Financial Performance - Revenue decreased by approximately 67.7% from RMB 16.7 million for the six months ended June 30, 2023, to approximately RMB 5.4 million for the six months ended June 30, 2024[1]. - Gross loss for the six months ended June 30, 2024, was approximately RMB 1.6 million, compared to a gross loss of approximately RMB 4.9 million for the same period in 2023[1]. - 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[1]. - Total revenue for the six months ended June 30, 2024, was RMB 5,364,000, a decrease of 67.9% compared to RMB 16,720,000 for the same period in 2023[15]. - Customer contract revenue for the six months ended June 30, 2024, was RMB 2,909,000, down from RMB 16,720,000 in 2023, representing a decline of 82.6%[15]. - 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[20]. - The net loss for the period was approximately RMB 15.0 million, compared to a net loss of RMB 13.1 million in the same period last year[29]. - Sales costs decreased by 67.6% to approximately RMB 7.0 million from RMB 21.6 million in the same period last year[32]. - Financial asset impairment losses were approximately RMB 5.1 million, significantly higher than RMB 0.2 million in the same period last year[35]. - Administrative expenses were approximately RMB 7.3 million, a decrease of about 1.4% from RMB 7.4 million in the same period last year[34]. Assets and Liabilities - Total assets less current liabilities decreased from RMB 178.3 million as of December 31, 2023, to RMB 164.5 million as of June 30, 2024[5]. - Current liabilities decreased from RMB 26.3 million as of December 31, 2023, to RMB 18.7 million as of June 30, 2024[4]. - Cash and cash equivalents decreased from RMB 42.7 million as of December 31, 2023, to RMB 27.9 million as of June 30, 2024[4]. - Trade receivables decreased from RMB 52.8 million as of December 31, 2023, to RMB 39.4 million as of June 30, 2024[4]. - 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 4.8%[22]. - The net current assets totaled approximately RMB 157.6 million, down from RMB 172.1 million as of December 31, 2023[38]. - The debt-to-equity ratio as of June 30, 2024, was 0.47%, significantly reduced from 1.41% as of December 31, 2023[38]. - The equity attributable to owners of the parent company decreased by approximately 8.4% to about RMB 161.5 million, primarily due to losses during the reporting period[38]. Dividends and Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[1]. - The group did not declare any interim dividends during the reporting period, consistent with the previous year[19]. - The company has a significant shareholding structure, with Liu Naiyue and Liu Peiyao each holding 239,002,500 shares, representing 23.04% of the total shares[47]. - Shao Hui holds 100,622,500 shares, which accounts for 9.69% of the total shares[47]. - BLW Investment Limited, controlled by key shareholders, holds 239,002,500 shares, also representing 23.04%[49]. - SDJZ Investment Limited, primarily owned by Shao Hui, holds 100,622,500 shares, equivalent to 9.69%[49]. - The core shareholders of BLW Investment Limited include Bai Yang, Liu Peiyao, Wu Tao, Liu Naiyue, and Wei Xian, with respective ownership percentages of 43.44%, 23.17%, 15.44%, 9.65%, and 8.30%[50]. - The company has confirmed that key shareholders will continue to act in concert regarding their control over BLW Investment Limited until otherwise terminated[48]. - The shareholding structure indicates a concentrated ownership, with the top shareholders holding a significant portion of the company's equity[49]. - The company has no other disclosed interests or short positions in its shares or related securities by directors or key executives[49]. - The spouse of Bai Yang, Xie Jinhong, is also recognized as having an interest in the shares held by Bai Yang[50]. - The spouse of Wu Tao, Chen Ying, is similarly recognized for their interest in the shares held by Wu Tao[50]. Corporate Governance and Management - The company has maintained compliance with corporate governance codes and has adopted the necessary guidelines for securities trading by directors[43][44]. - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[57]. - The audit committee has reviewed the accounting principles and internal controls, confirming that the financial information complies with applicable accounting standards and legal requirements[57]. - The company has appointed Mr. Ouyang Mingxian as a replacement for Mr. Liu Naiyue, effective May 24, 2024[53]. - Ms. Cai Xiaoxin's appointment as CEO will continue for another three years starting from August 27, 2024[53]. Business Operations and Future Outlook - The company is cautiously optimistic about the production and investment in television and web series, closely monitoring market conditions[30]. - The company has been actively negotiating with television stations for the airing schedule of a self-produced drama[29]. - The company plans to explore opportunities in web series and television drama business while maintaining prudent financial management[30]. - The company has capital commitments of RMB 69 million under a joint financing arrangement[27]. - There were no significant acquisitions or disposals of subsidiaries or associates during the reporting period[40]. - The company did not engage in any major investments in other companies during the reporting period[40]. - The company has not adopted any long-term contracts or currency borrowings to hedge foreign currency risks, as all transactions are settled in RMB[41]. - There are no significant litigations, arbitrations, or claims involving the company as of the announcement date[42]. Stock Options and Share Issuance - The stock option plan adopted on December 12, 2019, allows for a maximum of 100,000,000 shares to be issued, representing about 10% of the issued shares at the time of listing[54]. - The total number of shares that may be issued upon the exercise of all stock options granted under the plan is 100,000,000 shares, which accounts for approximately 9.64% of the company's issued share capital as of the announcement date[55]. - The stock option plan will be valid for a period of ten years from the adoption date, with approximately 5 years and 4 months remaining[54]. - JMJ Group Limited's issued shares are approximately 97.84% owned by Mr. Xu Jun, who is considered to have beneficial ownership under the Securities and Futures Ordinance[51]. - SYYT Investment Limited's issued shares are approximately 40.62% owned by Mr. Sun Xianliang, who is also considered to have beneficial ownership under the Securities and Futures Ordinance[51].

