Economic Performance - In the first half of 2022, China's GDP was RMB 56.3 trillion, with a total growth of only 2.5% year-on-year[9] - The second quarter GDP was RMB 29.2 trillion, showing a slight increase of 0.4% year-on-year, down from 4.8% growth in the first quarter[9] - The service industry experienced a contraction, falling from a 4% growth in the first quarter to a decline of 0.4% year-on-year in the second quarter[9] - The resurgence of the epidemic and external factors like the Ukraine crisis have complicated the economic environment, leading to significant fluctuations in major economic indicators[9] - The consumer price index in China rose by 1.7% year-on-year in the first half of 2022, significantly lower than inflation rates in European countries and the United States[100] - The surveyed urban unemployment rate in China fell to 5.5% in June 2022, marking a decline for the second consecutive month[100] - The real growth of per capita disposable income of national residents was 3% year-on-year in the first half of 2022, outpacing the overall economic growth rate[100] - 71% of economists surveyed in June 2022 believe that the current economic situation in China is lackluster, but they anticipate a recovery in the next six months[100] Advertising and Market Trends - The advertising market in the first half of 2022 decreased by 11.8% year-on-year, with a significant 17% decrease in the number of brands placing advertisements in the IT product and service industry[12] - The advertising placements in the IT product and service industry decreased by 55% year-on-year due to stricter regulations and market conditions[12] - The overall market environment faced challenges such as epidemic resurgence and supply chain disruptions, impacting consumer confidence and market performance[23] Film and Entertainment Industry - The total box office in Mainland China reached RMB 17.19 billion in the first half of 2022, representing a year-on-year decrease of 37.7%[15] - The number of movie-goers in Mainland China fell to 397 million, comparable to levels seen in 2014[15] - The operating rate of domestic cinemas recovered to over 80% since June 2022, following the adjustment of epidemic prevention policies[15] - In June 2022, the national box office totaled RMB 1.92 billion, recovering 90% compared to the same period in 2021[15] - The State Film Administration issued RMB 100 million in movie-watching consumption coupons to stimulate public film spending, indicating proactive measures to support the film market[106] Company Financial Performance - For the six months ended June 30, 2022, the Group recorded revenue of RMB 88.5 million, a 3.4% increase from RMB 85.6 million in the same period of 2021[18] - Revenue from sales of agricultural products increased significantly to RMB 48.6 million, up from RMB 28.0 million in the first half of 2021, representing a growth of 73.6%[24] - The gross profit margin for the Group decreased to 0.9% in the first half of 2022, down from 6.3% in the same period of 2021[18] - The net loss after taxation decreased to approximately RMB 28.1 million, compared to a net loss of RMB 158.0 million in the first half of 2021[18] - Revenue from marketing and consulting services fell by 34.5% to RMB 32.5 million, down from RMB 49.6 million in the first half of 2021[23] - The Group recorded a gross profit of RMB0.8 million for the six months ended 30 June 2022, down from RMB5.4 million for the same period in 2021, resulting in a gross profit margin decrease from 6.3% to 0.9%[37][40] - Total revenue increased by 3.4% from RMB85.6 million for the six months ended 30 June 2021 to RMB88.5 million for the same period in 2022, driven by increased sales of agricultural products[39] - The Group reported a net loss of RMB28.1 million for the six months ended 30 June 2022, primarily due to impairment provisions on goodwill and other intangible assets totaling RMB7.2 million[52][54] Cash Flow and Financial Position - Net cash used in operating activities amounted to RMB9.2 million, mainly due to the net loss for the period[58][59] - Net cash generated from investing activities was RMB4.8 million, resulting from down payment received for assets classified as held for sale[60][62] - Net cash used in financing activities was RMB1.4 million, primarily due to the repayment of bank borrowings of RMB2.2 million[61][63] - The Group's trade receivables decreased by 52.5% from RMB7.0 million as at 31 December 2021 to RMB3.3 million as at 30 June 2022[69] - The Group's trade payables decreased by 13.5% from RMB12.8 million as at 31 December 2021 to RMB11.1 million as at 30 June 2022[76] - The gearing ratio increased by 10.7% to 92.3% as at 30 June 2022, compared to 81.6% as at 31 December 2021[82] - The Group's capital expenditure for the six months ended 30 June 2022 was RMB47,000, while it was RMB1.5 million for the same period in 2021[68] - The overdue bank borrowings amounted to RMB3.785 million in principal and RMB60,000 in interest as of 30 June 2022[81] Corporate Governance and Shareholder Information - The Company has adopted high standards of corporate governance practices to maintain and promote shareholder value and investor confidence[125] - The roles of chairman and CEO are currently held by the same individual, which deviates from corporate governance code provisions, but the Board believes sufficient measures are in place to maintain balance[127] - The Audit Committee has reviewed the Group's condensed consolidated interim financial information for the six months ended 30 June 2022[131] - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2022[122] - The Remuneration Committee evaluates and makes recommendations regarding the remuneration packages of Directors and senior management based on performance and market trends[135] - The Nomination Committee is responsible for recommending candidates for directorship based on professional knowledge and experience[136] Strategic Developments - The Group plans to continue developing its existing businesses in advertising, marketing, consulting, and agricultural products, leveraging positive market factors[109] - The restructuring of the publishing and advertising businesses will focus on consolidating with cultural and film media businesses in China to broaden long-term income sources[109] - The Group aims to develop integrated projects themed around film or media, emphasizing industry positioning, cultural heritage, and eco-agriculture[109] - The COVID-19 outbreak has temporarily disrupted operations, particularly in tourism and integrated development, but management expects proactive economic policies from the Chinese government to stimulate recovery[112] Acquisitions and Investments - On July 30, 2022, the Company agreed to issue 383,636,331 convertible preference shares at HK$0.57 each to settle a loan of HK$218,672,709 from a major shareholder[113] - The Company conditionally agreed to acquire a 49.95% equity interest in Baiming (Beijing) Information Technology Co., Ltd for HK$92,407,500, based on guaranteed profits for the year ending December 31, 2022[117] - The acquisition consideration will be satisfied through the issuance of a convertible bond with a principal amount of HK$92,407,500, convertible at HK$0.70 per share[120] Financial Position and Assets - The total assets of the company as of June 30, 2022, amounted to RMB 219,351,000, a decrease of 8.63% from RMB 240,045,000 as of December 31, 2021[200] - Non-current assets decreased from RMB 100,806,000 to RMB 89,893,000, representing a decline of 10.93%[200] - Current assets also saw a decrease from RMB 112,558,000 to RMB 102,777,000, a reduction of 8.25%[200] - Cash and cash equivalents dropped significantly from RMB 8,851,000 to RMB 3,052,000, a decline of 65.5%[200] - Trade receivables decreased from RMB 7,004,000 to RMB 3,327,000, a reduction of 52.6%[200] - Contract assets decreased from RMB 2,419,000 to RMB 525,000, a decline of 78.3%[200]

Financial Performance - The company reported a net loss of RMB 188,864,000 for the year ended December 31, 2021[7]. - The company had a cash outflow from operating activities of RMB 5,427,000 during the same period[7]. - Current liabilities exceeded current assets by RMB 213,244,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[7]. Audit and Oversight - The independent auditor confirmed that the consolidated financial statements reflect a true and fair view of the company's financial position as of December 31, 2021[6]. - The company has established an audit committee to oversee financial reporting and internal control processes[9]. Shareholder Communication - The annual general meeting is scheduled for June 21, 2022, to discuss the financial results and other matters[11]. - The annual report will be distributed to shareholders by May 15, 2022, and will include all required disclosures[14]. Business Developments - The company has not disclosed any new product developments or market expansion strategies in the current announcement[5]. - There are no updates on mergers or acquisitions mentioned in the financial results announcement[5]. - The company maintains that all other information from the previous year's unaudited results remains unchanged[15].

