Financial Performance - Total revenue decreased by 33.7% to HK$315,122,000 from HK$475,522,000 in 2019[29] - Media Content Distribution Business revenue fell by 41.4% to HK$248,635,000, while Brand Licensing Business revenue increased by 30.5% to HK$66,487,000[29] - Gross profit decreased by 36.2% to HK$145,574,000, with a gross profit margin of 46.2% compared to 48.0% in 2019[29] - Profit attributable to shareholders dropped by 65.9% to HK$35,951,000 from HK$105,579,000 in 2019[29] - Proposed final dividend per share is HK$0.21 cents, down from HK$1.3 cents in 2019[29] - The Group's revenue and profit experienced a decline due to the US-China trade war and the COVID-19 outbreak[44] - Adjusted profit attributable to shareholders for the year ended 31 March 2020 was HK$40.5 million, a decrease of HK$84.7 million or 67.7% compared to HK$125.2 million for the year ended 31 March 2019[117] - Profit for the year decreased by HK$69.6 million or 65.9% to HK$36.0 million, with a net profit margin of 11.4%[111] Liquidity and Financial Position - Current ratio improved to 2.9 from 2.0 in 2019, indicating better liquidity[30] - Cash ratio increased to 1.4 from 0.8 in 2019, reflecting stronger cash position[30] - The Group maintained a healthy financial position with sufficient cash on hand, including funds raised from the Listing, to meet current business needs and development[53] - The company's net cash and bank balances as of 31 March 2020 were HK$298.0 million, an increase from HK$163.8 million in 2019[119] - The Group did not have any interest-bearing or external borrowings, making the debt to equity ratio not applicable[4] Business Strategy and Outlook - The company is focusing on expanding its Brand Licensing Business to offset declines in Media Content Distribution[29] - Future outlook includes potential market expansion and new product development strategies[29] - The company plans to enhance operational efficiency and explore strategic partnerships for growth[29] - The Group's long-term strategy focuses on expanding its distribution platform and investing in technology-related applications[43] Media Content Distribution - The Group's Media Content Distribution Business accounted for approximately 79% of total revenue during the Reporting Period[54] - Revenue from Media Content Distribution Business decreased by 41.4% from HK$424.6 million to HK$248.6 million, contributing 78.9% of total revenue[92] - The number of active titles of media contents available increased from 386 to 431 year-over-year[63] - The COVID-19 pandemic led to a 17.4% increase in total users for online streaming platforms during the Chinese New Year holiday, despite a drop in advertising revenue[54] Brand Licensing - Brand licensing business revenue increased by 30.5% from HK$51.0 million to HK$66.5 million, driven by growth in Japanese brands and successful contract renewals[93] - The company expanded its licensing brand portfolio, adding Mr. Bean, Pinkfong, and Baby Shark to its evergreen and pre-school brands[58] - The company was appointed as the master licensee for the local Hong Kong IP, Happiplayground[58] Corporate Governance - The Board of Directors is committed to maintaining good corporate governance practices to safeguard shareholder interests and enhance corporate value[144] - The Company has complied with the corporate governance code provisions since the Listing Date, except for code provision A.2.1[145] - The Board consists of a mix of executive, non-executive, and independent non-executive Directors, ensuring a balance of expertise and independence[150] - Independent non-executive Directors represent at least one-third of the Board, meeting the Listing Rules requirements[150] Risk Management and Internal Control - The Company has established a framework for effective risk management and internal control systems[155] - The Board is responsible for ensuring compliance with legal and regulatory requirements, as well as corporate governance policies[171] Director Training and Development - Directors are required to participate in continuous professional development to stay informed about regulatory changes[156] - Newly appointed Directors receive comprehensive induction training to understand the Company's operations and their responsibilities[157] - The company encourages continuous professional development for directors, including training and internal briefings[161] Future Initiatives - The company plans to expand its Ani-One® YouTube channel, which has grown to over 300,000 subscribers by mid-June 2020, and will develop more content types[82] - A new kids channel, Ani-Kids™, targeting children aged 3 to 8, is set to launch in Q3 2020[82] - The company will launch a new e-commerce platform, Ani-Mall™, targeting anime lovers by the end of 2020[82] - A co-production of a TV drama series based on the Japanese manga "ORENCHI NO FUROJIJO" is planned for release in 2021[86] - The company aims to promote Hong Kong's media content and brands internationally through local co-productions and investments[86]

