Financial Performance - The company reversed a loss of RMB 181.1 million for the year ended December 31, 2023, to a profit of RMB 116.9 million during the reporting period[8]. - The company's total revenue increased from RMB 759.0 million in the year ended December 31, 2023, to RMB 782.4 million in the reporting period, primarily due to the growth in higher education (media and arts) and vocational education revenue[36]. - Adjusted net profit for the year ended December 31, 2024, was RMB 218.3 million, while the adjusted net loss for the year ended December 31, 2023, was RMB 1.3 million[55]. - The overall gross profit increased by 37.2% from RMB 277.8 million to RMB 381.2 million, with the gross profit margin rising from 36.6% to 48.7%[41]. - The total impairment loss recognized during the reporting period amounted to RMB 159.6 million, with major impairments in trade receivables and transitional loans[51]. Dividends - The board proposed a final dividend of HKD 0.03 per share and a special dividend of HKD 0.03 per share, totaling approximately HKD 99.3 million, subject to shareholder approval[8]. - The company does not have a fixed dividend payout ratio but aims to recommend dividends in line with industry averages while maintaining sufficient reserves for operations and growth[181]. Student Enrollment and Education Strategy - The total number of students enrolled in the company's universities is approximately 30,000, with plans to expand capacity to over 50,000 students in the future[8]. - The company reported a year-on-year increase of approximately 3.6% in total student enrollment, reaching 29,742 students as of December 31, 2024[12]. - The company aims to develop three key areas: media and arts education, knowledge payment and vertical e-commerce, and AI teaching and AI arts courses[8]. - The company is committed to enhancing internship and employment opportunities for students through industry-education integration[8]. - The company aims to establish a differentiated competitive advantage in the artificial intelligence education sector, particularly in media and arts education[25]. Revenue Segments - The higher education (media and arts) and vocational education segments recorded total revenue of RMB 671.3 million, a year-on-year increase of 13.2%[15]. - Revenue from the higher education (media and arts) and vocational education segment rose by RMB 78.3 million or 13.2% to RMB 671.3 million, mainly driven by an increase in undergraduate course revenue[36]. - The higher education (media and arts) and vocational education segment accounted for 85.8% of total revenue in 2024, compared to 78.1% in 2023, indicating a significant shift towards this segment[36]. - The entertainment and live e-commerce segment generated revenue of RMB 111.0 million, representing 14.2% of total revenue, down from 21.9% in the previous year[36]. Operational Developments - The company has established partnerships with over 80 leading global media and arts universities for its international foundation courses[12]. - The company plans to expand the Nanjing Media College's main campus and Binjiang campus to accommodate approximately 33,000 and 10,000 students, respectively, with an additional campus for vocational education if needed[26]. - The company has initiated legal proceedings to recover RMB 170 million of transitional loans, having received a favorable ruling from the relevant Chinese arbitration commission[14]. Corporate Governance - The company aims to achieve high levels of corporate governance, which is crucial for its development and safeguarding shareholder interests[147]. - The board is committed to maintaining and establishing sound corporate governance practices to ensure the achievement of business objectives[147]. - The company has established a governance framework and developed policies and procedures to strengthen the board's ability to oversee business conduct[147]. - The board consists of seven members, including four executive directors and three independent non-executive directors[155]. - The company has established three committees: audit committee, remuneration committee, and nomination committee, each with defined written terms of reference[166]. Risk Management and Compliance - The company faces significant uncertainties in its higher education business due to the termination of a cooperation agreement with Communication University of China, impacting enrollment and employment[77]. - The company is subject to strict regulations in the film and television industry in China, which can lead to significant operational uncertainties[77]. - The company has implemented a whistleblowing policy allowing employees to report concerns confidentially to the audit committee[194]. - The group has a risk management and internal control system designed to identify and assess risks, ensuring assets are not misused[200]. Employee and Diversity Initiatives - The total number of employees increased to 2,311 as of December 31, 2024, from 2,193 as of December 31, 2023[69]. - Approximately 55% of the company's 2,311 employees are female, totaling 1,275 female employees, including management[180]. - The company has set a goal for at least 50% of its workforce to be female, with specific initiatives to enhance gender diversity in recruitment and hiring practices[180]. - The board aims to maintain a gender diversity target of at least one female director by December 31, 2024, with a current composition of seven directors[176].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 782,359,000, representing a 3.1% increase from RMB 759,040,000 in 2023[5] - The company reported a net profit of RMB 116,911,000 for the year, compared to a net loss of RMB 181,067,000 in 2023[5] - Adjusted net profit for the year was RMB 218,266,000, significantly improving from an adjusted net loss of RMB 1,311,000 in 2023[5] - Total revenue increased from RMB 759.0 million in 2023 to RMB 782.4 million in 2024, primarily driven by a 13.2% increase in higher education revenue[33] - The overall gross profit increased by 37.2% from RMB 277.8 million in 2023 to RMB 381.2 million in 2024, with the gross profit margin rising from 36.6% to 48.7%[38] - The company recorded a profit before tax of RMB 117,275 thousand, compared to a loss of RMB 181,229 thousand in the previous year[78] - The company reported a profit attributable to owners of RMB 92,064,000 for the year ended December 31, 2024, compared to a loss of RMB 196,265,000 in 2023[99] Revenue Segments - The segment profit for higher education (media and arts) and vocational education was RMB 246,272,000, a 35.0% increase from RMB 182,411,000 in 2023[5] - The higher education (media and arts) and vocational education segments recorded total revenue of RMB 671.3 million, a year-on-year increase of 13.2%[13] - Undergraduate revenue increased by RMB 94.3 million or 23.5% to RMB 494.6 million, primarily due to tuition fee increases for new students starting in the 2023/2024 academic year[13] - The live e-commerce and artist management business generated total revenue of RMB 111.0 million