Financial Performance - For the year ended December 31, 2021, the company reported revenues of RMB 265,158,000, a significant increase from RMB 126,384,000 in 2020, representing a year-on-year growth of 109.5%[13]. - The gross profit for 2021 was RMB 21,729,000, with a gross profit margin of 8.2%, down from 17.2% in 2020[13][18]. - The operating loss increased to RMB 213,310,000 in 2021, compared to a loss of RMB 74,812,000 in 2020, indicating a deterioration in operational performance[13]. - The loss attributable to owners of the company was RMB 187,468,000, compared to RMB 73,784,000 in the previous year, reflecting a significant increase in losses[13]. - The return on equity for 2021 was (158%), worsening from (120.7%) in 2020, indicating a decline in profitability relative to shareholders' equity[18]. - The Group recorded a revenue of approximately RMB 265.2 million in 2021, up from RMB 126.4 million in 2020, while the net loss for the year was RMB 188.9 million compared to RMB 74.5 million in 2020[25]. - The loss for the year increased to approximately RMB 188.9 million, compared to RMB 74.5 million in 2020[45][48]. - Net loss for the year increased by 153.4% to RMB 188.9 million in 2021 from RMB 74.5 million in 2020[73]. Assets and Liabilities - Total assets decreased to RMB 240,045,000 in 2021 from RMB 433,245,000 in 2020, indicating a reduction in the company's asset base[15]. - Total liabilities were reported at RMB 359,565,000, slightly down from RMB 371,513,000 in 2020, showing a marginal improvement in the company's debt situation[15]. - The Group's gearing ratio increased to approximately 81.6% in 2021 from 44.7% in 2020[76]. - Net current liabilities increased to approximately RMB 213.2 million in 2021 from RMB 32.8 million in 2020[77]. - Cash and bank balances decreased to approximately RMB 9.8 million in 2021 from RMB 14.3 million in 2020[77]. - Trade receivables increased by 28.3% from RMB 5.5 million as of December 31, 2020, to RMB 7.0 million as of December 31, 2021, attributed to higher revenue generation[111]. - Non-current prepayments, deposits, and other receivables decreased by 74.2% from RMB 80.5 million as of December 31, 2020, to RMB 20.8 million as of December 31, 2021[112]. - Current other payables, accrued expenses, and contract liabilities increased by 156% from RMB 48.3 million as of December 31, 2020, to RMB 123.8 million as of December 31, 2021, primarily due to the reclassification of marketing and promotional contract payables[124]. Operational Efficiency - The company reported a trade receivables turnover of 2.3 days, significantly improved from 17 days in 2020, suggesting better efficiency in collecting receivables[18]. - The Group plans to improve cost control and resource allocation to enhance operational efficiency and leverage its brand effect and customer base for transformation[34]. - Selling and marketing expenses increased by 234.3% to RMB 26.3 million, primarily due to higher expenses related to agricultural product sales[66]. - General and administrative expenses decreased by 28.0% from RMB 56.7 million in 2020 to RMB 40.8 million in 2021[71]. Market and Economic Context - The chairman noted that despite the challenges posed by the COVID-19 pandemic, the global economy began to show signs of recovery, with China's GDP growing by 8.1% in 2021[22]. - The overall domestic advertising market in 2021 increased by 11.2% year-on-year, with television, radio, elevator LCD, and elevator poster advertisements rising by 1.3%, 3.4%, 31.5%, and 32.4% respectively[41]. - The total box office of Chinese films in 2021 reached RMB 47.258 billion, recovering to 74% of the pre-epidemic level[25]. - The domestic economy in China has shown a positive recovery trend since 2021, with expectations for steady recuperation and improved consumption contributing significantly to economic growth[148][150]. - The government aims to expand domestic demand and optimize the consumption market, which is expected to enhance the contribution of consumption to China's economic growth[148][150]. Strategic Initiatives - The Group is focusing on restructuring its publishing and advertising businesses to reduce reliance on printed media, which has been impacted by external factors[26]. - The Group aims to develop integrated projects in the film and media sectors, leveraging its experience and resources to create synergies with existing businesses[34]. - The Group plans to continue developing its existing businesses in advertising, marketing, consulting, and agricultural products while restructuring its publishing and advertising sectors[154][155]. - The Group will actively seek suitable industry partners and investment opportunities to create synergies with its existing businesses in the new media era[154][155]. - The film and television industry in China is anticipated to enter a golden stage of development, driven by favorable policies and digital innovation, which will benefit the Group's operations[153][155]. Management and Governance - Mr. Chen Zhi was appointed as the chairman and CEO of the company on October 9, 2019[162]. - Mr. Yu Shi Quan was appointed as the chief financial officer of the Group on June 9, 2014[165]. - Ms. Chen Min has been an associate professor of drama literature at the Central Academy of Drama since May 2007[171]. - Mr. Zhou Chang Ren has extensive print media experience, particularly in the Fujian newspaper industry[172]. - The Group's overall financial operations have been significantly managed by Mr. Yu Shi Quan[165]. Future Outlook - Management expects that additional proactive economic and monetary policies from the Chinese government will stimulate economic recovery in 2022 following disruptions caused by COVID-19[157][158]. - The Group is focusing on restructuring its publishing and advertising businesses by consolidating with cultural media and film media businesses in the PRC, and diversifying into tourism and integrated developments[190].

