香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Asiaray Media Group Limited 雅仕維傳媒集團有限公司 （於開曼群島註冊成立之有限公司） 1993 （股份代號： ） 2022 12 31 有關已刊發之截至 年 月 日止年度的 未經審核年度業績之補充公告 謹此提述雅仕維傳媒集團有限公司（「本公司」）及其附屬公司（以下統稱為「本集 團」）於2023年3月27日刊發之截至2022年12月31日止年度（「本年度」）未經審核年度 業績（「未經審核業績」）。 本公司的董事會（「董事會」）宣佈本集團本年度的經審核合併財務業績，連同截至 2021年12月31日止年度的比較數字如下。除對若干項目作輕微調整外，本公告所 披露的經審核年度業績相比未經審核年度業績並無其他調整： 合併綜合收益表 12 31 截至 月 日止年度 2022 年 2021年 附註 人民幣千元 人民幣千元 （經重列）* 收入 4 1,653,226 1,895,020 收入成 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Asiaray Media Group Limited 雅仕維傳媒集團有限公司 （於開曼群島註冊成立之有限公司） 1993 （股份代號： ） 2022 12 31 截至 年 月 日止年度的 年度業績公告 雅仕維傳媒集團有限公司（「本公司」）的董事會（「董事會」）宣佈本公司及其附屬公 司（以下統稱為「本集團」）截至2022年12月31日止年度（「本年度」）的未經審核合併 財務業績，連同截至2021年12月31日止年度的比較數字如下： 合併綜合收益表 12 31 截至 月 日止年度 2022 年 2021年 附註 人民幣千元 人民幣千元 （經重列）* 收入 4 1,653,226 1,895,020 收入成本 4 (1,384,062) (1,536,938) ...

Financial Performance - The Group's revenue for the six months ended June 30, 2022, was HKD 971.9 million, a slight decrease from HKD 983.6 million for the same period in 2021[12]. - Gross profit increased to HKD 168.4 million, with a gross profit margin of 17.3%, up from 15.9% in the previous year[12]. - EBITDA totaled HKD 708.0 million, representing a 24.6% increase compared to HKD 568.1 million for the same period in 2021[12]. - The Group incurred a net loss of HKD 79.1 million, which is a 30.4% improvement from a net loss of HKD 113.7 million in the prior year[12]. - Revenue decreased by approximately HKD 23.8 million, or 2.9%, from approximately HKD 827.2 million in 2021 to approximately HKD 803.4 million for the Period[52]. - Gross profit increased by approximately HKD 11.9 million, or 7.6%, from approximately HKD 156.5 million in 2021 to approximately HKD 168.4 million, with gross profit margin rising from 15.9% to 17.3%[52]. - Loss before income tax improved to HKD 81,399, a reduction of 42.9% from HKD 142,481 in 2021[93]. - The net loss for the period was HKD 79,087, which is a 30.4% improvement from HKD 113,667 in the prior year[94]. - Total comprehensive loss for the period was HKD 97,560, compared to HKD 101,619 in the same period last year[97]. Cash and Liquidity - Total cash and bank balances rose to HKD 442.3 million, compared to HKD 418.9 million at the end of 2021, marking the ninth consecutive year in a net cash position[12]. - Cash generated from operations for the six months ended June 30, 2022, was HKD 667,328,000, an increase of 28% compared to HKD 521,756,000 for the same period in 2021[105]. - Net cash generated from operating activities increased to HKD 650,473,000, up from HKD 507,292,000, reflecting a growth of 28% year-over-year[105]. - The Group's current ratio as of June 30, 2022, was 0.72, compared to 0.75 as of December 31, 2021[65]. - The Group had unutilized banking facilities of approximately HKD 164,628,000 available as of June 30, 2022[112]. - The total cash and cash equivalents at the end of the period increased to HKD 410,068,000 from HKD 325,297,000, marking a growth of 26%[105]. Segment Performance - Airport segment revenue slightly decreased to HKD 363.7 million, with a gross profit of HKD 159.4 million and a gross profit margin of 43.8%[19]. - The Group's metro lines business revenue dipped to HKD 338.2 million, reflecting the impact of the COVID-19 pandemic in Mainland China and Hong Kong[21]. - The Hong Kong billboard business performance improved due to recovering consumer sentiment, partly driven by the Consumption Voucher Scheme initiated in April 2022[26]. - Bus media business revenue rose to HKD 270.0 million, with a gross profit of HKD 12.9 million and a gross profit margin of 4.8%[27]. - The airport segment revenue decreased by 4.3% from approximately HKD 379.9 million to approximately HKD 363.7 million, primarily due to lockdowns in Mainland China[46][48]. - The metro and billboards segment revenue decreased by 4.4% from approximately HKD 353.7 million to approximately HKD 338.2 million, mainly attributed to decreases in Hangzhou and Shenzhen[49]. - The bus and others segment revenue increased by approximately HKD 20.0 million or 8.0%, from approximately HKD 250.0 million to approximately HKD 270.0 million, offsetting losses in the bus segment in Hong Kong[50]. Strategic Initiatives - The Group is investing in diversified advertising solutions, including the DOOH Plus strategy, which combines outdoor and online media[11]. - The ongoing COVID-19 pandemic has presented significant challenges, prompting the Group to strategically consolidate its media resources[11]. - The Group aims to provide optimal Out-Of-Home advertising solutions to maximize