during the reporting period, compared to RMB 81.1 million for the year ending December 31, 2023[15] - Revenue from film and television production and investment decreased by RMB 85.0 million during the reporting period due to a lack of first-round releases and declining traditional advertising revenue in the industry[16] - The entertainment and live e-commerce segment's revenue decreased from RMB 166.1 million to RMB 111.0 million, attributed to the absence of new film releases during the reporting period[34] Student Enrollment and Education Programs - The number of students enrolled in the group reached approximately 29,742, with full-time undergraduates totaling 25,157, marking a year-on-year growth of about 3.6%[9] - The total number of students at Nanjing Media College is expected to reach nearly 30,000 by December 31, 2024, with plans to expand capacity to over 50,000 students across various educational programs[23] - The company offers over 50 undergraduate programs, with 16 recognized as provincial-level first-class programs and 4 as national first-class programs[10] Dividends and Shareholder Information - The company declared a final dividend of HKD 0.03 per share for the fiscal year 2024, compared to no dividend in 2023, and a special dividend of HKD 0.03 per share, down from HKD 0.06 in 2023[4] - The company has proposed a final dividend of HKD 0.03 per share for the year ending December 31, 2024, compared to no dividend for the year ending December 31, 2023[76] - A special dividend of HKD 0.03 per share is also proposed, down from HKD 0.06 per share for the year ending December 31, 2023[76] Legal and Compliance Matters - The company has initiated legal proceedings to recover RMB 170 million related to transitional loans, with a favorable ruling obtained from the relevant arbitration committee[11] - A lawsuit has been filed against the company with a claim amount of approximately RMB 57,041,000, but no provision has been made as the outcome is uncertain[107] - The audit committee, consisting of three members, has reviewed the audited consolidated financial statements for the year ending December 31, 2024[71] - The company has adopted a securities trading policy for its directors and relevant employees, confirming compliance since the beginning of the fiscal year[70] Financial Position and Assets - Cash and cash equivalents increased to RMB 690.8 million as of December 31, 2024, up from RMB 342.0 million as of December 31, 2023[54] - Total assets decreased from RMB 3,078.2 million as of December 31, 2023, to RMB 3,057.6 million as of December 31, 2024[55] - Total liabilities decreased from RMB 662.2 million as of December 31, 2023, to RMB 612.0 million as of December 31, 2024[55] - The total equity as of December 31, 2024, is RMB 2,445.6 million, compared to RMB 2,416.0 million as of December 31, 2023[55] Employee and Operational Costs - The total salary cost for the year ending December 31, 2024, is RMB 204.0 million, an increase from RMB 176.9 million for the year ending December 31, 2023[65] - The company has 2,311 employees as of December 31, 2024, up from 2,193 employees as of December 31, 2023[64] - Administrative expenses increased from RMB 114.5 million in 2023 to RMB 122.3 million in 2024, primarily due to salary increases for staff[42] Future Plans and Strategic Initiatives - The company plans to develop a "knowledge payment and vertical e-commerce" business, focusing on high-quality media and arts knowledge intellectual property and expanding its product offerings[24] - The company aims to establish a differentiated competitive advantage in the artificial intelligence education sector, particularly in media and arts education[22] - The company plans to launch a subscription-based product for AI education in media and arts by 2025, integrating AI with traditional education[25] - The company continues to focus on expanding its higher education and vocational training services in China, leveraging its existing assets and market presence[81]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was RMB 386,570,000, representing a 2.6% increase from RMB 376,788,000 in the same period of 2023[3] - The adjusted net profit for the period was RMB 108,393,000, a significant recovery from a loss of RMB 58,426,000 in the prior year[3] - The company reported a profit before tax of RMB 59,658,000, a significant recovery from a loss of RMB 110,298,000 in the previous year[72] - Net profit for the period was RMB 59,262,000, compared to a loss of RMB 109,932,000 in the same period last year[72] - The company reported a profit of RMB 48,547,000 for the six months ended June 30, 2024, compared to a loss in the previous period[74] - The company reported a profit attributable to owners of RMB 48,547,000 for the six months ended June 30, 2024, compared to a loss of RMB 119,055,000 in the same period of 2023[91] Gross Profit and Margins - Gross profit increased by 27.8% to RMB 193,768,000 compared to RMB 151,564,000 in the previous year[3] - The overall gross profit increased by 27.8% from RMB 151.6 million for the six months ended June 30, 2023, to RMB 193.8 million for the six months ended June 30, 2024, with a gross profit margin rising from 40.2% to 50.1%[25] - The gross profit margin for the higher education (media and arts) and vocational education segment decreased from 60.6% to 57.0% due to increased teaching staff costs[26] - The entertainment and live e-commerce segment recorded a gross profit margin of 17.1%, improving from a gross loss margin of 49.0% in the previous period[26] Enrollment and Education Partnerships - The number of students enrolled as of June 30, 2024, was approximately 29,155, including 24,127 full-time undergraduates, marking an 8.9% year-on-year growth[6] - The company has established partnerships with over 70 leading global media and arts universities for its international foundation programs[6] Segment Performance - The higher education segment, which includes media and arts, generated revenue of RMB 320,308,000, up 4.5% from RMB 306,631,000 in the previous year[3] - The entertainment and live e-commerce segment reported a revenue decline of 5.6%, totaling RMB 66,262,000 compared to RMB 70,157,000 in the same period last year[3] - The entertainment and live e-commerce segment generated revenue of RMB 66,262,000, a decrease from RMB 70,157,000 in the same period last year, indicating a decline of approximately 5.4%[82] Financial Position and Cash Flow - As of June 30, 2024, the total cash and cash equivalents amounted to RMB 576.0 million, a decrease from RMB 717.4 million as of December 31, 2023, primarily due to the payment of special dividends[39] - Total assets decreased from RMB 3,078.2 million as of December 31, 2023, to RMB 2,683.8 million as of June 30, 2024, while total liabilities decreased from RMB 662.2 million to RMB 299.6 million[39] - The current ratio as of June 30, 2024, was 455.0%, up from 257.0% as of December 31, 2023[39] - The company maintained a stable cash position with cash and cash equivalents amounting to RMB 295,977,000 as of