Financial Performance - In the first half of 2021, the Group recorded revenue of RMB85.6 million, a significant increase from RMB31.2 million in the first half of 2020[17] - The gross profit for the same period was RMB5.4 million, with a gross profit margin decreasing to 6.3% from 14.4% in the first half of 2020[17] - The net loss after taxation increased to approximately RMB158.0 million, compared to RMB18.0 million in the first half of 2020[17] - Revenue from marketing and consulting services rose significantly by 209.5% to RMB49.6 million, up from RMB16.0 million in the first half of 2020[33] - Revenue from sales of agricultural products was approximately RMB28.0 million, a substantial increase from RMB10.5 million in the first half of 2020, with a gross profit margin of 7.6%[33][30] - The Group recorded a net loss of RMB158.0 million for the six months ended 30 June 2021, primarily due to impairment provisions on intangible assets, property, plant, and equipment totaling RMB157.2 million, RMB8.8 million, and RMB1.6 million, respectively[49] - The Group's total revenue increased by 174.4% to RMB85.6 million for the six months ended June 30, 2021, compared to RMB31.2 million for the same period in 2020[33] - The Group recorded a gross profit of RMB5.4 million for the six months ended June 30, 2021, compared to RMB4.5 million for the same period in 2020, but the gross profit margin decreased to 6.3% from 14.4%[34] - The loss attributable to owners of the Company for the period was RMB152,317,000, significantly higher than the loss of RMB19,125,000 in the prior year, indicating a year-over-year increase of 696.1%[193] - Basic and diluted loss per share attributable to owners of the Company was RMB22 for the six months ended June 30, 2021, compared to RMB0.1722 for the same period in 2020[189] Market and Economic Conditions - The domestic advertising market grew by 20.7% month-on-month in June 2021, with notable increases in expenses for television and elevator advertisements[12] - The total box office of the Mainland China movie market reached RMB27.57 billion, recovering 88% compared to the first half of 2019[13] - China's GDP for the first half of 2021 reached RMB53,216.7 billion, representing a year-on-year increase of 12.7%[9] - The first quarter of 2021 saw an 18.3% year-on-year GDP growth, while the second quarter recorded a 7.9% increase[9] - The overall economic recovery in China is expected to improve consumer contributions to economic growth in the second half of the year, with a continuous upgrade in consumer spending structure[94] - Management expects additional proactive economic and monetary policies from the Chinese government to stimulate economic cycles following disruptions caused by COVID-19[99] Expenses and Financial Management - Selling and marketing expenses increased by 150% to RMB5.5 million, up from RMB2.2 million in the first half of 2020, primarily due to increased expenses related to agricultural product sales[40] - General and administrative expenses rose by 51.3% to RMB24.2 million, compared to RMB16.0 million for the same period in 2020, mainly due to lower expenses in the first half of 2020 related to COVID-19[41] - Net finance costs increased by 12.8% to RMB9.7 million, compared to RMB8.6 million for the same period in 2020, primarily due to higher interest expenses on short-term borrowings[42] - Other income decreased significantly from RMB2.4 million to RMB54,000, primarily due to a reduction in government grants[35] Cash Flow and Financing Activities - Net cash used in operating activities amounted to RMB7.5 million for the six months ended June 30, 2021, primarily driven by the net loss for the period[55] - Net cash generated from investing activities was RMB4.7 million, resulting from a return of deposit for township development of RMB6.2 million, offset by purchases of property, plant, and equipment of RMB1.5 million[56] - Net cash used in financing activities amounted to RMB2.2 million, primarily due to the repayment of bank borrowings of RMB7.1 million, partially offset by net cash proceeds from bank borrowings of RMB5.9 million[57] - The Company reported a repayment of borrowings totaling RMB7,145,000 in the first half of 2021, compared to RMB2,619,000 in the previous year, indicating an increase of 172.5%[199] - The Company received RMB5,900,000 from borrowings during the first half of 2021, consistent with the same amount received in 2020[199] Assets and Liabilities - Total assets as of June 30, 2021, were RMB249,337,000, down from RMB433,245,000 as of December 31, 2020, a decrease of 42.5%[181] - Total liabilities as of June 30, 2021, were RMB341,318,000, compared to RMB371,513,000 as of December 31, 2020, a reduction of 8.1%[184] - Cash and cash equivalents decreased to RMB7,768,000 as of June 30, 2021, from RMB12,889,000 at the end of 2020, a decline of 39.5%[181] - Non-current assets decreased to RMB187,000,000 as of June 30, 2021, from RMB365,302,000 as of December 31, 2020, a decline of 48.8%[179] - Accumulated deficits increased to RMB350,308,000 as of June 30, 2021, from RMB193,721,000 at the end of 2020, indicating a worsening financial position[181] Strategic Initiatives and Future Plans - The Group has entered into a framework agreement with the Yongtai County government to develop the "Yongtai Kungfu Distinctive Town" project, which includes a 60-Chinese mu eco-friendly greenhouse farm[29] - The Group aims to develop integrated projects themed around film or media, focusing on industry positioning, cultural heritage, and eco-agriculture to create synergies with existing businesses[96] - The Group plans to restructure its publishing and advertising businesses by consolidating with cultural and film media businesses in China to broaden long-term income sources[96] - The Group will actively seek suitable industry partners and investment projects to capture business opportunities that align with its existing operations[96] Shareholder and Corporate Governance - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021, consistent with the previous year[101] - The Company has not conducted any equity fund raising activities during the reporting period[122] - As of June 30, 2021, Mr. Chen Zhi holds 1,083,265,340 shares, representing approximately 119.16% of the Company's issued shares[130] - The interests of substantial shareholders include Shi Jianxiang with 46,712,500 shares (5.14%) and Forever Joy Investments Limited with 82,307,493 shares (9.05%)[134] - The Remuneration Committee evaluates and recommends remuneration packages based on individual and Company performance[117] - The Nomination Committee is responsible for recommending appointments and succession planning for Directors[118] Internet Operations and Regulatory Compliance - The Internet Opco has a registered capital of RMB 1 million and is engaged in value-added telecommunication business, news websites, online publication services, and printing of publications[143] - The company cannot directly acquire equity interest in Internet Opco due to foreign investment restrictions, necessitating the use of structured contracts[139] - The Internet Structured Contracts were established to ensure economic benefits flow to the group and to maintain control over the Internet Opco Group's operations[149] - The company plans to exercise its exclusive purchase right under the Exclusive Purchase Option Agreement to acquire the entire equity interest in Internet Opco when permitted by PRC laws[168]

