长剧盈利能力不稳定，业绩隐忧凸显 2024年，国产剧在减量、降温和更严苛的口碑审视环境中走过。据云合数据统计，2024年剧集无论是备 案量、上新量均在大幅缩减，全年拍摄备案数位465部，同比减少12%，电视剧制作发行数为190部，同 比减少3成。2024年热播期集均破亿仅一部《庆余年》，但播放量仅有1.1亿，相较2023年集均破2亿的 《狂飙》甚远，整体来看，2024年热播期集均破5000万的剧集为5部，较2023年少一部，且都集中于上 半年播，下半年的剧集播放量几乎腰斩。同时，观众对剧集的要求也在提高，2024年豆瓣评分超过8分 的作品仅7部。 在观众对国产剧品质、题材的要求不断提高，而审美日益多元化的观剧口味变化中，叠加短剧新品类崛 起，挤占市场份额的激烈竞争环境，上游的视频平台采买能力下降，致使处于中游的制作公司在相应地 去产能。随着2024年底至今不断传出视频平台砍集数、砍预算、卡项目、大力发展内容自制的消息，可 以预见的是，影视公司的盈利空间还将进一步被压缩。 随着视频平台的要求提高，影视公司正积极巩固、加强与视频平台之间的关系。 如本就有爱奇艺控股公司投资的稻草熊，于2024年底与爱奇艺续签202 ...

Core Viewpoint - Daocaoxiong Entertainment demonstrates a commitment to long-termism and quality content production, achieving significant revenue growth despite industry challenges [1][4]. Financial Performance - For the fiscal year ending December 31, 2024, Daocaoxiong Entertainment reported total revenue of approximately 1.124 billion yuan and a gross profit of about 151 million yuan, representing year-on-year growth of approximately 33% and 139%, respectively [1]. - The company incurred a loss of around 3 million yuan, but adjusted profit was approximately 12.2 million yuan [1]. Industry Context - The film and television industry is undergoing a phase of quality enhancement and reduction in quantity, with over 10 listed film and television companies forecasting losses, many exceeding 100 million yuan [1][3]. - The market is experiencing a decline in new productions and viewership, with a 10% decrease in new series and an 11% drop in total episodes compared to 2023 [3]. Strategic Adjustments - Daocaoxiong Entertainment has adapted its operational strategy to focus on high-quality content production, maintaining a stable production rhythm and efficiency to meet consumer demands [1][5]. - The company emphasizes a platform-based operational model, allowing for effective resource allocation and collaboration with top industry talents [5][9]. Content Production and Quality - The company successfully aired four series in 2024, with revenue increases attributed to adjustments in themes, increased investment, and rising popularity [4][6]. - Notable series include "Cheng Feng Ta Lang," which successfully integrated cultural tourism, and "Harbin 1944," which achieved high viewership ratings across multiple platforms [6][7]. Future Prospects - Daocaoxiong Entertainment has a robust pipeline of upcoming projects, with nine series awaiting release and nine in preparation, indicating potential revenue growth for 2025-2026 [8]. - The company is exploring diverse monetization strategies, including IP management and the integration of AI technology in content production [9]. Commitment to ESG - The company is enhancing its ESG management practices, focusing on governance and operational compliance to support sustainable development [2][9].

Financial Performance - For the fiscal year ending December 31, 2024, the revenue was approximately RMB 1,124.5 million, an increase of 33.8% compared to RMB 840.7 million for the fiscal year ending December 31, 2023[2]. - The gross profit for the fiscal year ending December 31, 2024, was approximately RMB 151.5 million, representing a significant increase of 139.5% from RMB 63.3 million in the previous year[2]. - The loss for the fiscal year ending December 31, 2024, was approximately RMB 3.0 million, a substantial reduction of 97.2% compared to a loss of RMB 107.5 million for the fiscal year ending December 31, 2023[2]. - The adjusted net profit for the fiscal year ending December 31, 2024, was approximately RMB 12.2 million, while the adjusted net loss for the previous year was approximately RMB 88.1 million[2]. - Total revenue for the year ended December 31, 2024, was RMB 1,124,537,000, representing a 33.7% increase from RMB 840,663,000 in 2023[18]. - Revenue from licensing of series broadcasting rights was RMB 1,124,141,000 in 2024, up from RMB 749,233,000 in 2023, indicating a growth of 50%[19]. - Major customer 1 contributed RMB 886,032,000 to revenue in 2024, a significant increase from RMB 324,434,000 in 2023, reflecting a growth of 173%[17]. - The expected amount to be recognized as revenue within one year from contract liabilities is RMB 245,726,000 for 2024, compared to RMB 189,771,000 in 2023, showing an increase of 29.5%[27]. - The gross margin for Hangzhou Yide is projected to remain stable at 14% for both 2024 and 2023[38]. - The perpetual growth rate is expected to decrease from 3% in 2023 to 2% in 2024[38]. Assets and Liabilities - The net asset value as of December 31, 2024, was approximately RMB 1,753.3 million, an increase of 0.8% from RMB 1,739.3 million as of December 31, 2023[3]. - The total current assets as of December 31, 2024, amounted to RMB 2,493.4 million, compared to RMB 2,419.3 million in the previous year[6]. - The total liabilities as of December 31, 2024, were RMB 901.5 million, an increase from RMB 810.3 million in the previous year[6]. - The company reported a basic loss per share of RMB 0.3 for the fiscal year ending December 31, 2024, compared to RMB 16.1 for the previous year[5]. - The company’s total assets less current liabilities