June 30, 2024[73] Expenses and Impairments - Administrative expenses increased from RMB 55.3 million to RMB 60.0 million, primarily due to higher university staff costs[30] - Total impairment losses increased from RMB 573.6 million to RMB 653.2 million during the reporting period, with trade receivables impairment totaling RMB 443.7 million[34] - The impairment loss on trade receivables for the six months ended June 30, 2024, was RMB 31,389,000, a significant decrease of 81.7% compared to RMB 171,731,000 in the same period of 2023[87] Corporate Governance and Shareholder Information - The company has established an audit committee consisting of three members, with Mr. Li as the chairman, ensuring proper governance and oversight[53] - The company has a total of 1,654,937,000 shares issued as of June 30, 2024, with Mr. Pu and Ms. Luo collectively holding 72.37% of the shares[61] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, compared to HKD 0.03 per share for the same period in 2023[56] Legal and Regulatory Matters - The company has initiated legal proceedings to recover RMB 170 million of the transitional loan[9] - The company has pending litigation with two independent plaintiffs claiming a total of approximately RMB 98,784 thousand, with no provision made as the outcome remains uncertain[112] - There are no significant litigations or arbitration proceedings involving the company during the reporting period[55] Strategic Initiatives and Future Outlook - The company aims to enhance its corporate image and promote future business development through its new name and strategic focus[5] - The company is actively seeking partnerships to enhance its live e-commerce and vocational education offerings, including establishing live streaming rooms and related courses[17] - The group plans to enhance its live e-commerce business by leveraging star artists and expanding its live streaming matrix[18]

Financial Performance - The company reported revenue of RMB 386,570 million for the six months ended June 30, 2024, representing a 2.6% increase from RMB 376,788 million in the same period of 2023[1]. - Gross profit for the period was RMB 193,768 million, a significant increase of 27.8% compared to RMB 151,564 million in the previous year[1]. - The company achieved a profit of RMB 59,262 million, recovering from a loss of RMB 109,932 million in the same period last year[1]. - Adjusted net profit was RMB 108,393 million, compared to a loss of RMB 58,426 million in the prior year[2]. - The total profit before tax for the six months ended June 30, 2024, was RMB 59.7 million, compared to a loss of RMB 110.3 million in the same period of 2023[72]. - The net profit for the period was RMB 59,262,000, a significant recovery from a loss of RMB 109,932,000 in the prior year[60]. - The company reported a profit before tax of RMB 59,658,000, compared to a loss of RMB 110,298,000 in the previous year[60]. Revenue Segments - The higher education (media and arts) and vocational education segment generated revenue of RMB 320,308 million, up 4.5% from RMB 306,631 million year-on-year[1]. - The company’s revenue from higher education and vocational education increased by RMB 13.7 million or 4.5% to RMB 320.3 million for the six months ending June 30, 2024[19]. - Revenue from the live e-commerce and artist management business rose from RMB 10.6 million to RMB 66.3 million, a growth of 526.2%[23]. - The entertainment and live e-commerce segment's total revenue was RMB 66.3 million, down from RMB 70.2 million in the previous six months, primarily due to a decline in film production and investment revenue[12]. - The live e-commerce promotion revenue significantly increased to RMB 9 million from RMB 2.7 million, marking a growth of 237%[68]. Student Enrollment and Education Quality - The total number of students enrolled as of June 30, 2024, was approximately 29,155, including 24,127 full-time undergraduates, reflecting an 8.9% year-on-year growth when excluding Olympic College students[5]. - The company is actively seeking corporate partnerships to provide internship and employment opportunities for students in its higher education and vocational education sectors[14]. - The higher education and vocational education sectors provide quality resources for over 30,000 teachers and students in the media arts field[14]. - The company plans to enhance the teaching quality in its higher education and vocational education divisions and explore leasing properties for operational qualifications[14]. Legal Proceedings and Financial Recoveries - The company has initiated legal proceedings to recover RMB 170 million from transitional loans, with a favorable judgment received from a relevant Chinese court[7]. - The company has initiated legal proceedings to recover certain trade receivables amounting to RMB 31.4 million due to credit impairment[11]. - The company has initiated legal proceedings to recover trade receivables and transitional loans totaling RMB 170 million[37]. - The company has two ongoing lawsuits with total claims of approximately RMB 98,784,000, with no provision made as the outcome remains uncertain[90]. Operational and Market Insights - The entertainment and live e-commerce segment began operations in May 2023, encompassing live e-commerce, artist management, and film production and investment[9]. - The company has established a collaboration with a well-known internet and technology company for live e-commerce related to a popular online game in June 2024[10]. - In the first half of 2024, China's online retail sales reached RMB 7.1 trillion, a year-on-year increase of 9.8%[15]. - The number of live streaming users in China reached 816 million by December 2023, with e-commerce live streaming users at 597 million[15]. - The live e-commerce market in China is projected to grow to RMB 19 trillion by 2029, with a compound annual growth rate of 30%[15]. Financial Position and Assets - As of June 30, 2024, the total cash and cash equivalents amounted to RMB 576.0 million, a decrease from RMB 717.4 million as of December 31, 2023, primarily due to the payment of a special dividend[42]. - Total assets decreased from RMB 3,078.2 million as of December 31, 2023, to RMB 2,683.8 million as of June 30, 2024, while total liabilities decreased from RMB 662.2 million to RMB 299.6 million[42]. - The total equity as of June 30, 2024, was RMB 2,384.2 million, slightly down from RMB 2,416.0 million as of December 31, 2023[42]. - The company maintained a zero debt ratio as of June 30, 2024, with no interest-bearing borrowings[43]. - The company had no significant investments or acquisitions during the reporting period[48][49]. Expenses and Impairments - The total employee compensation cost for the six months ended June 30, 2024, was RMB 103.9 million, compared to RMB 87.6 million for the same period in 2023[51]. - Administrative expenses increased from RMB 55.3 million to RMB 60.0 million, primarily due to higher university staff costs[31]. - The group recognized impairment losses of RMB 79.6 million for trade and other