[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].

Financial Performance - For the fiscal year ending December 31, 2024, revenue decreased by approximately 93.4% to approximately RMB 4.1 million from approximately RMB 62.9 million for the fiscal year ending December 31, 2023[4] - Gross loss for the fiscal year ending December 31, 2024, decreased by approximately 36.3% to approximately RMB 38.9 million from approximately RMB 61.1 million for the fiscal year ending December 31, 2023[4] - Net loss for the fiscal year ending December 31, 2024, decreased by approximately 1.1% to approximately RMB 98.3 million from approximately RMB 99.4 million for the fiscal year ending December 31, 2023[4] - Basic and diluted loss per share for the fiscal year ending December 31, 2024, was approximately RMB 9.48 cents compared to RMB 9.58 cents for the fiscal year ending December 31, 2023[4] - The group recorded a total loss of RMB 98,316,000 for the year ending December 31, 2024, with a net cash outflow from operating activities of RMB 18,154,000[14] - The group reported a pre-tax loss of RMB 98,137,000 in 2024, slightly improved from a loss of RMB 99,162,000 in 2023[37] - Total revenue for the reporting period was approximately RMB 4.1 million, a decrease of about 93.4% compared to RMB 62.9 million in the previous year[49] Assets and Liabilities - Total non-current assets decreased to RMB 975 thousand from RMB 6,204 thousand as of December 31, 2023[7] - Current assets decreased to RMB 99,055 thousand from RMB 198,396 thousand as of December 31, 2023[7] - Current liabilities decreased to RMB 18,879 thousand from RMB 26,266 thousand as of December 31, 2023[7] - Total equity decreased to RMB 78,273 thousand from RMB 176,431 thousand as of December 31, 2023[7] - Trade receivables at the end of the reporting period amounted to RMB 167.7 million, down from RMB 179.5 million in the previous year[12] - The impairment loss provision for trade receivables increased to RMB 157.6 million, up from RMB 126.7 million in the previous year, reflecting an increase in overdue receivables[43] - The expected credit loss rate for trade receivables over three years was 100%, with a total expected credit loss of RMB 134.8 million[45] - Current assets net value decreased from RMB 172.1 million in 2023 to RMB 80.2 million in 2024, with cash and bank balances dropping from RMB 42.7 million to RMB 20.7 million[76] Revenue Sources - All revenues for the year were generated from customers located in mainland China, with all non-current assets also situated in mainland China[23] - In 2024, revenue from major customers accounted for 10% or more of the group's total revenue, with Customer 1 generating RMB 2,399,000 and Customer 2 RMB 593,000[24] - Total revenue for 2024 was RMB 4,123,000, a significant decrease from RMB 62,914,000 in 2023, primarily due to a drop in customer contract revenue from RMB 42,682,000 to RMB 3,133,000[25] - Revenue from granting broadcasting rights for TV dramas or web series was approximately RMB 3.1 million, down 92.7% from RMB 42.7 million year-on-year[49] - The net income from investment as a non-executive producer for TV dramas or web series was approximately RMB 1.0 million, a decrease of 93.4% from RMB 14.9 million in the previous year[49] - Revenue from non-copyright share investments in web series was zero for 2024, compared to approximately RMB 5.3 million in the previous year[59] - The company primarily generated net licensing fees from web series "Anti-Fraud Police" and "Pearl River Family" for the year ending December 31, 2024[58] Expenses and Costs - 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[60] - Other income and gains decreased by approximately 55.0% from about RMB 1.1 million in 2023 to about RMB 0.5 million in 2024, primarily due to reduced government subsidies[67] - Sales and distribution expenses decreased by approximately 71.5% from about RMB 4.3 million in 2023 to about RMB 1.2 million in 2024, mainly due to reduced advertising and marketing expenses[68] - Administrative expenses increased by approximately 2.6% from RMB 144.4 million in 2023 to RMB 147.4 million in 2024, primarily due to increased compensation and travel expenses[69] - Financing costs decreased from RMB 346,000 in 2023 to RMB 243,000 in 2024, reflecting a reduction in interest expenses[34] - Financial asset impairment losses recorded were approximately RMB 31.0 million, mainly due to an increase in long-term overdue trade receivables from certain customers[70] Dividends and Shareholder Actions - The board of directors did not recommend the payment of a final dividend for the fiscal year ending December 31, 2024[4] - The group did not declare or pay any dividends in 2024, consistent with 2023[38] - A major shareholder has confirmed financial support to ensure the group has sufficient cash flow for operations[14] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules since its listing date, ensuring compliance and enhancing accountability[94] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2024[100] - The company has established risk management procedures to address significant risks related to its business, with an effective internal control system confirmed by the board[104] - No significant deficiencies in internal controls or risk management have been identified, and the company believes its current internal control system is effective and adequate[107] - The company has implemented a whistleblowing policy to