Financial Performance - The company reported total revenue of approximately RMB 629 million for the year ended December 31, 2023, representing an increase of approximately 1,438.2% compared to RMB 41 million for the previous year[8]. - Revenue from licensing television and online drama rights was approximately RMB 427 million, up approximately 1,244.7% from RMB 32 million in the previous year[12]. - The net loss for the year was approximately RMB 994 million, a decrease of about 29.7% from a net loss of RMB 1,415 million in the previous year[8]. - The gross loss increased by approximately 59.1% to RMB 611 million from RMB 384 million in the previous year[8]. - The company recorded revenue of approximately RMB 149 million from investments as a non-executive producer, an increase of approximately 1,528.5% from RMB 9 million in the previous year[12]. - Revenue from investment income in online dramas without copyright shares was approximately RMB 53 million, marking a 100% increase from zero in the previous year[12]. - Total revenue increased approximately 1,438.2% from about RMB 4.1 million in 2022 to approximately RMB 62.9 million in 2023, primarily due to the successful airing of self-produced and invested TV dramas and web series[18]. - Revenue from granting TV drama or web series broadcasting rights rose approximately 1,244.7% from about RMB 3.2 million in 2022 to approximately RMB 42.7 million in 2023, driven by the success of self-produced content[20]. - The cost of sales increased approximately 191.8% from about RMB 42.5 million in 2022 to approximately RMB 124.0 million in 2023, mainly due to increased costs associated with granting broadcasting rights[24]. - The gross loss increased approximately 59.1% from about RMB 38.4 million in 2022 to approximately RMB 61.1 million in 2023, attributed to increased revenue and inventory impairment losses[25]. - The gross loss margin improved from approximately (939.0%) in 2022 to approximately (97.1%) in 2023, mainly due to increased revenue from broadcasting rights[25]. - The company reported a cumulative loss of RMB 151.3 million for the year ended December 31, 2023, compared to a cumulative loss of RMB 51.9 million for the year ended December 31, 2022[172]. Business Strategy and Operations - The company plans to continue exploring opportunities in television and online drama production and investment, particularly by strengthening relationships with television stations and online video platforms[9]. - The company aims to enhance its project reserves by evaluating and acquiring scripts for television and online dramas to align with market trends[9]. - The board anticipates a slight improvement in the overall industry and business environment in the coming year despite challenging market conditions[9]. - The company is cautiously optimistic about the production and investment in TV dramas and web series, while closely monitoring market conditions and opportunities with major networks[17]. - The company has begun filming a new self-produced TV drama starting January 2024, following government approval for another project in the second half of 2023[14]. - The company is exploring business opportunities in web series and TV dramas while maintaining prudent financial management in project selection and cost control[17]. - The company has been negotiating licensing terms with CCTV for a trilogy of films, indicating ongoing expansion in content production[17]. - The company is expanding its production business in web dramas and online movies due to their increasing popularity[160]. Employee and Management - The group employed a total of 22 full-time employees as of December 31, 2023, consistent with the previous year[58]. - The group provides competitive salaries, discretionary bonuses, and other incentives to employees, contributing to productivity enhancement[58]. - The management team includes experienced individuals with backgrounds in finance, law, and project management, enhancing operational oversight[61][64][66][69]. - The group emphasizes ongoing training and development for employees to improve their skills and industry knowledge[58]. - The company participates in various employee welfare programs mandated by local regulations, including housing, retirement, and social insurance[58]. - The group has a positive working relationship with employees, which is considered vital for overall productivity[58]. - The management team is led by experienced executives with over 20 years of industry experience, ensuring strategic direction and operational efficiency[64][69]. Corporate Governance - The board consists of 12 directors, including 6 executive directors and 4 independent non-executive directors, ensuring compliance with listing rules regarding board composition[95]. - The company has adopted the corporate governance code and is committed to maintaining high standards of corporate governance to protect shareholder interests[85]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee to oversee specific areas of governance[92]. - The board is responsible for the overall leadership and strategic decisions of the company, ensuring effective internal controls and risk management systems are in place[93]. - The company emphasizes a culture of integrity and ethical conduct, with training provided to employees on relevant standards and policies[88]. - As of December 31, 2023, the board includes five female directors, maintaining a commitment to gender diversity[96]. - The company has confirmed compliance with the securities trading standards for directors, ensuring adherence to required conduct[91]. - The company aims to enhance its corporate governance practices continuously to align with shareholder interests and improve accountability[85]. Financial Management - The current ratio decreased from approximately 11.1 times as of December 31, 2022, to approximately 7.6 times as of December 31, 2023[44]. - The debt-to-asset ratio as of December 31, 2023, was 1.41% compared to 0.32% as of December 31, 2022[45]. - The company recorded a financial asset impairment loss of approximately RMB 12.4 million due to an increase in long-term unpaid trade receivables from certain customers[35]. - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[39]. - The company has adopted a dividend policy without a predetermined payout ratio, considering various financial factors before declaring any dividends[139]. - The company has implemented a risk management and internal control system, which is reviewed by the audit committee[119]. - The company has confirmed the effectiveness of its internal control and risk management systems, with no significant deficiencies reported as of December 31, 2023[142]. Shareholder Information - The company has established rules for the nomination of candidates for the board of directors, requiring written notices from shareholders[149]. - The board has the discretion to convene special general meetings upon request from shareholders holding at least 10% of the paid-up capital[145]. - Shareholders have the right to propose independent resolutions at general meetings, with voting results published on the company's and stock exchange's websites[145]. - The company continues to promote investor relations and enhance communication with existing shareholders and potential investors[150]. - The total number of shares held by the top shareholder, BLW Investment Limited, indicates a significant concentration of ownership[197]. - The presence of multiple shareholders with over 5% ownership suggests potential influence on corporate governance and strategic decisions[200]. - The data reflects a diverse shareholder base, with various entities holding significant stakes in the company[197][200]. - The equity distribution may impact future capital raising and strategic partnerships for the company[197][200].