receivables, a decrease from RMB 223.1 million in the previous year[77]. - The total impairment recognized for trade receivables amounted to RMB 31.4 million during the reporting period[33]. Dividends and Share Capital - The company did not recommend an interim dividend for the six months ended June 30, 2024, compared to an interim dividend of RMB 0.03 per share for the same period in 2023[59]. - The company has not declared any dividends for the six months ended June 30, 2024, compared to RMB 45,546,000 declared for the same period in 2023[81]. - The issued and paid-up share capital as of June 30, 2024, is RMB 16,549,000, with 1,654,937,000 shares issued[89]. Compliance and Reporting - The company confirmed compliance with its securities trading policy throughout the reporting period[55]. - The company has adopted revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial position and performance for the current and prior periods[67]. - The company plans to publish its interim report for the six months ended June 30, 2024, on the Hong Kong Stock Exchange and its website[91].

Financial Performance - The group confirmed an impairment loss of RMB 63 million related to the investment in the film "Running Era II" due to uncertainties in recovering the investment amount [12]. - The profit from the higher education (media and arts) and vocational education segment decreased from RMB 280.7 million for the year ended December 31, 2022, to RMB 182.4 million during the reporting period, primarily due to an additional impairment loss of RMB 95.5 million on transitional loans and a decrease in education management service revenue and enrollment examination fees [31]. - The segment loss for the entertainment and live streaming e-commerce business increased from RMB 172.8 million for the year ended December 31, 2022, to RMB 354.3 million during the reporting period, primarily due to increased impairment losses on trade and other receivables [38]. - The company reported a loss from continuing operations amounting to RMB 181.1 million, compared to a profit of RMB 78.2 million for the fiscal year ending December 31, 2022 [109]. - The company's total loss for the fiscal year ending December 31, 2023, was RMB 181.1 million, a significant decline from a profit of RMB 121.9 million in the previous year [114]. - The adjusted net loss for the fiscal year ending December 31, 2023, was RMB 1.3 million, a decrease from an adjusted net profit of RMB 118.8 million for the fiscal year ending December 31, 2022 [116]. Revenue and Business Segments - The total revenue from the live streaming e-commerce and artist management business was RMB 81.0 million, mainly comprising sales commissions and promotional fees from live streaming segments [34]. - The total revenue for the entertainment and live e-commerce segment reached RMB 166.1 million during the reporting period, driven by the initiation of live e-commerce operations [87]. - The higher education (media and arts) and vocational education segment reported total revenue of RMB 593.0 million, a year-on-year increase of 5.6%, with undergraduate tuition and accommodation fees reaching RMB 400.4 million, up 12.7% [91]. Impairment and Financial Challenges - The company recognized a credit impairment loss of RMB 241.1 million on long-term unrecovered trade receivables related to the film and television production and investment business during the reporting period [37]. - The total impairment loss for trade receivables amounted to RMB 412.287 million as of December 31, 2023, reflecting an increase of 241.117 million during the reporting period [174]. - The impairment loss for transitional loans reached RMB 161.306 million, with a loss of RMB 95.549 million recognized during the reporting period due to the decline in fair value of comparable listed companies in the higher education sector in China [173]. - The company confirmed a total impairment loss of RMB 573.593 million for the reporting period, which includes various categories of trade receivables [174]. Live E-commerce and Market Expansion - The group has officially entered the live e-commerce sector, signing long-term exclusive cooperation agreements with top industry influencer Qi Wei and her spouse [11]. - The group is confident in expanding its live e-commerce business, leveraging a talent pool of over 30,000 students and teachers [9]. - From May 2023 to December 31, 2023, the live streaming sessions hosted by Ms. Qi Wei generated a total merchandise transaction value of approximately RMB 237 million, with 26 live sessions conducted [32]. - The live e-commerce transaction scale grew rapidly, reaching RMB 3.5 trillion in 2022, with RMB 2 trillion recorded in the first half of 2023, indicating its importance as a sales model in e-commerce [84]. - The company plans to collaborate with top influencers and well-known internet celebrities to enhance growth in various sectors, including food, fashion, and maternal and child products [75]. Corporate Governance and Compliance - The board of directors has ensured compliance with relevant laws and regulations, with no significant violations reported for the fiscal year ending December 31, 2023 [161]. - The company has implemented anti-corruption policies and whistleblowing channels to ensure compliance and maintain a culture of integrity [143]. - The company acknowledges the risk of severe penalties if its operational agreements in China are deemed non-compliant with applicable laws and regulations [167]. - The company is subject to scrutiny by Chinese tax authorities regarding its contractual arrangements, which may lead to additional tax liabilities and reduce profits attributable to shareholders [169]. Employee and Operational Developments - The company has established a live streaming studio and related courses at its Jiangsu Live Streaming E-commerce and Digital Economy Industry College to train students as potential hosts and influencers, actively seeking corporate partnerships for internships and employment opportunities [45]. - The total employee compensation for the year was RMB 176.9 million, an increase from RMB 145.2 million in 2022 [133]. - As of December 31, 2023, the group had a total of 2,193 employees, an increase from 1,755 employees as of December 31, 2022, reflecting a growth of approximately 25% [145]. Future Plans and Investments - The company plans to expand its higher education and vocational education programs, including exploring leasing properties suitable for operations in these sectors [46]. - The company is planning to establish and operate a university in California, USA, to grant degrees in Animation and Media, representing a significant commitment to meet qualification requirements [191]. - The company registered a new holding company, Cathay Picture, Inc., in California on June 27, 2017, fully owned by Hong Kong Huaxia Audiovisual Media, to manage the proposed university's daily operations [191]. - The company has taken all reasonable measures to meet qualification requirements, but final decisions rest with the regulatory authorities [194].