as of December 31, 2024, were RMB 1,762.6 million, a slight decrease from RMB 1,773.4 million in the previous year[7]. - Total inventory decreased from RMB 1,308,481,000 in 2023 to RMB 1,233,034,000 in 2024, a reduction of approximately 5.7%[41]. - Trade receivables increased from RMB 554,578,000 in 2023 to RMB 679,852,000 in 2024, representing a growth of about 22.6%[42]. - The asset-to-liability ratio increased from 32.7% as of December 31, 2023, to 34.2% as of December 31, 2024[94]. - The current ratio decreased from 2.99 as of December 31, 2023, to 2.77 as of December 31, 2024, due to an increase in current liabilities exceeding the growth in current assets[100]. Operational Highlights - The group has only one reportable operating segment, with no division by product lines[14]. - Non-current assets of the group are all located in mainland China[16]. - The group has successfully launched four high-quality series during the reporting period, including "Riding the Wind and Waves" and "Harbin 1944," achieving positive broadcasting results and market recognition[58]. - The series "Bleach" broke 10,000 views within six days of its release on iQIYI, becoming the first series to achieve this milestone in the iQIYI Mist Theater[58]. - The group continues to enhance its platform-based operational model, focusing on producing high-quality content as a long-term development strategy[60]. - The group has a rich pipeline of upcoming series, with five television dramas and four web dramas produced or released but not yet aired, expected to premiere in 2025[61]. Employee and Governance - As of December 31, 2024, the group has a total of 77 employees, with 19.5% in finance and legal roles[108]. - Total employee compensation, including director remuneration, amounted to approximately RMB 41.4 million for the year ending December 31, 2024, down from RMB 44.5 million in the same period of 2023[108]. - The group has maintained good relations with employees, with no strikes or labor disputes reported that could significantly impact business[109]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[119]. - The board believes that the current arrangement of roles will not compromise the balance of power and authority within the company[120]. Future Outlook and Strategy - The group aims to enhance its ESG practices and contribute to the "dual carbon" goals, aligning with the trend of green development and sustainable growth[69]. - The group plans to strengthen IP operation management and optimize product structure to enhance the quality of content output[69]. - The company is considering acquisitions of quality IP to ensure stable growth in series production and distribution[116]. - The company plans to change the use of approximately HKD 107.1 million (10.0% of the net proceeds) to invest in potential acquisitions or investments that enhance market position and accelerate the development, production, and distribution of its series[114]. Miscellaneous - The company did not recommend any dividend payment for the fiscal year ending December 31, 2024[4]. - The company has not identified suitable investment or acquisition targets due to significant market structure changes and valuation discrepancies[114]. - There are no significant lawsuits, arbitrations, or claims involving the group as of the announcement date[124]. - The annual general meeting is scheduled for June 16, 2025[130].

Content Production and Strategy - In the first half of 2024, the company successfully aired three high-quality series, achieving positive viewership and market reputation[5]. - As of June 30, 2024, the company has a diverse pipeline of upcoming series and a robust inventory of quality IPs to support ongoing production[5]. - The company's platform-based operational model has been continuously optimized, enhancing service capabilities and improving content production efficiency[6]. - Future strategies include leveraging the platform model to deliver more engaging content and exploring diversified monetization methods to ensure stable growth[5]. - The company emphasizes a long-term strategy focused on high-quality content, aiming to produce works that resonate with audiences and promote positive values[8]. - The company is committed to enhancing its IP lifecycle management to ensure the continuous output of quality content[8]. - The company aims to collaborate with high-quality partners in the industry to explore new development opportunities[7]. - The platform-based operational model has stabilized, providing strong momentum for the company's content pipeline[7]. - The company is committed to diversifying its revenue streams while maintaining a focus on its core business of high-quality content creation[29]. Financial Performance - The company's revenue increased from RMB 462.1 million in the first half of 2023 to RMB 846.9 million in the first half of 2024, representing an increase of approximately 83%[29]. - The income from licensing broadcasting rights for series rose from RMB 377.6 million to RMB 846.9 million, marking a significant increase due