Financial Performance - For the year ended December 31, 2023, revenue increased approximately 1,438.2% to approximately RMB 62.9 million from approximately RMB 4.1 million for the year ended December 31, 2022[4] - The gross loss for the year ended December 31, 2023, increased by approximately 59.1% to a gross loss of approximately RMB 61.1 million, compared to a gross loss of approximately RMB 38.4 million for the previous year[4] - The net loss for the year ended December 31, 2023, decreased by approximately 29.7% to a net loss of approximately RMB 99.4 million from a net loss of approximately RMB 141.5 million for the year ended December 31, 2022[4] - Basic and diluted loss per share for the year ended December 31, 2023, was approximately RMB (9.58) cents, compared to RMB (13.64) cents for the previous year[4] - Total revenue for the year 2023 reached RMB 62,914,000, a significant increase from RMB 4,090,000 in 2022, representing a growth of approximately 1,436%[22] - Revenue from customer contracts was RMB 42,682,000 in 2023, compared to RMB 3,174,000 in 2022, indicating a growth of about 1,242%[22] - The group reported a pre-tax loss of RMB 99,162,000 for 2023, compared to a loss of RMB 128,452,000 in 2022, representing a 22.8% improvement year-over-year[33] - The net loss for the year ended December 31, 2023, decreased by approximately 29.7% to about RMB 99.4 million from a loss of approximately RMB 141.5 million for the year ended December 31, 2022[76] Assets and Liabilities - The total assets less current liabilities as of December 31, 2023, amounted to RMB 178.334 million, down from RMB 275.580 million as of December 31, 2022[9] - Current assets as of December 31, 2023, totaled RMB 198.396 million, a decrease from RMB 293.798 million as of December 31, 2022[9] - The company reported a decrease in inventory from RMB 135.063 million in 2022 to RMB 72.412 million in 2023[9] - Trade receivables rose to RMB 179,505,000 in 2023, up from RMB 149,807,000 in 2022, reflecting a 19.9% increase in credit sales[40] - The impairment loss on trade receivables increased to RMB 126,660,000 in 2023 from RMB 115,769,000 in 2022, marking an increase of 9.4%[41] - The current assets net value as of December 31, 2023, was approximately RMB 172.1 million, down from RMB 267.3 million as of December 31, 2022[79] - Trade payables as of the reporting period amounted to RMB 8.08 million, compared to RMB 2.86 million in the previous year[44] - The debt-to-asset ratio as of December 31, 2023, was 1.41%, compared to 0.32% as of December 31, 2022[83] Revenue Sources - The company generated RMB 14,917,000 in licensing fees from investments in TV dramas or web series, up from RMB 916,000 in the previous year, marking a growth of approximately 1,530%[22] - Revenue from granting television drama or online drama broadcasting rights was approximately RMB 42.7 million, up approximately 1,244.7% from RMB 3.2 million in the previous year[57] - Revenue from investment as a non-executive producer for television dramas and online dramas was approximately RMB 14.9 million, an increase of approximately 1,528.5% from RMB 0.9 million in the previous year[51] - Government grants received amounted to RMB 894,000 in 2023, compared to RMB 126,000 in 2022, reflecting an increase of approximately 608%[27] Expenses and Costs - The cost of sold inventory increased significantly to RMB 106,345,000 in 2023 from RMB 7,239,000 in 2022, indicating a substantial rise in operational costs[29] - Selling and distribution expenses increased by approximately 252.6% from about RMB 1.2 million in the year ended December 31, 2022, to about RMB 4.3 million in the year ended December 31, 2023, primarily due to increased advertising and marketing expenses[70] - Administrative expenses increased by approximately 9.4% from about RMB 13.1 million in the year ended December 31, 2022, to about RMB 14.4 million in the year ended December 31, 2023, mainly due to increased travel and entertainment expenses[71] - The total financing costs increased to RMB 346,000 in 2023 from RMB 39,000 in 2022, indicating a rise in borrowing costs[30] Dividends and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The group did not declare or pay any dividends for the year, consistent with the previous year[34] - The company did not recommend any final dividend for the year ended December 31, 2023, consistent with the previous year[77] - The annual general meeting is scheduled for May 30, 2024, with notifications to be sent to shareholders[105] Compliance and Governance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the year ending December 31, 2023[102] - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance for the year ending December 31, 2023[104] - The board has confirmed the effectiveness of the internal control and risk management systems, with no known significant deficiencies[111] Future Outlook - The company plans to continue expanding its production of online dramas and television dramas, with a new television drama set to begin filming in January 2024[53] - The company remains cautiously optimistic about the production and investment in television dramas and online dramas, monitoring market conditions closely[55]