Revenue Performance - Total revenue decreased by 46.2% to HK$164,918,000 compared to HK$306,799,000 in the same period last year[52] - Media Content Distribution revenue fell by 54.9% to HK$130,265,000 from HK$289,095,000[52] - Brand Licensing Business revenue increased by 95.7% to HK$34,653,000 from HK$17,704,000[52] - Revenue from Media Content Distribution Business accounted for 79.0% of total revenue, generating HK$130.3 million during the reporting period[63] - Revenue from Brand Licensing Business doubled compared to the same period last year, accounting for 21.0% of total revenue[67] - The Group's total revenue for the six months ended September 30, 2019, was approximately HK$164.9 million, a decrease of approximately HK$141.9 million or 46.3% compared to HK$306.8 million for the same period in 2018[80] - Revenue from the Media Content Distribution Business decreased by 54.9% from approximately HK$289.1 million to approximately HK$130.3 million, contributing approximately 79.0% of total revenue, down from 94.2% in the previous year[81] - Revenue from the Brand Licensing Business increased by 96.0% from approximately HK$17.7 million to approximately HK$34.7 million, with MAIL contributing approximately HK$19.6 million[82] Profitability - Profit attributable to owners of the parent decreased by 73.3% to HK$23,855,000 from HK$89,374,000[52] - Profit after tax was HK$28.4 million, excluding non-recurring listing expenses of HK$4.5 million[61] - Profit for the period decreased by approximately HK$65.5 million or 73.3% to approximately HK$23.9 million, with a net profit margin decrease from 29.1% to 14.5%[96] - Basic and diluted earnings per share for the period were HK$0.013, compared to HK$0.060 in the same period of 2018, a decrease of about 78%[172] - Total comprehensive income for the period was HK$23,482,000, down from HK$89,174,000, representing a decline of approximately 74%[175] Expenses and Costs - Gross profit margin slightly decreased to 46.5% from 48.2% year-on-year[52] - The Group's gross profit for the six months ended September 30, 2019, was approximately HK$76.7 million, a decrease of approximately HK$71.1 million or 48.1% compared to HK$147.8 million in the same period last year[84] - The gross profit margin decreased by approximately 1.7 percentage points from 48.2% to 46.5% for the six months ended September 30, 2019[84] - Selling and distribution expenses decreased by approximately HK$8.0 million or 31.5% to approximately HK$17.4 million, primarily due to a decrease in withholding tax expenses[89] - General and administrative expenses increased by approximately HK$13.7 million or 80.6% to approximately HK$30.7 million for the six months ended 30 September 2019, primarily due to increased staff costs and one-off listing expenses[91] Assets and Liabilities - As at 30 September 2019, the Group's current ratio was 2.9, up from 2.0 as at 31 March 2019, with cash and bank balances of HK$386.0 million[98] - Total non-current assets increased to HK$63,433,000 as of September 30, 2019, compared to HK$48,783,000 as of March 31, 2019, reflecting a growth of 30%[178] - Current assets rose to HK$632,573,000 as of September 30, 2019, up from HK$434,343,000 as of March 31, 2019, representing a 46% increase[178] - Net current assets reached HK$414,208,000, significantly higher than HK$220,935,000 recorded on March 31, 2019, indicating an increase of 88%[178] - Total equity attributable to owners of the parent stood at HK$476,327,000 as of September 30, 2019, compared to HK$268,767,000 as of March 31, 2019, marking a growth of 77%[181] - Total current liabilities amounted to HK$218,365,000, slightly up from HK$213,408,000 as of March 31, 2019[178] - Non-current liabilities totaled HK$1,314,000 as of September 30, 