Financial Assets and Investments - Financial assets at fair value through profit or loss totaled HK$909,623,000, including HK$18,622,000 in trading equity securities and HK$97,129,000 in structured deposits[1] - Financial assets at fair value through profit or loss increased to HK$1,015,174,000, with HK$927,603,000 in structured deposits and HK$72,419,000 in other investments[2] - The fair value of financial instruments in Level 3 was reviewed by the Finance Department, including convertible redeemable preferred shares, with discussions held with independent valuers on valuation assumptions and results[34] - The Group's balance of financial assets at the end of the period was HK$1,374,418,000, including a fair value loss of HK$14,419,000[28] - Other investments have a fair value of HK$72,419,000, measured using the market approach and price derived from observable market data[53] - The Group's listed securities investments had an estimated fair market value of approximately HK$18,622,000 as of 30 June 2023, up from HK$14,821,000 as of 31 December 2022[107] - The Group's investments in listed securities accounted for less than 5% of its total assets as of 30 June 2023[107] Investment Properties - The Group's investment properties in the UK were valued at HK$13,018,000 using the income capitalization approach[32] - The Group's investment properties in Shenzhen had a net book value of HK$19,535,000, with a cost of HK$30,848,000[26] - Phoenix International Media Centre in China has a fair value of HK$1,319,002,000 as of 30 June 2023, compared to HK$1,293,732,000 as of 31 December 2022[46][48] - Commercial properties in the UK have a fair value of HK$12,926,000 as of 30 June 2023, with an estimated rental value of £407 per annum per square metre and a reversionary yield of 8%[46][48] - Commercial properties in China have a fair value of HK$41,942,000 as of 30 June 2023, with an adjusted average price of RMB29,491 per square metre[46][48] - The Group's entitlement to use 10,000 square metres in the Shenzhen Building has a net book value of HK$19,535,000 as of 30 June 2023[59] - Investment properties grew to $1,374,418 from $1,307,283, reflecting a 5.1% increase[196] Revenue and Profitability - Group's total revenue for the six months ended 30 June 2023 was HK$1,133,077 thousand, a decrease from HK$1,490,072 thousand in the same period in 2022[88] - Operating loss for the period was HK$273,959 thousand, compared to HK$365,246 thousand in 2022[88] - Loss attributable to owners of the Company was HK$129,158 thousand, an improvement from HK$330,508 thousand in 2022[88] - Basic loss per share was HK$2.59 cents, compared to HK$6.62 cents in 2022[88] - Television broadcasting revenue decreased to HK$409,250 thousand from HK$557,995 thousand in 2022[88] - Internet media revenue declined to HK$373,400 thousand from HK$453,830 thousand in 2022[88] - Outdoor media revenue dropped to HK$265,923 thousand from HK$381,642 thousand in 2022[88] - Real estate revenue significantly decreased to HK$8,795 thousand from HK$25,014 thousand in 2022[88] - Group revenue for the period was approximately HK$1,133,077,000, a decrease of 24.0% compared to the same period last year[116] - Operating loss decreased to approximately HK$273,959,000, a 25.0% reduction compared to the same period last year[116] - Net exchange gain for the period was approximately HK$1,574,000, compared to a loss of HK$68,796,000 in the same period last year[116] - Loss attributable to owners of the company decreased to approximately HK$129,158,000, a 60.9% reduction compared to the same period last year[116] - Operating costs decreased by 24.2% to approximately HK$1,407,036,000[116] - Group's total revenue for the first half of 2023 was HK$1,133,077,000, a decrease from HK$1,490,072,000 in the same period of 2022[155] - Television broadcasting revenue decreased by 26.7% to HK$409,250,000, accounting for 36.1% of the total revenue[155] - Revenue from Phoenix Chinese Channel and Phoenix InfoNews Channel decreased by 26.9% to HK$253,868,000, accounting for 22.4% of the total revenue[155] - Revenue from Phoenix Hong Kong Channel, Phoenix Movies Channel, and other channels decreased by 26.2% to HK$155,382,000[155] - Internet media segment revenue was HK$373,400,000 with a segmental loss of HK$108,095,000[155] - Outdoor media segment revenue was HK$265,923,000 with a segmental loss of HK$24,797,000[155] - Real estate segment revenue was HK$8,795,000 with a segmental loss of HK$9,488,000[155] - Other businesses segment revenue was HK$75,709,000 with a segmental loss of HK$26,405,000[155] - Internet media business revenue decreased by 17.7% to HK$373.4 million, with a segmental loss of HK$108.1 million[156] - Outdoor media business revenue decreased by 30.3% to HK$265.9 million, with a segmental loss of HK$24.8 million[156] - Real estate business reported a segmental loss of HK$9.5 million, compared to a profit of HK$14.0 million in the previous period[156] Media and Brand Performance - Phoenix's social media accounts, including "Phoenix" and "Phoenix TV News," continued to grow in influence and subscriber numbers[95] - Phoenix was listed as one of China's 500 Most Valuable Brands for the 20th consecutive year, ranking among the top four in the media industry[95] - The Group's internet media platform "Phoenix New Media" has maintained leading user numbers and activity levels, with its flagship product "Phoenix News Client" continuing to be one of the most popular mobile terminal information products among Chinese users[99] - The "Phoenix News Client" saw an increase in average usage time and click-through rate in the first half of the year, with significant reports effectively boosting traffic within the app[99] - The "Phoenix WEEKLY" multimedia brand has over 42 million users globally, including approximately 10 million video users[101] - The Group's "Phoenix New Media" has strengthened collaboration with other members of the Group, amplifying synergistic effects in major event reporting and integrated marketing[99] - The Group's original content has sparked discussions on social media, enhancing media influence and increasing the bargaining power of brand advertising[99] - The Group's international programs, such as "Global Observation Group," have shown initial commercial success, with major events like "Women's Awards" and "Global Auto Awards" solidifying industry influence[99] - Phoenix New Media's IFENG News App maintained a leading position among Chinese users, with increased average usage time and click-through rate in the first half of the year[126] - Phoenix Urban Media's outdoor LED media resources cover over 300 cities in China and 30 countries and regions globally[129] - Phoenix Metropolis Media's outdoor LED display panel media resources cover over 300 cities in China with over 1,000 panels and a global network encompassing over 30 countries and regions[153] - The new media brand "Phoenix WEEKLY" matrix has over 42 million local and overseas users with 10 million video users[153] Foreign Exchange and Risk Management - The Group is exposed to foreign exchange risks primarily from USD and RMB, and manages these risks through regular monitoring and potential use of forward currency contracts[106] - The Group's foreign exchange risk is primarily related to USD and RMB, with minimal exposure to Pound Sterling[134] - The Group may consider using forward currency contracts to manage and reduce foreign exchange risks[134] Dividends and Share Options - The Group did not recommend any interim dividend for the six months ended 30 June 2023[42] - No dividend was paid or declared during the six months ended 30 June 2023[57] - No interim dividend was recommended for the period, consistent with the previous year's policy[156] - No share options were granted or exercised under the company's 2017 Share Option Scheme during the period, and 17,720,000 share options granted to 13 employees lapsed[143] - As of 30 June 2023, 410,595,950 share options were available for grant under the 2017 Share Option Scheme, representing approximately 8.22% of the company's total issued share capital[144] - Under the 2008 PNM Share Option Scheme, 8,489,850 share options granted to 14 employees lapsed during the reporting period[146] - No share options were granted or exercised under the 2018 PNM Share Option Scheme during the period, and 5,585,000 share options granted to 10 employees lapsed[150] - 17,720,000 share options granted to 13 employees lapsed during the period under the 2017 Share Option Scheme[169] - The total number of share options available for grant under the 2017 Share Option Scheme is 410,595,950, representing approximately 8.22% of the company's total issued share capital[169] - 8,489,850 share options granted to 14 employees lapsed during the period under the 2008 PNM Share Option Scheme[172] - 5,585,000 share options granted to 10 employees lapsed during the period under the 2018 PNM Share Option Scheme[174] - The balance of