Financial Performance - The company's total revenue for the year ended December 31, 2023, was RMB 4,759.0 million, compared to RMB 656.8 million for the year ended December 31, 2022, indicating significant growth[19] - The net loss for the year ended December 31, 2023, was RMB 181.1 million, compared to a profit of RMB 121.9 million for the year ended December 31, 2022[14] - Total revenue for the year ended December 31, 2023, was RMB 759.0 million, an increase of 15.6% from RMB 656.8 million for the year ended December 31, 2022[119] - The adjusted net loss for the year ended December 31, 2023, was RMB 1.3 million, compared to an adjusted profit of RMB 118.8 million for the year ended December 31, 2022[110] - The company reported a loss of RMB 181,067,000 for the year ended December 31, 2023, compared to a profit of RMB 121,923,000 for the previous year[176] Revenue Segments - The entertainment and live e-commerce segment generated revenue of RMB 166.06 million, a significant increase of 74.7% from RMB 95.07 million[43] - The higher education (media and arts) and vocational education segment reported a profit of RMB 182.4 million, down from RMB 280.7 million, a decrease of 35.0%[37] - Revenue from the film and television production and investment business was RMB 85 million, primarily from the drama "The Character of a Lady" in which the company holds a 40% investment[52] - The higher education and vocational education segment generated revenue of RMB 593.0 million, up 5.6% from RMB 561.7 million in the previous year, mainly due to increased tuition and accommodation fees[120] - The entertainment and live e-commerce segment's revenue decreased from RMB 95.1 million to RMB 85.0 million, attributed to various factors including pricing and investment ratios in comparable periods[121] Expenses and Costs - The overall gross profit decreased by 12.4% from RMB 317.2 million for the year ended December 31, 2022, to RMB 277.8 million for the year ended December 31, 2023, with the gross profit margin dropping from 48.3% to 36.6%[22] - Administrative expenses increased from RMB 95.0 million for the year ended December 31, 2022, to RMB 114.5 million for the year ended December 31, 2023, primarily due to salary increases and the expansion of live e-commerce and artist management businesses[5] - The overall cost of revenue for the entertainment and live e-commerce segment increased from RMB 119.4 million for the year ended December 31, 2022, to RMB 226.5 million for the year ended December 31, 2023[67] - Total salary costs for the year ended December 31, 2023, were RMB 176.9 million, compared to RMB 145.2 million for the year ended December 31, 2022[118] - The cost of the higher education (media and arts) and vocational education segment increased from RMB 220.2 million for the year ended December 31, 2022, to RMB 254.8 million for the year ended December 31, 2023, mainly due to increased teacher salaries and maintenance costs[95] Impairment and Losses - The company recorded an impairment loss provision of RMB 63 million related to the initial investment in the film and television production business for the year ended December 31, 2023[4] - The company recorded an impairment loss of RMB 95.5 million related to transitional loans, impacting the overall profit[37] - The total impairment loss recognized during the reporting period amounted to RMB 336.7 million, with trade receivables impairment totaling RMB 239.6 million[129] - The company recognized a credit impairment loss of RMB 241.1 million for long-term trade receivables in the film production and investment segment during the reporting period[54] - The live e-commerce segment's loss increased from RMB 172.8 million for the year ended December 31, 2022, to RMB 354.3 million during the reporting period, mainly due to increased impairment losses[55] Equity and Dividends - The total equity of the company as of December 31, 2023, was RMB 2,416.0 million, down from RMB 2,642.4 million as of December 31, 2022[26] - The company declared a special dividend of HKD 0.06 per share for the year ended December 31, 2023, compared to no special dividend for the previous year[31] - The total equity of the company decreased to RMB 2,415,964,000 as of December 31, 2023, from RMB 2,642,420,000 in 2022, representing a reduction of about 8.6%[185] Operational Developments - The company has started its live e-commerce and artist management business since May 2023, which has been integrated into its revenue reporting[10] - The company launched live e-commerce operations in May 2023, partnering with prominent influencer Ms. Qi Wei, achieving a total merchandise sales of approximately RMB 237 million from 26 live sessions[39] - The company aims to create value in live content and build a complete live e-commerce ecosystem, focusing on partnerships with top influencers and brands across various sectors[61] - The company plans to incubate self-operated or joint venture brands in food, skincare, and apparel sectors, enhancing its supply chain to ensure high-quality products for consumers[20] - The company plans to continue expanding its live e-commerce business and improve the quality of education in the higher education (media and arts) and vocational education sectors[91] Employee and Workforce - As of December 31, 2023, the company had a total of 2,193 employees, an increase from 1,755 employees as of December 31, 2022[147] - The group incurred sales expenses of RMB 27.9 million for the year ended December 31, 2023, an increase from RMB 15.5 million in the previous year, primarily due to promotional expenses for the live e-commerce business[127] Financial Stability and Ratios - The company's cash and cash equivalents were not affected by the increase in impairment losses, as these are non-cash items[37] - Cash and cash equivalents as of December 31, 2023, amounted to RMB 342.0 million, a decrease from RMB 520.9 million as of December 31, 2022, primarily due to RMB 375.3 million in fixed deposits not classified as cash[113] - The current ratio as of December 31, 2023, was 257.0%, down from 356.4% as of December 31, 2022[142] - The debt-to-equity ratio increased from 18.1% as of December 31, 2022, to 21.5% as of December 31, 2023[142] - The group’s asset-liability ratio as of December 31, 2023, reflects its financial stability, with RMB 254.2 million spent on property and equipment primarily for university use[114]

目 录 5.2. 影视制作及投资业务逐渐收缩 . 核心假设： 2. 华夏视听教育：民办传媒高教龙头，转型直播电商 股权集中度较高，蒲树林为控股股东。创始人蒲树林先生通过 Cathy Media Holding 持有 71.25%股份，Highland Pines Limited 持股 5.35%。 3.1. 毛入学率提升与学费涨价驱动民办高教市场规模增长 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|---------|-------|-------|-------|-------|-------------|-------|---- ...