to adjustments in series themes and types, increased investment, and higher popularity[23]. - The gross profit for the first half of 2024 was RMB 142.9 million, compared to RMB 82.8 million in the same period of 2023, indicating a gross margin improvement[29]. - The net profit attributable to the parent company increased significantly from RMB 1.3 million in the first half of 2023 to RMB 29.9 million in the first half of 2024[29]. - The adjusted net profit for the six months ended June 30, 2024, is RMB 37,858,000, compared to RMB 13,899,000 for the same period in 2023, reflecting a significant increase of 172.5%[46]. - The company's revenue increased from approximately RMB 462.1 million for the six months ended June 30, 2023, to approximately RMB 846.9 million for the six months ended June 30, 2024, representing a significant growth driven by adjustments in the themes and types of series aired, increased investment, and rising popularity of the series[31]. - Revenue from licensing of series broadcasting rights rose from approximately RMB 377.6 million to approximately RMB 846.9 million, accounting for 100% of total revenue in 2024[34]. Awards and Recognition - The company received the "Annual Influential Organization" award at the 2024 All-Media Information Industry Innovation Conference held in Ningbo on April 14, 2024[5]. - The drama "Harbin 1944" was recognized as the "Most Anticipated Drama" at the CEIS 2024 China Entertainment Industry Annual Conference[11]. - The company received accolades for its series "Harbin 1944," which won the "Annual Influential TV Series" award at a media innovation conference[23]. - In the first half of 2024, the company received multiple awards for its ESG initiatives, including the "2023 ESG Pioneer Enterprise Award" and recognition at various ESG events[17]. ESG and Corporate Governance - The company is committed to strengthening its ESG management system to enhance corporate governance and operational compliance[5]. - The company aims to strengthen its governance structure and enhance its ESG management system to support sustainable development[27]. - The group has established an audit committee consisting of two independent non-executive directors and one non-executive director to oversee compliance and risk management[68]. - The group is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[66]. Employee and Talent Management - The group maintains a strong focus on employee recruitment, training, and retention, offering competitive compensation and benefits[64]. - The company aims to retain outstanding artists and attract industry talent through the 2021 Restricted Share Unit Plan[95]. Shareholder Information - As of June 30, 2024, the total issued shares of the company are 706,041,400[1]. - Master Sagittarius holds approximately 46.67% of the shares, equating to 328,128,000 shares[4]. - Master Genius owns 41.14% of the shares, which is 290,480,000 shares[4]. - Gorgeous Horizon has a beneficial interest in 37,648,000 shares, representing 5.33%[4]. - The company has a total of 396,080,000 shares disclosed under the Securities and Futures Ordinance, accounting for 56.10%[4]. Cash Flow and Liquidity - The group continuously monitors cash and cash equivalents to manage liquidity risk, ensuring sufficient levels for operations and reducing cash flow volatility[60]. - The company reported a net cash outflow of RMB 48,952 thousand in cash and cash equivalents for the first half of 2024[143]. - The cash and cash equivalents at the end of June 30, 2024, were RMB 105,437 thousand, down from RMB 210,159 thousand at the end of June 30, 2023, indicating a decrease of 49.9%[143]. Assets and Liabilities - Total assets increased from RMB 2,583.6 million as of December 31, 2023, to RMB 2,641.9 million as of June 30, 2024, representing a growth of 2.3%[51]. - The total liabilities rose from RMB 844.3 million to RMB 863.7 million, indicating an increase of 2.8%[51]. - The company's inventory decreased by 18.7% from RMB 1,308.5 million as of December 31, 2023, to RMB 1,064.2 million as of June 30, 2024[48]. - The current ratio declined from 2.99 as of December 31, 2023, to 2.88 as of June 30, 2024, due to a higher increase in current liabilities compared to current assets[53]. - The debt-to-equity ratio increased from 9.2% to 12.3% as of June 30, 2024, indicating a rise in leverage[53]. Restricted Share Unit Plans - The 2021 Restricted Share Unit Plan allows for a total of 20,639,010 shares to be granted, equivalent to approximately 3.00% of the total shares issued as of the plan's adoption date and about 2.92% as of the report date[98]. - The 2021 Restricted Share Unit Plan is effective for ten years from September 15, 2021, with a remaining duration of approximately 7.0 years[96]. - The purpose of the 2021 Restricted Share Unit Plan is to recognize contributions to the group's growth and development and to incentivize selected participants[94]. - The total number of restricted share units granted under the plan is capped at 20,842,410 shares, ensuring compliance with listing rules[115].