share options as of 30 June 2023 under the 2018 PNM Share Option Scheme was 17,860,000[175] Corporate Governance and Structure - The Chairman, Mr. Xu, is not subject to retirement by rotation, deviating from code provision B.2.2, as per the company's Articles of Association[183] - The company has established an Audit Committee with duties including reviewing interim and annual results, financial reports, and accounting principles[186] - The company's Board of Directors includes Mr. Xu Wei as Chairman and CEO, and Mr. Sun Yusheng as Deputy CEO and Editor-in-Chief[191] Assets and Liabilities - Total assets as of 30 June 2023 amounted to $7,064,683, compared to $7,219,408 in the previous period[196] - Non-current assets increased slightly to $3,245,804 from $3,222,681, driven by growth in investment properties and property, plant, and equipment[196] - Current assets decreased to $3,818,879 from $3,996,727, primarily due to a reduction in accounts receivable and bank deposits[196] - Accounts receivable decreased by 19.9% to $720,780 from $899,782[196] - Bank deposits declined by 10.4% to $909,623 from $1,015,174[196] - Purchased programme and film rights, net, increased to $15,582 from $14,207, a 9.7% rise[196] - Cash and cash equivalents remained stable at $1,411,015 compared to $1,374,812[196] - The balance of employee stock options as of 30 June 2023 was 9,540,653, down from 18,030,503 at the start of the year[199] Staff and Costs - The company employed 2,943 staff as of 30 June 2023, a decrease from 2,975 at the end of 2022, with staff costs decreasing to approximately HK$602,301,000 from HK$685,172,000 in the previous period[135] - The Group's unallocated expenses primarily included corporate staff costs, office rental, general administrative expenses, and marketing and advertising expenses[14] Acquisitions and Financing - The Group completed several acquisitions, including 100% equity interests in Phoenix Intelligent Media and Shenzhen Phoenix Star Cultural Industrial Company[156] - The Group's funding and treasury policies focus on maintaining a diversified funding base and managing financial risks[157] - The Group's liquidity and financial resources remained solid, with total borrowings of HK$193.2 million[157] - The Group plans to consolidate existing businesses while exploring new opportunities that complement and enhance current operations, considering various financing methods as needed[107] Miscellaneous - The company's property in the United States with a carrying value of approximately HK$2,562,000 was pledged as collateral for a bank loan, which was fully repaid by 30 June 2023[135] - As of 30 June 2023, the company's authorized share capital was HK$1,000,000,000, divided into 10,000,000,000 ordinary shares, with 4,993,659,500 shares issued and fully paid[135] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the period[161] - No directors or chief executives held any interests or short positions in the company's securities as of 30 June 2023[161] - The Group's total cash and current bank deposits were HK$1,660.6 million, with structured deposits of HK$793.5 million recorded as financial assets[157] - The Group's gearing ratio was 80.8% as of 30 June 2023, slightly improved from 81.7% at the end of 2022[157] - The Group's equity interest in PNM remained unchanged at 54.49%[156] - The Group's unallocated income included exchange gain, interest income, fair value gain on financial assets, and gain on acquisition of subsidiaries[14] - The Group's Hong Kong profits tax was provided at a rate of 16.5% on the estimated assessable profit for the period[17] - The Group is in the process of obtaining the title certificate for 8,500 square metres of entitled areas in the Shenzhen Building through the payment of land premium and taxes[59] - Convertible redeemable preferred shares have a fair value of HK$331,000 with a DLOM (Discount for Lack of Marketability) of 20% and volatility of 50%[53]

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately HKD 1,133,077,000, a decrease of 24.0% compared to HKD 1,490,072,000 for the same period in 2022[17]. - Operating costs for the same period decreased by 24.2% to approximately HKD 1,407,036,000, down from HKD 1,855,318,000 in the previous year[17]. - The company's operating loss reduced to approximately HKD 273,959,000, a decrease of 25.0% compared to the previous year's loss[20]. - Loss attributable to the company's owners decreased to approximately HKD 129,158,000, down 60.9% from HKD 330,508,000 in the same period last year[30]. - Total revenue for the group was approximately HKD 1,133,077,000, a decrease from HKD 1,490,072,000 in the same period last year, representing a decline of 24%[37]. - Television broadcasting revenue decreased by 26.7% to approximately HKD 409,250,000, accounting for 36.1% of total revenue during the reporting period[39]. - Revenue from the internet media business decreased by 17.7% to approximately HKD 373,400,000, down from HKD 453,830,000 in the same period last year[63]. - Revenue from television broadcasting and outdoor media decreased by 26.9% to approximately HKD 253,868,000, accounting for 22.4% of the group's total revenue during the reporting period[62]. - Outdoor media revenue decreased by 30.3% to approximately HKD 265,923,000, with a classification loss of HKD 24,797,000 compared to a profit of HKD 50,205,000 in the previous year[63]. - The net loss for the period was HKD 209,209,000, significantly improved from a loss of HKD 447,750,000 in the same period last year, representing a reduction of about 53%[89]. - Basic and diluted loss per share was HKD 2.59, compared to HKD 6.62 for the same period in 2022, indicating a substantial improvement[88]. Cost Management - The company has implemented effective cost control measures, particularly in employee costs, to mitigate the negative impact of revenue decline[27]. - Employee costs decreased to approximately HKD 602,301,000 from HKD 685,172,000 in the same period last year[49]. - Operating expenses were HKD 1,162,558,000, down from HKD 1,535,378,000 in the previous year, reflecting a reduction of approximately 24%[88]. Strategic Focus and Development - The company emphasized its focus on international development and aimed to build a first-class Chinese media group, targeting the Hong Kong, Macau, Taiwan, and global Chinese communities[16]. - The company continues to promote a multi-platform approach, integrating media brands, content, and marketing strategies to enhance operational transformation and business development[24]. - The group continues to integrate existing businesses while seeking new opportunities to enhance overall effectiveness[75]. - The company plans to explore new content production models and increase the application of artificial intelligence tools to enhance media communication capabilities[34]. Acquisitions and Investments - The group completed several acquisitions, including 100% stakes in multiple companies, enhancing its media and technology capabilities[43]. - The company completed the acquisition of 100% equity in several subsidiaries for a total consideration of RMB 15,500,000[166]. - The net cash inflow from the acquisition of subsidiaries was a negative HKD 32,740,000, after deducting cash and cash equivalents acquired[169]. Financial Position - Cash and short-term bank deposits totaled approximately HKD 1,660,618,000 as of June 30, 2023, up from HKD 1,597,690,000 at the end of 2022[44]. - The capital debt ratio as of June 30, 2023, was 80.8%, slightly down from 81.7% at the end of 2022[45]. - Total equity as of June 30, 2023, is HKD 4,345,284, a decrease of 1.9% from HKD 4,429,894 as of December 31, 2022[112]. - Total liabilities decreased to HKD 2,719,399 from HKD 2,789,514, a reduction of 2.5%[112]. - Current liabilities increased to HKD 1,925,690 from HKD 1,943,592, an increase of 1.0%[112]. - As of June 30, 2023, total assets amounted to HKD 7,064,683,000, a decrease from HKD 7,219,408,000 as of December 31, 2022, representing a decline of approximately 2.15%[125]. Governance and Compliance - The company has adopted the corporate governance code in line with the Hong Kong Stock Exchange's requirements, enhancing its governance framework[100]. - The audit committee reviewed the interim financial information and provided recommendations, ensuring compliance with accounting principles and practices[84]. - The audit committee consists of two independent non-executive directors and one non-executive director, ensuring compliance and oversight[107]. Future Outlook - The company plans to continue its investment strategy, focusing on significant future investment plans and expected funding sources[98]. - The company expects to receive certain LED display screen renewals and new permits in the near future, with low risk of non-compliance with regulations[189]. - The company plans to issue its interim report by September 30, 2023, providing further insights into its financial performance[108].

