operations during the economic downturn while laying a solid foundation for future development[32] - The Group aims to strengthen its core competency in content marketing communications and provide tailor-made creative content and communication solutions[34] - The strategy includes maintaining existing quality customers and enhancing brand influence through efficient TV advertising communication[34] - The Group plans to explore content integration and seek in-depth cooperation opportunities through R&D, investment, and operation in brand-customized variety shows and IP direction[34] - The Group is committed to maintaining its leading market share in the television advertising business while adapting to market changes[34] - The Group will continue to implement measures to address short-term market challenges and enhance operational efficiency[32] - The Group aims to create value through a business strategy focused on customer service and innovative breakthroughs[43] - Continued investment in content marketing and communications is planned to provide quality integrated content communication services, enhancing customer brand value[122] - The digital advertising business will be steadily developed, utilizing big data and precision placement technology to enhance internet integration service capabilities[122] Management and Governance - Ms. Li Na, aged 43, is the executive director and chairlady of the Board, overseeing overall management and strategic planning since April 2003[134] - Mr. Feng Xing, aged 43, serves as the executive director and general manager, responsible for day-to-day planning and implementation of business strategies since August 2004[135] - The company has over 19 years of experience in the advertising industry, with key management personnel having extensive backgrounds in media and marketing[136] - The management team includes independent non-executive directors, enhancing corporate governance and oversight[134] - The company has a strong focus on strategic planning and business development, aiming for market expansion and innovation in advertising[134] - The Board currently consists of four executive Directors and three independent non-executive Directors, ensuring a balanced governance structure[188] - The Company has complied with all code provisions set out in the CG Code during the Reporting Period, maintaining high corporate governance standards[183] - Independent non-executive Directors represent more than one-third of the Board, providing checks and balances to safeguard shareholder interests[191] - The Board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific aspects of the Company's affairs[198] Financial Position - As of December 31, 2020, the group's total assets amounted to approximately RMB 407.409 million, with equity attributable to the owners of the company at approximately RMB 217.199 million[100] - The gearing ratio increased from approximately 47.76% as of December 31, 2019, to approximately 58.32% as of December 31, 2020, primarily due to an additional loan of RMB 50 million[111] - The group's bank balances and cash as of December 31, 2020, were approximately RMB 17.772 million, a decrease from RMB 68.034 million in the previous year[99] - Trade receivables, prepayments, and other receivables amounted to approximately RMB 343.142 million, representing a decrease of 22.66% compared to RMB 443.700 million last year[86] - The group's impairment loss on receivables for the reporting period was approximately RMB 14.031 million, an increase of about RMB 5.089 million or 56.9% compared to the same period last year[88] - Trade and other payables decreased by approximately 80.77% to RMB 46.260 million from RMB 240.535 million in the previous year[95] - Tax payables decreased by approximately 24.75% to RMB 15.140 million from RMB 20.120 million in the previous year[103]

Revenue Performance - For the six months ended June 30, 2020, the company's revenue decreased by 42.2% to RMB 217,395,000 compared to RMB 375,815,000 for the same period in 2019[16]. - Online advertising services revenue saw a significant decline of 89.8%, dropping to RMB 20,186,000 from RMB 198,339,000 year-on-year[19]. - Revenue from TV advertising services was approximately RMB 131.3 million, representing a decrease of approximately 2.0% from RMB 134.0 million for the corresponding period last year[42]. - Revenue from outdoor advertising services amounted to approximately RMB 41.0 million during the period under review[35]. - Revenue from other advertising services amounted to approximately RMB 24.9 million during the period under review[36]. - Revenue from digital advertising services was approximately RMB 20.2 million, a year-on-year decrease of about 89.8% from RMB 198.3 million due to the impact of the COVID-19 pandemic[46]. - Revenue from outdoor advertising services remained stable at approximately RMB 41.0 million, unchanged from the corresponding period last year[49]. - Revenue from other advertising