Financial Performance - For the six months ended June 30, 2024, the revenue was approximately RMB 846.9 million, an increase of 83.3% compared to RMB 462.1 million for the same period in 2023[1] - The gross profit for the same period was approximately RMB 142.9 million, up 72.6% from RMB 82.8 million in 2023[1] - The profit for the period was approximately RMB 30.0 million, a significant increase of 677.6% from RMB 3.9 million in the previous year[1] - Adjusted net profit for the six months was approximately RMB 37.9 million, representing a 172.4% increase from RMB 13.9 million in 2023[1] - Total revenue for the six months ended June 30, 2024, was RMB 846,947,000, a significant increase from RMB 462,097,000 for the same period in 2023, representing an increase of approximately 83.2%[14] - The group's profit before tax for the six months ended June 30, 2024, was RMB 29,883,000, compared to RMB 1,333,000 for the same period in 2023, representing a significant increase[23] - The group's adjusted net profit for the six months ended June 30, 2024, was RMB 37.9 million, compared to RMB 13.9 million for the same period in 2023, reflecting a strong growth trajectory[52] Revenue Sources - Revenue from licensing of series broadcasting rights was RMB 846,932,000, up from RMB 377,600,000 in the previous year, indicating a growth of about 124.8%[17] - All revenue for the period was derived from customers located in mainland China, indicating a focused market strategy[12] - The group's revenue from broadcasting rights for quality dramas increased from RMB 377.6 million for the six months ended June 30, 2023, to RMB 846.9 million for the six months ended June 30, 2024, representing a significant increase due to adjustments in themes and types of dramas, increased investment, and higher popularity of the dramas[47] - Revenue from drama broadcasting rights rose from approximately RMB 377.6 million (81.7% of total revenue) to approximately RMB 846.9 million (100% of total revenue) during the same periods[55] Assets and Liabilities - As of June 30, 2024, the net asset value was approximately RMB 1,778.2 million, a 2.2% increase from RMB 1,739.3 million as of December 31, 2023[1] - The total assets less current liabilities amounted to RMB 1,784.4 million as of June 30, 2024, compared to RMB 1,773.4 million at the end of 2023[4] - The total current assets were approximately RMB 2,472.6 million, an increase from RMB 2,419.3 million as of December 31, 2023[3] - The total liabilities rose from approximately RMB 844.3 million as of December 31, 2023, to approximately RMB 863.7 million as of June 30, 2024[68] - The debt-to-equity ratio increased to 12.3% as of June 30, 2024, compared to 9.2% as of December 31, 2023[72] Operational Highlights - The company has successfully launched three quality dramas in the first half of 2024, including "Riding the Wind and Waves," "Harbin 1944," and "The Lonely City," all achieving good broadcasting results and market reputation[33] - The company is enhancing its ESG management system to improve corporate governance and operational compliance, laying a solid foundation for sustainable development[33] - The platform-based operational model has been further deepened, leading to improved efficiency in content production and collaboration with industry partners[35] - The group emphasizes the importance of quality IP development, maintaining a diverse and rich IP reserve to ensure a steady output of quality content[40] Employee and Governance - The group has a total of 70 employees as of June 30, 2024, with 20% in finance and legal roles[79] - The audit committee consists of two independent non-executive directors and one non-executive director, overseeing compliance, accounting policies, and risk management[92] - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[88] Future Outlook - The company is exploring diversified revenue structures to ensure stable and healthy development in the future[34] - The company aims to maintain strong partnerships within the industry to explore new development opportunities[36] - The company plans to enhance its IP management capabilities and focus on both original content and IP development to ensure a steady supply of quality content for its film and television business[51] - The expected timeline for utilizing the remaining net proceeds for potential investments or acquisitions is by the end of 2025[85]

Content Production and Recognition - The company achieved significant recognition, winning the "Top Ten Drama Company of the Decade" at the Golden Pufferfish Awards, reflecting its commitment to high-quality content production[9] - The drama "Today's Fuel Up" received the second prize for Outstanding TV Drama in Jiangsu Province for the 2022-2023 period, showcasing the company's successful content output[9] - The drama "White Castle" topped the Maoyan Professional Edition's "All Network Ratings List" 19 times during its airing, indicating strong viewer engagement[9] - The group has a strong pipeline of anticipated dramas, including "Harbin 1944," which has already won the "Most Anticipated Drama of 2024" award[27] - The group has a diverse range of upcoming projects, ensuring a rich variety of content for audiences[27] Operational Strategy and Business Model - The company reported a stable operational model that enhances its commercial service capabilities, allowing for continuous collaboration with top industry talents[17] - The company is focused on deepening its platform-based operational model to ensure the continuous output of quality dramas, adapting to changing market conditions[24] - The company is committed to producing high-quality content as a long-term strategy, responding to increasing demands for drama quality from broadcasting platforms and audiences[25] - The company is exploring sustainable development paths while adjusting its business strategies in