Financial Performance - Revenue for the year ended December 31, 2022, was approximately HK$3,003,733,000, representing a decrease of 4.9% compared to the previous year[13] - The operating loss decreased to approximately HK$378,620,000 for the year ended December 31, 2022, a reduction of 41.5% from HK$647,290,000 in the previous year[13] - The net exchange loss for the year ended December 31, 2022, was approximately HK$113,011,000, compared to a net gain of HK$45,045,000 in the previous year[13] - The loss attributable to owners of the Company decreased to approximately HK$382,500,000, a decrease of 16.2% from HK$456,201,000 in the previous year[13] - Operating costs for the year ended December 31, 2022, decreased by 11.1% to approximately HK$3,382,353,000 from HK$3,806,530,000 in the previous year[13] - Total revenue for the Group was HK$3,003,733,000, a decrease from HK$3,159,240,000 in the previous year[33] - Operating loss was HK$378,620,000, improved from HK$647,290,000 in the previous year[33] Business Strategy and Development - The company emphasized a focus on core business, international expansion, innovation, and talent development to enhance integrated marketing and cross-industry collaboration[17] - The company aims to establish itself as a leading Chinese media group, targeting Hong Kong, Macau, Taiwan, and the global Chinese community[17] - The company reported a significant reduction in the impairment of accounts receivable, contributing to the improved operating loss[13] - The financial results reflect the company's ongoing efforts in cost control and operational efficiency within its internet media business[13] - The company continues to pursue its mission of connecting Chinese communities globally through diverse programming and news coverage[21] - The Group plans to continue consolidating existing businesses while exploring new opportunities to enhance its operations[105] Audience Engagement and Viewership - The average viewership of Phoenix Hong Kong Channel rose by 42 times, marking a significant increase in audience engagement[37] - Viewership duration per capita for Phoenix InfoNews Channel increased by 2.7 times, demonstrating enhanced viewer retention[37] - The viewership for Phoenix Chinese Channel increased by 25.5% year-on-year, indicating growing popularity[37] - The number of subscribers for Phoenix's overseas social media accounts increased by 10 times throughout the year, reflecting significant growth in its digital presence[47] - By the end of December 2022, viewership for Phoenix Chinese Channel increased by 25.5% year-on-year, with market share rising by 23.6% and viewing time per capita up by 242.9%[181] - Phoenix InfoNews Channel saw an increase in viewing time per capita by 272.7%[181] - Phoenix Hong Kong Channel's viewership soared by 42 times, market share surged by 30 times, audience size increased by 37.7%, and viewing time per capita rocketed by 11.35 times from January to October 2022[181] Media and Content Innovation - The flagship product IFENG News App maintained a leading position among Chinese users, with continuous innovations in content recommendation and community operation[115] - The Group's "Phoenix WEEKLY" new media brand has over 38 million users across its network matrix, establishing itself as a top media account on major third-party platforms[121] - The introduction of new programs such as "Asian Financial Insight" and "My Hong Kong Story" aims to strengthen the media's positioning towards the global Chinese audience[169] - The new media segment, ifeng.com, strengthened interaction between television broadcasting and the internet, enhancing its core competitiveness[179] - The complete revampification included a new design for the main broadcasting studio and online platform, revitalizing the company's image[180] Corporate Social Responsibility and ESG - The Group's ESG goals are clearly defined and closely related to its core business, promoting positive social impact through media content[50] - The Group is committed to corporate social responsibility and environmental protection while maximizing shareholder value[131] - The company has a commitment to carbon neutrality and has organized community events to promote garbage reduction[82] - The Group emphasizes environmental protection policies, aiming to reduce greenhouse gas emissions and resource consumption during operations[145] - The Group strictly adheres to relevant environmental protection laws in Hong Kong and Mainland China, with no violation notices received during the year[146] - The report records the ESG performance of the Group's main businesses during the year, reflecting its commitment to sustainability[143] Financial Position and Capital Structure - The Group's gearing ratio was 81.7% as of December 31, 2022, down from 83.3% as of December 31, 2021[92] - The Group employed 2,975 staff as of December 31, 2022, with total staff costs decreasing to approximately HK$1,316,844,000 for the year ended December 31, 2022, compared to HK$1,332,337,000 for the year ended December 31, 2021[95] - The Group's financial position remained liquid, with most monetary assets and liabilities denominated in Hong Kong dollars, US dollars, and Renminbi[92] - The Group's operations were mainly financed by owners' equity, bank borrowings, loans from non-controlling shareholders, and banking facilities as of December 31, 2022[95] - The Group's capital structure included no options granted or exercised under the Company's share option scheme during the year[95] Risk Management - The management has integrated significant environmental and social risks into the monthly operational reporting mechanism for better identification and management[49] - The company has established internal control procedures for anti-corruption and training to prevent bribery and fraud[78] - The company has policies in place to protect consumer data and privacy, although specific implementation details were not provided[75] - The company has engaged in practices to promote environmentally preferable products when selecting suppliers[73] International Expansion - Phoenix aims to establish a three-dimensional, diverse, and integrated Chinese-language media broadcasting matrix to enhance content delivery and monetization[47] - The Group emphasizes the importance of international broadcasting in the context of economic globalization and cultural diversification, aiming to enhance its global influence[124] - The Company has established strategic partnerships with international organizations to promote cultural exchange and enhance its global influence[111]

Financial Performance - Outdoor media business revenue decreased by 16.7% to approximately HKD 785,341,000 for the year ended December 31, 2022, compared to HKD 942,977,000 for the year ended December 31, 2021[1]. - Television broadcasting revenue increased by 53.2% to approximately HKD 1,077,964,000, accounting for 35.9% of total revenue for the year ended December 31, 2022[7]. - The group's revenue for the year ended December 31, 2022, was approximately HKD 3,003,733,000, a decrease of 4.9% compared to HKD 3,159,240,000 for the year ended December 31, 2021[20]. - The total revenue for the group was HKD 3,003,733,000, with a loss of HKD 192,306,000, compared to total revenue of HKD 3,159,240,000 and a loss of HKD 366,934,000 in the previous year, indicating a revenue decrease of 4.9%[50]. - The company reported a total loss of HKD 849,770,000 for the year ending December 31, 2022, compared to a loss of HKD 475,404,000 in 2021, indicating an increase in losses of approximately 78.7%[81]. - The company reported a comprehensive loss attributable to owners of the company of HKD 627,712,000 for 2022, compared to HKD 364,587,000 in 2021, reflecting an increase of approximately 72.2%[81]. - The net loss attributable to the company's owners for 2022 was HKD 382,500,000, compared to a loss of HKD 456,201,000 in 2021, showing an improvement of 16.2%[121]. - Basic loss per share was HKD 7.66 for 2022, compared to HKD 9.14 for 2021, showing a decrease in loss per share[80]. Cost Management - The group's operating loss decreased to approximately HKD 378,620,000, a reduction of 41.5% compared to HKD 647,290,000 for the year ended December 31, 2021, benefiting from cost control in the internet media business[16]. - Operating costs decreased by 11.1% to approximately HKD 3,382,353,000 for the year ended December 31, 2022, down from HKD 3,806,530,000 in the previous year[20]. - The company's total operating expenses for the year were HKD 1,316,844, slightly down from HKD 1,332,337 in 2021, reflecting a decrease of about 1.2%[139]. Business Outlook and Strategy - The group maintained an optimistic outlook for future business recovery as pandemic restrictions were lifted, expecting gradual improvement[4]. - The group plans to continue expanding its international media presence through various digital platforms and innovative content strategies[11]. - The company plans to focus on expanding its internet media and outdoor media segments to drive future growth[138]. - The company aims to enhance its market presence through strategic acquisitions and partnerships to drive future growth[169]. Acquisitions and Investments - The company completed the acquisition of 100% equity in Shanghai Phoenix TV Shenzhou Film and Television Culture Development Co., Ltd. for RMB 5,000,000 (approximately HKD 5,600,000) on February 8, 2023[74]. - The company also acquired 70% equity in Guangdong Yidai Media Advertising Co., Ltd. for RMB 3,500,000 (approximately HKD 3,920,000), completed on March 8, 2023[74]. - The company completed acquisitions of various entities in early 2023, with total consideration amounting to RMB 15,500,000[152]. - The board announced the acquisition of equity in four companies, including Shanghai Phoenix TV Shenzhou Film and Culture Development Co., Ltd., Beijing Huizhi Bozhong Public Relations Consulting Co., Ltd., Guangdong Yidai Media Advertising Co., Ltd., and Shenzhen Phoenix Star Cultural Industry Co., Ltd.