services increased approximately 910.7% to RMB 24.9 million from RMB 2.5 million, mainly due to new production planning services provided to a pharmaceutical company and a home appliance customer[50]. - Revenue for the six months ended June 30, 2020, was RMB 217,395,000, a decrease of 42.1% compared to RMB 375,815,000 for the same period in 2019[161]. - The Group's revenue from household furnishing and electronics advertising increased to RMB 68,383,000, up from RMB 29,107,000, marking a growth of 134.0%[196]. - Revenue from pharmaceuticals advertising rose to RMB 54,510,000, compared to RMB 27,908,000, representing a growth of 95.5%[196]. Profitability and Financial Metrics - The company's gross profit for the period was RMB 8,341,000, a decrease of 40.0% from RMB 13,909,000 in the previous year[18]. - The Group's profit before tax for the period was significantly impacted, reflecting the challenging business environment due to the pandemic[21]. - The company reported a basic and diluted earnings per share of RMB 0.02, down 50.0% from RMB 0.04 in the previous year[18]. - Profit attributable to the owners of the Company was approximately RMB 8.8 million, down from RMB 13.1 million in the corresponding period last year, representing a decrease of approximately 32.8%[51]. - Gross profit was approximately RMB 24.5 million with a gross profit margin of 11.3%, compared to RMB 39.4 million and 10.5% in the same period last year[52]. - Total comprehensive income for the period attributable to owners of the Company was RMB 8,809,000, down 32.9% from RMB 13,100,000 in 2019[161]. - Profit before tax decreased to RMB 8,341,000, representing a decline of 40.2% from RMB 13,909,000 in the same period of 2019[161]. Impact of COVID-19 - The COVID-19 pandemic led to a 1.6% year-on-year decrease in China's GDP during the first half of 2020, with a first quarter decrease of 6.8%[24]. - The COVID-19 pandemic severely impacted the advertising market, with a reported 25.5% decline in overall media advertising spending in the first quarter of 2020 compared to the previous year[28]. - The Group's online advertising business faced significant challenges due to clients suspending mobile game advertising and requiring longer credit periods, affecting cash flow and new business development[43]. - The overall advertising market dropped sharply in the first half of 2020, creating difficulties for the Group's new business development and acquisition efforts[43]. - The Group's quick response to the pandemic included providing high-quality tailored creative solutions and continuing a diversified approach to promotional advertising services[25]. - The Group focused on stabilizing its operations and enhancing its core competitive advantages during the pandemic[29]. Expenses and Cost Management - Selling and marketing expenses decreased by approximately 24.8% to RMB 5.6 million from RMB 7.5 million, accounting for about 2.6% of total revenue[60]. - Administrative expenses decreased by approximately 32.9% to RMB 8.8 million from RMB 13.1 million, representing about 4.0% of total revenue[61]. - Finance costs decreased by approximately 4.4% to RMB 3.8 million from RMB 4.0 million, mainly due to reduced bank loan interest rates[62]. - Impairment losses on receivables were approximately RMB 5.0 million, a decrease from RMB 5.9 million in the previous year, attributed to a decrease in trade receivables[63]. Cash Flow and Financial Position - As of June 30, 2020, the group's bank balances and cash amounted to approximately RMB 70.4 million, an increase from RMB 68.0 million as of December 31, 2019[78]. - The company's cash and bank balances amounted to approximately RMB 70.4 million as of June 30, 2020, compared to RMB 68.0 million as of December 31, 2019, with about 49.9% in RMB and 50.1% in HKD and other currencies[83]. - The company's gearing ratio increased from approximately 47.8% as of December 31, 2019, to approximately 59.8% as of June 30, 2020, mainly due to borrowing for daily operations[95]. - The net cash generated from financing activities was RMB 32,754,000, significantly higher than RMB 2,278,000 in the same period of 2019[174]. - As of June 30, 2020, net cash used in operating activities was RMB 50,472,000, compared to RMB 14,752,000 for the same period in 2019[174]. Corporate Governance and Compliance - The Group has complied with the Corporate Governance Code and the Model Code for Securities Transactions during the reporting period[121][122]. - The Audit Committee reviewed the unaudited interim results for the six months ended June 30, 2020, confirming compliance with applicable accounting principles and standards[155]. - The Company has established an Audit Committee in compliance with the Corporate Governance Code[153]. Future Outlook and Strategic Plans - The long-term positive development outlook of China's economy remains unchanged despite the impact of the COVID-19 pandemic[115]. - The Group plans to enhance investment in internet