Group 1 - The company reported a revenue of RMB 11.446 million for the six months ending June 30, 2025, representing a year-on-year increase of 113.39% [1] - The loss attributable to shareholders narrowed to RMB 6.467 million, a decrease of 56.98% compared to the previous year [1] - The loss per share was recorded at 0.62 cents [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The group achieved significant revenue growth, turned gross loss into profit, and substantially reduced net loss for the six months ended June 30, 2025 Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11.4 | 5.4 | Increased by 113.4% | | Gross Profit/(Loss) | 1.3 | (1.6) | Turned from loss to profit | | Net Loss | (6.5) | (15.0) | Loss decreased by 56.7% | | Interim Dividend | Not recommended for payment | Nil | No change | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the group's interim financial performance, position, and equity changes, highlighting significant improvements in profitability and asset management [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The group achieved significant revenue growth, turned gross loss into profit, and substantially reduced its loss for the period Key Profit or Loss Statement Data | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue | 11,446 | 5,364 | Increased by 113.4% | | Cost of sales | (10,155) | (6,970) | Increased by 45.7% | | Gross Profit/(Loss) | 1,291 | (1,606) | Turned from loss to profit | | Loss before tax | (6,467) | (15,034) | Loss decreased by 57.0% | | Loss for the period | (6,467) | (15,034) | Loss decreased by 57.0% | | Basic and diluted loss per share | (RMB 0.62 cents) | (RMB 1.45 cents) | Loss decreased by 57.2% | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The group's total comprehensive loss for the period significantly decreased, primarily due to reduced loss for the period, while exchange differences had a net negative impact on comprehensive income Key Comprehensive Income Statement Data | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Loss for the period | (6,467) | (15,034) | Loss decreased by 57.0% | | Exchange differences on translation of overseas operations | 1,158 | (541) | Turned from negative to positive | | Exchange differences on translation of the Company's financial statements | (1,236) | 615 | Turned from positive to negative | | Total comprehensive loss for the period | (6,545) | (14,960) | Loss decreased by 56.3% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the group's current liabilities significantly increased, leading to a decrease in net current assets and net assets, despite a slight increase in total current assets Key Financial Position Statement Data | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 558 | 975 | Decreased by 42.8% | | Total current assets | 101,058 | 99,055 | Increased by 2.0% | | Total current liabilities | 27,271 | 18,879 | Increased by 44.5% | | Net current assets | 73,787 | 80,176 | Decreased by 8.0% | | Net assets | 71,728 | 78,273 | Decreased by 8.4% | [Interim Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The group's total equity decreased due to the loss for the period and negative impact from exchange fluctuation reserve, reflecting overall financial performance Key Equity Movement Data | Metric | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total equity | 78,273 | 71,728 | Decreased by 8.4% | | Loss for the period | – | (6,467) | Led to equity decrease | | Exchange fluctuation reserve | (170) | (248) | Decreased by 78 thousand | | Accumulated losses | (249,660) | (256,127) | Increased by 6,467 thousand | [Notes to the Interim Condensed Consolidated Financial Information](index=7&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This section provides detailed notes on the group's accounting policies, segment information, revenue, expenses, and financial position [Basis of Preparation and Changes in Accounting Policies and Disclosures](index=7&type=section&id=1.%20Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) This interim financial information is prepared in accordance with HKAS 34, consistent with annual financial statements, and new HKFRS amendments have no significant impact on the group - The interim condensed consolidated financial information is prepared in accordance with HKAS 34 Interim Financial Reporting and should be read in conjunction with the group's annual consolidated financial statements for the year ended December 31, 2024[11](index=11&type=chunk) - The adoption of amendments to HKFRS accounting standards (such as amendments to HKAS 21 and HKAS 1) had no **significant impact** on the group's interim condensed consolidated financial statements[12](index=12&type=chunk)[13](index=13&type=chunk) [Operating Segment Information](index=7&type=section&id=3.%20Operating%20Segment%20Information) The group operates in a single reportable segment, with all revenue and non-current assets concentrated in Mainland China - The group has only one reportable operating segment, and management monitors the group's overall operating results for decision-making purposes[14](index=14&type=chunk) - All of the group's revenue is generated from customers in Mainland China, and all non-current assets are located in Mainland China[15](index=15&type=chunk) [Revenue](index=7&type=section&id=4.%20Revenue) The group's total revenue significantly increased, primarily driven by a substantial rise in revenue from customer contracts, especially from web series distribution Revenue Analysis | Revenue Source | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Revenue from customer contracts | 11,440 | 2,909 | Increased by 293.2% | | Revenue from other sources (Non-executive producer license fees) | 6 | 2,455 | Decreased by 99.8% | | **Total Revenue** | **11,446** | **5,364** | **Increased by 113.4%** | Classification of Revenue from Customer Contracts | Category of Goods or Services | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Granting of TV series broadcasting rights licenses | 5,056 | 2,909 | Increased by 73.8% | | Distribution of web series | 6,384 | – | New business | | **Total** | **11,440** | **2,909** | **Increased by 293.2%** | - During the period, all of the group's revenue was generated from customers in Mainland China and recognized at a point in time[19](index=19&type=chunk)[20](index=20&type=chunk) [Loss Before Tax](index=8&type=section&id=5.%20Loss%20Before%20Tax) The group's loss before tax decreased primarily due to a significant drop in impairment losses on financial assets and reversal of prepayments under copyright co-investment arrangements, despite increased cost of sales Components of Loss Before Tax | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Cost of inventories sold | 10,155 | 6,890 | Increased by 47.4% | | Impairment of trade receivables | 803 | 5,096 | Decreased by 84.2% | | Reversal of prepayments under copyright co-investment arrangements | (740) | – | New reversal | | Share of loss of an associate | – | 438 | Decreased by 100% | [Income Tax and Dividends](index=9&type=section&id=6.