Financial Performance - Revenues for the year ended December 31, 2020, were RMB 126,384,000, representing a 3.3% increase from RMB 122,374,000 in 2019[16] - Gross profit for 2020 was RMB 13,870,000, with a gross profit margin of 11.0%, down from 17.2% in 2019[16][21] - Operating loss decreased to RMB 74,812,000 in 2020 from RMB 121,284,000 in 2019, indicating improved operational efficiency[16] - Loss attributable to owners of the Company was RMB 73,784,000, compared to RMB 139,165,000 in the previous year, reflecting a reduction in net losses[16] - The net loss after taxation was reduced to approximately RMB54.1 million in 2020, compared to RMB143.5 million in 2019[27] - The Group reported a net margin of (59.0%) for 2020, an improvement from (117.2%) in 2019[21] - The gross profit from the Group's principal business decreased from RMB 21.0 million in 2019 to RMB 13.9 million in 2020[51] - Total revenue increased by 3.3% from RMB122.4 million in 2019 to RMB126.4 million in 2020, driven by a significant rise in marketing and consulting services revenue from RMB23.8 million to RMB55.1 million[71] - Gross profit decreased by 33.8% from RMB21.0 million in 2019 to RMB13.9 million in 2020, with gross profit margin declining from 17.2% to 11.0%[72] - The net loss for the year was RMB74.5 million, a reduction of 48.1% compared to RMB143.5 million in 2019[82] Assets and Liabilities - Total assets as of December 31, 2020, were RMB 433,245,000, a decrease from RMB 465,158,000 in 2019[18] - Total liabilities increased to RMB 371,513,000 in 2020 from RMB 350,043,000 in 2019, resulting in a gearing ratio of 44.7%[18][21] - The Group's total borrowings increased to approximately RMB193.6 million in 2020 from RMB169.1 million in 2019, resulting in a gearing ratio of approximately 44.7%[89] - The Group's current liabilities exceeded its current assets by RMB32.7 million as at 31 December 2020, with cash and cash equivalents of approximately RMB12.9 million[96] - Trade receivables decreased by 42.7% from RMB9.6 million as at 31 December 2019 to RMB5.5 million as at 31 December 2020, primarily due to an increase in provision for impairment[114] Revenue Streams - The Group's mobile media advertising business contributed RMB6.0 million to revenue during the year, with a gross profit margin of 44.0%[31] - Revenue from marketing and consulting services increased significantly by 131.5% to approximately RMB 55.1 million, with a gross profit margin of 9.6%[58] - Revenue from sales of agricultural products decreased to approximately RMB 56.2 million from RMB 87.3 million in 2019, with a gross profit margin of 9.6%[61] - The revenue from public vehicles advertising, a new project, contributed RMB 6.0 million to the Group's revenue with a gross profit margin of 44.0%[55] Cost Management - Selling and marketing expenses decreased by 35.2% from RMB12.2 million in 2019 to RMB7.9 million in 2020[79] - General and administrative expenses fell by 10.7% from RMB63.5 million in 2019 to RMB56.7 million in 2020[80] - The Group aims to improve cost control and resource allocation to enhance operational efficiency[38] Strategic Focus and Future Plans - The Company is focusing on enhancing its marketing, consulting, and printing services to drive future growth[19] - The Group is focusing on restructuring its publishing and advertising businesses to reduce reliance on the printed media sector[28] - The Group is actively pursuing acquisitions and joint ventures related to new media to broaden its income streams[32] - The Group plans to restructure its publishing and advertising businesses by consolidating with cultural and film media businesses in China to broaden long-term income sources[154] - The Group aims to leverage its experience in advertising, film, culture, and media industries to develop integrated projects focusing on themes such as eco-agriculture and community wellness[154] Economic Context - China's annual GDP increased by 2.3% year-on-year in 2020, reaching RMB101.6 trillion, marking the first time it exceeded the RMB100 trillion mark[42] - China's advertising expenditures fell by 11.6% year-on-year in 2020, which was 4.2 percentage points higher than the decline in 2019[44] - The consumer market in China is expected to continue its recovery in 2021, with commodity consumption scale further expanding, positioning China as the world's largest consumer of commodities[150] - Management expects that additional proactive economic and monetary policies from the Chinese government will stimulate economic recovery in 2021 following disruptions caused by COVID-19[155] Management and Governance - The company has a diverse board with expertise in finance, management, and academia, which supports strategic decision-making and governance[165] - The management team has a strong educational background, with degrees in finance, accounting, and management from reputable institutions[164] - The Group's financial risk management objectives and policies are outlined in note 3 to the consolidated financial statements[188] - The Group's business review and future development discussions are provided in the "Management Discussion and Analysis" section of the annual report[187] Employee and Operational Insights - Total staff costs for the year ended December 31, 2020, were RMB31.5 million, a decrease from RMB44.3 million in 2019[142] - As of December 31, 2020, the Group had 261 full-time employees, with total employee costs amounting to RMB 31.5 million, a decrease from RMB 44.3 million in 2019[145] - The employee share option scheme lapsed in November 2020, which was aimed at incentivizing eligible individuals for their contributions[148] Dividends and Shareholder Information - The Group did not recommend any final dividend for the year ended December 31, 2020, and proposed to retain the loss for the year[186] - The Company raised funds by subscribing 151,519,806 shares at HK$0.101, representing 16.7% of the issued share capital post-subscription[196]