ROI for clients[3]. - The introduction of DOOH+ offers audiences immersive experiences and provides advertisers with flexible and valuable products[11]. - The Group continues to focus on enhancing its media network to better navigate the challenging business environment[11]. - The launch of DOOH+ strategy aims to create a seamless outdoor and online immersive experience, enhancing the value for advertisers and audiences[30]. - The Group is leveraging opportunities from the Hainan Free Trade Zone and Western Development Region to boost domestic consumption[17]. - The Group has expanded its partnership with Google and other platforms to enhance programmatic advertising capabilities in Mainland China[34][38]. - The Group is leveraging the virtual realm by creating Asia's first outdoor city digital gallery, collaborating with local artists to promote arts and sports[35][41]. Financial Position - As of June 30, 2022, the Group's total assets amounted to approximately HKD 5,349.2 million, a decrease from HKD 6,669.4 million as of December 31, 2021, representing a decline of about 19.7%[82]. - The Group's total equity as of June 30, 2022, was approximately HKD 357.4 million, down from HKD 461.1 million as of December 31, 2021, representing a decrease of about 22.5%[84]. - The Group's non-current liabilities totaled approximately HKD 3,062.7 million as of June 30, 2022, compared to HKD 4,104.5 million as of December 31, 2021, indicating a reduction of about 25.4%[84]. - The Group's right-of-use assets were recognized at HKD 3,350,574,000 as of June 30, 2022, down from HKD 4,511,484,000 at the end of 2021[112]. - The Group's financial position remains stable with no major impacts from the adoption of new standards[117]. Risk Management - The Group faces various financial risk factors, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since last year[123][127]. - The Group aims to maintain sufficient cash and cash equivalents to meet liquidity requirements, regularly monitoring compliance with lending covenants[134]. - The Group's liquidity risk management includes maintaining adequate cash reserves and committed lines of funding from major financial institutions[134].

Company Operations and Market Presence - Asiaray Media Group operates in nearly 40 cities across Greater China, focusing on mega transport advertising media management, including airports, metro lines, and high-speed rail advertising[14]. - The company holds exclusive concession rights for 26 airports and metro lines, enhancing its market presence and advertising effectiveness[19]. - Asiaray's strategic focus includes expanding its media network and enhancing its advertising offerings to meet evolving market demands[14]. - The group obtained exclusive concession rights for advertising and media resources in Shenzhen Metro Line 2 (Phase 3), Line 3, Line 6, Line 8 (Phase 1), and Line 10[47]. - The group obtained exclusive concession rights for advertising and media resources in Beijing Metro Line 17[49]. - The group secured exclusive concession rights for advertising and media resources in Yunnan Longchuan Guangsong General Airport[53]. - The Group secured exclusive rights to operate advertising and media resources along the domestic section of the China-Laos Railway, enhancing its presence in South and Southeast Asia[96]. - The Group expanded its media resource operations in Shenzhen Metro Line 2 (Phase 3), 6, 8 (Phase 1), and 10, further increasing its influence in the Greater Bay Area[95]. Financial Performance - The group achieved a consolidated revenue of HKD 2,285.1 million in 2021, compared to HKD 1,557.1 million in 2020, representing a year-over-year increase of 46.6%[70]. - Revenue increased by 46.8% to HKD 2,285.1 million, with combined revenue at HKD 3,182.6 million[74]. - The revenue breakdown by operating segment showed that the airport segment generated HKD 760.8 million, metro lines and billboards contributed HKD 838.9 million, and bus and other businesses accounted for HKD 685.4 million in 2021[70]. - The unique "DOOH+" advertising solution generated revenue of HKD 547.7 million, contributing 24.0% of total revenue[97]. - The combined revenue for the Group was HKD 3,182.6 million, reflecting a 43.9% increase from HKD 2,212.3 million in 2020[85]. - Gross profit amounted to HKD 431.8 million with a gross profit margin of 18.9%, compared to HKD 347.5 million and a margin of 22.3% in 2020[85]. - EBITDA increased to HKD 1,273.0 million in 2021 from HKD 1,034.0 million in 2020, reflecting a growth of 23.1%[70]. - The overall business performance improved significantly