response to global economic conditions and audience consumption habits[24] - The group is focusing on expanding its business partnerships along the industry chain to enhance resource allocation and ensure stable growth[28] Talent and Collaboration - The company has strengthened its relationships with leading industry talents through various business and equity collaborations, enhancing its content ecosystem[20] - The company is actively participating in the "New Mango S Plan," marking a milestone in its strategic partnerships[9] - The company continues to refine its business management capabilities to foster sustainable growth and industry partnerships[29] Environmental, Social, and Governance (ESG) Initiatives - The group has not reported any significant ESG-related crises during the reporting period[40] - The company received multiple awards for its performance in ESG management, including being named one of the "Top 30 Private Cultural Enterprises in Jiangsu" in July 2023 and winning the "2023 ESG Pioneer Enterprise" award in January 2024[43] - The company identified 21 key ESG issues relevant to its sustainable development, based on external policy research and industry benchmarking[65] - A total of 14 highly important ESG issues, 2 moderately important issues, and 5 lowly important issues were identified for the year 2023[70] - The company has integrated green development strategies into its operations, focusing on reducing negative environmental impacts and promoting energy efficiency[75] Employee Welfare and Development - The company focuses on employee well-being by providing social insurance and supplementary medical insurance, along with mental health support and annual health check-ups[48] - The company encourages lifelong learning and provides on-the-job training programs to enhance employees' professional skills[52] - The company aims to create quality job opportunities and ensure employee rights through a competitive compensation system and reasonable benefits[52] - As of December 31, 2023, 25.0% of the board members are female, and 59.2% of the total workforce are women, with ongoing efforts to maintain a majority female workforce[52] Sustainability and Environmental Management - The company implemented a green production approach, exploring the integration of AIGC and ESG concepts in content production, and established a "green list" for sustainable practices[55] - The company actively promotes low-carbon development and has set scientific measures for carbon reduction in response to climate change[58] - The company has established a business continuity plan (BCP) to address extreme weather events that may impact filming and storage management[159] - The company promotes green commuting by encouraging employees to use public transportation and implementing a unified travel plan for production teams[111] - The company has implemented a low-carbon business and operational policy to improve its environmental management capabilities[75] Shareholder Structure and Stock Options - As of December 31, 2023, the group has a total of 437,648,000 shares held, representing approximately 62.49% of the issued shares[31] - The group has a significant ownership structure, with Mr. Liu holding 77.9% and Ms. Zhai holding 0.1% of Jiangsu Strawbear[36] - Master Sagittarius holds 328,128,000 shares, representing 46.85% of the total shares issued[83] - The company adopted the 2021 Restricted Share Unit Plan on September 15, 2021, aimed at incentivizing selected participants contributing to the group's growth and development[97] - The company has granted a total of 16,780,000 restricted share units under the 2021 Restricted Share Unit Plan, equivalent to approximately 3.00% of the total shares issued as of the plan's adoption date[142] Safety and Compliance - The company emphasizes safety in production, ensuring that all materials used are environmentally certified and that safety measures are in place during filming[180] - The company conducts regular inspections of fire safety facilities to ensure compliance with safety regulations[182] - The company has established a system for reporting safety incidents promptly to minimize losses and ensure accountability[182] - The company has not reported any incidents of employment discrimination, harassment, or violations of labor laws during the reporting period, ensuring compliance with relevant regulations[162]

Financial Performance - For the year ended December 31, 2023, the revenue was approximately RMB 840.7 million, a decrease of 14.3% compared to RMB 980.9 million for the year ended December 31, 2022[3]. - The gross profit for the year ended December 31, 2023, was approximately RMB 63.3 million, down 71.2% from RMB 219.8 million for the previous year[3]. - The loss for the year ended December 31, 2023, was approximately RMB 107.5 million, compared to a profit of approximately RMB 50.0 million for the year ended December 31, 2022[3]. - The adjusted net loss (non-HKFRS measure) for the year ended December 31, 2023, was approximately RMB 88.1 million, while the adjusted net profit for the previous year was approximately RMB 73.6 million[3]. - The gross profit decreased by 71.2% from approximately RMB 219.8 million for the year ended December 31, 2022, to approximately RMB 63.3 million for the year ended December 31, 2023, with a gross margin decline from 22.4% to 7.5%[85]. Assets and Liabilities - As of December 31, 2023, the net asset value was approximately RMB 1,739.3 million, a decrease of 4.7% from RMB 1,825.6 million as of December 31, 2022[3]. - The total current assets as of December 31, 2023, amounted to RMB 2,419.3 million, compared to RMB 2,358.2 million as of December 31, 2022[6]. - The total liabilities as of December 31, 2023, were RMB 810.3 million, an increase from RMB 661.8 million as of December 31, 2022[6]. - Total assets increased from approximately RMB 