Financial Performance - The overall gross profit decreased by 8.2% from RMB 165.2 million for the six months ended June 30, 2022, to RMB 151.6 million for the six months ended June 30, 2023[6]. - The overall gross margin declined from 43.7% for the six months ended June 30, 2022, to 40.2% for the six months ended June 30, 2023[6]. - The company recorded a loss of RMB 109.9 million from continuing operations for the six months ended June 30, 2023, compared to a profit of RMB 125.9 million for the same period in 2022[10]. - Revenue from continuing operations was HKD 376,788 million, a decrease of 0.2% compared to HKD 377,660 million in the previous period[71]. - The company recorded a significant increase in impairment losses, with expected credit loss model impairments rising from RMB 5.1 million to RMB 223.1 million, primarily due to uncertainties in collecting long-term receivables in the film production and investment business[127][128]. - The company recorded a loss of RMB 109.9 million for the six months ended June 30, 2023, compared to a profit of RMB 169.6 million for the same period last year[130]. - As of June 30, 2023, the company's adjusted net loss was RMB 58.4 million, a decrease from an adjusted net profit of RMB 147.9 million in the same period of 2022[159]. Revenue Breakdown - The higher education (media and arts) and vocational education segment recorded total revenue of RMB 306.6 million, representing an 8.8% year-on-year growth[65]. - Revenue from higher education (media and arts) and vocational education increased by RMB 24.8 million, or 8.8%, to RMB 306.6 million for the six months ended June 30, 2023[149]. - Overall revenue from the entertainment and live e-commerce segment decreased from RMB 95.8 million for the six months ended June 30, 2022, to RMB 70.2 million for the six months ended June 30, 2023, due to a decline in revenue from film and television production and investment[56]. - Revenue from entertainment and live e-commerce decreased by 26.8% to HKD 70,157 million from HKD 95,841 million[71]. - The total revenue of the company slightly decreased from RMB 377.7 million for the six months ended June 30, 2022, to RMB 376.8 million for the six months ended June 30, 2023[92]. Expenses and Costs - Administrative expenses increased by RMB 6.6 million to RMB 55.3 million for the six months ended June 30, 2023, primarily due to higher employee costs in the higher education and live e-commerce segments[8]. - The company incurred total salary costs of RMB 87.6 million for the six months ended June 30, 2023, compared to RMB 75.0 million for the same period in 2022[141]. - The gross loss margin for the entertainment and live e-commerce segment was 49% for the reporting period, compared to 9.6% for the same period in 2022[152]. Impairment and Loans - The cumulative impairment loss recognized for the transitional loan was RMB 117.2 million as of June 30, 2023, an increase from RMB 65.8 million as of December 31, 2022[75]. - The impairment loss on the transitional loan increased mainly due to changes in the fair value of the Olympic College[75]. - The company has entered into two transitional loan agreements to provide loans of RMB 250 million and RMB 170 million related to the acquisition of Olympic College[64]. - The total amount of loans outstanding as of June 30, 2023, was RMB 420 million, exceeding 8% of the asset ratio as defined by listing rules[171]. Corporate Governance - The board emphasizes high levels of corporate governance, which is crucial for the company's development and safeguarding shareholder interests[33]. - The board believes that the balance of power and authority will not be compromised by the current arrangements, and all major decisions are made after consulting board members[34]. - There are no significant unresolved or threatening lawsuits or claims against the group as of the report date[38]. - The company has not reported any major litigation as of the reporting date[173]. Business Development and Strategy - The company has entered the live e-commerce and artist management business, officially launching this segment in May 2023, which is expected to open new growth avenues[104]. - The company plans to enhance collaboration with brands in live training, leveraging its expertise in higher education to cultivate quality talent for the live e-commerce industry[86]. - The company aims to optimize its supply chain system to leverage the traffic effects brought by live streaming for brand promotion and new product launches[89]. - The company has signed long-term exclusive cooperation agreements with top industry star hosts, including Ms. Qi Wei, to expand its live e-commerce operations[104]. - The company has signed multiple influencers with strong monetization capabilities, which are expected to drive growth through live streaming sales and advertising[116]. Student Enrollment and Education Programs - The number of students enrolled in the company reached approximately 27,527 as of June 30, 2023, with full-time undergraduate students numbering 22,305, representing a growth of about 17.3% compared to the previous year[100]. - The company offers over 50 undergraduate programs, with 16 rated as provincial first-class programs and 4 as national first-class programs[73]. - The company has over 28,000 outstanding resources of media and arts higher education students and teachers, which can provide a better resource and training platform for the new live e-commerce business[54]. - The company has established partnerships with over 70 leading global media and arts universities for its international foundation courses, allowing students to continue their undergraduate studies abroad[63]. Shareholder Information - Major shareholder Mr. Pu holds 1,176,670,000 shares, representing 71.10% of the total shares issued as of June 30, 2023[197]. - The company declared an interim dividend of HKD 0.03 per share to shareholders listed as of October 27, 2023[183]. - The company has adopted a share incentive plan allowing for the issuance of up to 10 million new shares, representing approximately 0.62% of the weighted average number of shares issued during the reporting period[190]. - The company has a share reward plan limit of 32 million shares, which is about 2% of the total shares issued as of the listing date[191]. - As of June 30, 2023, no individuals, except for disclosed directors and key executives, hold any recorded interests in the company's shares[198].