in the second half of the year, helping to narrow losses despite ongoing investments in new projects[85]. Advertising Solutions and Innovations - Asiaray's advertising solutions are designed to enhance the overall impact and effectiveness of advertisements, thereby optimizing commercial value for media resource owners[28]. - The company employs a well-developed space management model, which differentiates it from traditional advertising space distribution methods, aiming to create value for advertising customers and media resource owners[27]. - The company has expanded its Space Management approach to include virtual space, pioneering the Outdoor and Online ("O&O") New Media strategy[78]. - The introduction of "DOOH+" solutions combines DOOH advertising with the O&O New Media strategy, enhancing media solutions for advertisers[80]. - The group launched a programmatic audience-driven digital out-of-home (DOOH) advertising campaign in collaboration with Hivestack, expanding to prime locations across Hong Kong[50]. - The group launched DOOH media inventories on the Hivestack platform for the Singapore Thomson-East Coast Line, marking the start of comprehensive programmatic trading[52]. - Big data-driven technologies are being utilized to identify media resources close to target audiences for effective advertising[78]. - The company is leveraging opportunities in the Metaverse and non-fungible tokens (NFT) to create more value for advertisers and stakeholders[80]. Corporate Governance and Leadership - The company has adopted the Corporate Governance Code principles and complied with all applicable code provisions during the year, except for deviations from provisions A.2.1 and A.6.7[190]. - The Board is responsible for formulating the Group's long-term strategy and development plan, deciding major financial and capital projects, and reviewing internal control and risks[192]. - The company has a high level of corporate governance practices appropriate to its business conduct and growth[186]. - The Group's strategic planning is led by its founder, Mr. Lam, who also serves on various committees[155]. - The Group has a strong leadership team with diverse backgrounds in finance and operations, enhancing its market position[161]. - The company emphasizes its commitment to expanding its operations in Mainland China under Mr. Kwan's leadership[161]. - The Board currently comprises eight directors, including three independent non-executive directors, representing more than one-third of the Board[195]. - The roles of chairman and chief executive officer are currently held by Mr. Lam, which the Board believes enhances efficiency in strategy formulation and implementation[200]. Social Responsibility and Community Engagement - The company emphasizes social responsibility and community engagement as part of its corporate philosophy, aiming to give back to society[5]. - The group was awarded the "Friends of Privacy Recognition Award 2021" Silver Award by the Office of the Privacy Commissioner for Personal Data in Hong Kong[47]. Challenges and Future Outlook - The company is currently assessing the impacts of the COVID-19 pandemic on its overall performance and is unable to estimate the quantitative impacts[151]. - The company will continue to monitor the development of the COVID-19 outbreak and take relevant measures[151]. - The Group maintains a cautiously optimistic outlook on its ability to elevate business levels despite geopolitical and economic challenges[100].

Revenue Growth - For the six months ended June 30, 2021, the Group's revenue surged by 52.8% to HKD 983.7 million, with a gross profit margin of 15.9%[18] - Combined revenue, including consolidated revenue and revenue from all associated companies, reached HKD 1.37 billion, an increase of 43.6% compared to HKD 953.9 million in 2020[19] - Revenue for the period reached HKD 983,649,000, compared to HKD 643,663,000 in the previous year, representing a year-over-year increase of 53%[112] - Advertising display revenue reached HKD 839,150,000 for the first half of 2021, up from HKD 595,872,000 in 2020, reflecting a growth of approximately 41%[172] - The geographical distribution of revenue showed that Mainland China contributed HKD 754,585,000 and Hong Kong and others contributed HKD 229,064,000 for the six months ended June 30, 2021[175] Profitability and Loss - Despite the revenue growth, the Group incurred a net loss of HKD 113.7 million due to several newly awarded projects still being in the ramp-up stage and ongoing challenges from COVID-19[19] - Gross profit decreased by approximately