[166]. Market Position and Brand Value - The new media brand "Phoenix WEEKLY" has over 38 million users across major third-party platforms, indicating successful expansion in digital media[14]. - The flagship product "Phoenix News Client" maintained industry-leading user numbers and engagement levels, continuing to rank as one of the most popular mobile information products among Chinese users[21]. - The group continues to enhance its brand value, being ranked among the "Top 500 Asian Brands" and winning multiple international awards, showcasing its strong presence in the media and cultural sectors[51]. Financial Health and Liquidity - The group maintained a strong liquidity position with cash and short-term bank deposits totaling approximately HKD 1,597,690,000 as of December 31, 2022, up from HKD 1,304,835,000 in the previous year, reflecting a growth of 22.5%[53]. - The group reported a total outstanding debt of approximately HKD 189,610,000 as of December 31, 2022, significantly reduced from HKD 533,932,000 as of December 31, 2021, indicating a decrease of 64.5%[53]. - The capital debt ratio as of December 31, 2022, was 81.7%, a slight improvement from 83.3% as of December 31, 2021[39]. Employee and Operational Metrics - The company employed 2,803 staff members as of December 31, 2022, with total employee costs reduced to approximately HKD 1,316,844,000, down from HKD 1,332,337,000 in the previous year[86]. - The company has implemented various measures to maintain business operations and employee health during the COVID-19 pandemic, including remote work arrangements and health reporting[87]. Foreign Exchange and Risk Management - The group is exposed to foreign exchange risks primarily from USD and RMB, but considers its current exposure to be limited due to regular monitoring and potential use of forward contracts[54]. - The group recorded a net exchange loss of approximately HKD 113,011,000 for the year ended December 31, 2022, compared to a net gain of HKD 45,045,000 for the year ended December 31, 2021, primarily due to the depreciation of the RMB against the HKD[24].

Financial Performance - The revenue for the six months ended June 30, 2022, was approximately HK$1,490,072,000, representing an increase of 7.4% compared to the same period last year[6]. - The operating loss for the Group increased to approximately HK$365,246,000, which is a 21.9% increase from HK$299,651,000 in the same period last year[6]. - The loss attributable to owners of the Company was approximately HK$330,508,000, compared to HK$245,175,000 for the same period last year[7]. - The Group's total loss for the period was approximately HK$447,750,000, compared to HK$256,796,000 for the same period last year[11]. - The total comprehensive expense for the period was HK$597,537, compared to HK$143,830 in the same period last year, indicating a substantial rise in overall losses[148]. - Basic and diluted loss per share for the period was HK$6.62, compared to HK$4.91 in the same period of 2021, reflecting a worsening financial position[143]. - The loss for the period was HK$447,750,000, compared to a loss of HK$330,508,000 in the previous period, indicating a worsening of approximately 35.5%[162]. Revenue Breakdown - Television broadcasting revenue increased to HK$557,995,000 from HK$321,985,000, while internet media revenue decreased to HK$453,830,000 from HK$587,771,000[11]. - Revenue from television broadcasting rose by 73.3% to approximately HK$557,995,000, accounting for 37.4% of the total revenue[43]. - Revenue from Phoenix Chinese Channel and Phoenix InfoNews Channel increased by 22.5% to approximately HK$347,447,000, representing 23.3% of the Group's total revenue[43]. - The total revenue from Phoenix Hong Kong Channel and other integrated media platforms surged by 447.5% to approximately HK$210,548,000[43]. - Outdoor media revenue was approximately HK$381,642,000, showing a slight increase from HK$378,490,000 in the previous year[43]. - The revenue of the internet media business decreased by 22.8% to approximately HK$453,830,000 compared to HK$587,771,000 for the six months ended 30 June 2021, with a segmental loss of approximately HK$275,402,000[47]. - The revenue of the outdoor media business increased by 0.8% to approximately HK$381,642,000, while the segmental profit decreased by 31.3% to approximately HK$50,205,000 compared to HK$73,059,000 for the six months ended 30 June 2021[47]. Operational Highlights - The Chairman emphasized the focus on core media business, international market, innovation, and talent development to build an international first-class Chinese media group[15]. - New programs were launched to enhance news professionalism and live broadcasts, significantly increasing viewership among Chinese audiences[17]. - In the first half of 2022, Phoenix Media achieved continuous improvement in operational performance, focusing on media professionalism and international influence[18]. - Phoenix Media launched new programs and enhanced its broadcasting capabilities, resulting in significant improvements in viewership ratings[19]. - The flagship product IFENG News App maintained a leading position among Chinese users, with ongoing optimizations in content operation and algorithmic strategy[31]. - The Group aims to strengthen its brand recognition and international influence while targeting Chinese communities globally[15]. - The Group is actively exploring synergistic cooperation among its various media platforms to strengthen overall competitiveness[31]. Financial Position - The Group's total cash and current bank deposits were about HK$1,231,381,000 as at 30 June 2022, down from HK$1,304,835,000 as at 31 December 2021[50]. - The Group's structured deposits were approximately HK$1,339,928,000 as at 30 June 2022, compared to HK$1,595,442,000 as at 31 December 2021[50]. - The aggregate outstanding borrowings of the Group were approximately HK$516,160,000 as at 30 June 2022, a decrease from HK$533,932,000 as at 31 December 2021[50]. - The gearing ratio of the Group was 91.6% as at 30 June 2022, up from 83.3% as at 31 December 2021[50]. - Total assets as of June 30, 2022, were HK$8,137,032, a decrease from HK$8,782,952 as of December 31, 2021[153]. - Current assets totaled HK$4,780,475, down from HK$5,262,800 at the end of 2021, showing a decline in liquidity[153]. - Total equity attributable to owners of the Company decreased from HK$5,414,427,000 to HK$4,820,686,000, representing a decline of approximately 10.95%[158]. Corporate Governance - The company has adopted its own corporate governance code, aligning with the Corporate Governance Code provisions[127]. - The company has an in-house audit function to assist the Board in monitoring governance and risk management[127]. - The Risk Management Committee has been actively monitoring corporate governance practices throughout the reporting period[127]. - The board of directors includes Mr. Xu Wei as Chairman and CEO, and Mr. Sun Yusheng as Deputy CEO and Editor-in-Chief, among others[139]. - The company believes that the consecutive appointment of the Chairman is beneficial for long-term business planning and strategy[134]. - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the period and provided advice and comments[134]. - The company has established a code of conduct for employees regarding securities transactions to prevent insider trading[134]. Share Options and Equity - As of June 30, 2022, the total number of issued shares was 4,993,659,500[114]. - No share options were granted, exercised, lapsed, or cancelled during the period, and no options were granted to directors or substantial shareholders[82]. - The 2017 Share Option Scheme was approved on 7 February 2017, allowing for the cancellation of up to 95,894,000 unexercised share options from the 2009 scheme[74]. - The total balance of share options as of January 1, 2022, was 25,915,121[97]. - The number of share options lapsed during the period was 2,163,871[96]. - The 2018 PNM Share Option Scheme was approved on June 6, 2018, to grant options to selected eligible persons as incentives for their contributions[94]. Financial Risks and Compliance - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, which remain unchanged since year-end[193]. - The Group has not made any early adoptions of new standards, amendments, or interpretations that have been issued but are not effective for the financial year ending 31 December 2022[185]. - The Group's financial risk management information is not fully included in the interim financial information and should be read in conjunction with the annual financial statements as at 31 December 2021[193]. - The Group's management has made significant judgments and estimates in applying accounting policies, consistent with those used in the consolidated financial statements for the year ended 31 December 2021[189].