%20Income%20Tax%20and%207.%20Dividends) The group incurred no income tax expense in the reporting period or prior period, and the board did not declare any interim dividend - The group incurred no income tax expense during the reporting period or the corresponding period last year[22](index=22&type=chunk) - The board did not declare any interim dividend during the reporting period (six months ended June 30, 2024: nil)[23](index=23&type=chunk) [Loss Per Share Attributable to Owners of the Parent](index=9&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) The group's basic and diluted loss per share significantly decreased due to reduced loss for the period, with no potential dilutive ordinary shares outstanding Loss Per Share | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Basic and diluted loss per share | (RMB 0.62 cents) | (RMB 1.45 cents) | | Weighted average number of ordinary shares outstanding | 1,037,500,000 shares | 1,037,500,000 shares | - As of June 30, 2025 and 2024, the group had no outstanding potential dilutive ordinary shares[24](index=24&type=chunk) [Details of Assets and Liabilities](index=9&type=section&id=G.%20Details%20of%20Assets%20and%20Liabilities) This section details changes in the group's key assets and liabilities, including property, plant and equipment, trade receivables, trade payables, and share capital [Property, Plant and Equipment](index=9&type=section&id=9.%20Property,%20Plant%20and%20Equipment) The book value of property, plant and equipment decreased, primarily due to depreciation during the period Book Value of Property, Plant and Equipment | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Book value at period/year-end | 44 | 72 | Decreased by 38.9% | | Depreciation charged during the period/year | (28) | (91) | Depreciation decreased by 69.2% | [Trade Receivables](index=10&type=section&id=10.%20Trade%20Receivables) Net trade receivables increased significantly, driven by a substantial rise in receivables within three months, despite a decrease in older receivables Trade Receivables and Ageing Analysis | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Trade receivables (Gross) | 174,292 | 167,687 | Increased by 3.9% | | Impairment | (158,382) | (157,579) | Increased by 0.5% | | Trade receivables (Net) | 15,910 | 10,108 | Increased by 57.4% | | **Ageing analysis (Net):** | | | | | Within three months | 8,752 | 142 | Significantly increased | | One to two years | 4,428 | 7,603 | Decreased by 41.7% | [Trade Payables](index=10&type=section&id=11.%20Trade%20Payables) Total trade payables significantly increased, primarily due to a substantial rise in payables within three months Trade Payables and Ageing Analysis | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Total trade payables | 10,147 | 2,829 | Increased by 258.0% | | **Ageing analysis:** | | | | | Within three months | 7,318 | 75 | Significantly increased | | Two to three years | 2,829 | 2,626 | Increased by 7.7% | [Share Capital](index=11&type=section&id=12.%20Share%20Capital) The company's authorized and issued share capital remained unchanged, consisting of 1,037,500,000 ordinary shares Share Capital Composition | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Authorized share capital (USD thousand) | 50 | 50 | | Authorized share capital (RMB thousand) | 336 | 336 | | Issued and fully paid share capital (USD thousand) | 5 | 5 | | Issued and fully paid share capital (RMB thousand) | 36 | 36 | - The issued and fully paid share capital comprises 1,037,500,000 ordinary shares of USD 0.000005 each, remaining unchanged for both periods[28](index=28&type=chunk) [Contingent Liabilities and Commitments](index=11&type=section&id=13.%20Contingent%20Liabilities%20and%2014.%20Commitments) The group had no significant contingent liabilities or unfulfilled contracted capital commitments at the end of the reporting period - As of June 30, 2025, the group had no **significant contingent liabilities** (December 31, 2024: nil)[29](index=29&type=chunk) - As of June 30, 2025 and 2024, the group had no unfulfilled contracted capital commitments[30](index=30&type=chunk) [Related Party Transactions](index=11&type=section&id=15.%20Related%20Party%20Transactions) The group's related party transactions primarily involved remuneration paid to key management personnel, with a decrease compared to the prior period Key Management Personnel Remuneration | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Short-term employee benefits | 607 | 726 | Decreased by 16.4% | | Pension scheme contributions | 98 | 63 | Increased by 55.6% | | Total remuneration paid to key management personnel | 705 | 789 | Decreased by 10.6% | [Events After the Reporting Period](index=11&type=section&id=16.%20Events%20After%20the%20Reporting%20Period) No events with significant impact on the group have occurred since June 30, 2025 - No events with a **significant impact** on the group have occurred since June 30, 2025[32](index=32&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's business operations, financial performance, liquidity, and future outlook, highlighting key drivers and challenges [Business and Operations Review and Outlook](index=12&type=section&id=Business%20and%20Operations%20Review%20and%20Outlook) The group achieved substantial revenue growth, primarily from web series distribution, and successfully reduced net loss; it remains cautiously optimistic, focusing on web series and cost control amidst market challenges - The group primarily engages in licensing broadcasting rights for TV series or web series, investing in TV series and web series as a non-executive producer, and acting as a distribution agent[33](index=33&type=chunk) - Total revenue was approximately **RMB 11.4 million**, an increase of approximately **113.4%** compared to the prior period, mainly from licensing and distributing web series[33](index=33&type=chunk) - Net loss decreased to approximately **RMB 6.5 million** from approximately **RMB 15.0 million** in the prior period, still impacted by lower-than-expected web series revenue and delayed self-produced TV series broadcasting plans[33](index=33&type=chunk) - The group will closely monitor market conditions, explore opportunities in web series (including short web series) and TV series businesses, and maintain prudent financial management and cost control[35](index=35&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) The group's financial performance significantly improved with substantial revenue growth and a return to gross profit, while impairment