HKD 32.2 million, or 17.1%, from approximately HKD 188.7 million in 2020 to approximately HKD 156.5 million, with the gross profit margin dropping from 29.3% to 15.9%[51] - Operating profit significantly dropped to HKD 2,501,000 from HKD 48,639,000, indicating a decrease of 95%[112] - Loss for the period was HKD 113,667,000, compared to a loss of HKD 47,836,000 in the prior year, marking an increase in losses of 138%[112] - The total comprehensive loss of HKD 101,619,000 for the period, compared to a loss of HKD 58,261,000 in the previous year[114] Cash Flow and Liquidity - The Group maintained a net cash position for the seventh consecutive year, with total cash and bank balances amounting to HKD 360.4 million, providing sufficient capital for further expansion[19] - For the six months ended June 30, 2021, the net cash generated from operating activities was HKD 507,292,000, an increase of 35.2% compared to HKD 375,284,000 for the same period in 2020[122] - The Group's current liabilities exceeded its current assets by HKD 540,982,000 as of June 30, 2021, compared to HKD 315,063,000 as of December 31, 2020[131] - Cash and cash equivalents at the end of the period were HKD 325,297,000, an increase from HKD 291,424,000 at the end of the same period in 2020[122] - The expected net cash inflows from operating activities in the next twelve months are projected to be sufficient to fulfill financial obligations[133] Segment Performance - Asiaray's airport business segment reported a revenue increase of 9.5%, reaching HKD 379.9 million during the period[25] - The metro segment revenue surged by 58.9%, amounting to HKD 353.7 million, with significant growth driven by the new Kunming Metro Line 3[26] - Revenue from the Mainland China metro segment nearly doubled compared to the same period last year, indicating strong market potential[28] - Asiaray's bus advertising segment revenue surged by 236.9% to HKD 250.0 million, indicating significant growth in the Hong Kong bus media market[33][35] Strategic Initiatives - The Group signed a nine-year exclusive agreement with Shenzhen Metro to operate media resources across multiple lines, enhancing its market presence[30] - Asiaray's partnerships with Magnite Inc., The Trade Desk, and Hivestack aim to enhance programmatic advertising capabilities and expand market share in Hong Kong and Singapore[22] - The launch of Chengdu Tianfu International Airport is expected to positively impact operations in the second half of the year, with coverage extending to 32 locations in Mainland China[27] - The Group plans to build the first fully integrated digital media network on Beijing Metro Line 17, marking a significant advancement in its advertising strategy[31] - Asiaray's O&O New Media Strategy focuses on increasing audience engagement and providing innovative advertising solutions[23] Financial Position - The Group's total assets increased to HKD 6,141,693,000 as of June 30, 2021, from HKD 5,277,283,000 as of December 31, 2020, reflecting a growth of approximately 16.4%[107] - The company reported a total liability of HKD 5,744,319,000 as of June 30, 2021, up from HKD 4,902,531,000 as of December 31, 2020[109] - The company’s non-current assets as of June 30, 2021, totaled HKD 4,544,721,000, an increase from HKD 3,637,745,000 as of December 31, 2020[177] - The Group's financial liabilities as of June 30, 2021, totaled approximately HKD 5,563.7 million, with bank borrowings subject to a repayment on demand clause amounting to HKD 1,682.5 million[144] Market Outlook - The advertising market in Mainland China experienced a year-on-year growth of 27.3% in Q1 2021, with advertising expenditure expected to grow by 8.5% to USD 111.6 billion for the year[19] - The company is optimistic about its business development in Mainland China for the second half of the year, driven by economic recovery and new strategies to reach diverse clients[42][44] - In Hong Kong, Asiaray anticipates a return to normal socioeconomic activity in the second half of the year, supported by the COVID-19 vaccination rollout[43][45]

ASIARAY ANNUAL REPORT 年 報 2020 ☆Asiaray Media Group 雅 仕 維 傳 媒 集 團 有 限 公 司 Asiaray Media Group Limited 股份代號 Stock Code: 1993 INSPIRATION EVERYWHERE 目錄 CONTENTS 企業回顧 CORPORATE REVIEW 主席報告 Chairman's Statement 19 管理層討論及分析 Management Discussion and Analysis 26 企業管治 CORPORATE GOVERNANCE 董事資料 Directors' Profle 43 企業管治報告 Corporate Governance Report 50 財務資料 FINANCIAL INFORMATION 公司資料 CORPORATE INFORMATION | --- | --- | |------------|-----------------------| | | | | 企業簡介 | Corporate Overview | | 公司概覽 | Asiaray at A ...