Financial Performance - Revenue for the year ended December 31, 2021, was approximately HK$3,159,240,000, representing an increase of 4.3% over the previous year[16] - The operating loss increased to approximately HK$647,290,000, a rise of 28.9% compared to the previous year, primarily due to impairment provisions for accounts receivable from Evergrande Group[16] - Loss attributable to owners of the Company was approximately HK$456,201,000, down from HK$1,037,043,000 the previous year, which included a share of fair value loss on internet media investment of approximately HK$585,686,000[16] - The Group's total revenue from internet media was HK$1,247,785,000, down from HK$1,473,327,000 in the previous year[23] - The Group's outdoor media revenue increased significantly to HK$942,977,000 from HK$574,979,000 in the previous year[23] - Revenue from television broadcasting decreased by 5.8% to approximately HK$703,705,000, accounting for 22.3% of total revenue[175] - Internet media revenue was approximately HK$1,247,785,000, down from HK$1,473,327,000, resulting in a segment loss of HK$300,346,000[175] - Outdoor media revenue increased significantly to HK$942,977,000, with a profit of HK$207,038,000 compared to HK$574,979,000 in 2020[175] - Revenue from Phoenix Chinese Channel and Phoenix InfoNews Channel decreased by 5.7% to approximately HK$630,863,000, representing 20.0% of total revenue[175] - The overall segment loss before tax and non-controlling interests was HK$544,151,000, compared to a loss of HK$1,615,810,000 in 2020[175] Management and Corporate Changes - Mr. Xu Wei was appointed as the Chief Executive Officer and Chairman of the board, overseeing the day-to-day management of the Company and its subsidiaries[50][60] - The appointment of Mr. Sun Yusheng as Executive Vice President and Editor-in-Chief reflects the Company's focus on program planning and content management[51][60] - The company completed a conditional sale agreement on June 22, transferring a total of 1,894,110,000 shares, representing approximately 37.93% of the company's issued share capital, to two major shareholders[61] - Following the transaction, the new major shareholders include Bauhinia Culture Holdings Limited with 1,048,668,495 shares (approximately 21%) and Common Sense Limited with 845,441,505 shares (approximately 16.93%) of the company[61] - The company appointed Mr. Xu Wei as the Chairman of the Board and Executive Director, while Mr. Sun Yusheng was appointed as an Executive Director on the same day as the transaction[61] Strategic Focus and Development - The Chairman emphasized the need for continuous demonstration of brand recognition and credibility, focusing on core media business targeting Chinese communities globally[26] - The Group aims to build an international first-class Chinese media group, focusing on its strong base in Hong Kong and targeting Chinese communities in Hong Kong, Macau, Taiwan, and globally[26] - Phoenix continues to expand its omni-media matrix through various channels, including satellite, cable TV, and OTT platforms, enhancing its international influence[33] - The Group is nurturing new business forms, including customized media services and content consumption, to expand monetization opportunities[38] - The Group plans to continue consolidating its existing businesses while exploring new business opportunities to enhance its operations[198] Awards and Recognition - Phoenix has been listed as one of Asia's 500 Most Influential Brands for 16 consecutive years and ranked as a Top 4 TV brand in Asia[32] - Phoenix's programs have won multiple awards, including gold and silver prizes at the Promax UK Awards and the Asian Academy Creative Awards[32] - Phoenix TV won four national awards at the Asian Academy Creative Award, including Best Lifestyle Programme for "Hong Kong Perspectives: Species unique to Hong Kong" and Best Documentary Programme for "C'est La Vie: A Nian"[82] - Phoenix TV's "Premium Spectacular" was recognized as one of the Top Ten Programmes at the 27th Chinese Documentary Festival, highlighting its strong performance in documentary production[85] Operational Challenges - The COVID-19 pandemic intermittently affected the Group's operations, particularly impacting revenue from offline advertising events and exhibitions[182] - The Group did not recommend the payment of a final dividend for the year due to economic instability and challenges in the media industry[184] - The company faced challenges in reporting due to the pandemic and security threats during major events[110] International Coverage and Engagement - Phoenix TV reported on major global news events in 2021, including the U.S. Capitol attack and the inauguration of President Joe Biden[109] - The company covered the military coup in Myanmar, detailing the detention of Aung San Suu Kyi and the subsequent protests[113] - Phoenix TV provided extensive coverage of the China-U.S. high-level talks in Alaska, highlighting the tensions between the two nations[117] - The company utilized its global network of correspondents to report on international events, enhancing its coverage and audience engagement[107] - Phoenix TV's international role as a news reporter was emphasized through its comprehensive reporting on significant global issues[107] Financial Position and Investments - As of 31 December 2021, the Group's total cash and current bank deposits were about HK$1,304,835,000, down from HK$1,849,547,000 as of 31 December 2020[187] - The Group's structured deposits amounted to approximately HK$1,595,442,000 as of 31 December 2021, compared to HK$1,451,040,000 in the previous year[187] - The aggregate outstanding borrowings of the Group were approximately HK$533,932,000 as of 31 December 2021, a decrease from HK$726,179,000 as of 31 December 2020[187] - The gearing ratio of the Group was 83.3% as of 31 December 2021, compared to 78.9% as of 31 December 2020[187] - The Group's significant investments in listed securities had an estimated fair market value of approximately HK$14,317,000 as of December 31, 2021, compared to HK$12,440,000 as of December 31, 2020[194]

Financial Performance - The revenue for the Group for the six months ended 30 June 2021 was approximately HK$1,386,962,000, representing an increase of 8.9% compared to the same period last year[5]. - The operating loss for the Group decreased to approximately HK$299,651,000, a reduction of 31.6% compared to HK$438,082,000 for the same period last year[5]. - The fair value loss on internet media investment for the Period was approximately HK$2,043,000, significantly lower than the loss of approximately HK$1,080,735,000 for the same period last year[5]. - The loss attributable to owners of the Company was approximately HK$245,175,000, compared to HK$936,486,000 for the same period last year, which included a share of fair value loss on internet media investment of approximately HK$530,000,000[5]. - Operating costs for the Period decreased by 1.5% to approximately HK$1,686,613,000, down from HK$1,711,767,000 for the same period last year[5]. - The net exchange gain for the Group was approximately HK$29,659,000, compared to a loss of HK$23,219,000 for the same period last year, mainly due to the appreciation of the Renminbi[8]. - The Group's financial performance benefited from the slowdown of the pandemic and strict cost control measures[5]. - The Group's total revenue for the six months ended June 30, 2021, was HK$1,386,962,000, an increase of 8.9% compared to HK$1,273,685,000 in the same period of 2020[11]. - The operating loss for the period was HK$299,651,000, an improvement from a loss of HK$438,082,000 in the prior year[11]. - The Group's total revenue for the six months ended June 30, 2021, was HK$1,386,962,000, with a loss before tax of HK$231,934,000[39]. Revenue Breakdown - Internet media revenue decreased to HK$587,771,000, down 15.3% from HK$693,642,000 year-on-year[11]. - Outdoor media revenue significantly increased to HK$378,490,000, up 103.5% from HK$186,115,000 in the previous year[11]. - The revenue from television broadcasting increased to approximately HK$321,985,000, accounting for 23.2% of the total revenue for the six months ended June 30, 2021[40]. - Revenue from Phoenix Chinese Channel and Phoenix InfoNews Channel increased by 0.8% to approximately HK$283,527,000, representing 20.4% of the total revenue for the Group[42]. - The total revenue from Phoenix Hong Kong Channel, Phoenix Movies Channel, Phoenix North America Chinese Channel, and others increased by 2.2% to approximately HK$38,458,000[42]. - The revenue of the internet media business decreased by 15.3% to approximately HK$587,771,000 compared to HK$693,642,000 for the six months ended 30 June 2020, with a segmental loss of approximately HK$42,663,000[44]. - The outdoor media