Financial Performance - For the six months ended June 30, 2023, the total revenue from continuing operations was RMB 376.8 million, a slight decrease of 0.2% compared to RMB 377.7 million for the same period in 2022[20]. - The company reported a loss from continuing operations of RMB 109.9 million, compared to a profit of RMB 125.9 million in the same period last year[20]. - The group recorded a loss of RMB 109.9 million from continuing operations for the six months ended June 30, 2023, compared to a profit of RMB 125.9 million for the same period in 2022[49]. - The adjusted net loss for the group was RMB 58.4 million for the six months ended June 30, 2023, compared to an adjusted net profit of RMB 147.9 million for the same period in 2022[52]. - Overall gross profit decreased by 8.2% from RMB 165.2 million to RMB 151.6 million, with gross profit margin dropping from 43.7% to 40.2%[70]. - The total comprehensive loss for the period was RMB 110,247,000, a significant decline from a comprehensive income of RMB 175,050,000 in the prior year[162]. - The company incurred a loss before tax of RMB 110,298,000, compared to a profit of RMB 129,976,000 in the previous year[162]. Revenue Breakdown - The entertainment and live e-commerce segment recorded total revenue of RMB 70.2 million, down 26.8% from RMB 95.8 million in the previous year[11]. - Revenue from higher education (media and arts) and vocational education increased by RMB 24.8 million, or 8.8%, to RMB 306.6 million for the six months ended June 30, 2023, due to increases in tuition and accommodation fees[39]. - The film and television production and investment segment generated revenue of RMB 59.6 million, primarily from the first release of the drama "The Character of a Lady," compared to RMB 95.8 million in the previous year[10]. - Revenue from the entertainment and live e-commerce segment decreased from RMB 95.8 million to RMB 70.2 million, primarily due to a decline in film production and investment revenue[65]. - For the six months ended June 30, 2023, total revenue from higher and vocational education services was RMB 281,065,000, an increase of 14.5% compared to RMB 245,336,000 for the same period in 2022[109]. - The revenue from higher education courses was RMB 193,476,000, up from RMB 163,438,000, reflecting a growth of 18.4% year-over-year[109]. Operational Developments - The company plans to enhance its live e-commerce operations by leveraging over 28,000 media and arts education resources to improve talent training and industry integration[14]. - The company has signed multiple influencers with strong monetization capabilities, expecting to drive growth through live streaming sales and advertising[16]. - The group has entered the live e-commerce sector in Q2 2023, signing long-term exclusive cooperation agreements with top industry influencers[27]. - The company plans to enhance supply chain management to leverage traffic effects from live streaming for brand promotion and new product launches[61]. - The company aims to develop self-operated and joint venture brand products in the apparel and fragrance sectors, focusing on high-quality offerings for consumers[61]. Financial Position - As of June 30, 2023, the total number of students in the group reached approximately 27,527, representing a year-on-year growth of about 17.3% excluding the Olympic College full-time undergraduate students[22]. - The group’s total equity as of June 30, 2023, was RMB 2,532.3 million, down from RMB 2,642.4 million as of December 31, 2022[55]. - The group has no interest-bearing borrowings as of June 30, 2023, consistent with the position as of December 31, 2022[55]. - The total assets decreased from RMB 3,225.0 million as of December 31, 2022, to RMB 2,769.9 million as of June 30, 2023[97]. - The total liabilities decreased from RMB 582.6 million as of December 31, 2022, to RMB 237.6 million as of June 30, 2023[97]. - The asset-liability ratio decreased from 18.1% as of December 31, 2022, to 8.6% as of June 30, 2023[97]. - The total cash and cash equivalents amounted to RMB 411.9 million, down from RMB 520.9 million as of December 31, 2022[96]. - The current ratio as of June 30, 2023, was 660.3%, an increase from 356.4% as of December 31, 2022[97]. Employee and Compensation - The total number of employees as of June 30, 2023, was 1,820, with 1,497 in teaching roles and 210 in administrative positions[120]. - The total employee compensation cost for the six months ended June 30, 2023, was RMB 87.6 million, an increase of 16.5% compared to RMB 75.0 million for the same period in 2022[139]. Impairments and Losses - Trade receivables impairment losses increased by RMB 167.4 million, primarily due to uncertainties in collecting long-term trade receivables in the film production and investment business[75]. - The impairment losses on trade and other receivables for the six months ended June 30, 2023, amounted to RMB 223,135,000, significantly higher than RMB 5,113,000 in the same period of 2022[130]. - The company recognized credit loss provisions of RMB 342,901,000 for trade receivables, up from RMB 171,170,000 in the previous year, indicating a significant increase of 100.5%[173]. - The company reported a credit loss provision of RMB 117,161,000 for other receivables, which is a 78.5% increase from RMB 65,757,000 in 2022[175]. Dividends and Shareholder Returns - The company announced an interim dividend of HKD 0.03 per share, down from HKD 0.06 per share in the previous year[3]. - The basic loss per share from continuing operations was RMB (7.34), compared to RMB 6.88 in the same period last year[163]. Future Outlook - The group maintains a cautious outlook on the future development of its film and television production and investment business due to uncertainties in the industry[35]. - The company continues to pursue its transition to a for-profit private school, with no changes in tax status reported for the periods ending June 30, 2023, and 2022[184].