Financial Performance - The Group's revenue decreased by 28.6% to HKD 643.7 million for the six months ended June 30, 2020, compared to the same period in 2019[19]. - Gross profit amounted to HKD 188.7 million, with a gross profit margin of 29.3%[19]. - EBITDA totaled HKD 499.2 million, while combined revenue from all associated companies was HKD 953.9 million, down from HKD 1,239.0 million in 1H2019[21]. - The Group reported a loss of HKD 47.8 million due to the impact of the COVID-19 pandemic and ongoing market challenges[21]. - The Group's revenue for the six months ended June 30, 2020, decreased from approximately HKD 901.1 million to approximately HKD 643.7 million, representing a decrease of 28.6%[47]. - The metro and billboards segment saw a significant decrease of 50.6%, from approximately HKD 450.3 million to approximately HKD 222.6 million, primarily due to the COVID-19 pandemic and social unrest in Hong Kong[49]. - The loss for the period was HKD 47,836,000, compared to a loss of HKD 21,805,000 in 2019, marking an increase in loss of about 119.5%[123]. - Total comprehensive loss for the period was HKD 58,261,000, compared to HKD 23,627,000 in 2019, representing an increase of approximately 146.5%[125]. Cash and Liquidity - Total cash and bank balances stood at HKD 316.4 million, maintaining a net cash position for the sixth consecutive year[21]. - The Group's cash and cash equivalents and restricted cash was approximately HKD 316.4 million as at 30 June 2020, a decrease of approximately HKD 128.7 million compared with that as at 31 December 2019[61]. - The Group's current liabilities exceeded its current assets by HKD 230,284,000 as of June 30, 2020, compared to HKD 34,074,000 as of December 31, 2019[161]. - The Group aims to maintain sufficient cash and cash equivalents to meet both short-term and long-term liquidity requirements[182]. - Cash generated from operations for the six months ended June 30, 2020, was HKD 396,101,000, compared to HKD 268,775,000 for the same period in 2019, representing a 47.4% increase[154]. - Net cash generated from operating activities increased to HKD 375,284,000 in 2020 from HKD 228,610,000 in 2019, reflecting a growth of 64.4%[154]. Market Conditions and Challenges - The macro-environment remains challenging due to the US-China trade war and the COVID-19 outbreak, significantly affecting market conditions in Hong Kong[21]. - The Group's diversified customer base aims to reach different target audiences through multiple media platforms, enhancing market penetration[40]. - In Hong Kong, the Group maintains confidence in its ability to cope with challenges despite uncertainties due to the volatile social atmosphere and COVID-19[41]. Strategic Initiatives - A strategic transformation has been initiated to integrate Offline and Online ("O&O") initiatives to enhance branding and sales strategies[22]. - The Group aims to better utilize its media inventory and leverage its unique space management model[22]. - The Group launched an O&O marketing solution in Yunnan in June 2020, receiving overwhelmingly favorable market response[36]. - The Group's innovative advertising solutions have been well received in the market, distinguishing it from competitors[26]. - The Group aims to strengthen its integrated branding and sales strategy for O&O new media, targeting diverse advertisers[26]. Advertising and Media Resources - The Group has secured concession rights for media resources at the new Chengdu Tianfu International Airport, expected to commence operations in 2021[27]. - The Group acquired new media resources at Kunming Railway Station, enhancing its presence in key urban transportation hubs[30]. - New advertising resources include LED solutions and building facades, providing advertisers with more value-added media options[31]. - Asiaray added several new billboards, including LED resources and building wraps, which represent more value-added media solutions for advertisers[33]. Financial Management and Expenses - Selling and marketing expenses decreased by approximately HKD 23.6 million, or 26.5%, from approximately HKD 89.1 million in the corresponding period of 2019 to approximately HKD 65.5 million this Period[54]. - Administrative expenses decreased by approximately HKD 11.6 million, or 13.0%, from approximately HKD 89.2 million in the corresponding period of 2019 to approximately HKD 77.6 million this Period[54]. - The share of net profits of associates for the Period decreased 25.0%, from approximately HKD 4.0 million in the corresponding period of 2019 to approximately HKD 3.0 million in this Period[54]. Financial Position and Assets - As of June 30, 2020, total assets amounted to HKD 4,509,892,000, an increase from HKD 4,413,227,000 as of December 31, 2019, reflecting a growth of approximately 2.2%[118]. - The total equity attributable to owners of the Company decreased to HKD 318,926,000 from HKD 403,908,000, representing a decline of about 21.0%[120]. - Non-current liabilities increased to HKD 2,814,643,000 from HKD 2,555,244,000, marking an increase of approximately 10.1%[120]. - The Company reported a decrease in cash and cash equivalents to HKD 291,424,000 from HKD 415,461,000, a decline of about 30.0%[118]. Financial Risks and Management - The Group faces various financial risk factors, including market risk, credit risk, and liquidity risk[177]. - The Group's finance department regularly monitors compliance with lending covenants to ensure adequate cash reserves[182]. - There have been no significant changes in the risk management policies since the last year-end[178].