losses on financial assets and finance costs sharply decreased, collectively narrowing the loss for the period [Revenue](index=13&type=section&id=Revenue) Revenue increased significantly, primarily driven by higher income from licensing web series broadcasting rights - During the reporting period, the group recorded revenue of approximately **RMB 11.4 million**, an increase of approximately **113.4%** compared to the prior period[36](index=36&type=chunk) - The increase in revenue was primarily due to increased revenue from licensing web series broadcasting rights[36](index=36&type=chunk) [Cost of Sales and Gross Profit](index=13&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) Cost of sales increased, leading to a positive gross profit, primarily driven by higher revenue from web series licensing Changes in Cost of Sales and Gross Profit | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cost of sales | 10.2 | 7.0 | Increased by 45.7% | | Gross Profit/(Loss) | 1.3 | (1.6) | Turned from loss to profit | - The increase in cost of sales was primarily due to increased revenue from licensing web series broadcasting rights[37](index=37&type=chunk) [Other Income and Gains](index=13&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly increased during the reporting period Other Income and Gains | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Other income and gains | 0.9 | 0.2 | Increased by 350% | [Selling and Distribution Expenses](index=13&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly increased, primarily driven by higher advertising costs Selling and Distribution Expenses | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 2.7 | 0.6 | Increased by 337.4% | - The increase was primarily due to increased advertising expenses[39](index=39&type=chunk) [Administrative Expenses](index=14&type=section&id=Administrative%20Expenses) Administrative expenses decreased during the reporting period Administrative Expenses | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Administrative expenses | 5.2 | 7.3 | Decreased by 29.2% | [Impairment Losses on Financial Assets](index=14&type=section&id=Impairment%20Losses%20on%20Financial%20Assets) Impairment losses on financial assets significantly decreased, primarily due to the ageing of trade receivables Impairment Losses on Financial Assets | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Impairment losses on financial assets | 0.8 | 5.1 | Decreased by 84.3% | - The impairment losses were attributable to the ageing of trade receivables for the six months ended June 30, 2025[41](index=41&type=chunk) [Finance Costs](index=14&type=section&id=Finance%20Costs) Finance costs significantly decreased, mainly because the group had no fixed-return investment agreements with investors for TV series Finance Costs | Metric | 2025 (RMB thousand) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Finance costs | 10 | 0.2 | Decreased by 95% | - The decrease was primarily due to the group having no fixed-return investment agreements with investors for TV series during the reporting period[42](index=42&type=chunk) [Loss for the Reporting Period](index=14&type=section&id=Loss%20for%20the%20Reporting%20Period) Loss attributable to owners of the parent significantly decreased, driven by increased gross profit and reduced impairment losses Loss Attributable to Owners of the Parent | Metric | 2025 (RMB million) | 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Loss attributable to owners of the parent | 6.5 | 15.0 | Loss decreased by 56.7% | - The decrease in loss for the reporting period was primarily due to increased gross profit and reduced impairment losses on financial assets[43](index=43&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=14&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) The group's cash and net current assets decreased, but the gearing ratio improved, and management believes it has sufficient working capital for business development needs Key Liquidity and Capital Structure Data | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 13.5 | 20.7 | Decreased by 34.8% | | Net current assets | 73.8 | 80.2 | Decreased by 8.0% | | Gearing ratio | 0.54% | 0.98% | Improved | | Equity attributable to owners of the parent | 71.7 | 78.3 | Decreased by 8.4% | - The decrease in equity attributable to owners of the parent was primarily due to the loss for the reporting period[45](index=45&type=chunk) - The group believes it has **sufficient working capital** to meet its funding requirements for business development[45](index=45&type=chunk) [Pledged Assets and Contingent Liabilities](index=15&type=section&id=Pledged%20Assets%20and%20Contingent%20Liabilities) The group had no pledged assets or significant contingent liabilities at the end of the reporting period - As of June 30, 2025, the group had no pledged assets[46](index=46&type=chunk) - As of June 30, 2025, the group had no **significant contingent liabilities**[47](index=47&type=chunk) [Employees, Remuneration Policy and Training](index=15&type=section&id=Employees,%20Remuneration%20Policy%20and%20Training) The group employed **22** full-time staff in China with employee costs of approximately **RMB 1.8 million**, offering competitive remuneration, benefits, training, and participating in MPF schemes - As of June 30, 2025, the group employed a total of **22** full-time employees, all located in China[48](index=48&type=chunk) - During the reporting period, the group's employee costs amounted to approximately **RMB 1.8 million**[49](index=49&type=chunk) - The group provides employees with competitive salaries, discretionary bonuses, and other incentives, participating in various local government-organized employee welfare schemes (including housing, retirement, and social insurance) and Mandatory Provident Fund schemes[49](index=49&type=chunk)[50](index=50&type=chunk) - The group provides induction training, regular on-the-job training, and organized training on TV series licensing and production during the reporting period[49](index=49&type=chunk)[52](index=52&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries and Associates](index=16&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) The group did not undertake any significant acquisitions or disposals of subsidiaries and associates during the reporting period - The group had no **significant acquisitions or disposals** of subsidiaries and associates during the reporting period[54](index=54&type=chunk) [Significant Investments During the Reporting Period](index=16&type=section&id=Significant%20Investments%20During%20the%20Reporting%20Period) The group made no significant equity investments in other companies during the reporting period and has no current plans for future major investments or capital assets - During the reporting