business saw a revenue increase of 103.4% to approximately HK$378,490,000, up from HK$186,115,000 for the same period last year, resulting in a segmental profit of approximately HK$73,059,000[44]. Operational Efficiency and Strategy - The Group's strategic focus remains on enhancing operational efficiency through cost control measures[5]. - The Company continues to monitor market conditions and adjust strategies accordingly to improve financial performance[5]. - The Group is focusing on enhancing its omni-media platform capabilities, integrating television broadcasting, internet, and outdoor media to provide diversified media services[21]. - The Group is nurturing new industry trends in customized media services and e-commerce to expand monetization opportunities[21]. - The Group is actively cultivating the emerging digital culture industry trends through high-tech interactive digital art exhibitions[30]. - The Group's cultural creativity sector is focused on integrating various business sectors to form a sustainable business model[31]. - The Group aims to build an internationally recognized omni-media group with credibility and influence while promoting cultural exchanges between China and the world[34]. Corporate Governance and Management Changes - Mr. Liu Changle resigned as CEO on February 26, 2021, and Mr. Xu Wei was appointed as the new CEO and later elected as Chairman on June 22, 2021[60]. - The company reported compliance with the Corporate Governance Code throughout the period up to June 30, 2021[123]. - The company has an in-house audit function to assist the Board in monitoring governance and risk management processes[121]. - The company has adopted its own corporate governance code, integrating existing principles with the Corporate Governance Code provisions[121]. - The company has made several director appointments and resignations, including the appointment of Sun Yusheng as Executive Director and Deputy CEO[121]. - The Board of Directors includes both executive and independent non-executive members, promoting governance and accountability[139]. Financial Position and Cash Flow - As of 30 June 2021, the Group's total cash and current bank deposits were about HK$1,475,757,000, down from HK$1,849,547,000 as of 31 December 2020[47]. - The Group's structured deposits increased to approximately HK$1,630,950,000 as of 30 June 2021, compared to HK$1,451,040,000 as of 31 December 2020[47]. - The aggregate outstanding borrowings of the Group were approximately HK$528,734,000 as of 30 June 2021, down from HK$726,179,000 as of 31 December 2020[47]. - The gearing ratio of the Group was 72.1% as of 30 June 2021, a decrease from 78.9% as of 31 December 2020[47]. - The total assets as of June 30, 2021, were HK$8,794,775, a decrease from HK$9,354,368 as of December 31, 2020[149]. - Total liabilities decreased to HK$3,053,197 from HK$3,476,144, reflecting a reduction of about 12.2%[152]. - For the six months ended June 30, 2021, net cash used in operating activities was HK$136,207,000, a decrease from HK$432,159,000 in the same period of 2020[164]. - Cash flows from investing activities resulted in a net cash outflow of HK$46,997,000, compared to a net inflow of HK$102,134,000 in the prior year[164]. - Cash and cash equivalents at the end of the period were HK$1,361,511,000, an increase from HK$1,046,833,000 at the end of the previous period[166]. Share Options and Equity - The authorized share capital of the Company was HK$1,000,000,000, divided into 10,000,000,000 ordinary shares, with 4,993,659,500 shares issued and fully paid as of June 30, 2021[54]. - The total number of issued shares as of June 30, 2021, was 4,993,659,500 shares[117]. - A total of 190,000 options exercised under the Company's share option schemes during the reporting period[54]. - The exercise price per share for the options granted under the 2017 Share Option Scheme was set at HK$1.41[84]. - The total balance of share options as of June 30, 2021, was 26,242,121[106]. - The company approved an option exchange program from October 12, 2016, to November 1, 2016, allowing existing option holders to exchange for new options[92]. Risk Management and Compliance - The company is subject to the disclosure requirements under the Securities and Futures Ordinance and the Model Code[70]. - The company’s governance practices include adherence to the Listing Rules and the Model Code for securities transactions by directors[80]. - The company has a risk management committee that monitors corporate governance practices and internal control systems[121]. - The company has made adequate provisions for outstanding claims related to litigations arising in the ordinary course of business[60].

Financial Performance - The Group's revenue for the year ended December 31, 2020, was approximately HK$3,029,046,000, representing a decrease of 17.9% over the previous year due to the adverse impact of COVID-19 on the global economy and market conditions [14]. - The operating loss for the year decreased to approximately HK$502,151,000, a notable decrease of 31% over the previous year, with the second half of 2020 showing an operating loss of approximately HK$64,069,000 compared to HK$438,082,000 in the first half [18]. - Fair value loss on internet media investment for the year was approximately HK$1,074,851,000, compared to a gain of HK$1,567,715,000 for the previous year [19]. - The loss attributable to owners of the Company was approximately HK$1,037,043,000, which included a share of fair value loss of approximately HK$585,686,000, compared to a profit of HK$122,665,000 for the previous year [21]. - The final disposal of the Group's internet media investment was completed in October 2020, with a total consideration of US$350,000,000 against an aggregate investment cost of approximately US$97,000,000, resulting in significant cash flow benefits [21]. - Operating costs decreased by 20.0% to approximately HK$3,531,197,000 for the year ended December 31, 2020, down from HK$4,416,143,000 in 2019 [24]. - The net exchange gain for the year ended December 31, 2020, was approximately HK$44,355,000, primarily due to the appreciation of the Renminbi [24]. - The Group's basic loss per share for the year was HK$20.77, compared to earnings of HK$2.46 per share in the previous year [30]. Strategic Focus and Innovations - The Group's strategic focus remains on building an internationally leading high-tech omni-media group driven by content production and cross-sector integration [33]. - The Group aims to maintain its international influence and credibility while continuously pushing forward strategic innovations [33]. - The Group's strategic focus includes customized media services, content consumption, e-commerce, and cultural travel to enhance monetization [44]. - Phoenix Digital Technology is committed to integrating "5G + Media Industry" and expanding into 5G+4K/8K+VR content production [49]. - The Group is actively promoting business transformation through platforms like Road to Peak and Phoenix Health, focusing on innovative media services and investment [42]. Media Influence and Recognition - In 2020, Phoenix was rated as one of The World's Top 500 Largest Media Companies and ranked among the top 4 most influential television media brands in Asia [40]. - Phoenix TV ranked among the top four of China's 500 Most Valuable Brands 2020 for the 17th consecutive year, alongside CCTV, People's Daily, and Hunan Broadcasting and Film Group Co., Ltd. [88]. - Phoenix TV entered the list of Asia's 500 Most Influential Brands 2020 for the 15th consecutive year, again ranking among the top four television brands in Asia [89]. - Phoenix TV was ranked 269th among the world's top 500 media companies in 2020, marking its 8th consecutive year on the list [97]. Content and Programming Achievements - The documentary C'est La Vie: COVID-19 Epidemic Special won the Asian Academy Creative Awards 2020, showcasing Phoenix's brand influence [40]. - The program "Hovering over Macau" won the bronze prize at the New York Festivals International TV & Films Award Gala 2020 in the Camerawork category [82]. - Phoenix TV's documentary "Letters from Wuhan" received the Antipandemic Special Contribution Award at the 5th Academy Awards of China Online Video [84]. - The program "Face Mask Global Shortage: Supply and Demand Analysis" received the Outstanding Work Award at the documentary event on China's battle against the pandemic [96]. - Phoenix TV's documentary "The Body Transporter" was nominated as a finalist for the Documentary: Human Concerns category at the New York Festivals [82]. Global Distribution and Reach - Phoenix's outdoor LED media resources cover over 300 cities in China with over 900 screens, achieving global procurement and distribution across 19 countries and regions [47]. - Phoenix