Market Presence and Expansion - Asiaray Media Group has exclusive operation rights for media resources on Beijing Metro Line 14 and Wenzhou Metro Line S1, enhancing its market presence[33] - The company operates in over 40 cities across Greater China, leveraging a well-developed space management model to deliver integrated advertising solutions[12] - The company obtained exclusive operation rights for media resources at Haikou Meilan Airport and Qionghai Boao Airport, expanding its airport advertising portfolio[33] - The company obtained operation rights on media resources for the Singapore MRT Thomson – East Coast Line and Chengdu Shuangliu International Airport's arrival area[39] - Exclusive operation rights for media resources of KMB and LWB buses were secured, enhancing the company's media portfolio[40] - The Group holds exclusive concession rights to operate media resources in over 40 cities in Greater China, including 37 airports and 19 metro lines[57] - The Group secured advertising concession rights for the Thomson-East Coast Line in Singapore, set to open in stages starting January 2020[57] - The Group secured exclusive concession rights for media resources at Kunming Airport, enhancing its business presence in South and Western China[82] - The Group has secured new media resources in Mainland China, including Beijing Metro Line 14, Wenzhou Metro Line S1, and Hangzhou Metro Line 5, to strengthen its presence in key transportation hubs[80] Financial Performance - The company's consolidated revenue for 2019 was HKD 2,630.4 million, a slight decrease from HKD 2,799.7 million in 2018[52] - Revenue breakdown by operating segment in 2019 showed HKD 739.3 million from airports, HKD 919.3 million from metro lines and billboards, and HKD 219.8 million from other sources[54] - For the year ended December 31, 2019, the Group achieved stable revenue inflows of HKD 1,878.4 million, a slight decrease from HKD 1,928.9 million in 2018[68] - The gross profit for 2019 was HKD 397.8 million, with a gross profit margin of 21.2%[70] - EBITDA for the year amounted to HKD 808.7 million, representing an increase of 312.6%[70] - The Group recorded a loss of HKD 108.7 million in 2019 due to several newly secured projects still being in the ramp-up phase[70] - The Group's revenue from the metro lines decreased to HKD 919.3 million in 2019, down from HKD 974.9 million in 2018, with a gross profit of HKD 136.7 million and a gross profit margin of 14.9%[80] - The Group's revenue for the year ended December 31, 2019, decreased from approximately HKD 1,928.9 million to approximately HKD 1,878.4 million, representing a year-on-year decline of 2.6%[99] - The airport segment's revenue increased by 1.6% to approximately HKD 739.3 million, primarily due to significant contributions from Yunnan Group Airport and Haikou[100] - The subway and billboard segment's revenue decreased by 5.7% to approximately HKD 919.3 million, mainly due to a sharp decline in revenue from Shenzhen Metro lines, although this was offset by increased billboard revenue in Hong Kong[100] Strategic Partnerships and Investments - The company became a strategic shareholder with Ant Financial through a completed subscription agreement, indicating a strong partnership[42] - The introduction of strategic investor Ant Financial aims to expand the media portfolio and enhance operational capabilities[55] - A strategic partnership was established with Ant Financial, enhancing the Group's online and offline capabilities[73] - The subscription agreement with Ant Financial is expected to generate net proceeds of approximately HKD 142.8 million, intended for general working capital and funding projects in the PRC and Singapore[135] Awards and Recognition - The company was awarded nine honors, including the "Annual Grand Prix Awards," at the 19th IAI International Advertising Awards, showcasing its industry recognition[34] - The company won the "Outstanding Import & Export Enterprise Awards 2019 – Corporate Achievement Award," highlighting its industry recognition[41] - The company participated in 15 international and national advertising showcase awards, winning over 90 awards across various categories[45] - The Group won a total of 91 awards in 2019, including nine awards at the 19th International Advertising Awards[86] - The Group's commitment to green management was recognized with an award from the Hong Kong Environmental Excellence Awards[86] Operational Strategies and Challenges - The company anticipates challenges in the upcoming year due to uncertainties in global economic growth and the impact of COVID-19, particularly on the Greater China OOH market[62] - Despite these challenges, Asiaray sees opportunities for market consolidation and plans to leverage its strong business foundation and healthy net cash position for long-term growth[64] - The Group aims to focus on building media resources at airports, metro lines, and high-speed train stations to capitalize on post-COVID-19 opportunities[66] - The Group remains optimistic about the long-term outlook despite significant headwinds from the Sino-US trade war and COVID-19, anticipating an economic rebound and substantial opportunities[88] - Asiaray plans to leverage its robust network and strong cash position to capture emerging opportunities, particularly in Mainland China[88] Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, operations, and technology, enhancing its strategic decision-making capabilities[171] - The company is focused on expanding its market presence and enhancing operational efficiency through strategic leadership appointments[173] - The board includes members with significant experience in both local and international markets, which is expected to drive growth and innovation[176] - The company emphasizes high standards of corporate governance to balance the interests of shareholders, customers, and employees, which is crucial for business success[191] - The Company has adopted the Corporate Governance Code as per the Listing Rules and has complied with it except for deviations from provisions A.2.1 and A.6.7[195]