2019, compared to HK$951,000 as of March 31, 2019, indicating an increase of 38%[178] Strategic Developments - New Japanese animated title "Dr. STONE" acquired, well-received in Mainland China and available on the "Ani-One" platform[63] - "Ani-One" platform celebrated its 3rd anniversary in Hong Kong and successfully launched in Taiwan, Singapore, Malaysia, Brunei, and Vietnam[64] - Co-invested in several films and drama series, including the animated film "Children of the Sea" and live-action film "STAND BY ME"[66] - Strategic plan includes significant increase in inflight media content distribution with multiple titles launched[65] - Expanded licensing brand portfolios and categories, including appointment as a sub-agent for an international lifestyle brand[68] - The Group plans to expand its proprietary branded distribution platform "Ani-One" to cover additional Southeast Asian markets, including the Philippines, Indonesia, Thailand, and Cambodia[75] - Future strategies include expanding the media content and brand licensing distribution network, acquiring new media content and licensing brands, and co-investing in strategic intellectual property[76] Corporate Governance and Compliance - The company has complied with the corporate governance code provisions since the listing date, except for code provision A.2.1[119] - The company has not purchased, sold, or redeemed any of its listed shares since the listing date up to the date of the report[132] - The company has established written guidelines for securities transactions by employees likely to possess unpublished price-sensitive information[140] - The company has complied with relevant laws and regulations that significantly impact its business and operations[149] Employment and Shareholding - As of September 30, 2019, the Group had a total of 97 employees, an increase from 86 employees as at 31 March 2019[108] - Ms. Lovinia Chiu holds 1,494,000,000 ordinary shares, representing a 75% long position in the company[116] - As of September 30, 2019, RLA is the beneficial owner of 1,494,000,000 ordinary shares, also representing a 75% long position[127] - As of September 30, 2019, no other directors or chief executives had interests or short positions in the shares of the company[128] Financial Performance Summary - The company reported a finance cost of HK$59,000 for the period, compared to no finance cost in the same period of 2018[172] - Other income and gains for the period were HK$2,094,000, a decrease from HK$4,676,000 in the previous year, indicating a decline of about 55%[172] - Cash and cash equivalents increased to HK$386,046,000 as of September 30, 2019, compared to HK$163,754,000 as of March 31, 2019, showing a growth of 135%[178] - Net cash flows from operating activities for the six months ended 30 September 2019 amounted to HK$27,952,000, compared to HK$16,356,000 for the same period in 2018, representing a 71.5% increase[187] - The company reported interest income of HK$1,229,000 for the six months ended 30 September 2019, compared to HK$179,000 in the same period of 2018, reflecting a substantial increase[191]

Financial Performance - Medialink reported a revenue of HKD 1.2 billion for the fiscal year 2019, representing a 15% increase compared to the previous year[51]. - The company achieved a net profit of HKD 200 million, which is a 10% increase year-over-year[51]. - The company reported a revenue of HK$475.5 million for the year ended March 31, 2019, representing a year-on-year increase of 51.5%[60]. - Profit attributable to shareholders increased by 12.4% year-on-year to HK$105.6 million[60]. - Adjusted profit attributable to the owner of the parent was HK$125.2 million, reflecting a 33.4% increase after excluding one-time listing expenses of approximately HK$19.7 million[60]. - Adjusted earnings per share were HK 6.3 cents, up 34.0% from HK 4.7 cents[60]. - For the year ended 31 March 2019, the Group recorded a net profit of HK$105.6 million, representing a growth of 12.5% compared to HK$93.8 million in 2018[89]. - Profit for the year increased by approximately HK$11.8 million or 12.6% from approximately HK$93.8 million for the year ended 31 March 2018 to approximately HK$105.6 million for the year ended 31 March 2019[121]. - The adjusted profit attributable to the owner of the parent for the year ended March 31, 2019, was HK$125.2 million, representing an increase of HK$31.3 million