TV is distributed across 47 countries in Africa, including South Africa, through MultiChoice and StarSat satellite platforms [101]. - In North America, Phoenix TV channels are available in over 55 hotels with a total of 49,700 rooms [101]. - The company has established a presence in 36 countries in North and South America through various platforms including AT&T and Amazon [101]. - Phoenix TV channels are also transmitted over digital terrestrial TV networks in Africa, covering 16 countries [101]. COVID-19 Reporting and Impact - Phoenix TV dispatched a strong team of experienced reporters to Wuhan during the COVID-19 pandemic, including Jiang Xiaofeng and Luo Yuming, to report on the latest situation [62]. - The company emphasized its commitment to reporting on the pandemic and cultural resilience, showcasing its role in the media landscape during challenging times [63]. - Phoenix TV's global correspondents provided continuous reports on the pandemic, covering various aspects such as government measures, public attitudes, and the impact on the global economy [157]. - The organization highlighted China's successful pandemic control measures as a model for other countries [161]. - Following the assassination of Iranian commander Soleimani, tensions in the Middle East escalated, with Phoenix TV reporting on the situation and conducting interviews with key figures involved [165]. Major Events Coverage - Phoenix TV prepared extensively for the U.S. election coverage, starting as early as August, with a nationwide reporting network established for comprehensive coverage [75]. - Eight reporters from Phoenix TV in the U.S. provided live coverage during the general election on November 8, connecting to the Hong Kong headquarters for real-time updates [76]. - The U.S. election coverage involved coordinated efforts from 11 reporter stations in various countries, offering in-depth observations on the election's global impact [75]. - Phoenix TV's Commentator Group provided detailed analysis of the U.S. election from a global perspective, diagnosing relevant events and their implications [75].

Financial Performance - Revenue for the six months ended June 30, 2020, was approximately HK$1,273,685,000, representing a decrease of 22.4% compared to the same period last year due to the adverse impact of COVID-19[5] - Operating loss for the Group during the Period was approximately HK$438,082,000, which is a decrease of 8.2% compared to the same period last year[5] - Fair value loss on internet media investment for the Period was approximately HK$1,080,735,000, compared to a fair value gain of HK$351,740,000 for the same period last year[5] - Loss attributable to owners of the Company was approximately HK$936,486,000, which included a share of fair value loss on internet media investment of approximately HK$530,000,000[5] - Operating costs for the Period decreased by 19.2% to approximately HK$1,711,767,000 compared to HK$2,119,147,000 for the same period last year[5] - The Group's financial performance was significantly impacted by the COVID-19 outbreak, affecting both revenue and operating costs[5] - Total revenue for the group decreased to HK$1,273,685,000, down 22.4% from HK$1,641,730,000 in the same period last year[11] - Operating loss narrowed to HK$438,082,000, compared to a loss of HK$477,417,000 in the previous year[11] - Internet media investment reported a net loss of HK$1,080,735,000, a significant decline from a gain of HK$351,740,000 in the prior year[11] - The company reported a loss for the period of HK$936,486,000, contributing to a total comprehensive expense of HK$1,542,827,000 for the six months ended June 30, 2020[135] Market Conditions - The Group's financial results reflect ongoing challenges in the market environment due to global economic conditions[5] - Future outlook remains cautious as the Group navigates the ongoing effects of the pandemic on its operations and market conditions[5] - Television advertising revenue experienced a significant decline, but the business is expected to recover as the industry stabilizes[20] - The outdoor advertising business is anticipated to rebound quickly if the epidemic situation stabilizes[20] - The COVID-19 pandemic has posed unprecedented challenges, but the company is committed to sustainable development and operational resilience[26] Strategic Initiatives - The company disposed of "Tadu Literature" and received cash from the disposal of "Yidian Zixun," aiding in strategic upgrades and long-term development[20] - The company is preparing to launch "Phoenix Health," an industrial platform focused on medical health, aiming to monetize media resources[25] - The company plans to enhance synergistic operating capabilities across its omni-media platforms, including television, internet, and outdoor media[27] - The company continues to focus on content operations and optimizing existing resources to enhance capacity despite the challenges faced[14] - The company has focused on IP development and business reserves during the pandemic, anticipating a rapid recovery once conditions stabilize[22] Financial Position - The Group's financial position remained liquid, with most monetary assets and liabilities denominated in HKD, USD, and RMB, exposing it to foreign exchange risks primarily with respect to USD and RMB[35] - The Group manages foreign exchange risks through regular reviews and may consider using forward currency contracts to mitigate such risks[35] - The board believes that the Group's foreign exchange risk is limited given its current operational and capital needs[35] - As of June 30, 2020, the Group's equity interest in PNM remained at 54.49%[34] - The Group's authorized share capital was HK$1,000,000,000, divided into 10,000,000,000 ordinary shares, with 4,993,469,500 shares issued and fully paid as of June 30, 2020, unchanged from December 31, 2019[41] Shareholder Information - As of June 30, 2020, the total number of issued shares of Phoenix Media Investment (Holdings) Limited was 4,993,469,500[62] - Liu Changle held a long position of 2,688,000 ordinary shares, representing approximately 37.36% of the company's total shareholding as of June 30, 2020[62] - Today's Asia Limited holds 1,862,748,000 shares, representing approximately 37.30% of total shares[103] - Extra Step Investments Limited holds 983,000,000 shares, accounting for about 19.69% of total shares[103] - The shareholding structure indicates significant ownership concentration among a few major shareholders[103][105] Corporate Governance - The company has adopted its own corporate governance code, integrating existing principles with most provisions of the Corporate Governance Code from the Hong Kong Stock Exchange[111] - The company has complied with the Corporate Governance Code throughout the period up to June 30, 2020[111] - The Company has established an Audit Committee based on guidelines recommended by the Hong Kong Institute of Certified Public Accountants[117] - The Company has adopted a code of conduct governing securities transactions by employees who may possess or have access to inside information[115] - The Board considers Mr. Liu's experience in the broadcasting industry to be a great benefit to the Group[117] Employee Information - The Group employed 2,919 full-time staff as of June 30, 2020, a decrease from 3,288 staff as of December 31, 2019, reflecting a reduction of about 11.2%[41] - Staff costs for the period decreased to approximately HK$630,797,000, down from HK$691,907,000 for the six months ended June 30, 2019, representing a decrease of about 8.8%[41] - The total number of share options remaining as of June 30, 2020, is 27,499,982[92] - The company’s share options are part of its corporate governance strategy to incentivize key personnel[81] Cash Flow and Investments - Net cash used in operating activities for the six months ended June 30, 2020, was HK$432,159,000, compared to HK$231,659,000 for the same period in 2019, representing an increase of 86.5%[142] - Cash flows from investing activities generated net cash of HK$102,134,000, a significant decrease from HK$1,569,935,000 in the previous year[142] - The company generated HK$346,566,000 from the disposal of financial assets at fair value through profit or loss, compared to HK$491,446,000 in the previous year, reflecting a decrease of 29.4%[142] - The company engaged in the liquidation of associates, resulting in cash inflows of HK$308,948,000 during the period[142] Fair Value and Financial Instruments - The Group's financial assets at fair value totaled HK$2,312,283,000, with HK$11,051,000 in Level 1, HK$1,071,806,000 in Level 2, and HK$1,229,426,000 in Level 3[160] - The fair value of convertible redeemable preferred shares as of June 30, 2020, was HK$1,158,267, with a marketability discount of 25-30% impacting the valuation[180] - The independent professional valuer used the market approach to estimate the equity value of Particle Inc., which was allocated to common and preferred shares using option-pricing and binomial models[194] - The changes in Level 3 instruments during the six months ended June 30, 2020, and the year ended December 31, 2019, were documented, indicating fluctuations in the carrying value of derivative components[195]