Financial Performance - For the first half of 2020, the Group recorded revenue of RMB 31.2 million, an increase from RMB 16.9 million in the first half of 2019[15] - The gross profit for the same period was RMB 4.5 million, compared to RMB 3.1 million in the first half of 2019, resulting in a gross profit margin of 14.4%[15] - The net loss after taxation was reduced to approximately RMB 18.0 million, down from RMB 41.9 million in the first half of 2019[15] - The total revenue of the Group increased by 84.6% from RMB16.9 million for the six months ended June 30, 2019, to RMB31.2 million for the six months ended June 30, 2020[34] - Revenue from sales of agricultural products was approximately RMB10.5 million for the six months ended June 30, 2020, compared to Nil in the first half of 2019[34] - Revenue from marketing and consulting services increased from RMB11.6 million for the six months ended June 30, 2019, to RMB16.0 million for the six months ended June 30, 2020[34] - The gross profit margin decreased from 18.3% for the six months ended June 30, 2019, to 14.4% for the six months ended June 30, 2020[35] - The Group recorded a gross profit of RMB4.5 million for the six months ended June 30, 2020, compared to RMB3.1 million for the same period in 2019[35] Advertising and Market Trends - The total box office in China from January to June 2020 amounted to RMB 2,242 million, representing a significant year-on-year decrease of 93%[14] - The advertising revenue from the newspaper segment decreased to RMB 1.6 million in the first half of 2020, down from RMB 1.7 million in the same period of 2019[16] - In June 2020, the overall Chinese advertisement market grew by 1.0% month-on-month, but decreased by 12.6% year-on-year[10] - The advertising revenue on TVs in elevators and posters in elevators increased by 28.9% and 25.2%, respectively[10] - The Group's advertising and marketing services were impacted by poor consumer sentiment due to COVID-19, which disrupted tourism and integrated developments[112] Expenses and Cost Management - Selling and marketing expenses increased by 214.3% from RMB0.7 million for the six months ended June 30, 2019, to RMB2.2 million for the six months ended June 30, 2020[41] - General and administrative expenses decreased by 42.0% from RMB27.6 million for the six months ended June 30, 2019, to RMB16.0 million for the six months ended June 30, 2020[42] - Other income increased from RMB0.4 million for the six months ended June 30, 2019, to RMB2.4 million for the six months ended June 30, 2020, primarily due to an increase in government grants[39] - Total staff costs for the six months ended 30 June 2020 were approximately RMB14.0 million, a decrease from approximately RMB23.4 million for the same period in 2019[94] Cash Flow and Financing Activities - Net cash used in operating activities amounted to RMB3.4 million for the six months ended June 30, 2020, primarily attributable to a net loss of RMB20.9 million[57] - Net cash used in investing activities was RMB0.1 million for the six months ended June 30, 2020, resulting from purchases of property, plant, and equipment[60] - Net cash generated from financing activities amounted to RMB2.2 million for the six months ended June 30, 2020, primarily from net cash proceeds from bank borrowings[61] - The Group obtained a revolving bank borrowing amounting to RMB5.9 million during the six months ended June 30, 2020, secured by the ownership rights of the Group's properties[82] Strategic Initiatives and Future Outlook - The Group plans to leverage its experience in advertising, marketing, and media to identify small and medium-sized development and investment opportunities in the domestic film industry[100] - The Group aims to continue developing its existing businesses while seeking suitable industry partners and investment projects to create synergies with current operations[107] - The ongoing COVID-19 pandemic has led to significant disruptions, and if the situation persists, it may negatively affect the Group's operational performance and cash flow[112] - The Chinese film industry is expected to recover due to strong public demand for offline movie watching and supportive cinema policies, indicating a long-term growth potential[99] Share Capital and Equity Transactions - The company raised a net amount of HK$15,150,000 (approximately RMB13,811,000) by issuing 151,519,806 shares, representing 16.7% of the enlarged issued share capital[115] - The total issued shares increased from 757,599,030 to 909,118,836 following the completion of subscriptions on July 10, 2020[155] - The Company did not conduct any equity fund raising activities during the reporting period, and no proceeds from previous activities remained unutilized at the beginning of the reporting period[146] Corporate Governance and Committees - The Audit Committee has reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2020[132] - The Remuneration Committee evaluates and makes recommendations regarding the remuneration packages of Directors and senior management based on individual and company performance[136] - The Nomination Committee comprises three members, with a majority being independent non-executive Directors, responsible for recommending Director appointments and succession planning[137] Internet Structured Contracts - The Internet Structured Contracts were established to capture the economic benefits and control over the Internet Opco Group due to foreign investment restrictions[172] - The Group continues to consolidate the financial results of the Internet Opco Group through the contractual arrangements under the Internet Structured Contracts[165] - The contractual arrangements allow for the economic benefits of Beijing BaiChuanDuKe's business to be effectively transferred to the company's subsidiary, Fuzhou DingCe[200]

Financial Performance - Revenues for the year ended December 31, 2019, were RMB 122,374,000, a significant increase from RMB 55,016,000 in 2018, representing a growth of 122%[15] - Gross profit for 2019 was RMB 21,044,000, compared to RMB 18,495,000 in 2018, indicating a growth of 8.4%[15] - The operating loss decreased to RMB 121,284,000 in 2019 from RMB 156,578,000 in 2018, showing an improvement of 22.5%[15] - Loss attributable to owners of the company was RMB 139,165,000 in 2019, a reduction from RMB 164,403,000 in 2018, reflecting a decrease of 15.4%[15] - The net loss after taxation reduced to approximately RMB 143.5 million in 2019, compared to RMB 164.6 million in 2018[34] - For the year ended December 31, 2019, the Group recorded a net loss of RMB143.5 million, a decrease of 12.8% compared to a loss of RMB164.6 million for the year ended December 31, 2018[65] - Loss before income tax for the year ended December 31, 2019 was RMB148.6 million, representing a decrease of 9.3% from RMB163.9 million for the year ended December 31, 2018[64] Assets and Liabilities - Total assets as of December 31, 2019, were RMB 465,158,000, slightly down from RMB 477,201,000 in 2018[17] - Total liabilities increased to RMB 350,043,000 in 2019 from RMB 289,239,000 in 2018, marking an increase of 21%[17] - Equity attributable to owners of the company decreased to RMB 106,907,000 in 2019 from RMB 175,282,000 in 2018, a decline of 39.1%[17] - The Group's current liabilities exceeded its current assets by approximately RMB20.0 million as of December 31, 2019, resulting in a current ratio of approximately 0.8 compared to 1.3 in 2018[74] Revenue Sources - Total revenue increased by 122.5% from RMB55.0 million in 2018 to RMB122.4 million in 2019, primarily due to increased revenue from agricultural product sales, which rose to RMB87.3 million from RMB2.9 million[50] - Revenue from marketing and consulting services decreased from RMB39.5 million in 2018 to RMB23.8 