period, the group made no **significant investments** in the equity of any other companies[55](index=55&type=chunk) - The company currently has no other future plans regarding **significant investments** or capital assets[55](index=55&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=Foreign%20Exchange%20Risk) Operating primarily in China with all transactions settled in RMB, the group faces limited foreign exchange fluctuation risk and uses no hedging instruments - The group operates in China, with all transactions settled in RMB, thus foreign currency fluctuation risk is essentially dependent on the RMB exchange rate performance[56](index=56&type=chunk) - During the reporting period, the group did not use any long-term contracts, currency borrowings, or other methods to hedge foreign currency risk[56](index=56&type=chunk) [Significant Litigation](index=16&type=section&id=Significant%20Litigation) As of the announcement date, the group was not involved in any significant litigation, arbitration, or claims - As of the date of this announcement, no member of the group was involved in any **significant litigation**, arbitration, or claims[57](index=57&type=chunk) [Other Information](index=16&type=section&id=Other%20Information) This section covers post-reporting period events, securities transactions, corporate governance, and director information [Events After Reporting Period](index=16&type=section&id=Events%20After%20Reporting%20Period) No significant events have occurred from the end of the reporting period up to the date of this announcement - No **significant events** have occurred from the end of the reporting period up to the date of this announcement[58](index=58&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=16&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Listed%20Securities) The company and its subsidiaries did not purchase, sell, or redeem any of their listed securities during the reporting period - During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of their listed securities[59](index=59&type=chunk) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The group is committed to high corporate governance standards, adopting the HKEX Corporate Governance Code, though some non-executive directors missed the AGM - The company has adopted the Corporate Governance Code set out in Appendix C1 to the HKEX Listing Rules and will continue to review and enhance its corporate governance practices[60](index=60&type=chunk) - Non-executive Director Mr. Shao Hui and Independent Non-executive Directors Mr. Xu Zongzheng, Ms. Liu Jingping, and Mr. Xian Guoming did not attend the company's Annual General Meeting held on May 30, 2025, due to other engagements[60](index=60&type=chunk) [Model Code for Securities Transactions](index=17&type=section&id=Model%20Code%20for%20Securities%20Transactions) The group's directors confirmed full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers throughout the reporting period - All directors confirmed their full compliance with the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules throughout the reporting period[61](index=61&type=chunk) [Directors' Responsibility for Financial Statements](index=17&type=section&id=Directors%27%20Responsibility%20for%20Financial%20Statements) The directors confirmed their responsibility for preparing the company's financial statements and noted that the financial information in this announcement is unaudited - The directors confirmed their responsibility for preparing the company's financial statements[62](index=62&type=chunk) - The financial information contained in this announcement is unaudited[62](index=62&type=chunk) [Appointment of Chief Operating Officer and Marketing Director](index=17&type=section&id=Appointment%20of%20Chief%20Operating%20Officer%20and%20Marketing%20Director) Mr. Liu Tieqiang was appointed Chief Operating Officer, and Mr. Gui Xiaohua as Marketing Director, both effective July 22, 2025 - Executive Director Mr. Liu Tieqiang was appointed as the company's Chief Operating Officer effective July 22, 2025[63](index=63&type=chunk) - Mr. Gui Xiaohua was appointed as the company's Marketing Director effective July 22, 2025[64](index=64&type=chunk) [Auditor](index=18&type=section&id=Auditor) Ernst & Young resigned due to a fee disagreement, and BDO Limited was appointed as the new auditor - Ernst & Young resigned due to an inability to agree on audit fees for the financial year ending December 31, 2025, effective July 25, 2025[65](index=65&type=chunk) - BDO Limited was appointed as the company's new auditor on July 25, 2025[65](index=65&type=chunk) - The Board and Audit Committee confirmed no other disagreements or unresolved matters between Ernst & Young and the company, apart from the fee issue[65](index=65&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation](index=18&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20or%20any%20Associated%20Corporation) This section discloses the interests of the company's directors and chief executive in the company's shares, primarily held through controlled corporations Directors' and Chief Executive's Shareholding Profile | Director's Name | Nature/Capacity of Interest | Number of Shares Held (L) | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Liu Naiyue | Interest in controlled corporation | 239,002,500 | 23.04% | | Ms. Liu Peiyao | Interest in controlled corporation | 239,002,500 | 23.04% | | Mr. Shao Hui | Interest in controlled corporation | 100,622,500 | 9.69% | - Mr. Liu Naiyue and Ms. Liu Peiyao are deemed to be interested in the shares beneficially owned by BLW Investment Limited due to a core shareholders' acting-in-concert deed[66](index=66&type=chunk) - Mr. Shao Hui is deemed to be interested in the shares beneficially owned by SDJZ Investment Limited[67](index=67&type=chunk) [Substantial Shareholders' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=19&type=section&id=Substantial%20Shareholders%27%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) This section lists the interests of substantial shareholders, excluding directors and chief executives, in the company's shares, including beneficial owners, controlled corporations, and spouses Substantial Shareholders' Shareholding Profile | Name/Entity | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | BLW Investment Limited | Beneficial owner | 239,002,500 | 23.04% | | Ms. Wei Xian | Interest in controlled corporation | 239,002,500 | 23.04% | | Mr. Bai Yang | Interest in controlled corporation | 239,002,500 | 23.04% | | Ms. Xie Jinhong | Spouse's interest | 239,002,500 | 23.04% | | Mr. Wu Tao | Interest in controlled corporation | 239,002,500 | 23.04% | | Ms. Chen Ying | Spouse's interest | 239,002,500 | 23.04% | | Suiyong International Limited | Beneficial owner | 110,010,000 | 10.60% | | Suiyong Holdings Limited | Interest in controlled corporation | 110,010,000 | 10.60% | | SDJZ Investment Limited | Beneficial owner | 100,622,500 | 9.69% | | Hangzhou Baihui Equity Investment Fund Partnership (Limited Partnership) | Interest as party to agreement | 100,622,500 | 9.69% | | Tibet Langrun Investment Management Co., Ltd. | Interest as party to agreement | 100,622,500 | 9.69% | | Ms. Lu Min | Spouse's interest | 100,622,500 | 9.69% | | JMJ Group Limited | Beneficial owner | 86,872,500 | 8.37% | | Mr. Xu Jun | Interest in controlled corporation | 86,872,500 | 8.37% | | Ms. Zhang Hui | Spouse's interest | 86,872,500 | 8.37% | | SYYT Investment Limited | Beneficial owner | 70,002,500 | 6.74% | | Mr. Sun Xianliang | Interest in controlled corporation | 70,002,500 | 6.74% | | Ms. Yu Jinmei | Spouse's interest | 70,002,500 | 6.74% | | Jinping Holding Limited | Beneficial owner | 54,997,500 | 5.30% | | Ms. Jin Ping | Interest in controlled corporation | 54,997,500 | 5.30% | | Mr. Yao Changhui | Spouse's interest | 54,997,500 | 5.30% | [Changes in Information of Directors and Chief Executive of the Company](index=21&type=section&id=Changes%20in%20Information%20of%20Directors%20and%20Chief%20Executive%20of%20the%20Company) This section outlines changes in the information of the company's directors and chief executive during the reporting period and up to the announcement date Changes in Directors' Information | Director's Name | Details | Effective Date | | :--- | :--- | :--- | | Dr. Huang Sile | Appointed as alternate director to Mr. Liu Naiyue | May 27, 2025 | | Dr. Huang Sile | Ceased to be alternate director to Mr. Liu Naiyue | May 30, 2025 | [Share Option Scheme](index=22&type=section&id=Share%20Option%20Scheme) The company has a share option scheme to reward contributors, capped at **10%** of issued shares, with no options granted, exercised, or outstanding as of the announcement date - The Share Option Scheme was conditionally adopted on December 12, 2019, to reward eligible participants who have contributed or may contribute to the group[75](index=75&type=chunk) - The maximum number of shares involved in share options shall not exceed **10%** of the issued shares on the listing date (i.e., **100,000,000 shares**)[75](index=75&type=chunk) - The Share Option Scheme will be valid and effective for a period of **ten years** from the adoption date, with approximately **4 years and 4 months** remaining[75](index=75&type=chunk) - As of the date of this announcement, no share options under the Share Option Scheme have been granted or agreed to be granted, exercised, cancelled, expired, or lapsed, nor are there any outstanding share options, warrants, or convertible instruments convertible into shares[76](index=76&type=chunk) [Continuing Disclosure Obligations under the Listing Rules](index=23&type=section&id=Continuing%20Disclosure%20Obligations%20under%20the%20Listing%20Rules) The company confirms no other continuing disclosure obligations under the Listing Rules beyond those disclosed in this announcement - Save as disclosed in this announcement, the company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[78](index=78&type=chunk) [Review by Audit Committee](index=23&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee reviewed the group's accounting principles, internal controls, and unaudited interim financial statements, deeming them compliant with applicable standards and adequately disclosed - The Audit Committee has reviewed the accounting principles and practices adopted by the group with the company's management and discussed internal controls and financial reporting matters, including the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[79](index=79&type=chunk) - The Audit Committee is of the opinion that the financial information complies with applicable accounting standards, the Listing Rules, and legal requirements, and that adequate disclosures have been made[79](index=79&type=chunk) - The group's unaudited condensed consolidated interim financial statements have not been audited or reviewed by the company's external auditor[79](index=79&type=chunk) [By Order of the Board](index=23&type=section&id=By%20Order%20of%20the%20Board) This announcement is issued by Mr. Liu Naiyue, Chairman and Executive Director, on behalf of the Board, and lists the current Board composition - This announcement is issued by Mr. Liu Naiyue, Chairman and Executive Director of New Stone Culture Investment Limited, on behalf of the Board[80](index=80&type=chunk) - The Board comprises Executive Directors Mr. Liu Naiyue, Ms. Cai Xiaoxin, Ms. Liu Peiyao, Ms. Li Fang, Mr. Liu Tieqiang, and Mr. Qu Guohui; Non-executive Director Mr. Shao Hui; and Independent Non-executive Directors Mr. Xian Guoming, Mr. Xu Zongzheng, Mr. Zhong Mingshan, and Ms. Liu Jingping[81](index=81&type=chunk)

[Announcement Overview](index=1&type=section&id=Announcement_Overview) This announcement is a supplementary report to New Culture Investment Group Limited's 2024 annual report, providing additional details on trade receivables [Purpose and Scope of Announcement](index=1&type=section&id=Purpose_Scope_Announcement) This announcement supplements the annual report of New Culture Investment Group Limited (the Group) for the year ended December 31, 2024, to provide additional information[2](index=2&type=chunk) [Detailed Analysis of Trade Receivables](index=1&type=section&id=Detailed_Analysis_Trade_Receivables) The Group's trade receivables totaled **RMB 167,687 thousand**, with most credit-impaired and individually assessed, primarily involving four companies, and the collectively assessed expected credit loss rate significantly increased from **70.56% in 2023 to 93.97% in 2024** [Details and Impairment of Trade Receivables](index=1&type=section&id=Details_Impairment_Trade_Receivables) During the reporting period, the Group's total trade receivables amounted to RMB 167,687 thousand, with most credit-impaired and individually assessed, primarily involving four companies, indicating significant bad debt risk. The collectively assessed expected credit loss rate significantly increased from 70.56% in 2023 to 93.97% in 2024 [Balances Credit-Impaired and Individually Assessed](index=1&type=section&id=Balances_Credit_Impaired_Individually_Assessed) 2024 Details of Credit-Impaired and Individually Assessed Trade Receivables as of December 31 (RMB Thousand) | Item | RMB Thousand | | :--- | :--- | | Credit-Impaired | 59,215 | | Individually Impaired | 108,472 | | –Company A | 84,659 | | –Company B | 9,213 | | –Company C | 6,800 | | –Company D | 7,800 | | Total Trade Receivables | 167,687 | [Collectively Assessed Balances and Expected Credit Losses](index=2&type=section&id=Collectively_Assessed_Balances_Expected_Credit_Losses) Expected Credit