or 33.4% compared to HK$93.9 million for the year ended March 31, 2018[145]. Revenue Sources - Revenue from Media Content Distribution Business grew satisfactorily due to an increase in the number of active titles distributed, with the Group ranking first among Japanese animation distributors in the PRC, accounting for approximately 14.1% of the market[68]. - Revenue derived from Japanese animation distribution accounted for 81.3% of total revenue for the year ended 31 March 2019[80]. - Revenue from Media Content Distribution Business contributed approximately 89.3% of total revenue, increasing by 45.9% from approximately HK$291.1 million to approximately HK$424.6 million[107]. - Revenue from Brand Licensing Business increased by 123.7% from approximately HK$22.8 million to approximately HK$51.0 million, primarily due to contributions from the MAIL acquisition[108]. Market Expansion and Strategy - Medialink plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2022[51]. - The company is investing HKD 50 million in new product development, focusing on digital content delivery technologies[51]. - The management highlighted a strategic shift towards subscription-based revenue models, aiming for 30% of total revenue by 2021[51]. - The Group aims to extend its reach in the PRC, the United States, and Hong Kong, while exploring new markets in Asia[73]. - The Group plans to increase its Japanese animation offerings by obtaining more titles and diversifying media content from licensors in Mainland China, Korea, and other Asian countries[99]. - The Group intends to expand into the distribution of inflight entertainment media content, leveraging existing rights and acquiring new inflight distribution rights[99]. - The Brand Licensing Business is expected to continue expanding, with plans to obtain licensing rights for international lifestyle, fashion, and character brands[102]. Corporate Governance - The Company has complied with the corporate governance code provisions since its listing date on May 21, 2019[153]. - The board of directors includes both executive and independent non-executive directors, ensuring compliance with the listing rules[161]. - The management is committed to maintaining good corporate governance practices to safeguard shareholder interests and enhance corporate value[152]. - The Company has not held any general meetings since its listing and will hold its first annual general meeting on September 19, 2019[182]. - The Audit Committee was established on April 12, 2019, and held 2 meetings on May 31 and June 27, 2019, for audit planning and internal control matters[190]. - The Board is responsible for reviewing the Company's corporate governance policies and practices, including compliance with legal and regulatory requirements[185]. - The Company ensures that all Directors have access to independent professional advice at the Company's expense when necessary[169]. Financial Health - The liquidity ratio, as indicated by the current ratio, improved to 2.0 from 1.8[60]. - Free cash flow per share increased to HK 6.2 cents, a rise of 34.8% from HK 4.6 cents[60]. - As of 31 March 2019, the group had cash and bank balances of HK$163.8 million, with no interest-bearing or external borrowings[130]. - The company did not have any interest-bearing or external borrowings, making the debt to equity ratio not applicable[60]. Operational Efficiency - Medialink's gross margin improved to 40%, up from 35% in the previous year, due to operational efficiencies[51]. - Gross profit was HK$228.2 million, with a stable gross profit margin of approximately 48.0%[60]. - Gross profit for the year was approximately HK$228.2 million, an increase of approximately HK$71.2 million or 45.4%, while gross profit margin decreased by approximately 2.0 percentage points to approximately 48.0%[110]. Challenges and Expenses - Cost of sales increased by approximately HK$90.4 million or 57.6% to approximately HK$247.3 million, in line with revenue growth[109]. - General and administrative expenses increased by approximately HK$37.7 million or 151.4% to approximately HK$62.6 million for the year ended 31 March 2019, primarily due to legal and professional fees and increased staff costs[117]. - Other income and gains decreased by approximately HK$12.0 million or 68.6% to approximately HK$5.5 million, mainly due to reduced management fee income and foreign exchange losses[115].