Revenue and Financial Performance - Revenue increased by approximately 542.3% to about RMB 16.7 million for the six months ended June 30, 2023, compared to approximately RMB 2.6 million for the same period in 2022[8] - Net loss for the six months ended June 30, 2023, was approximately RMB 13.1 million, slightly improved from a net loss of approximately RMB 13.7 million for the same period in 2022[8] - The loss attributable to equity holders of the parent company for the reporting period was approximately RMB 13.1 million, a decrease from RMB 13.7 million in the same period last year, primarily due to increased revenue[24] - Revenue for the six months ended June 30, 2023, was RMB 16,720,000, compared to RMB 2,571,000 for the same period in 2022, representing a significant increase[70] - The group reported a pre-tax loss of RMB 13,065,000 for the six months ended June 30, 2023, compared to a loss of RMB 13,674,000 for the same period in 2022[108] Costs and Expenses - Gross loss decreased to approximately RMB 4.9 million for the six months ended June 30, 2023, from a gross loss of approximately RMB 10.3 million for the same period in 2022[8] - Sales costs increased by 67.4% to approximately RMB 21.6 million for the six months ended June 30, 2023, compared to approximately RMB 12.9 million for the same period in 2022[17] - Administrative expenses increased by approximately 25.4% to about RMB 7.4 million for the six months ended June 30, 2023, compared to approximately RMB 5.9 million for the same period in 2022[20] - Cost of goods sold increased significantly to RMB 18,411,000 in 2023 from RMB 6,470,000 in 2022, reflecting a substantial rise in operational costs[103] - The group’s employee benefits expenses, excluding directors and key management personnel, totaled RMB 2,222,000 for the first half of 2023, down from RMB 2,445,000 in 2022[103] Cash Flow and Assets - As of June 30, 2023, the total cash and cash equivalents amounted to approximately RMB 30.5 million, down from RMB 39.1 million as of December 31, 2022[25] - Operating cash flow for the six months ended June 30, 2023, was a net outflow of RMB 8,500,000, compared to an outflow of RMB 65,990,000 in the same period last year, showing a significant improvement[82] - Current assets decreased to RMB 280,295,000 from RMB 293,798,000 at the end of 2022, with cash and cash equivalents dropping to RMB 30,465,000 from RMB 39,050,000[75] - Total assets as of June 30, 2023, were RMB 262,981,000, down from RMB 275,580,000 as of December 31, 2022[75] Market and Business Outlook - The company is optimistic about the gradual improvement of market conditions due to the relaxation of COVID-19 policies in China[14] - The company plans to closely monitor market conditions and explore opportunities in the television and web series business[14] - The company has completed post-production for a self-produced television series, which is awaiting government approval[11] - The company is in discussions with CCTV regarding the broadcast schedule for its self-produced television series[11] Shareholder Information - Mr. Liu Naiyue and Ms. Liu Peiyao each hold 239,002,500 shares, representing 23.04% of the company[51] - Mr. Shao Hui holds 100,622,500 shares, which is 9.69% of the company[51] - BLW Investment Limited, controlled by core shareholders, holds 239,002,500 shares, equivalent to 23.04%[55] - Sui Yong International Limited holds 110,010,000 shares, representing 10.60% of the company[58] - The average number of ordinary shares issued during the reporting period remained stable at 1,037,500,000 shares, consistent with the previous year[108] Compliance and Governance - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the reporting period[48] - The financial data presented in the report has not been audited, and the directors acknowledge their responsibility for the preparation of the financial statements[48] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, confirming compliance with applicable accounting standards and regulations[69] Other Financial Metrics - Financial assets impairment loss for the reporting period was approximately RMB 0.2 million, compared to a reversal of RMB 0.5 million in the same period last year[22] - The group recorded a total tax expense of RMB 189,000 for the first half of 2023, a significant improvement from a tax expense of RMB (2,557,000) in the same period of 2022[106] - The company did not declare or propose any interim dividends during the reporting period[41] - The group did not declare any interim dividends during the reporting period, maintaining the same stance as in the previous year[107]

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之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Values Cultural Investment Limited 新 石 文 化 投 資 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1740） 截至二零二三年六月三十日止六個月之 中期業績公告 財務摘要 • 收益由截至二零二二年六月三十日止六個月的約人民幣2.6百萬元增加約 542.3%至截至二零二三年六月三十日止六個月的約人民幣16.7百萬元。 • 截至二零二三年六月三十日止六個月，本集團錄得毛損約人民幣4.9百萬元， 而截至二零二二年六月三十日止六個月，則錄得毛損約人民幣10.3百萬元。 • 截至二零二三年六月三十日止六個月的純損為約人民幣13.1百萬元，而截至 二零二二年六月三十日止六個月，本集團則錄得純損約人民幣13.7百萬元。 • 董事會不建議支付截至二零二三年六月三十日止六個月的中期股息（截至二 零二二年六月三十日止六個月：無）。 新石文化投資有限公司（「本公司」或「新 ...