Financial Performance - For the six months ended June 30, 2019, total revenue increased by 1.4% to HKD 901.1 million compared to HKD 888.3 million in 2018[22]. - Combined revenue, including consolidated revenue and revenue from associated companies, amounted to HKD 1,239.0 million, down from HKD 1,330.1 million in 2018[24]. - Gross profit rose by 11.0% to HKD 215.3 million, with a gross profit margin increase of 2.1 percentage points to 23.9%[24]. - The company recorded a net loss of HKD 21.8 million for the period, compared to a profit of HKD 38.2 million in 2018[25]. - Revenue for the period reached HKD 901,064,000, an increase from HKD 888,298,000, representing a growth of approximately 1%[142]. - Gross profit increased to HKD 215,295,000 from HKD 193,934,000, reflecting a growth of about 11%[142]. - Operating profit rose to HKD 44,827,000, compared to HKD 37,652,000, marking an increase of approximately 19%[142]. - The company reported a loss for the period of HKD 21,805,000, a significant decline from a profit of HKD 38,151,000 in the previous year[144]. - Total comprehensive loss for the period was HKD 23,627,000, compared to a comprehensive income of HKD 37,764,000 in the prior year[144]. Revenue Breakdown - For the six months ended June 30, 2019, revenue from airport media advertising declined by 8.5% to HKD 347.9 million, primarily due to the expiry of concession rights at Hangzhou Airport[30]. - Revenue from the existing 19 metro lines increased by 12.6% to HKD 450.3 million, with gross profit surging by 56.0% to HKD 77.5 million and gross profit margin improving to 17.2%[35]. - Airport revenue decreased by 8.5% from approximately HKD 380.4 million to approximately HKD 347.9 million, mainly due to the expiry of the Hangzhou airport project[50]. - Revenue from the metro and billboards segment rose by approximately HKD 50.4 million or 12.6%, reaching approximately HKD 450.3 million, primarily due to additional income from the High Speed Rail (Hong Kong section) and new billboards in Hong Kong[49]. Advertising and Market Expansion - The company is expanding its advertising services to 19 metro lines and 31 airports across 39 cities in Mainland China[27]. - The Group secured exclusive concession rights for advertising at Kunming Airport, which is expected to handle 43 million passengers in 2020, enhancing its position in the Belt and Road Initiative[30]. - The Group expanded its business presence in the Beijing-Tianjin-Hebei region by securing exclusive rights for Beijing Metro Line 14, now operating media resources for seven metro lines in the area[35]. - The Group acquired exclusive concession rights for Wenzhou Metro Line S1, broadening its presence in the Yangtze River Delta with six metro lines[35]. - The Group plans to continue focusing on acquiring exclusive concession rights for airport and metro media resources, while exploring opportunities in overseas markets[40]. Financial Position and Liquidity - As of June 30, 2019, the Group's cash and cash equivalents, short-term bank deposits, and restricted cash amounted to approximately HKD 260.6 million, a decrease of approximately HKD 174.9 million compared to HKD 435.5 million as of December 31, 2018[82]. - The Group's current ratio decreased from 1.36 as of December 31, 2018, to 0.85 as of June 30, 2019, indicating a decline in liquidity[1]. - The Group's total liabilities increased to HKD 4,131,296 as of June 30, 2019, from HKD 1,024,279 as of December 31, 2018, reflecting a growth of approximately 303.5%[138]. - The Group's net current liabilities as of June 30, 2019, were HKD 206,720,000, but the financial statements were prepared on a going concern basis[170]. - The Group's total equity attributable to owners of the Company decreased to HKD 361,476 as of June 30, 2019, from HKD 462,619 as of December 31, 2018, representing a decline of about 21.8%[138]. Expenses and Costs - Selling and marketing expenses rose by approximately HKD 13.8 million, or 18.3%, from approximately HKD 75.3 million to approximately HKD 89.1 million[60]. - Administrative expenses increased by approximately HKD 3.0 million, or 3.5%, from approximately HKD 86.2 million to approximately HKD 89.2 million[60]. - Net finance costs surged to approximately HKD 81.8 million from approximately HKD 1.2 million, primarily due to HKFRS 16 and increased bank borrowings[60]. - The share of profits from investments in associates decreased by 37.5%, from approximately HKD 6.4 million to approximately HKD 4.0 million[60]. Accounting Standards and Financial Management - The adoption of HKFRS 16 Leases has had an adverse impact on the company's financials since its implementation on January 1, 2019[25]. - The Group adopted HKFRS 16 "Leases" effective from January 1, 2019, resulting in the recognition of lease liabilities previously classified as operating leases[172]. - The recognized right-of-use assets as of June 30, 2019, totaled HKD 3,089,959, compared to HKD 2,166,390 on January 1, 2019[189]. - The Group's financial management adopts a conservative approach, closely monitoring foreign exchange exposure and considering hedging for significant risks if necessary[80]. - The Group's interest rate risk primarily arises from variable rate bank borrowings, which are closely monitored by management to control risks within reasonable levels[86]. Future Outlook - The Group anticipates improved performance in the second half of the year, driven by advertising opportunities from major national projects like the Hong Kong-Zhuhai-Macau Bridge and the High-Speed Rail[39]. - The Group aims to leverage its market leadership and broad network to explore growth opportunities from emerging 5G technology[44]. - The Group plans to enhance its digital out-of-home (DOOH) media platform by adding more interactive and customizable elements to attract a diverse range of advertisers[44].