Loss Rates and Gross Carrying Amounts of Trade Receivables (RMB Thousand) | Metric | Less than 1 year | 1 to 2 years | 2 to 3 years | Over 3 years | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | **December 31, 2024** | | | | | | | Expected Credit Loss Rate | 51.86% | 71.03% | 62.57% | 100.00% | 93.97% | | Gross Carrying Amount | 295 | 26,240 | 6,313 | 134,839 | 167,687 | | Expected Credit Loss | 153 | 18,637 | 3,950 | 134,839 | 157,579 | | **December 31, 2023** | | | | | | | Expected Credit Loss Rate | 10.23% | 25.12% | 43.21% | 100.00% | 70.56% | | Gross Carrying Amount | 34,640 | 6,663 | 29,513 | 108,689 | 179,505 | | Expected Credit Loss | 3,544 | 1,674 | 12,753 | 108,689 | 126,660 | [Analysis of Reasons for Increased Loss Rates](index=2&type=section&id=Analysis_Reasons_Increased_Loss_Rates) The increase in trade receivables loss rates is primarily due to financial constraints, legal disputes, and liquidation procedures faced by business stakeholders, leading to long-unsettled payments, prompting the Group to make 100% impairment provisions for related receivables, involving Companies A, B, C, and D - Company A: Approximately **RMB 84,216,000** in receivables (related to a 2020 TV series) due to Company A's financial constraints and the Group's lack of direct involvement as an investor in distribution, facing indefinite settlement delays, **100% impairment provision** made[6](index=6&type=chunk) - Company B: Approximately **RMB 3,574,000** in receivables (related to a 2020 TV series) due to Company B being in liquidation since 2024, significantly increasing credit risk, **100% impairment provision** made[6](index=6&type=chunk) - Company C: Approximately **RMB 6,800,000** in receivables (related to a TV series) due to Company C management changes, significantly increasing credit risk, **100% impairment provision** made[8](index=8&type=chunk) - Company D: Approximately **RMB 7,800,000** in receivables (related to a web series) due to Company D's failure to fulfill guaranteed payment agreements and non-payment even after a favorable judgment, significantly increasing credit risk, **100% impairment provision** made[8](index=8&type=chunk) [Methodology and Basis for Impairment Determination](index=4&type=section&id=Methodology_Basis_Impairment_Determination) The Group uses a provision matrix for impairment analysis, deriving provision rates based on aging periods and overdue dates for customer segments, reflecting probability-weighted outcomes, time value of money, and available historical, current, and future economic forecasts, without considering independent valuers - Impairment analysis uses a provision matrix, deriving provision rates based on customer segment aging periods and overdue dates[9](index=9&type=chunk) - Calculations reflect probability-weighted outcomes, time value of money, and reasonable and reliable information regarding past events, current conditions, and forecasts of future economic conditions[9](index=9&type=chunk) - The Group did not consider independent valuers for impairment assessment[10](index=10&type=chunk) [Macro Reasons for Deterioration of Trade Receivables Aging](index=5&type=section&id=Macro_Reasons_Deterioration_Trade_Receivables_Aging) The deterioration in trade receivables aging is primarily attributed to the post-pandemic downturn in the TV series industry, disrupting TV stations' cash flow, limiting financing channels, and consequently affecting business stakeholders' payment ability, exacerbating the Group's receivables delays - Post-pandemic downturn in the TV series industry severely disrupted TV stations' cash flow, limiting their ability to make timely payments[12](index=12&type=chunk) - Widespread economic recession restricted TV stations' financing channels, exacerbating difficulties in timely settlement of receivables[12](index=12&type=chunk) [Risk Management and Recovery Measures](index=4&type=section&id=Risk_Management_Recovery_Measures) The Group has taken measures such as demand letters, negotiating alternative solutions, and initiating legal proceedings to recover receivables. Favorable judgments were obtained against Companies B and D, but enforcement faces challenges; for Companies A and C, negotiation or legal consultation is being considered [Recovery Actions Taken and Progress](index=4&type=section&id=Recovery_Actions_Taken_Progress) The Group has taken measures such as demand letters, negotiating alternative solutions, and initiating legal proceedings to recover receivables. Favorable judgments were obtained against Companies B and D, but enforcement faces challenges; for Companies A and C, negotiation or legal consultation is being considered - The Group has taken measures including: issuing demand letters to business stakeholders, discussing alternative solutions, and initiating legal proceedings[9](index=9&type=chunk) - Company B: Favorable judgment obtained in 2020, but as Company B is in liquidation, the Group will consult lawyers to pursue approximately **RMB 9,213,000** through legal procedures[11](index=11&type=chunk) - Company D: Favorable judgment obtained in November 2024, but Company D lacks funds to fulfill the judgment; the Group is consulting lawyers and initiated enforcement proceedings in May 2025[11](index=11&type=chunk) - Companies A and C: To maintain positive relationships, no legal action has been taken yet, but alternative solutions are being negotiated or legal consultation is being considered[11](index=11&type=chunk) [Due Diligence and Credit Risk Assessment Work](index=5&type=section&id=Due_Diligence_Credit_Risk_Assessment_Work) The Board believes sufficient due diligence and risk assessment were conducted before contracting with business stakeholders, including credit verification, management discussions, industry payment performance analysis, and internal credit assessment, but the significant increase in impairment losses primarily stems from unforeseen external economic recession - The Board believes sufficient due diligence and risk assessment were conducted, including verifying business stakeholders' credit, discussing with management, analyzing industry payment performance, and internal credit assessment[13](index=13&type=chunk)[14](index=14&type=chunk) - The significant increase in impairment losses is primarily due to external factors beyond the Group's control, such as an unforeseen economic recession[13](index=13&type=chunk) - As of December 31, 2024, over **80% of total trade receivables** were overdue for more than three years, indicating these receivables originated from contracts over three years ago[13](index=13&type=chunk) [Subsequent Recovery of Trade Receivables](index=6&type=section&id=Subsequent_Recovery_Trade_Receivables) As of July 31, 2025, approximately RMB 2,428,800 of overdue trade receivables from FY2024 have been successfully recovered - As of July 31, 2025, approximately **RMB 2,428,800** of overdue trade receivables from FY2024 have been recovered[15](index=15&type=chunk) [Other Information](index=6&type=section&id=Other_Information) This section provides details regarding the composition of the Board of Directors as of the announcement date [Board of Directors Information](index=6&type=section&id=Board_of_Directors_Information) As of the announcement date, August 27, 2025, New Culture Investment Group Limited's Board of Directors comprises 6 executive directors, including Chairman and Executive Director Mr. Liu Naiyue, 1 non-executive director, and 4 independent non-executive directors - As of August 27, 2025, the Board includes **6 executive directors** (Mr. Liu Naiyue as Chairman), **1 non-executive director**, and **4 independent non-executive directors**[16](index=16&type=chunk)