advertising and content marketing to maintain stable operations during the economic downturn and support medium to long-term development[116]. - The Group aims to improve online marketing capabilities and provide one-stop online marketing solutions to more customers by leveraging internet media resources[117]. - In outdoor advertising, the Group will strengthen market expansion in subway TV advertising and explore new advertising methods using new technologies[118]. - The company aims to enhance its market position in TV advertising and further develop its online and outdoor advertising businesses using the IPO proceeds[98]. Shareholding and Corporate Structure - As of June 30, 2020, the company had no outstanding, granted, cancelled, exercised, or lapsed share options under the Share Option Scheme adopted on October 22, 2019[133]. - The company’s directors and chief executives held the following shares: Ms. Li Na (36,761,102 shares, 9.19%), Mr. Feng Xing (17,645,329 shares, 4.41%), Ms. Wang Xin (25,246,606 shares, 6.31%), and Mr. Leng Xuejun (14,781,639 shares, 3.70%) as of June 30, 2020[140]. - As of June 30, 2020, Yingheng Co., Ltd. holds 161,704,734 shares, representing approximately 40.43% of the company's total issued share capital[148]. - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2020, consistent with the previous year[156]. Miscellaneous - There were no significant investments, material acquisitions, or disposals of subsidiaries or associated companies during the review period[77]. - The Group's head office was relocated to a new address in Beijing on August 11, 2020[113]. - The company was incorporated on January 15, 2019, and its shares were listed on the Hong Kong Stock Exchange on November 12, 2019[176].

Financial Performance - Revenue for the year ended December 31, 2019, was RMB 845,820,000, representing an 8.0% increase from RMB 783,364,000 in 2018[20] - Gross profit for 2019 was RMB 106,828,000, up 11.7% from RMB 95,611,000 in the previous year[20] - Profit before tax decreased by 10.1% to RMB 56,134,000 from RMB 62,469,000 in 2018[20] - Profit attributable to the owners of the Company fell by 22.1% to RMB 36,304,000 compared to RMB 46,623,000 in 2018[20] - Earnings per share on continuing operations decreased by 21.4% to RMB 12 cents from RMB 16 cents in the previous year[20] - For the Reporting Period, the Group recorded revenue of approximately RMB845.8 million, representing an increase of 8.0% from approximately RMB783.4 million for the year ended 31 December 2018[77] - The profit attributable to the owners of the company was approximately RMB 36.3 million, a decrease of about 21.4% from RMB 46.1 million last year, primarily due to increased listing expenses[87] - Excluding listing expenses, profit attributable to the owners was approximately RMB 55.2 million, representing a year-on-year increase of approximately 9.8%[87] Advertising Revenue Breakdown - TV advertising services generated RMB 309,082,000, while online advertising services contributed RMB 433,593,000, showing a year-on-year change of -41.4% and +121.4% respectively[22] - Revenue from TV advertising services was approximately RMB309.1 million, representing a decrease of approximately 41.4% from approximately RMB527.0 million for the year ended 31 December 2018[78] - Revenue from online advertising services was approximately RMB433.6 million, representing an increase of approximately 121.4% from approximately RMB195.8 million for the year ended 31 December 2018[79] - Revenue from outdoor advertising services was approximately RMB63.4 million, representing an increase of approximately 23.0% from approximately RMB51.6 million for the year ended 31 December 2018[80] - Revenue from other advertising services surged approximately 345.4% to RMB 39.7 million from RMB 8.9 million for the previous year[86] Awards and Recognition - The Company was awarded "Greater China Region Content Marketing Company of The Year" in May 2019 by IAI International Advertising Executive Committee[30] - The Company received the "Five Star Alliance Business Partner of 2019" award in October 2019 from five major satellite TV channels[31] - Ruicheng (China) Media Group Limited won the "Best Content Marketing Company in Greater China" award at the 19th IAI International Advertising Awards in May 2019[32] - The company received the "Best Partner Award" from the Five-Star Alliance in October 2019, recognizing its contribution to integrated marketing services[33] - The project cooperation case with China Mobile & Kugou Music won a Bronze Prize in the Mobile Marketing category at the 19th IAI International Advertising Awards in April 2019[36] - The cooperation case "Knowledge is Power" for Casarte won the Gold Prize for TV Case at the 11th China Advertising Golden Vision Awards in May 2019[37] - The project "Friends of Time" for Casarte received the Annual Brand Building Golden Award at the China International Advertising Festival 2019 in October 2019[41] - The "Art of Life Super Press Conference" for Casarte won the Annual In-depth Marketing Award at the China International Advertising Festival 2019 in October 2019[42] - The award-winning works demonstrate the company's expertise in digital marketing and creative strategy, gaining industry recognition[38][39] - The company emphasizes the importance of innovative spirit and high-quality cases in the advertising industry, as highlighted by the awards received[43][44] - The awards reflect the company's commitment to enhancing its competitive edge through diverse marketing strategies and collaborations[33][41] - The recognition from prestigious awards showcases the company's successful integration of online and offline marketing efforts[42][44] Strategic Initiatives and Future Plans - The Group's strategy for 2020 includes focusing on existing advantages and core competitiveness to maintain stable operations during the economic downturn[52] - The Group aims to enhance creative design and communication capabilities in TV advertising services, developing content marketing to increase brand value for customers[53] - In online advertising, the Group plans to improve integrated service capacity and provide one-stop marketing solutions using big data and precision placement technologies[54] - The Group will strengthen market expansion in subway TV advertising and enhance brand communication through cross-platform content dissemination[55] - The focus for 2020 includes trending marketing strategies such as sports, knowledge, and experiential marketing to maximize advertising investment returns for clients[56] - The Group plans to enhance its market position in TV advertising, further develop its online advertising business, and strengthen its outdoor advertising business[115] - The Group will continue to invest in internet capabilities to stimulate innovation and maintain stable operations during economic downturns[114] - The Group aims to improve its data analytical capabilities and enhance its market reputation[122] Corporate Governance and Management - The company has a strong management team with over 18 years of experience in the advertising industry[132][134] - The Board of Directors includes a mix of executive and independent non-executive directors, ensuring a balance of power and authority within the company[181] - The company has complied with the corporate governance code provisions during the relevant period, maintaining high standards of governance practices[177] - The Independent Non-executive Directors represent more than one-third of the Board, providing checks and balances to safeguard shareholder interests[190] - The company has received annual written confirmations of independence from each Independent Non-executive Director, ensuring compliance with Listing Rules[191] - The company has appointed at least three Independent Non-executive Directors, fulfilling the requirements of the Listing Rules[192] - The Chairlady of the Board and the General Manager are held by separate individuals to ensure a clear segregation of duties[181] - The Board is responsible for overall leadership and strategic decisions, delegating day-to-day management to senior management[194] - The Board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific aspects of the Company's affairs[195] - Regular Board meetings are held at least four times a year, with majority participation from directors[198] - The management is responsible for implementing the strategy set by the Board and ensuring operational efficiency[197] Market Conditions and Challenges - Advertisers' confidence declined in 2019, with the proportion of advertisers increasing budgets at the lowest level in a decade, leading to a cautious approach in budget expenditures[64] - The impact of COVID-19 on the Group's financial position is currently uncertain, but the long-term outlook for China's economy remains positive[113] - The company does not have an interest rate hedging policy and is exposed to cash flow interest rate risk due to fluctuations in market interest rates[111] IPO and Financial Position - The listing date on the Hong Kong Stock Exchange was November 12, 2019[28] - Approximately 74.4% of the net proceeds from the initial public offering (approximately HK$58.6 million) had been utilized by December 31, 2019[122] - The net proceeds raised from the initial public offering amounted to approximately HK$78.8 million after deducting related expenses[116] - The allocation of unutilised IPO Net Proceeds includes 42.2% for online advertising, 30.0% for outdoor advertising, and 12.3% for strengthening strategy formulation and data analytical capabilities[126] - The company expects to utilise the IPO Net Proceeds within two years from the Listing Date[127] - The unutilised amount of IPO Net Proceeds as of the annual report date is HK$20.2 million[126] - The revised allocation of unutilised IPO Net Proceeds includes HK$4.3 million for general working capital purposes[126]