Financial Performance - The total revenue for the year ended December 31, 2022, was approximately RMB 4.1 million, a decrease of about 90.5% compared to RMB 43.1 million for the previous year[7] - The gross loss increased by approximately 12,700.0% to RMB 38.4 million from a gross loss of RMB 0.3 million in the previous year[7] - The net loss for the reporting period was approximately RMB 141.5 million, an increase of about 272.4% from a net loss of RMB 38.0 million in the previous year[7] - Total revenue decreased by approximately 90.5% from RMB 43.1 million in 2021 to RMB 4.1 million in 2022, primarily due to the adverse effects of the COVID-19 pandemic[17] - Revenue from the licensing of television drama rights dropped by about 91.2% from RMB 36.2 million in 2021 to RMB 3.2 million in 2022, attributed to production interruptions and intense competition[19] - Other income and gains decreased by approximately 46.7% from RMB 15.15 million in 2021 to RMB 8.20 million in 2022, mainly due to a reduction in bank interest income[30] - The company recorded a financial asset impairment loss of approximately RMB 70.5 million, mainly due to an increase in long-term overdue trade receivables from certain customers[34] - The net loss increased by approximately 272.4% from RMB 38.0 million in 2021 to RMB 141.5 million in 2022, with a net loss margin rising from approximately -88.0% to -3,459.4%[39] - The company's current assets net value decreased to approximately RMB 267.3 million in 2022 from RMB 401.3 million in 2021[42] - The return on equity decreased from approximately -8.7% in 2021 to -41.0% in 2022[43] - The current ratio decreased from approximately 19.7 times in 2021 to 11.1 times in 2022[45] - The company did not recommend any final dividend for the year ended December 31, 2022, consistent with the previous year[40] - The group reported a cumulative loss of RMB 51.9 million for the year ended December 31, 2022, compared to a distributable reserve of RMB 89.6 million for the year ended December 31, 2021[184] Revenue Sources - Revenue from granting television drama broadcasting rights was approximately RMB 3.2 million, a decrease of about 91.2% from RMB 36.2 million in the previous year[12] - Revenue from investment in television dramas, web dramas, and films as a non-executive producer was approximately RMB 0.9 million, a decrease of about 87.1% from RMB 7.0 million in the previous year[12] - The company’s main business activities include granting television drama broadcasting rights, investing in dramas as a non-executive producer, and acting as a distribution agent for dramas[172] Business Strategy and Outlook - The company anticipates gradual improvement in the overall industry and business environment due to the easing of COVID-19 measures in China[8] - The company plans to continue exploring opportunities in television drama and web drama production and investment[8] - The company aims to enhance business relationships with television stations and online video platforms to capture future business opportunities[8] - The company maintains a cautiously optimistic outlook for the production and investment in television dramas and web dramas, anticipating gradual market improvement in 2023[16] - The company plans to explore business opportunities in television dramas and web dramas while adhering to prudent financial management practices[16] - The company is expanding its production business in web dramas and online movies due to their increasing popularity[172] Management and Governance - The company is focused on expanding its market presence and enhancing its operational strategies through experienced leadership[80] - The management team includes professionals with advanced degrees in economics and law, enhancing the company's strategic capabilities[73][82] - The company is committed to maintaining strong governance and oversight through its board of directors and executive management team[81] - The board consists of 12 directors, including 6 executive directors and 4 independent non-executive directors, ensuring compliance with listing rules regarding independence[105] - The company has adopted the corporate governance code as a foundation for its governance practices since its listing[95] - The company has established risk management procedures to address significant risks related to its business, with an annual review of any major changes in the business environment[153] - The board confirmed the effectiveness of the internal control system, with no significant deficiencies identified during the year ended December 31, 2022[154] Employee and Corporate Culture - The company emphasizes a culture of employee development and sustainable growth, aiming for long-term stability[99] - The company maintains positive working relationships with employees, supported by competitive salaries and regular training programs[58] - The company participated in various employee welfare programs mandated by local regulations, contributing to retirement benefit plans based on a specified percentage of employee salaries and bonuses[58] - As of December 31, 2022, the company employed 14 female and 8 male employees, maintaining a commitment to have at least one female employee[146] Financial Management and Risk - The company’s financial risk management analysis, including credit risk, interest rate risk, and liquidity risk, is outlined in the financial statements[177] - The company has established a confidential mechanism for employees to raise concerns regarding financial reporting and internal controls[130] - The company has implemented an anti-corruption policy requiring all employees to comply strictly, with a reporting procedure established for employees to report misconduct safely[156] - The remuneration of directors and senior executives is determined based on competitive standards relevant to the geographical location of the business and individual performance[143] Shareholder Communication - The company emphasizes the importance of communication with shareholders and potential investors, ensuring they have access to comprehensive and clear information[165] - The company’s articles of association allow shareholders holding at least 10% of the paid-up capital to request a special general meeting[159] - The company has not established a corporate governance committee; thus, the board is responsible for governance functions[127]

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之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Values Cultural Investment Limited 新 石 文 化 投 資 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1740） 截至二零二二年十二月三十一日止年度之 年度業績公告 財務摘要 • 截至二零二二年十二月三十一日止年度的收益由截至二零二一年十二月 三十一日止年度約人民幣43.1百萬元減少約90.5%至約人民幣4.1百萬元。 • 截至二零二二年十二月三十一日止年度的毛損由截至二零二一年十二月 三十一日止年度約人民幣0.3百萬元增加約12,700.0%至毛損約人民幣38.4百 萬元。 • 截至二零二二年十二月三十一日止年度的虧損淨額由截至二零二一年十二 月三十一日止年度約人民幣38.0百萬元增加約272.4%至虧損約人民幣141.5 百萬元。 • 截至二零二二年十二月三十一日止年度的每股基本及攤薄虧損為約人民幣 (13.64)分（二零二一年：人民幣(3.66) ...