Financial Performance - The Group's revenue for the year ended December 31, 2019, was approximately HK$3,688,231,000, representing a decrease of 9.2% compared to the previous year due to severe deterioration in the traditional media business environment [14]. - The operating loss for the Group increased to approximately HK$727,912,000, compared to HK$66,698,000 for the previous year, primarily due to the challenging media environment and increased strategic upgrade contributions [18]. - Operating costs for the year increased by 6.9% to approximately HK$4,416,143,000, up from HK$4,129,514,000 in the previous year [20]. - Profit attributable to owners of the Company was approximately HK$122,665,000, down from HK$243,790,000 in the previous year [19]. - The Group's total revenue decreased to HK$3,688,231,000 for the year ended 31 December 2019, down from HK$4,062,816,000 in the previous year, representing a decline of approximately 9.2% [28]. - Operating loss for the Group increased to HK$727,912,000 in 2019, compared to an operating loss of HK$66,698,000 in 2018 [28]. - Profit attributable to owners of the Company was approximately HK$122,665,000 for the year ended 31 December 2019, a decrease of 49.6% from HK$243,790,000 in 2018 [28]. - The net exchange gain for the Group was approximately HK$1,159,000 in 2019, a significant improvement from a loss of HK$17,906,000 in 2018 [28]. - The Group's fair value loss on investment properties was approximately HK$6,847,000 in 2019, compared to a gain of HK$7,533,000 in 2018 [28]. Strategic Initiatives - The Group's strategic upgrades contributed significantly to the increased operating costs and losses [18]. - The Company aims to enhance its strategic positioning amidst the evolving media landscape [18]. - The Group continues to focus on internet media investments as a key area for future growth [19]. - The financial results reflect the ongoing challenges faced by the traditional media sector while highlighting potential growth areas in digital media [20]. - Phoenix TV maintained its international influence and credibility, focusing on strategic innovations and the integration of its omni-media structure [30]. - The company aims to build an international omni-media group with credibility and influence while promoting transformation and innovation in its business structure [52]. - The strategic cooperation agreement signed between Phoenix TV and Wuliangye Group aims to enhance brand building and explore greater cooperation opportunities [56]. - The establishment of the Research Institute of Sustainable Enterprises for the Earth and Development (SEED) was announced during the Belt and Road Partners Conference, focusing on promoting sustainable development through global partnerships [59]. - A new five-year strategic partnership agreement was signed between UNESCO and Phoenix TV, focusing on promoting China's image globally and protecting world heritage sites along the Belt and Road [67]. Awards and Recognition - The company received four awards at the New York Festivals TV & Films Awards 2019, including the Gold World Medal for "Documentary: Human Concerns" [32]. - Phoenix TV was recognized as one of the World's Top 500 Largest Media Companies and Asia's 500 Most Influential Brands in 2019 [37]. - Phoenix TV was awarded the Best Brand Value of Hong Kong Listed Companies at the first Best Listed Company Selection in Greater China, with over 5,000 listed companies participating [87]. - Phoenix TV ranked among the top 4 most influential television media brands in Asia for 14 consecutive years, based on market share, brand loyalty, and leadership [90]. - Phoenix TV's brand value has been recognized for 16 consecutive years in China's 500 Most Valuable Brands, ranking third in the media sector [93]. - Phoenix TV was recognized as an Outstanding Cultural and Creative Enterprise in the Guangdong-Hong Kong-Macao Greater Bay Area, selected from 543 nominees [94]. Digital and Technological Advancements - The Group's digital technology initiatives include successful high-tech interactive digital art exhibitions in collaboration with the Palace Museum, enhancing audience engagement through immersive experiences [46]. - Phoenix TV's digital art exhibition "Along the River during the Qingming Festival 3.0" was co-organized with the Palace Museum, showcasing collaboration in cultural initiatives [64]. - The company is committed to leveraging digital technology to provide a one-stop, full-cycle wealth management service [53]. - Phoenix Media Investment (Holdings) Limited's "Phoenix Financial" has successfully built a cutting-edge smart technology framework and system applications, fully supporting financial business development with the help of big data, artificial intelligence, and blockchain technologies [53]. - In 2019, Phoenix Financial was awarded "2019 China's Annual Digital Wealth Management Service" by The Asian Banker and was listed among KPMG's "2019 China's Leading Fintech 50 Companies" [53]. Market Expansion and Distribution - Phoenix TV has expanded its global distribution channels, reaching audiences through satellite, cable networks, mobile internet, OTT platforms, IPTV, and social media, enhancing its transmission capability [38]. - The flagship product ifeng News App maintains a high number of active users, with continuous updates in targeted push and interface optimization using artificial intelligence algorithms [43]. - The outdoor LED media resources of Phoenix Metropolis Media cover over 300 cities in China with more than 900 screens, achieving global procurement and distribution across 19 countries and regions [44]. - Phoenix TV is distributed across 36 countries in North and South America through various platforms, including AT&T, Comcast, and Verizon FiOS [102]. - In North America, Phoenix TV is available in over 54 hotels with a total of 49,597 rooms [102]. - In Europe, Phoenix CNE Channel and Phoenix InfoNews Channel are broadcasted via Astra 2G and Eutelsat 9B, reaching mainstream cable and IPTV systems [102]. - 214 hotels in Europe, with over 55,154 rooms, have chosen Phoenix CNE Channel as their official Chinese TV channel [102]. - Phoenix CNE Channel is distributed to 47 countries in Africa, including South Africa, through MultiChoice and StarSat platforms [101]. - Phoenix TV is carried by major operators in Malaysia, Singapore, Indonesia, Thailand, and the Philippines, expanding its reach in the Asia-Pacific region [98]. - The company continues to enhance its distribution network, ensuring coverage in various regions including the Middle East and Africa [101]. - Phoenix TV's programming is accessible through local operators in many countries, enhancing its global presence [98]. Social Impact and Community Engagement - The strategic collaboration agreement with the UN Refugee Agency was formalized to enhance social impact initiatives [77]. - A new program, "Road to Peak," was launched to support Small Medium Enterprises (SMEs) in innovation and development [78]. - Phoenix TV established the Phoenix Innovation Industry Alliance to foster collaboration and innovation among SMEs [78]. - The fourth Belt and Road International Forum was held, releasing two annual development study reports on sustainable development and South-South cooperation [62]. - The company emphasizes the integration of media and industry resources to promote the transformation and upgrading of its cultural and creative industry [53]. Global Events Coverage - Phoenix TV reported on significant global events in 2019, including the political crisis in Venezuela, which saw President Maduro's regime on the brink of collapse and resulted in major humanitarian issues [157]. - The U.S.-North Korea summit in Vietnam in February 2019 ended without a deal, despite high expectations for denuclearization discussions [159]. - In March 2019, a terrorist attack in New Zealand resulted in 51 deaths, followed by a series of bombings in Sri Lanka on Easter Sunday that killed 253 people [162]. - The fire at Notre-Dame de Paris on April 15, 2019, caused significant damage, with the spire collapsing and the wooden roof largely destroyed, although the overall structure was saved [164]. - The U.K. faced political turmoil with Brexit uncertainties, leading to a general election in December 2019, where Boris Johnson's Conservative Party won a landslide victory [166].