2,492.6 million as of December 31, 2022, to approximately RMB 2,583.6 million as of December 31, 2023, while total liabilities rose from approximately RMB 667.0 million to approximately RMB 844.3 million[110]. - The debt-to-asset ratio increased from 26.8% as of December 31, 2022, to 32.7% as of December 31, 2023[110]. Revenue Sources - Revenue from major customer 1 decreased significantly to RMB 324,434 thousand in 2023 from RMB 745,504 thousand in 2022, representing a decline of 56.5%[18]. - Revenue from licensing broadcasting rights increased to RMB 749,233 thousand in 2023, up 55.7% from RMB 481,025 thousand in 2022[19]. - Revenue from custom drama production decreased from approximately RMB 495.9 million for the year ended December 31, 2022, to approximately RMB 83.6 million for the year ended December 31, 2023, with only two custom dramas delivered in 2023 compared to three in 2022[83]. - The group's income from external customers in mainland China was RMB 840,663 thousand, accounting for 100% of total revenue[16]. Expenses and Costs - The company reported a significant increase in administrative expenses, which rose to RMB 102.2 million from RMB 65.4 million in the previous year[5]. - Selling and distribution expenses increased by 17.4% from approximately RMB 48.3 million in 2022 to approximately RMB 56.7 million in 2023, attributed to an increase in the number of series broadcasted[89]. - Employee benefits expenses totaled RMB 26,579,000 in 2023, up from RMB 20,990,000 in 2022, representing a 26.9% increase in personnel costs[5]. - The cost of sold inventory for 2023 was RMB 760,456,000, slightly increasing from RMB 755,031,000 in 2022, showing a marginal rise in operational costs[5]. Credit and Receivables - The impairment loss on trade receivables was RMB 22,666,000 in 2023, significantly higher than RMB 1,154,000 in 2022, indicating increased credit risk[5]. - Trade receivables rose from RMB 449,956,000 in 2022 to RMB 554,578,000 in 2023, with a net value of RMB 554,173,000 after impairment[46]. - The expected credit loss for trade receivables increased significantly to RMB 41,105,000 in 2023 from RMB 18,439,000 in 2022, primarily due to overdue receivables[47]. - The aging analysis of trade receivables showed that 3 months overdue receivables increased from RMB 64,355,000 in 2022 to RMB 139,309,000 in 2023[46]. Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests[141]. - The chairman also serves as the CEO, which the board believes benefits the company's business outlook and management[142]. - The company has adopted a standard code for securities trading, ensuring compliance with corporate governance rules[145]. - The audit committee has reviewed the accounting principles and policies adopted by the group and recommended approval of the consolidated financial statements for the year ending December 31, 2023[151]. Future Outlook and Strategy - The group is actively exploring industry innovation and expanding its transformation pathways, including the application of AI technology in the film and television industry[64]. - The group aims to enhance content quality as a lifeline and continues to deepen its platform-based operational model[66]. - The group plans to expand its content commercialization pathways and enhance sustainable development in line with ESG "dual carbon" goals[79]. - The company aims to ensure stable growth in drama production and distribution by acquiring more suitable quality IPs[135]. Shareholder Information - The company does not recommend the payment of any dividends for the year ended December 31, 2023[4]. - The board has resolved not to recommend any final dividend for the year ended December 31, 2023[128]. - The annual general meeting is scheduled for June 12, 2024, with a record date for attendance set for the same day[154].

Share Units and Options - The company reported a total of 6,141,000 restricted share units granted under the 2022 Restricted Share Unit Plan, with a closing price of HKD 3.90 prior to the grant date[20]. - As of June 30, 2023, there are 5,172,800 restricted share units that remain unexercised[20]. - The company granted a total of 37,648,000 pre-IPO share options to its founder and CEO, representing approximately 5.68% of the total issued shares as of the listing date[18]. - During the reporting period, 3,764,800 pre-IPO share options were exercised at an exercise price of USD 0.000025 per share[19]. - The remaining term of the 2022 Restricted Share Unit Plan is approximately 8.6 years[5]. - The company has a total of 310,000 restricted share units granted to service providers, all of which have vested during the reporting period[20]. - The remaining term of the 2021 Restricted Share Unit Plan is approximately 8.0 years[35]. - The maximum number of shares that can be granted under the 2021 Restricted Share Unit Plan is capped at 20,639,010 shares, equivalent to approximately 3.00% of the total issued shares as of the adoption date[38]. - The vesting schedule for the pre-IPO options indicates that by May 12, 2026, up to 40% of the related shares may vest[1]. - The exercise period for the pre-IPO options is set for 10 years starting from May 11, 2020[1]. - The company granted 3,680,000 restricted share units to employees on November 4, 2021, with a closing price of HKD 2.47 per share at the time of grant[53]. - The number of unexercised restricted share units under the 2021 plan as of the report date is 15,818,000 shares, accounting for approximately 2.26% of the total issued shares[52]. IP Development and Innovation - The company actively focuses on improving the quality of IP development content and enhancing conversion efficiency while maintaining a relatively stable number of IP reserves[21]. - The company continues to monitor and enhance the quality of its IP development while ensuring a stable IP reserve[21]. - The company aims to explore and