Market Position and Operations - Asiaray Media Group ranks No. 1 in Greater China's airport advertising market and No. 2 in the metro advertising market[10]. - Asiaray operates in 39 cities across Greater China and holds exclusive concession rights for 31 airports, including Sanya Phoenix International Airport Terminal 2[13]. - The total air passenger traffic for Asiaray's exclusive airport resources in 2018 was 295 million[12]. - The company obtained exclusive operation rights for media resources at several key locations, including Beijing Daxing International Airport and the Hong Kong-Zhuhai-Macao Bridge, enhancing its strategic market position[40][34]. - The company secured exclusive operation rights for media resources at Zhuhai Airport and the Beijing Airport Line train body in 2018[31]. - The company organized the "Greater Bay Connect Forum" in October 2018, aimed at discussing infrastructure development opportunities in the Greater Bay Area, reflecting its commitment to industry leadership[38]. - The Group provided exclusive advertising services for 17 metro lines and 30 airports across over 35 cities in Mainland China as of December 31, 2018[74]. Financial Performance - The company achieved a combined revenue of HKD 2,799.7 million for the year ended December 31, 2018, an increase from HKD 2,567.0 million in 2017, representing a growth of approximately 9%[53]. - Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to HKD 196.0 million in 2018, up from HKD 133.5 million in 2017, marking a significant increase of about 47%[54]. - Revenue increased by 9.6% to approximately HKD1,928.9 million for the year ended December 31, 2018, compared to HKD1,759.2 million in 2017[70]. - Combined revenue, including consolidated revenue and revenue from all associated companies, grew by 9.1% to approximately HKD2,799.7 million[70]. - Profit for the year surged by 77.9% to approximately HKD126.7 million, up from HKD71.2 million in 2017[70]. - Profit attributable to owners of the Company rose by 40.9% to approximately HKD63.0 million, compared to HKD44.7 million in 2017[70]. - The Group's gross profit increased from approximately HKD362.7 million to approximately HKD484.1 million, with the gross profit margin rising from 20.6% in 2017 to 25.1% in 2018[113]. Strategic Initiatives and Innovations - The company focuses on space management to enhance advertising effectiveness and optimize commercial value for media resource owners[24]. - Asiaray aims to provide optimal Out-Of-Home communication solutions with the highest Return-On-Investment (ROI) for clients[2]. - The establishment of the Central Innovation and Technology Unit (CTU) has enhanced the Company's capabilities in integrating mobile and digital elements into advertising solutions since 2015[64]. - The launch of the first programmatic digital out-of-home (DOOH) media buying platform in Hong Kong in collaboration with Google and WPP Group marks a significant advancement in the Company's online and offline strategies[64]. - The Group plans to add more interactive and customizable elements to the programmatic platform, including bidding systems and securing additional digital media resources[84]. - The Asiaray 360 platform has been launched to improve media management and planning, allowing customers to visualize inventory and costs for quicker transactions[98]. Awards and Recognition - The company received multiple awards, including recognition as a first-class advertising agency in China, highlighting its industry standing and operational excellence[43]. - The Group's innovative "Space Management" model has garnered multiple awards, including the "Cannes Lions 2017 – Silver" and "China Advertising Great-wall Award"[89]. - The company achieved over 60 awards in various advertising competitions, showcasing its creative and operational capabilities in the advertising sector[44]. Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance and operations, enhancing its strategic decision-making capabilities[186]. - The board includes members with extensive experience in both local and international markets, which supports the company's growth strategy[186]. - The Company has adopted the principles and code provisions set out in the Corporate Governance Code contained in Appendix 14 of the Listing Rules[198]. - The Board believes that good corporate governance is important in balancing the interests of shareholders, customers, and employees[197]. - The Company is committed to maintaining high standards of corporate governance and financial transparency[188]. Future Outlook and Market Trends - The company anticipates further opportunities arising from ongoing infrastructure investments in mainland China, positioning itself to capitalize on these developments[58]. - The Group maintains a cautiously optimistic outlook despite challenges from the US-China trade war and economic slowdowns in Hong Kong and Mainland China[68]. - The Group anticipates significant growth opportunities in the OOH industry due to upcoming transportation infrastructure projects and the Belt and Road Initiative[94]. - The Group's competitive advantages and established market position are expected to create opportunities for greater market share amid industry consolidation[93].