Financial Performance - Revenue for 2023 was RMB 426.6 million, with a gross loss of RMB 59.4 million[6] - Net loss for 2023 was RMB 1,634.2 million, compared to a net profit of RMB 84.6 million in 2022[6] - Adjusted net loss for 2023 was RMB 1,634.2 million, compared to an adjusted net profit of RMB 120.8 million in 2022[6] - The company recorded revenue of RMB 426.6 million, gross loss of RMB 59.4 million, and net loss of RMB 1,634.2 million for the year ended December 31, 2023[18] - Net loss of RMB 1,634.2 million in 2023, compared to a net profit of RMB 84.6 million in 2022, with adjusted net loss (non-IFRS) also at RMB 1,634.2 million[45] Impairment and Losses - Goodwill impairment of approximately RMB 1,191.6 million was recorded due to expected significant declines in music copyright licensing, offline events, and other businesses[6] - Goodwill impairment loss of RMB 1,191.6 million was recorded in 2023 due to expected significant declines in music copyright licensing, offline activities, and other businesses[39] - Financial asset impairment loss recorded RMB 167.7 million in 2023, a significant increase from RMB 24.6 million in 2022 due to heightened credit risk of certain customers[40] - Fair value changes of financial assets at fair value through profit or loss resulted in a loss of RMB 12.1 million in 2023, compared to a gain of RMB 3.9 million in 2022, driven by stock price fluctuations of invested listed companies[41] - The company recognized a goodwill impairment loss of RMB 1,191.6 million for the Dream Voice unit due to unprecedented impacts from a program suspension[69] IP and Content Production - The company successfully produced and broadcasted five variety shows in 2023, including "The Voice of China 2023," which was suspended after four episodes[11] - The company has a film library of over 700 movies, which have been distributed globally[8] - The company's music library contains 9,361 IPs, including 3,765 live music recordings, 3,495 songs for signed artists, and 2,101 licensed and purchased lyrics and music works as of December 31, 2023[13] - The company owns and operates a large film library consisting of 757 Chinese film IPs and a drama series "Reading Class" as of December 31, 2023[14] - The company has a total of 107 signed artists as of December 31, 2023[15] - Revenue from variety show IP production, operation, and licensing accounted for 37.8% of total revenue in 2023, down from 80.4% in 2022[19] - Revenue from variety show IP production, operation, and licensing decreased by 77.0% from RMB 702.4 million in 2022 to RMB 161.4 million in 2023[22] - Music IP operation and licensing revenue decreased by 51.9% from RMB 63.6 million in 2022 to RMB 30.6 million in 2023[23] - Film and TV series IP operation and licensing revenue increased by 158.4% from RMB 58.7 million in 2022 to RMB 151.7 million in 2023[24] - Other IP-related business revenue increased by 70.2% from RMB 48.7 million in 2022 to RMB 82.9 million in 2023[25] - Gross loss for variety show IP production, operation, and licensing was RMB 113.7 million with a gross loss rate of 70.4% in 2023[32] - Gross profit for music IP operation and licensing decreased by 96.8% from RMB 47.2 million in 2022 to RMB 1.5 million in 2023[33] - Gross profit for film and TV series IP operation and licensing decreased by 8.9% from RMB 48.4 million in 2022 to RMB 44.1 million in 2023[34] - Gross profit for other IP-related business decreased by 58.8% from RMB 21.1 million in 2022 to RMB 8.7 million in 2023[35] Strategic Initiatives and Future Plans - The company is actively exploring the integration of short videos with e-commerce, content industry, and social media[8] - The company is highly focused on the deep application of AIGC technology in the entertainment field to reduce costs and improve user experience[8] - The company plans to strengthen IP creation and operation capabilities, expand audience reach and brand influence, and pursue strategic acquisitions for business expansion[16] - The company is actively exploring the integration of short video with e-commerce, content industry, and social media, and focusing on the application of AIGC technology in the entertainment field[17] - The company plans to address the qualified opinion by closely collaborating with major broadcasting platforms and advertising clients to produce music variety shows in the next fiscal year[72] - The company will continue to assess the impact of the suspension of broadcasts and related public opinion events on its existing business[72] Legal and Regulatory Matters - The company is involved in an ongoing lawsuit with Hummingbird Music Limited, with a claim of RMB 16.3 million in service fees and RMB 200,000 in legal fees[96] - The company was involved in a lawsuit with MBC, with MBC initially claiming RMB 124.4 million, but the court awarded MBC RMB 11.9 million, less than 10% of the claimed amount[97] - The company paid a quarterly program licensing fee of $2.8 million to MBC for the production of "The Masked Singer" seasons 2 to 4[97] - The