attempt industrial innovation actively[23]. - The plan aims to attract industry talent and outstanding artists to drive the company's development[32]. - The company aims to maintain a long-term strategy focused on producing high-quality content while integrating self-originated IP into its content development ecosystem[49]. - The company is committed to industrial innovation and improving project operation efficiency to reduce uncertainties in production processes[49]. - The company is actively pursuing technological advancements to create more audience-friendly and high-quality works[50]. - The group plans to enhance its IP management capabilities and explore diverse revenue streams beyond traditional broadcasting rights[76]. - The group maintains a stable IP reserve and aims to develop more series-based content[76]. Financial Performance - The group achieved a pre-tax profit of 106,711,000, representing a significant increase compared to the previous period[77]. - The income tax expense for the period was 33,436,000, reflecting a rise from 6,278,000 in the prior period[78]. - The company's revenue for the six months ended June 30, 2023, was approximately RMB 462.1 million, a slight decrease of 0.3% from RMB 463.6 million in the same period of 2022[101]. - Gross profit for the same period was RMB 82.8 million, down 42.1% from RMB 142.9 million in the prior year[97]. - The cost of sales increased significantly to RMB 379.3 million, compared to RMB 320.7 million in the previous year, reflecting a rise of 18.2%[97]. - The company reported a net profit of RMB 3.9 million for the period, a decrease of 94.7% from RMB 73.3 million in the same period last year[95]. - Earnings per share for the parent company owners was RMB 0.2 cents, down from RMB 10.9 cents in the previous year[96]. - Revenue from licensing of series broadcasting rights decreased to RMB 377.6 million, accounting for 81.7% of total revenue, down from RMB 461.6 million in the previous year[103]. - Custom series production revenue was RMB 84.5 million, a new revenue stream as it was zero in the same period last year[104]. Series Production and Broadcast - In the first half of 2023, the company focused on a platform-based operational model, enhancing resource utilization and emphasizing quality content, resulting in multiple successful series broadcasts[49]. - As of June 30, 2023, the company has a rich reserve of diverse and varied series in preparation and pending broadcast[49]. - The company has successfully implemented a strategy of continuous and stable output of quality content as part of its long-term development approach[49]. - As of June 30, 2023, the company has successfully aired multiple diverse series, including "Summer Flower" and "Today's Good Luck," contributing to its goal of consistently delivering high-quality content[66]. - "Today's Good Luck," an innovative situational comedy, achieved excellent ratings and filled a gap in the domestic market for workplace light comedies after its airing on February 21, 2023[67]. - The series "Heart's Desire," aired on March 9, 2023, was supported by the Beijing Broadcasting and Television Bureau and ranked in the Top 8 of CCTV's prime time ratings from January to May 2023[67]. - The medical drama "White Castle," co-produced by the company, topped the viewership charts 19 times during its airing, showcasing the audience's interest in real-life medical scenarios[67]. - The company participated in the 28th Shanghai Television Festival, with the series "The Exam" nominated for the Best Chinese Television Drama award, highlighting its commitment to socially relevant storytelling[68]. Financial Position and Assets - Total current assets increased to RMB 2,434.0 million from RMB 2,358.2 million, reflecting a growth of 3.2%[90]. - The company’s total liabilities increased to RMB 684.2 million, compared to RMB 661.8 million at the end of 2022[90]. - The net asset value of the group was RMB 1,842.2 million as of June 30, 2023, slightly up from RMB 1,825.6 million as of December 31, 2022[107]. - The total equity attributable to equity holders of the parent company was RMB 1,840.7 million as of June 30, 2023, compared to RMB 1,826.6 million as of December 31, 2022[107]. - The company maintained a solid financial position with sufficient working capital of approximately RMB 1,749,841,000 as of June 30, 2023, compared to RMB 1,696,419,000 as of December 31, 2022[158]. - The company's asset-liability ratio increased from 26.8% as of December 31, 2022, to 28.1% as of June 30, 2023, indicating a higher proportion of liabilities relative to assets[157]. Employee Relations and Compensation - The company has maintained good relations with employees, with no strikes or labor disputes reported[190]. - The company provides competitive compensation and benefits, including social insurance contributions and performance-linked bonuses[191]. - The company has a high recruitment standard and offers both internal and external training to enhance employee skills[191]. - Total employee compensation expenses for the six months ended June 30, 2023, amounted to approximately RMB 21.9 million, up from RMB 19.4 million in the same period of 2022, representing a 12.9% increase[190]. - Employee benefits expenses (excluding directors and senior management) totaled RMB 12.3 million for the six months ended June 30, 2023, compared to RMB 9.4 million in 2022, marking a 30.9% increase[194].

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，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 Strawbear Entertainment Group 稻草熊娛樂集團 （於開曼群島註冊成立的有限公司） （股份代號：2125） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 財務摘要 截至2023年6月30日止六個月的收入約為人民幣462.1百萬元，較2022年同期 約人民幣463.6百萬元下降0.3%。 截至2023年6月30日止六個月的毛利約為人民幣82.8百萬元，較2022年同期約 人民幣142.9百萬元下降42.1%。 截至2023年6月30日止六個月的溢利約為人民幣3.9百萬元，較2022年同期約 人民幣73.3百萬元下降94.7%。 截至2023年6月30日止六個月的經調整純利*約為人民幣13.9百萬元，較2022 ...