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 558,801,000, an increase from RMB 471,353,000 in 2021, representing a growth of approximately 18.5%[22] - The company reported a significant increase in government grants, totaling RMB 22,789,000 in 2022 compared to RMB 3,587,000 in 2021, marking a rise of approximately 535%[13] - The profit before tax for continuing operations decreased to RMB 96,047 thousand in 2022 from RMB 140,258 thousand in 2021, representing a decline of approximately 31.5%[10] - The total salary for directors increased to RMB 4,878 thousand in 2022 from RMB 3,620 thousand in 2021, a rise of about 34.7%[25] - The company reported a total of RMB 32,050,000 in other income for 2022, compared to RMB 17,153,000 in 2021, marking an increase of approximately 86.5%[13] Impairment and Losses - Impairment losses on trade receivables reached RMB 140,638,000 in 2022, a substantial increase from RMB 26,008,000 in 2021, indicating a rise of approximately 440%[15] - The company incurred a total of RMB 145,188,000 in impairment losses for the year 2022, compared to RMB 87,215,000 in 2021, reflecting an increase of approximately 66.5%[15] - The group reported a loss of RMB 172.8 million in the film production and investment segment, compared to a loss of RMB 77.0 million for the year ended December 31, 2021, primarily due to impairment losses on long-term trade receivables of RMB 140.5 million and inventory write-downs of RMB 36.1 million[126] - The loss from discontinued operations for the period from January 1, 2022, to April 12, 2022, was RMB 19,568,000, compared to a loss of RMB 53,674,000 for the previous period[75] Tax and Expenses - The income tax expense for the year 2022 was RMB 17,834,000, a decrease from RMB 14,762,000 in 2021, reflecting a reduction of approximately 20.5%[20] - The company reported a tax impact of RMB 67,398 thousand from non-deductible expenses in 2022, compared to RMB 43,169 thousand in 2021, an increase of approximately 56.3%[10] - Depreciation and amortization expenses totaled RMB 58,147 thousand in 2022, compared to RMB 41,473 thousand in 2021, indicating an increase of around 40.0%[25] Acquisitions and Investments - The company completed the acquisition of all shares of Waterwood from its sole shareholder for a total consideration of RMB 300 million, including a cash payment of RMB 165 million[30] - The identifiable net assets acquired amounted to RMB 118,646 thousand, resulting in goodwill of RMB 119,354 thousand from the acquisition[32] - The company agreed to acquire full control of the Olympic College for a total consideration of RMB 450 million, which may be adjusted to RMB 250 million if certain conditions are not met within 36 months[178] - The company agreed to terminate the acquisition of Waterwood, with a total payment of RMB 165 million made to the founder prior to the termination agreement[139] Shareholder Communication and Governance - The company has established a comprehensive risk management and internal control system to ensure the reliability of financial reporting and compliance with relevant laws and regulations[39] - The company has established multiple channels for ongoing communication with shareholders, including annual general meetings and investor briefings[89] - The company emphasizes the importance of effective communication with shareholders to enhance understanding of business performance and strategy[89] - The company has a policy in place to handle shareholder communications effectively, ensuring that shareholder concerns are addressed[61] Operational Developments - The group has over 28,000 students and faculty, leveraging this talent pool to expand into live-streaming e-commerce, seeking collaborations with artists and influencers[127] - The group plans to enhance teaching quality and expand university capacity, contingent on government approval for tuition fee increases[126] - The group is focused on creating more internship and employment opportunities for students through industry integration[127] - The group acknowledges the impact of regulatory changes on the non-academic training sector, which influenced the decision to divest from Shui Mu Yuan[138] Compliance and Regulations - The company will comply with new Chapter 17 regulations effective from January 1, 2023, regarding existing share plans[104] - The company has applied for and received a waiver from strict compliance with certain listing rules regarding the contract arrangements and related transactions[157] - The company will continue to monitor the developments of the aforementioned laws, regulations, and administrative measures, and will make further announcements as appropriate according to listing rules[199] Employee and Director Compensation - Total employee costs, including salaries and other allowances, amounted to RMB 145,233 thousand in 2022, up from RMB 137,582 thousand in 2021, reflecting a growth of approximately 5.4%[25] - The total remuneration for executive directors for the year ended December 31, 2022, is RMB 4,278,000, compared to RMB 3,620,000 for the previous year[119] - The number of employees earning between zero and 1,000,000 HKD increased from 2 to 3 from 2021 to 2022[120]