million in 2019, while revenue from newspaper advertising fell from RMB7.0 million to RMB4.4 million[50] - Advertising revenue from the Group's newspaper decreased to RMB 4.4 million in 2019 from RMB 7.0 million in 2018 due to competition from new media[37] Expenses and Cost Management - Selling and marketing expenses surged by 258.8% from RMB3.4 million in 2018 to RMB12.2 million in 2019, mainly driven by increased expenses related to agricultural product sales[57] - General and administrative expenses decreased by 28.3% from RMB88.6 million in 2018 to RMB63.5 million in 2019, attributed to reduced provisions for onerous leases and a shift from foreign exchange losses to gains[58] - Other income decreased by 66.7% from RMB0.9 million in 2018 to RMB0.3 million in 2019, primarily due to a one-off customer compensation income reduction[56] Cash Flow and Financing - Net cash used in operating activities for the year ended December 31, 2019 amounted to RMB26.3 million, primarily due to the net loss for the year[87] - Net cash used in investing activities for the year ended December 31, 2019 was RMB23.8 million, mainly from payments for property, plant, and equipment[88] - Net cash generated from financing activities for the year ended December 31, 2019 was RMB25.9 million, primarily from the issuance of convertible bonds[89] - The company issued convertible bonds with a principal amount of RMB 215.75 million on April 23, 2019, with an effective interest rate of 11.5% per annum[112] Strategic Focus and Future Outlook - The company is focusing on market expansion and new product development to enhance future performance[15] - Management is optimistic about future growth prospects despite the current operating losses, aiming for strategic improvements in operations[15] - The Group aims to capitalize on opportunities in the film industry by rolling out quality productions in response to rising consumer demand for cultural entertainment[142] - The Group is focused on identifying small and medium-sized development and investment opportunities in the advertising, marketing, and media sectors in China[142] - The Group is diversifying into tourism and integrated developments as part of its strategic focus[182] Market Conditions - The Chinese advertising market declined by 8.0% in the first three quarters of 2019, with traditional advertising decreasing by 11.4%[27] - The film and television industry is transitioning to a high-quality development model, supported by increasing consumer demand for cultural entertainment[144] Human Resources - Total staff costs for the year ended December 31, 2019, were RMB 44.3 million, a decrease from RMB 46.1 million in 2018[133] - The Group had 257 full-time employees as of December 31, 2019, compared to 236 in 2018[133] Corporate Governance - The Directors did not recommend any final dividend for the year ended December 31, 2019, and proposed that the loss for the year be retained[183] - The Company has been facing risks and uncertainties that may affect its future business development, as discussed in the "Management Discussion and Analysis" section[184] - The financial risk management objectives and policies of the Group are outlined in the consolidated financial statements[185]

Financial Performance - For the first half of 2019, the Group recorded revenue of RMB16.9 million, a decrease from RMB21.7 million in the first half of 2018, representing a year-on-year decline of 22.9%[19]. - The gross profit for the same period was RMB3.1 million, down from RMB7.2 million in the first half of 2018, resulting in a gross profit margin of 18.3%[19]. - The net loss after taxation was reduced to approximately RMB41.9 million, compared to RMB60.5 million in the first half of 2018, indicating an improvement in financial performance[19]. - The Group's total revenue decreased by 22.1% from RMB21.7 million in the first half of 2018 to RMB16.9 million in the first half of 2019, primarily due to declines in marketing and printing services and newspaper advertising revenue[31]. - Revenue from marketing and printing services fell from RMB19.0 million in the first half of 2018 to RMB13.8 million in the first half of 2019, reflecting a significant decrease in demand[26]. - The gross profit margin decreased from 33.2% in the first half of 2018 to 18.3% in the first half of 2019, with gross profit dropping from RMB7.2 million to RMB3.1 million during the same period[32]. - Selling and marketing expenses decreased by 56.3% from RMB1.6 million in the first half of 2018 to RMB0.7 million in the first half of 2019, attributed to efficiency management and reduced revenue[38]. - General and administrative expenses decreased by 44.8% from RMB50.0 million in the first half of 2018 to RMB27.6 million in the first half of 2019, mainly due to reductions in legal fees and operating lease provisions[39]. - The Group recorded a net loss of RMB41.9 million for the first half of 2019, influenced by decreases in professional fees and fair value losses on financial assets[47]. - Other income increased from RMB277,000 in the first half of 2018 to RMB354,000 in the first half of 2019, primarily due to higher government grants[36]. - The Group's finance costs for the first half of 2019 amounted to RMB17.3 million, mainly due to increased interest expenses related to convertible bonds and loans[45]. - Income tax expenses shifted from RMB677,000 in the first half of 2018 to an income tax credit of RMB628,000 in the first half of 2019, due to a decrease in taxable temporary differences[49]. Market Conditions - The Chinese advertisement market declined by 8.8% in the first half of 2019, impacting the Group's advertising revenue[12]. - The box office in mainland China for the first half of 2019 was RMB31.17 billion, a year-on-year decrease of 2.7%, with total viewership dropping by 10.3%[16]. - The share of domestically-produced films at the box office was 50.54%, a decrease from 59.21% in the corresponding period last year[16]. - The advertising revenue from traditional media such as TV, radio, and newspapers saw significant declines, with newspaper advertising down by 30.6%[12]. - The Group's performance reflects the broader economic challenges faced in the Chinese market, including competition from new media[12]. Cash Flow and Investments - For the six months ended June 30, 2019, net cash used in operating activities amounted to RMB 20.0 million, primarily due to a net loss of RMB 41.9 million[54]. - Net cash used in investing activities for the same period was RMB 34.1 million, mainly from purchases of property, plant, and equipment totaling RMB 34.6 million[56]. - Net cash generated from financing activities was RMB 29.4 million, primarily from net cash proceeds of RMB 33.5 million from the issuance of convertible bonds[57]. - Capital expenditures for the six months ended June 30, 2019, were RMB 14.7 million, a significant increase from RMB 1.3 million in the same period of 2018[58]. - Trade receivables decreased by 12.7%, from RMB 7.9 million as of December 31, 2018, to RMB 6.9 million as of June 30, 2019, mainly