Environmental Impact - Total hazardous waste generated in 2022 was 0.023 tons, with a density of 0.00002 tons per RMB million revenue[3]. - Total non-hazardous waste generated in 2022 was 4.260 tons, with a density of 0.00434 tons per RMB million revenue[3]. - Total greenhouse gas emissions in 2022 amounted to 44.89 tons of CO2 equivalent, with a total emission density of 0.04577 tons of CO2 equivalent per RMB million revenue[6]. - Direct greenhouse gas emissions (Scope 1) were 17.76 tons of CO2 equivalent, while indirect emissions (Scope 2) were 27.14 tons of CO2 equivalent[6]. - The total amount of harmful waste generated includes 0.002 tons of waste toner cartridges, 0.011 tons of waste batteries, and 0.010 tons of waste ink cartridges[3]. - The company has implemented measures to reduce greenhouse gas emissions during film production by using indoor filming and computer-generated effects[3]. - The total water usage was 1,310 tons, with a water consumption density of 1.33548 tons per RMB million in revenue[25]. - The company emphasizes green sustainable development and strictly adheres to environmental protection laws, with no violations reported during the reporting period[22]. - The company is committed to low-carbon development and has set measures to respond to climate change risks[33]. - The company encourages green office practices and responsible production to ensure sustainable consumption and production patterns[31]. - The company reported a commitment to green development, enhancing environmental management capabilities and increasing investment in environmental protection[41]. - The company has established a significant issues analysis process to identify key ESG topics relevant to sustainable development[38]. Corporate Governance and Social Responsibility - The company has identified 24 significant ESG issues affecting its operations and stakeholder evaluations[8]. - The board comprises 33.3% female directors, and 55.4% of the total workforce are women, reflecting the company's commitment to gender equality[28]. - The company actively engages with stakeholders, maintaining regular communication with government, shareholders, customers, and suppliers to address their expectations and demands[42]. - The company is focused on compliance management and ethical business practices, ensuring adherence to laws and regulations[43]. - The company is committed to community investment and public welfare, participating in social development and volunteer services[37]. - The company is dedicated to transparency in tax payments and anti-corruption efforts as part of its governance strategy[39]. - The company emphasizes the importance of employee health and safety, employee rights protection, and training and development as high-priority ESG issues[39]. Financial Performance - The company's revenue decreased by 42.4% from RMB 1,703.1 million in 2021 to RMB 980.9 million in 2022[91]. - Gross profit fell by 57.4% from RMB 516.2 million in 2021 to RMB 219.8 million in 2022[91]. - Annual profit decreased by 70.5% from RMB 169.4 million in 2021 to RMB 50.0 million in 2022[91]. - The number of series broadcasted in 2022 was four, a reduction compared to the previous year, resulting in licensing revenue of RMB 481.0 million, down from RMB 1,107.2 million in 2021[79]. - The company plans to focus on internal growth, content ecology, and external expansion to drive sustainable growth[92]. - The company aims to enhance its content brand recognition and improve the quality and efficiency of content production through refined management processes[93]. - The administrative expenses increased to RMB 65.4 million in 2022 from RMB 56.6 million in 2021, reflecting ongoing operational adjustments[117]. - The company's total equity increased from RMB 1,773.2 million in 2021 to RMB 1,825.6 million in 2022[176]. - The company's goodwill remained stable at RMB 108.3 million as of December 31, 2022, consistent with the previous year[160]. - The total assets of the company decreased from RMB 2,840.6 million as of December 31, 2021, to RMB 2,492.6 million as of December 31, 2022[162]. - The total liabilities decreased from RMB 1,067.3 million as of December 31, 2021, to RMB 665.0 million as of December 31, 2022, resulting in a debt-to-asset ratio decline from 37.6% to 26.8%[182]. Content Production and Strategy - The company aims to enhance its content evaluation and production capabilities, focusing on the efficient transformation of existing quality IP and the development of series IP[68]. - The company has established a strategic partnership with Mango TV for the upcoming youth romance drama "Daydream"[54]. - The company is actively exploring D2C content and collaboration opportunities with domestic and international streaming platforms[54]. - The company emphasizes the importance of building a comprehensive content ecosystem and optimizing its client structure for better market positioning[70]. - The company is committed to developing a metaverse-like IP ecosystem to enhance the commercial brand value of its IP[55]. - The company plans to innovate its business model and seek collaboration with talented industry professionals to strengthen its content ecosystem[70]. - The company has a diverse pipeline of upcoming series, including "The Battle of Thieves" and "The Journey of Dreams," which are expected to be broadcast soon[81]. - The company has received multiple honors for its aired series, including "Big Exam" being selected as a top program by the National Radio and Television Administration[52]. - The company has received multiple honors for its custom series, indicating strong market response and recognition[82]. - The custom drama production business generated revenue of RMB 495.9 million for the year ended December 31, 2022, compared to RMB 540.2 million for the year ended December 31, 2021, indicating relative stability in delivery quantity[130]. Operational Challenges - The management has implemented measures to mitigate the impact of COVID-19, ensuring continuity in production through remote collaboration[114]. - The group continues to face potential operational impacts from COVID-19, which may affect filming and production timelines in 2023[136]. - The company's revenue decreased from RMB 1,703.1 million for the year ended December 31, 2021, to RMB 980.9 million for the year ended December 31, 2022, primarily due to a reduction in the number of series broadcasted, impacted by COVID-19 restrictions[141]. - Revenue from custom series production fell from RMB 540.2 million in 2021 to RMB 495.9 million in 2022, despite delivering the same number of series[143]. - Other income and gains decreased by 23.1% or approximately RMB 10.2 million, from RMB 44.1 million in 2021 to RMB 33.9 million in 2022, mainly due to a reduction in foreign exchange gains and government subsidies[146].