company received a refund of $2.6 million from MBC, which was used as a down payment for a new variety show "Outdoor Reality Show"[97] - The company filed a counterclaim against MBC, seeking a refund of $1.6 million and $480,000 in违约金[97] - The company complies with all relevant laws and regulations and has no significant violations during the reporting period[95] Corporate Governance and Board Structure - The board consists of five executive directors, one non-executive director, and three independent non-executive directors[129] - Tian Ming, aged 54, serves as the Chairman, Executive Director, and CEO, responsible for overall corporate and business strategy[129] - Jin Lei, aged 48, is an Executive Director focusing on content production and development[129] - Xu Xiangdong, aged 60, is an Executive Director overseeing offline business development and team management[130] - Lu Wei, aged 47, is an Executive Director supervising original content R&D and overseas and online business development[131] - Wang Yan, aged 50, is an Executive Director, Joint Company Secretary, and CFO, managing financial operations, risk management, and investor relations[131] - Li Weicai, aged 49, is a Non-Executive Director providing strategic advice on business development[132] - Li Liangrong, aged 78, is an Independent Non-Executive Director offering independent opinions and judgments[133] - Chen Rehao, aged 55, is an Independent Non-Executive Director with expertise in accounting and financial management[134] - Sheng Wenhao, aged 56, is an Independent Non-Executive Director with experience in the dairy import business[134] - The company's ultimate controlling shareholders are Huaren Culture, Mr. Tian Ming, Mr. Jin Lei, and Mr. Xu Xiangdong, collectively holding 79.34% of the company's shares[138][139] - Unionstars holds 59.33% of the company's shares, with an additional 20.01% held jointly with other parties[142] - Harvest Sky holds 20.01% of the company's shares, with an additional 59.33% held jointly with other parties through controlled entities[142] - Mr. Tian Ming holds 100% equity in Shaanxi Xingkong Shuolan Real Estate Co., Ltd. and Shaanxi Xingkong Yuanlv Real Estate Co., Ltd.[140] - Mr. Tian Ming, Mr. Jin Lei, and Mr. Xu Xiangdong each hold a 73.71% equity in Canxing Culture through controlled entities and joint holdings[140] - Tian Ming owns 79.34% of the company's shares through controlled corporate interests and jointly held interests with others[144] - East Brothers, Goldenbroad, Beamingstars, and Harvest Sky collectively hold 79.34% of the company's shares[144] - Tibet Yuanhe Enterprise Management Co., Ltd. holds 5.48% of the company's shares[144] - Unionstars' shares are distributed among East Brothers (7.53%), Goldenbroad (17.64%), Beamingstars (34.18%), and Harvest Sky (40.65%)[145] - East Brothers is owned by Tian Ming (81.76%), Jin Lei (6.22%), and Xu Xiangdong (12.02%)[145] - Goldenbroad is wholly owned by Jin Lei[145] - Beamingstars is owned by Shanghai Zhihua (51.99%) and Harvest Sky (48.01%)[145] - Harvest Sky is wholly owned by Tian Ming[145] - Shanghai Zhihua is wholly owned by Huaren Culture Shanghai[145] - Huaren Culture Tianjin is a general partner of Huaren Culture Shanghai[145] Risk Management and Internal Controls - The company has established an internal audit function to review the effectiveness of risk management and internal control systems annually[174] - The company plans to implement more sensitive and effective risk and emergency management mechanisms to strengthen existing systems[174] - Detailed risk management policies have been developed to address major operational risks, including internal control failures, human errors, and IT system failures[175] - The company’s legal department is responsible for reviewing and approving contracts, monitoring regulatory updates, and ensuring compliance with licensing requirements[176] - Internal control measures are in place to manage legal risks, including contract management and artist participation in variety show productions[177] - A credit risk management policy has been implemented to monitor receivables and working capital, minimizing potential credit risks[178] - The company has adopted financial accounting management policies and procedures to ensure compliance with listing rules[178] - An internal audit team conducts annual reviews of financial reporting procedures and proposes risk response measures when necessary[178] - The company has established intellectual property risk management procedures to protect its IP and avoid infringement liabilities[179] - The legal team assists business units in timely trademark, copyright, and patent registrations to ensure IP protection under relevant laws[179] - The company has implemented various internal procedures and controls to ensure data protection and prevent data breaches and losses[180] - The company has established an anti-bribery and anti-corruption policy, providing regular training to employees and maintaining anonymous reporting channels[181] - Internal control