due to an increase in provision for impairment[64]. - Trade payables remained stable at RMB 4.6 million as of June 30, 2019, consistent with the level reported on December 31, 2018[71]. - As of June 30, 2019, properties held for sale were valued at RMB 24.6 million[68]. - The company reported a net decrease in cash and cash equivalents of RMB 24.7 million for the period, ending with RMB 8.97 million[63]. - Exchange loss on cash and cash equivalents amounted to RMB 0.233 million for the period[63]. Projects and Future Developments - The Group completed the acquisition of Supreme Glory Limited, which operates an eco-cultural tourism project covering approximately 4,022 Chinese mu (about 2,681,347 square meters) in Fangshan District, Beijing[111]. - The Fangshan Project's development is divided into three stages, with the first stage expected to be completed in 2019-2020, the second stage in 2021, and the third stage in 2021-2022 due to delays in approval processes[117]. - The Yongtai Project covers an area of 15.6 square kilometers and the Group has a 40-year exclusive operation right for its development, management, and operation of commercial activities[118]. - The construction of new attractions in the Yongtai Project is scheduled to be completed by the fourth quarter of 2019, with plans to open to the public before the Chinese New Year of 2020[121]. - The Group expects to launch commercial operations for both the Yongtai Project and the eco-park and aviary of the Fangshan Project by the second quarter of 2020[122]. - The Group intends to finance future developments through debt financing and the establishment of an investment fund in cooperation with asset management companies and potential investors[122]. - The construction of the Fangshan Project was delayed due to tightened policies regarding agricultural land use, affecting the approval process[114]. - The Group is actively seeking investment opportunities in the film and media industries to capitalize on the growth of online TV dramas and webcasts[106]. - The Group aims to develop integrated projects themed around film or media, leveraging its experience in advertising and media industries[108]. - The focus on quality content in the Chinese film industry is expected to create numerous investment opportunities during the current integration phase[105]. - The Yongtai project faced delays due to heavy rains starting in May 2019, but renovations resumed in August 2019, with new attractions expected to be completed by Q4 2019[123]. - The company plans to open the Yongtai project to the public before the Spring Festival in 2020, pending safety approvals[123]. - Sufficient financial resources and operating capital are anticipated to support the commercial operations of the Yongtai project before the Spring Festival and the ecological park in Fangshan by Q2 2020[123]. - The company is exploring debt financing and partnerships with asset management companies to fund future developments, with negotiations ongoing but no binding agreements reached yet[123]. Corporate Governance and Shareholder Information - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2019, consistent with the previous year[128]. - The Audit Committee has reviewed the Group's condensed consolidated interim financial information for the six months ended June 30, 2019[145]. - The Company completed a capital reorganization effective from 10 April 2019, changing the board lot size for trading from 1,000 existing shares to 10,000 new shares[154][155]. - On 24 January 2019, the Company entered into a convertible bond subscription agreement for 3% convertible bonds with an aggregate principal amount of HK$250,000,000 (equivalent to RMB215,750,000)[156][159]. - The initial conversion price of the convertible bonds is HK$0.24 per share, which is subject to adjustment, and the bonds will mature on the third anniversary of their issue date[160][163]. - Assuming full conversion at the initial price, the convertible bonds can be converted into up to 1,041,666,666 shares after the capital reorganization[161][163]. - The gross and net proceeds from the subscription were approximately HK$250 million and HK$245 million, respectively, with specific allocations for loan repayment, early redemption of promissory notes, and general expenses[162][163]. - Following a partial conversion on 21 May 2019, the issued share capital increased from 571,999,030 shares to 757,599,030 shares, with the conversion shares representing approximately 32.45% of the issued share capital before conversion and 24.50% after[166][168]. - The Company has not redeemed any of its listed shares during the six months ended 30 June 2019, nor has it purchased or sold any listed shares during this period[167]. - As of June 30, 2019, Mr. Chen Zhi holds a long position of 1,083,265,340 shares, representing approximately 142.98% interest in the company[173]. - TopBig International, a controlled corporation wholly-owned by Mr. Chen Zhi, is deemed to have an interest in 1,081,507,176 shares, which includes 225,440,510 shares and 856,066,666 underlying shares from convertible bonds[178]. - Shi Jianxiang holds 46,712,500 shares, representing approximately 6.17% interest in the company[176]. - As of June 30, 2019, no other individuals (excluding directors or chief executives) were reported to have interests or short positions in the company's shares[179]. Internet Operations and Structured Contracts - The registered capital of Internet Opco is RMB 1 million, with 60% held by Zheng Bai Ling and 40% by Xu Kai Ning[188]. - The Internet Opco Group holds multiple permits, including for Internet Publication and Value-added Telecommunication Business[187]. - The company continues to consolidate the financial results of the Internet Opco Group through contractual arrangements under the Internet Structured Contracts[185]. - The structured contracts were established to enable the company to capture economic benefits and control over Beijing BaiChuanDuKe Science and Technology Co., Ltd.[180]. - The Internet Structured Contracts aim to ensure economic benefits flow to the Group and prevent asset leakage to shareholders[192]. - The Group can acquire equity interest in Internet Opco at a nominal price, the lowest permissible under PRC law[192]. - The contractual arrangements under the Internet Structured Contracts are not related to any other regulations or requirements[193]. - The agreements allow the Group to monitor and control the business and financial policies of Internet Opco through director nominations[192]. - The loan agreement dated December 17, 2015, specifies a loan sum of RMB 600,000 for Zheng and RMB 400,000 for Xu, with a term of 10 years[198]. - The equity pledge agreement also dated December 17, 2015, involves a 60% equity interest in Internet Opco pledged by Zheng and a 40% equity interest pledged by Xu[200]. - The loan agreement prohibits early repayment without prior written consent from New Wfoe[198]. - The guaranteed obligations under the equity pledge agreement include the repayment of loans and payment of service fees[200].