Revenue Performance - Revenue increased by approximately 425.8% to about RMB 2.6 million for the six months ended June 30, 2022, compared to approximately RMB 0.5 million for the same period in 2021[8]. - Revenue for the six months ended June 30, 2022, was RMB 2,571,000, compared to RMB 489,000 for the same period in 2021, representing a significant increase of 426%[108]. - Customer contract revenue reached RMB 2,484,000, up from RMB 489,000 in the previous year, indicating a growth of 408%[108]. - The revenue from licensing external television drama broadcasting rights was RMB 2,136,000, a substantial increase from RMB 113,000 in the prior year[111]. Financial Losses - The group recorded a gross loss of approximately RMB 10.3 million for the six months ended June 30, 2022, compared to a gross loss of approximately RMB 5.6 million for the same period in 2021[8]. - The net loss for the six months ended June 30, 2022, was approximately RMB 13.7 million, significantly reduced from a net loss of approximately RMB 27.9 million for the same period in 2021[8]. - The net loss for the period was RMB (13,674,000), a reduction from RMB (27,942,000) in the previous year, indicating an improvement of approximately 51%[79]. - Loss attributable to equity holders of the parent decreased to approximately RMB 13.7 million from approximately RMB 27.9 million, mainly due to increased revenue and reduced financial asset impairment losses[24]. Cost and Expenses - Operating sales costs increased by 112.9% from approximately RMB 6.0 million to approximately RMB 12.9 million for the six months ended June 30, 2022, primarily due to impairment losses on self-produced TV dramas[17]. - Administrative expenses decreased by approximately 19.8% to about RMB 5.9 million from approximately RMB 7.4 million, primarily due to reduced compensation and travel expenses[21]. - The company reported other income and gains of RMB 248,000, down from RMB 822,000 in the previous year[79]. - The company experienced a foreign exchange loss of RMB (2,340,000) during the period, which may impact future financial performance[82]. Production and Development - The main revenue during the reporting period was derived from the licensing of purchased television drama rights, specifically from "Lion Rock" and "I Am Fine in a Foreign Land"[10]. - The group completed the filming of a self-produced television drama during the reporting period, which is currently in post-production[11]. - The group is actively exploring and experimenting with investments and productions in web dramas and online movies due to the increasing popularity of these formats[14]. - The group plans to strengthen its development in the field of web dramas and online movies by establishing business relationships with major online video platforms[14]. Cash and Assets - As of June 30, 2022, cash and cash equivalents totaled approximately RMB 55.1 million, down from approximately RMB 118.0 million as of December 31, 2021[27]. - Current assets decreased to RMB 408,985,000 from RMB 422,704,000, representing a decline of 3.2%[84]. - The company experienced a cash outflow from operating activities of RMB 65,990,000 for the first half of 2022, compared to RMB 10,505,000 for the same period in 2021, indicating a significant increase in cash usage[91]. - Inventory increased significantly to RMB 143,116,000 from RMB 92,886,000, representing a rise of 54%[84]. Shareholder Information - As of the report date, the directors and key executives held a total of 239,002,500 shares, representing approximately 23.04% of the company[59]. - BLW Investment Limited holds approximately 23.04% of the shares, with key shareholders including Bai Yang (43.44%), Liu Peiyao (23.17%), Wu Tao (15.44%), Liu Naiyue (9.65%), and Wei Xian (8.30%)[69]. - The company has a significant concentration of ownership among its core shareholders, indicating potential influence over corporate decisions[69]. - The ownership structure reflects a high level of control by a small group of shareholders, which may impact governance and strategic direction[69]. Governance and Compliance - The company has adopted corporate governance practices in compliance with the listing rules and has maintained adherence throughout the reporting period[47]. - The board of directors confirmed compliance with the standard code for securities transactions during the entire reporting period[48]. - The audit committee reviewed the financial statements for the six months ended June 30, 2022, and confirmed compliance with applicable accounting standards and regulations[77]. Dividends and Securities - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2022[8]. - No interim dividend was declared or proposed during the reporting period, consistent with the previous year[43]. - The company did not purchase, sell, or redeem any listed securities during the reporting period[46]. Market Outlook - The board anticipates that the overall outlook for the industry and business environment will remain challenging in the next six months[14]. - The company has temporarily suspended the production of one planned television drama due to changing market trends and customer preferences[57].