encourage employees to report any misconduct in a safe and confidential environment[107] - The company has adopted a written guideline for employees regarding securities trading to comply with the standards set forth in the listing rules[98] Future Outlook - Future market conditions are expected to remain challenging, prompting the company to adopt a cautious approach to project selection and cost control[52] - The company is expanding its web series production business in response to the growing popularity of online dramas[49] - Six web series are scheduled for release between April 2024 and March 2025, contributing to future revenue streams[50] Meeting and Reporting - The annual general meeting is scheduled for May 30, 2025, with a notice to be published in accordance with the company's articles of association and listing rules[101] - The company will publish its annual results announcement on the Hong Kong Stock Exchange and its website, with printed versions available upon request[102] - The board has received confirmations regarding the effectiveness of the risk management and internal control systems from management[105]

Financial Performance - Revenue decreased by approximately 67.7% from about RMB 16.7 million for the six months ended June 30, 2023, to about RMB 5.4 million for the six months ended June 30, 2024[5]. - The net loss for the six months ended June 30, 2024, was approximately RMB 15.0 million, compared to a net loss of approximately RMB 13.1 million for the same period in 2023[5]. - The group recorded a gross loss of approximately RMB 1.6 million for the six months ended June 30, 2024, compared to a gross loss of approximately RMB 4.9 million for the same period in 2023[12]. - Basic and diluted loss per share for the period was RMB 1.45, compared to RMB 1.26 for the same period in 2023[52]. - The company reported a pre-tax loss of RMB (15,034) thousand for the six months ended June 30, 2024, compared to a loss of RMB (12,876) thousand in the same period of 2023[62]. - The net cash flow used in operating activities was RMB (11,757) thousand, compared to RMB (8,500) thousand for the same period in 2023, indicating a worsening cash flow situation[64]. Revenue Sources - The company's customer contract revenue from the licensing of television drama broadcasting rights was RMB 2,909 thousand, down from RMB 16,720 thousand in the previous year, reflecting a decline of 82.6%[71]. - All revenues for the period were generated from customers located in mainland China, highlighting the company's focus on this market[72]. Expenses and Losses - Financial assets impairment loss for the reporting period was approximately RMB 5.1 million, compared to RMB 0.2 million in the same period last year, primarily due to aging trade receivables[16]. - The company incurred a financial asset impairment loss of RMB (5,096,000) during the period, compared to RMB (175,000) in the previous year[52]. - The group reported a pre-tax loss of approximately RMB 15,034,000 for the six months ended June 30, 2024, compared to a loss of RMB 13,065,000 for the same period in 2023, indicating an increase in losses of about 15.1%[76]. Cash and Assets - As of June 30, 2024, total cash and cash equivalents amounted to approximately RMB 27.9 million, down from RMB 42.7 million as of December 31, 2023, while net current assets totaled approximately RMB 157.6 million[20]. - Current assets decreased to RMB 176,345,000 from RMB 198,396,000, indicating a decline of 11.1%[56]. - Trade receivables as of June 30, 2024, amounted to RMB 171,130,000, down from RMB 179,505,000 as of December 31, 2023, reflecting a decrease of approximately 4.8%[77]. Corporate Governance - The company maintains a high level of corporate governance to protect shareholder interests and enhance corporate value[31]. - The company’s board of directors confirmed compliance with the securities trading standards throughout the reporting period[33]. - The company has adopted the corporate governance code as the basis for its governance practices since its listing date[31]. - The company’s governance practices will continue to be reviewed and enhanced to ensure compliance with the corporate governance code[31]. Shareholder Information - As of the report date, the company’s major shareholders include BLW Investment Limited and its affiliates, holding 239,002,500 shares, representing 23.04% of the total shares[37]. - The company’s major shareholder, SDJZ Investment Limited, holds 100,622,500 shares, accounting for 9.69% of the total shares[42]. - The issued shares of BLW Investment Limited are owned by core shareholders, with Bai Yang holding approximately 43.44%[43]. Business Operations - The group is expanding its production business for web dramas and online movies due to their increasing popularity[7]. - The group has been actively negotiating with TV stations for the broadcast schedule of a self-produced TV drama, which was completed in April 2024 and is currently in post-production[9]. - The group is exploring business opportunities in web dramas and TV dramas while adhering to prudent financial management principles[10]. Other Information - The company did not declare or propose any interim dividends during the reporting period[28]. - There were no significant events occurring after the reporting period up to the date of this report[29]. - The company has confirmed that there are no undisclosed interests in shares or related securities as of the report date[45].