Financial Performance - Revenues for the year ended December 31, 2018, were RMB 55,016,000, an increase of 26.6% from RMB 43,428,000 in 2017[13]. - Gross profit for 2018 was RMB 18,495,000, resulting in a gross profit margin of 33.6%, up from 27.7% in 2017[13][18]. - Operating loss for 2018 was RMB 156,578,000, compared to a loss of RMB 58,999,000 in 2017[13]. - Loss attributable to owners of the Company was RMB 164,403,000, significantly higher than the loss of RMB 56,493,000 in the previous year[13]. - For the year ended December 31, 2018, the Group recorded revenue of RMB55.0 million, representing a year-on-year increase of 26.7%[28]. - The gross profit for the year was RMB18.5 million, up from RMB12.0 million in 2017, with a gross profit margin improvement from 27.6% in 2017 to 33.6% in 2018[28][42]. - The net loss after taxation was approximately RMB164.6 million, compared to RMB56.3 million in 2017, primarily due to higher professional fees and increased provisions for an onerous operating lease[28]. - Loss before income tax increased by 194.8% from RMB 55.6 million in 2017 to RMB 163.9 million in 2018, driven by higher professional fees and provisions for an onerous operating lease[50]. - The Group recorded a net loss of RMB 164.6 million for the year ended December 31, 2018, primarily due to increased professional fees and fair value losses on financial assets[52]. Assets and Liabilities - Total assets increased to RMB 477,201,000 in 2018, up from RMB 312,323,000 in 2017[15]. - Total liabilities rose to RMB 289,239,000, compared to RMB 64,716,000 in 2017, indicating a significant increase in debt levels[15]. - The gearing ratio increased to 37.1% in 2018, up from 2.9% in 2017, reflecting higher leverage[18]. - Trade receivables increased by 29.5% from RMB 6.1 million as of December 31, 2017, to RMB 7.9 million as of December 31, 2018, mainly due to increased revenue generated near year-end[76][77]. - Total trade receivables, net of impairment provisions, amounted to RMB 7.9 million as of December 31, 2018, compared to RMB 6.1 million as of December 31, 2017[76]. - Trade payables slightly increased from RMB 4.5 million as of December 31, 2017, to RMB 4.6 million as of December 31, 2018, with trade payables turnover days decreasing from 609 days to 404 days[84][86]. Cash Flow and Financing - Net cash used in operating activities amounted to RMB 58.3 million, primarily due to the net loss for the year[66]. - Net cash used in investing activities was RMB 86.2 million, mainly for the acquisition of Supreme Glory and property, plant, and equipment[67]. - Net cash generated from financing activities was RMB 116.6 million, primarily from a loan facility drawdown and proceeds from share issuance[68]. - Net cash flow from financing activities for the year ended December 31, 2018, was RMB 116.6 million, primarily due to related party loan financing of RMB 80.1 million and net proceeds from the issuance of ordinary shares of RMB 33.3 million[72]. - The Group obtained a loan facility from a related party amounting to RMB 87.1 million, with an interest rate of 5.0% per annum, repayable in two years[94]. - The company raised approximately HK$42 million through the placement of 289,666,000 shares at a price of HK$0.145 per share[178]. - The net proceeds of approximately HK$41 million were utilized for general working capital, including salaries and rental expenses[179]. Operational Efficiency - Trade receivables turnover improved to 46 days in 2018, down from 54 days in 2017, suggesting better collection efficiency[18]. - Selling and marketing expenses decreased by 38.2% from RMB5.5 million in 2017 to RMB3.4 million in 2018, attributed to successful cost control measures[44]. - General and administrative expenses rose by 33.3% from RMB 66.1 million in 2017 to RMB 88.1 million in 2018, mainly due to higher professional fees from project acquisitions[49]. - Other income increased by 50.0% from RMB0.6 million in 2017 to RMB0.9 million in 2018, mainly due to increased customer compensation income[43]. Market and Growth Strategy - The company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[20]. - The company aims to reduce reliance on print media by broadening revenue sources through integrated project development in the film and media sectors[134]. - The rise of webcast and online TV dramas is expected to continuously add value to the film and television culture industry, prompting the company to seek development and investment opportunities[124]. - The company is positioned to leverage its experience in advertising and media to capitalize on growth opportunities in China's film industry[123]. - The company intends to proactively explore business opportunities in film and TV drama investment, production, management, and content distribution[133]. Leadership and Governance - Mr. Xu Yaoming, aged 65, serves as the executive director and CEO, bringing 59 years of experience in the film industry[137]. - Mr. Chen Zhi, aged 53, has over ten years of experience in the print media and advertising industries, having pioneered a unique business model for the company[140]. - Mr. Yu Shi Quan, aged 43, is the CFO with significant management experience in the overall financial operations of the group since his appointment in June 2014[143]. - The company has a strong leadership team with diverse backgrounds in finance, media, and consulting, enhancing its strategic development capabilities[144]. - The board of directors includes a mix of executive and non-executive members, ensuring a balanced approach to governance and decision-making[149]. Future Outlook - The company expects global and Chinese economies to face challenges in 2019, with China's GDP growth target lowered to 6%-6.5%[122]. - The Group's annual report includes a discussion on future business development and possible risks and uncertainties[165]. - Important events affecting the Group since the end of the financial year ended December 31, 2018, are outlined in note 36 to the consolidated financial statements[171].