Financial Performance - The total revenue for the year ended December 31, 2021, was approximately RMB 431 million, a decrease of about 50.8% compared to RMB 876 million for the year ended December 31, 2020[9]. - Gross profit fell approximately 100.8% to about RMB 3 million from approximately RMB 333 million in the previous year[9]. - The net loss for the reporting period was approximately RMB 380 million, a decrease of about 3,197.1% from a net profit of approximately RMB 12 million in the previous year[9]. - Revenue from licensing television drama rights was approximately RMB 362 million, an increase of about 344.5% from RMB 81 million in the previous year[14]. - Revenue from investment in television dramas, web dramas, and films as a non-executive producer was approximately RMB 70 million, a decrease of about 91.2% from RMB 795 million in the previous year[14]. - Total revenue decreased by approximately 50.8% from RMB 87.6 million in 2020 to RMB 43.1 million in 2021, primarily due to changes in broadcasting plans and delays in production caused by the COVID-19 pandemic[17]. - Other income and gains decreased by 78.7% from approximately RMB 71.26 million in 2020 to approximately RMB 15.15 million in 2021, primarily due to government subsidies received in 2020 for the successful listing on the stock exchange[28]. - The net profit decreased by approximately 3,197.1% from a profit of approximately RMB 12 million in 2020 to a loss of approximately RMB 380 million in 2021, resulting in a net profit margin decline from approximately 1.4% to negative 88.0%[36]. Business Operations - The company is currently involved in the production of 2 web dramas and has invested in 4 web dramas, aiming to expand its business with online video platforms[10]. - The company has successfully completed the sale of 1 self-produced and 1 externally purchased television drama during the reporting period[14]. - The company plans to continue exploring opportunities in web drama and online movie production to diversify its revenue sources[10]. - The company has suspended the production of 1 television drama due to market trends and competition, reallocating resources to other business opportunities[14]. - The company participated in the production of 2 web dramas and 1 web movie during the reporting period, adapting to market trends[15]. - The company aims to restore a more proactive business operation and achieve better performance and returns in 2022[15]. - The company is committed to using its resources flexibly to seize new business opportunities in response to market trends[68]. Cost Management - The cost of sales decreased by approximately 20.1% from about RMB 54.3 million in 2020 to about RMB 43.4 million in 2021, primarily due to reduced costs in the non-executive production segment[22]. - Sales costs for the television drama broadcasting rights segment increased by approximately 820.8% from about RMB 4.2 million in 2020 to about RMB 38.3 million in 2021, due to increased revenue from licensing[22]. - Administrative expenses decreased by approximately 8.2% from approximately RMB 159.56 million in 2020 to approximately RMB 146.48 million in 2021, mainly due to a reduction in listing expenses[31]. - Financial asset impairment losses amounted to approximately RMB 27.5 million, primarily due to an increase in long-term overdue trade receivables[32]. Corporate Governance - The board consists of 12 directors, including 6 executive directors, 2 non-executive directors, and 4 independent non-executive directors, ensuring compliance with listing rules[103]. - The company has adopted the corporate governance code as a basis for its governance practices, ensuring adherence to applicable rules since its listing[97]. - The board is responsible for the overall leadership and supervision of the group's strategic decisions and performance monitoring[99]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee to oversee specific areas[99]. - The company has maintained a high level of corporate governance to protect shareholder interests and enhance corporate value[97]. - The company has undergone a change in board composition, with the appointment of a new director effective May 25, 2021[103]. - The company has continuously reviewed and improved its corporate governance practices to ensure compliance with the governance code[97]. Employee Relations - As of December 31, 2021, the group employed 28 full-time employees, an increase from 24 in 2020[56]. - The company promotes a healthy work environment and provides training opportunities to employees, ensuring compliance with labor contract terms[180]. - Employee compensation includes basic salary, position salary, seniority salary, bonuses, special rewards, and insurance benefits, with social insurance contributions based on the previous year's salary[193]. - The company conducts annual health check-ups for employees at a tertiary hospital and provides supplementary medical insurance[197]. - The company organized team-building activities and cultural events, including 1 outdoor team-building event and 2 annual meetings[200]. Environmental, Social, and Governance (ESG) - The company published its annual ESG report covering the period from January 1, 2021, to December 31, 2021, detailing its management policies and performance in environmental, social, and governance aspects[163]. - Key ESG issues identified include product quality, intellectual property protection, customer relationship management, and labor management, among others[170]. - The company aims to ensure sustainable business development while providing stable and long-term returns to shareholders[171]. - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring compliance with regulatory requirements[167]. - The company has established a comprehensive ESG management system involving the board, management, and relevant departments to enhance ESG performance[176]. - The report emphasizes the importance of stakeholder engagement in identifying and prioritizing ESG issues[175].