Group 1 - The company, New Stone Culture (01740.HK), announced a board meeting scheduled for August 29, 2025, to consider and approve the unaudited consolidated interim results for the period ending June 30, 2025 [1] - The board meeting will also address the announcement of the interim results and consider the proposal for an interim dividend, if applicable [1]

承董事會命 Values Cultural Investment Limited 新石文化投資有限公司 主席兼執行董事 劉乃岳 香港，二零二五年八月十八日 於本公告日期，董事會包括執行董事劉乃岳先生、蔡曉昕女士、劉佩瑤女士、李芳女士、 劉鐵強先生及曲國輝先生；非執行董事邵輝先生；及獨立非執行董事冼國明先生、徐宗 政先生、鐘明山先生及劉京平女士。 ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) (股 份 代 號 ： 1740) 董事會會議通告 Values Cultural Investment Limited 新石文化投資有限公司（「本公司」）之董事（「董 事」）會（「董事會」）謹此宣佈將於二零二五年八月二十九日（星期五）舉行董事會 會議，藉 以（其中包括）考慮及批准本公司及其附屬公司截至二零二五年六月三十日之 未經審核綜合中期業績及其發佈該業績公告，並考慮建議派發中期股息（如有）。 Values Cultural Investment Limited 新 石 文 化 投 資 有 限 公 司 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 ...

Group 1 - The Hong Kong film and television stocks experienced a general rise, with notable increases in several companies' stock prices [1] - Fengde Li Holdings saw a rise of over 12%, while Ningmeng Film and Television increased by over 10% [1] - New Stone Culture, Damai Entertainment, and Yaoxing Technology Group also reported gains of 5.49%, 4.07%, and nearly 4% respectively [1] Group 2 - Fengde Li Holdings' latest price is 0.064 with a market capitalization of 112 million and a year-to-date increase of 20.75% [2] - Ningmeng Film and Television's stock price is 4.820, with a market cap of 1.743 billion and a year-to-date increase of 72.14% [2] - Damai Entertainment has a stock price of 1.280, a market cap of 38.241 billion, and a significant year-to-date increase of 169.47% [2]

Group 1 - Hong Kong film stocks experienced a surge, with New Stone Culture rising over 9% [1] - China Star Group increased by more than 7% [1] - Damai Entertainment saw a rise of over 6% [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01740 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | USD | | 0.000005 USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 10,000,000,000 | USD | | 0.000005 USD | | 50,000 | 本月底法定/註冊股本總額： USD 50,000 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 致：香港交易及結算所有限 ...

Group 1 - As of July 4, 96 stocks reached a 52-week high, with Tongyuan International (03830), ITE HOLDINGS (08092), and China National Cultural Industry (00745) leading the high rate at 36.07%, 25.49%, and 25.00% respectively [1] - The top three stocks by closing price that reached a 52-week high are Tongyuan International at 0.078, ITE HOLDINGS at 0.052, and China National Cultural Industry at 0.300 [1] - Other notable stocks that reached a 52-week high include Nippon Kyoei (00627) at 21.54% and Sanofi (02257) at 21.50% [1] Group 2 - The 52-week low rankings show that Health Road (02587) had the largest decline at -18.31%, followed by Rongda Technology (09881) at -12.43% [3] - Other stocks that reached a 52-week low include New Stone Culture (01740) at -8.62% and Emperor Entertainment Hotel (00296) at -5.00% [3] - The list of stocks with significant declines also includes Qiyi Technology (01739) at -3.38% and Huanying Media (01003) at -2.86% [3]

Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 4.1 million, a decrease of about 93.4% compared to RMB 62.9 million for the year ended December 31, 2023[13]. - The gross loss decreased by approximately 36.3% to RMB 38.9 million from RMB 61.1 million in the previous year[13]. - The net loss for the reporting period was approximately RMB 98.3 million, a slight decrease of about 1.1% from RMB 99.4 million in the previous year[13]. - Revenue from licensing television drama or web drama rights was approximately RMB 3.1 million, down about 92.7% from RMB 42.7 million in the previous year[17]. - Revenue from investment as a non-executive producer for television dramas or web dramas was approximately RMB 1.0 million, a decrease of about 93.4% from RMB 14.9 million in the previous year[17]. - Total revenue decreased by approximately 93.4% from about RMB 62.9 million for the year ended December 31, 2023, to about RMB 4.1 million for the year ended December 31, 2024, due to tightened procurement budgets and delayed broadcast schedules from TV stations and online video platforms[22]. - Revenue from licensing TV series or online dramas dropped by approximately 92.7% from about RMB 42.7 million in 2023 to about RMB 3.1 million in 2024, primarily due to procurement budget tightening and delayed broadcast schedules[24]. - Sales costs decreased by approximately 65.3% from about RMB 124.0 million in 2023 to about RMB 43.0 million in 2024, mainly due to reduced licensing costs and increased inventory write-downs[28]. - Other income decreased from RMB 1.075 million in 2023 to RMB 0.484 million in 2024, with government grants and interest income contributing to the decline[34]. - Other income and gains decreased by approximately 55.0% from about RMB 1.1 million for the year ended December 31, 2023, to about RMB 0.5 million for the year ending December 31, 2024, primarily due to a reduction in government subsidies[35]. - Sales and distribution expenses decreased by approximately 71.5% from about RMB 4.3 million for the year ended December 31, 2023, to about RMB 1.2 million for the year ending December 31, 2024, mainly due to a reduction in advertising and marketing expenses[36]. - Administrative expenses increased by approximately 2.6% from about RMB 14.4 million for the year ended December 31, 2023, to about RMB 14.7 million for the year ending December 31, 2024, primarily due to an increase in compensation and travel expenses[37]. - Financial asset impairment losses recorded were approximately RMB 31.0 million, mainly due to an increase in long overdue trade receivables from certain customers[38]. - Net loss decreased by approximately 1.1% from about RMB 994 million for the year ended December 31, 2023, to about RMB 983 million for the year ending December 31, 2024, with the net loss margin increasing from approximately -158.1% to -2,384.6%[42]. Business Strategy and Market Outlook - The company plans to adjust its business focus based on market trends and viewer habits, continuing to explore opportunities in television and web drama production and investment[14]. - The overall industry outlook remains challenging, prompting the company to seek new opportunities in the film and television industry[14]. - The company continues to expand its web drama production business in response to the growing popularity of web dramas[17]. - The company is negotiating with television stations regarding the broadcast schedule of a self-produced television drama, which was completed in April 2024[18]. - Six web dramas produced by the company are scheduled to air between April 2024 and March 2025[20]. - The company will maintain a cautious approach to project selection and cost control while exploring opportunities in online dramas and TV series[21]. - The company anticipates a challenging market environment due to economic instability and will closely monitor market conditions[21]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[80]. - The company has adopted the corporate governance code as a basis for its governance practices since its listing date, ensuring compliance with applicable rules[80]. - The board emphasizes the importance of a healthy corporate culture aligned with the company's vision and strategic goals[82]. - The board consists of 11 directors, including 6 executive directors and 4 independent non-executive directors, ensuring compliance with listing rules regarding independence[89]. - The company has established a written guideline for employees regarding securities trading to ensure compliance with insider trading regulations[86]. - The board has set up three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[87]. - The roles of the Chairman and CEO are clearly separated to ensure a balance of power and effective governance[93]. - The board has held meetings with independent non-executive directors to discuss company affairs without the presence of executive directors[94]. - The company has received annual independence confirmations from all independent non-executive directors, affirming their compliance with independence guidelines[92]. - The board is responsible for strategic planning and oversight of the company's operations and financial performance[88]. - The company has established procedures for directors to seek independent professional advice at the company's expense[100]. - The company will review its board diversity policy annually to ensure its effectiveness[116]. Employee and Workplace Practices - As of December 31, 2024, the employee gender distribution is approximately 43.3% male and 56.7% female, reflecting the company's commitment to gender diversity[92]. - The company has a total of 30 full-time employees, consisting of 17 females and 13 males, and will continue to maintain at least one female employee[120]. - The employee turnover rate during the reporting period was zero, indicating no loss of staff[168]. - The company has implemented a five-day work week and provides various paid leave options, including maternity and paternity leave[173]. - The company provides comprehensive health insurance and social security benefits, including basic pension and medical insurance[173]. - The company organizes team-building activities and fitness programs to enhance employee cohesion and well-being[175]. - The company emphasizes equal employment opportunities, ensuring no discrimination based on race, gender, or other protected characteristics[170]. - The company actively recruits talent through partnerships with universities and recruitment agencies, hiring one new employee during the reporting period[170]. - The percentage of trained employees by gender is 50% male and 50% female, with 40% of senior management receiving training[178]. - The average training hours for employees are 35 hours per person for both male and female employees, with senior management receiving an average of 40 hours[178]. - The company conducted over 20 internal training sessions, focusing on areas such as television drama sales, script selection, and customer maintenance[177]. Environmental, Social, and Governance (ESG) Reporting - The annual ESG report covers the company's management policies and performance from January 1, 2024, to December 31, 2024, focusing on sustainable development[140]. - The ESG report will provide quantitative data on environmental and social aspects, with comparative data included in future reports[142]. - The report's scope remains consistent with the previous year, covering the company's overall performance in environmental, social, and governance areas[143]. - The report is prepared in accordance with the ESG reporting guidelines set by the Hong Kong Stock Exchange[144]. - The board of directors is responsible for the ESG strategy and reporting, ensuring effective risk management and internal control systems[147]. - The company aims to expand its production business in online dramas and films, responding to the growing popularity of these formats[148]. - Key ESG issues identified include product quality, intellectual property protection, customer relationship management, and employee management[150]. - The company has established a comprehensive ESG management system, enhancing its performance in environmental, social, and governance aspects[152]. - The company generated 8.2 tons of indirect greenhouse gas emissions in CO2 equivalent, with an intensity of 20.0 kg CO2 equivalent per 10,000 revenue[160]. - The total electricity consumption was 3,816 kWh, with an intensity of 9.3 kWh per 10,000 revenue, and gasoline consumption was 2,680 liters, with an intensity of 6.5 liters per 10,000 revenue[163]. - The company produced 1.2 kg of hazardous waste (selenium cartridges) and 82 kg of non-hazardous waste (paper), with intensities of 2.9 g and 200.0 g per 10,000 revenue respectively[160]. - The company has not experienced any environmental service incidents or received complaints, penalties, or sanctions related to environmental pollution during the reporting period[165]. - The company actively encourages employees to reduce the use of natural resources and promotes recycling initiatives[165]. - The company has implemented energy-saving measures, including the use of LED lights that save over 50% compared to traditional fluorescent lights[161]. - The company plans to further promote internal energy savings and adhere to green development principles in the future[161]. - The group is committed to continuing its environmental, social, and governance reporting annually to promote sustainable business growth[193].