Financial Performance - Revenue decreased by approximately 91.4% to about RMB 0.5 million for the six months ended June 30, 2021, compared to approximately RMB 5.7 million for the same period in 2020[8]. - The group recorded a gross loss of approximately RMB 5.6 million for the six months ended June 30, 2021, compared to a gross profit of approximately RMB 3.0 million for the same period in 2020[8]. - Net loss for the six months ended June 30, 2021, was approximately RMB 27.9 million, significantly higher than the net loss of approximately RMB 6.5 million for the same period in 2020[8]. - The increase in sales costs was 126.5%, rising to approximately RMB 6.0 million for the six months ended June 30, 2021, from approximately RMB 2.7 million for the same period in 2020[15]. - Other income and gains during the reporting period were approximately RMB 0.8 million, a decrease from RMB 5.4 million for the same period last year, primarily due to reduced government subsidies from the Chinese government[16]. - Selling and distribution expenses were approximately RMB 0.6 million, remaining relatively stable compared to RMB 0.7 million for the six months ended June 30, 2020[18]. - Administrative expenses decreased by approximately 11.4% to RMB 7.4 million from RMB 8.3 million in the same period last year, mainly due to reduced listing expenses[19]. - Financial asset impairment losses increased to approximately RMB 21.3 million from RMB 5.7 million in the previous year, attributed to an increase in the aging of trade receivables[20]. - The loss attributable to equity holders of the parent company was approximately RMB 27.9 million, compared to RMB 6.5 million in the same period last year, primarily due to decreased revenue and increased financial asset impairment provisions[22]. - The company reported a pre-tax loss of RMB (34,162,000), which is a substantial increase from the pre-tax loss of RMB (6,636,000) in the previous year[73]. - The net loss for the period was RMB (27,942,000), compared to a net loss of RMB (6,517,000) in 2020, indicating a significant decline in performance[73]. - Basic and diluted loss per share was RMB (2.69) compared to RMB (0.65) in the prior year, reflecting a worsening financial position[73]. - The company reported a total comprehensive loss for the first half of 2021 of RMB 28,501 thousand, compared to a total comprehensive loss of RMB 3,970 thousand in the first half of 2020[82]. Business Operations - The group granted licenses for five television dramas during the reporting period, including four self-produced and one purchased[10]. - The board anticipates that the overall industry and business environment will remain very challenging in the coming year, with a limited number of new television drama licenses expected[12]. - The company plans to expand its business by developing and strengthening relationships with online video platforms to capture new opportunities in the television drama market[12]. - The group is currently in the preliminary production of two web dramas and is exploring investments in web dramas and online movies[12]. - The company aims to diversify its revenue sources and enhance overall profitability by expanding cooperation with new media channels[12]. - The board has decided not to declare an interim dividend for the six months ended June 30, 2021[8]. - The board has decided to suspend the production of one of the planned television dramas due to changing market trends and customer preferences[50]. Financial Position - As of June 30, 2021, the total cash and cash equivalents amounted to approximately RMB 127.8 million, down from RMB 143.4 million as of December 31, 2020[24]. - The equity attributable to equity holders of the parent company decreased by approximately 6.3% to RMB 425.3 million from RMB 453.8 million at the end of the previous year, mainly due to the reported loss during the period[25]. - The company had no bank borrowings as of June 30, 2021, and maintained a debt-to-equity ratio of zero, consistent with the end of the previous year[24]. - Total assets as of June 30, 2021, were RMB 426,516,000, a decrease from RMB 455,268,000 as of December 31, 2020[79]. - Current assets decreased to RMB 430,934,000 from RMB 468,932,000, indicating a decline in liquidity[79]. - The company’s cash and cash equivalents were RMB 127,834,000, down from RMB 143,366,000 at the end of 2020[79]. - The total equity attributable to the owners of the parent was RMB 425,326,000, a decrease from RMB 453,827,000 at the end of the previous year[79]. - The company recorded a foreign exchange loss of RMB 559 thousand during the first half of 2021, compared to a gain of RMB 2,547 thousand in the same period of 2020[85]. - The company made adjustments for inventory write-downs amounting to RMB 5,956 thousand in the first half of 2021, while trade receivables impairment was RMB 18,233 thousand[85]. - The company’s total assets as of June 30, 2021, were not explicitly stated in the provided documents, indicating a need for further disclosure in future reports[92]. Shareholder Information - Major shareholders hold significant stakes, with Liu Naiyue, Liu Peiyao, and Wei Xian each owning 23.04% of the company[52]. - BLW Investment Limited holds 239,002,500 shares, representing approximately 23.04% of the total shares[60]. - Suiyong International Limited owns 110,010,000 shares, accounting for 10.60% of the total shares[60]. - SDJZ Investment Limited has 100,622,500 shares, which is about 9.69% of the total shares[60]. - JMJ Group Limited holds 86,872,500 shares, representing 8.37% of the total shares[60]. - SYYT Investment Limited owns 70,002,500 shares, accounting for 6.74% of the total shares[60]. - Jinping Holding Limited has 54,997,500 shares, which is approximately 5.30% of the total shares[60]. - The core shareholders of BLW Investment Limited include Bai Yang, Liu Peiyao, Wu Tao, Liu Naiyue, and Wei Xian, holding approximately 43.44%, 23.17%, 15.44%, 9.65%, and 8.30% of shares respectively[62]. - The company confirmed that core shareholders will continue to act in concert regarding their control over BLW Investment Limited until otherwise terminated[62]. Management and Governance - The board of directors experienced changes, with Wu Tao resigning as CEO on August 27, 2021, and Cai Xiaoxin appointed as the new CEO on the same day[65]. - The company adopted a share option plan on December 12, 2019, allowing for a maximum of 10% of issued shares (100,000,000 shares) to be granted under the plan[66]. - The company has not granted or agreed to grant any share options under the share option scheme as of the report date[67]. - The total remuneration paid to key management personnel increased to RMB 567,000 from RMB 479,000 year-over-year[128]. Accounting and Compliance - The company adopted simplified accounting methods for lease payments affected by COVID-19, with no significant impact on financial performance reported[97]. - The company has only one operating segment, with no division based on product lines, indicating a streamlined operational structure[100]. - The company has not disclosed any major customers contributing over 10% of revenue for the current period, contrasting with previous periods[102]. - The company anticipates no impact on its financial position from the recent accounting policy changes related to interest rate benchmarks[97]. - The change in level 3 fair value measurement during the period shows an increase from RMB 4,260,000 on January 1, 2021, to RMB 9,300,000 on June 30, 2021, with purchases of RMB 5,040,000[135]. - There were no transfers between level 1 and level 2 fair value measurements during the period, nor any transfers into or out of level 3[135]. - No significant events affecting the group occurred after June 30, 2021[136].