measures have been implemented to reduce environmental impact and carbon emissions, with ongoing improvements in risk management and internal control systems[182] - An emergency management and public opinion management team has been established to address online rumors and protect the company's legal rights[183] - The audit committee ensures the effectiveness of the company's risk management and internal control systems, conducting annual reviews and reporting to shareholders[184] Shareholder Communication and Engagement - The company emphasizes effective communication with shareholders through annual general meetings and other shareholder meetings[194] - The company has established a shareholder communication policy to ensure equal and timely access to information[195] - Shareholders can request public information at any time and are provided with designated contacts for inquiries[195] - Company communications are available in both Chinese and English, with options for printed or electronic delivery[196] - The company’s website features an "Investor Relations" section with regularly updated information[197] - All materials related to annual general meetings and performance announcements are published on the company’s website[197] - Shareholders are encouraged to participate in shareholder meetings, with arrangements made for annual general meetings[198] - The company’s dividend policy does not have a predetermined payout ratio, with dividends recommended based on financial conditions and economic environment[200]

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 426.6 million, a decrease of 51.2% compared to RMB 873.4 million in 2022[2]. - The company reported a loss before tax of RMB 1,601.4 million for 2023, compared to a profit of RMB 104.4 million in 2022[3]. - The net loss for the year was RMB 1,634.2 million, a significant decline from a profit of RMB 84.6 million in the previous year[2]. - Adjusted net loss margin was -383.1% for 2023, compared to 13.8% profit margin in 2022[2]. - The company reported a total comprehensive loss of RMB 1,617.4 million for 2023, compared to a total comprehensive income of RMB 127.4 million in 2022[5]. - The group reported a net loss attributable to equity holders of the parent company of RMB (1,604,634,000) for 2023, compared to a profit of RMB 86,918,000 in 2022[30]. - The net loss for 2023 was RMB 1,634.2 million, compared to a net profit of RMB 84.6 million in 2022, marking a substantial turnaround[48]. - The income tax expense increased by 65.7% from RMB 19.8 million in 2022 to RMB 32.8 million in 2023, primarily due to the termination of deferred tax asset recognition following the reported losses[73]. Assets and Liabilities - Total non-current assets decreased to RMB 1,892.1 million in 2023 from RMB 3,118.9 million in 2022[6]. - The company's cash and cash equivalents decreased to RMB 353.9 million in 2023 from RMB 587.6 million in 2022[7]. - The total assets less current liabilities amounted to RMB 2,891.5 million in 2023, down from RMB 4,508.9 million in 2022[7]. - The company's equity attributable to owners of the parent decreased to RMB 2,870.2 million in 2023 from RMB 4,478.3 million in 2022[8]. - Trade receivables decreased to RMB 524,573,000 in 2023 from RMB 796,740,000 in 2022, reflecting a reduction of 34.1%[32]. - The company's cash flow from operating activities was RMB 67.6 million, a significant decrease from RMB 326.2 million in the previous year[90]. - The company's debt-to-asset ratio increased to 0.4% as of December 31, 2023, compared to 0.3% in 2022[90]. Revenue Breakdown - Revenue from mainland China was RMB 365,663 thousand, down 55.1% from RMB 812,375 thousand in 2022[17]. - Revenue from variety show IP production, operation, and licensing dropped by 77.0% to RMB 161.4 million in 2023, down from RMB 702.4 million in 2022[52]. - Music IP operation and licensing revenue decreased by 51.9% to RMB 30.6 million in 2023, compared to RMB 63.6 million in 2022[53]. - Revenue from film and TV series IP operation and licensing increased by 158.4% to RMB 151.7 million in 2023, up from RMB 58.7 million in 2022[54]. - Other IP-related business revenue rose by 70.2% to RMB 82.9 million in 2023, compared to RMB 48.7 million in 2022, attributed to the recovery from the COVID-19 pandemic[55]. Cost and Expenses - The cost of variety show IP production, operation, and licensing was RMB 275,050 thousand, down 48.9% from RMB 538,029 thousand in 2022[26]. - The sales cost related to variety show IP production, operation, and licensing decreased by 48.9% from RMB 538.0 million in 2022 to RMB 275.1 million in 2023, due to a reduction in the number of variety shows produced[57]. - The sales cost for music IP operation and licensing increased by 77.4% from RMB 16.4 million in 2022 to RMB 29.1 million in 2023, primarily due to increased costs associated with re-licensing old songs from the music library[58]. - The sales cost for film and series IP operation and licensing surged by 944.7% from RMB 10.3 million in 2022 to RMB 107.6 million in 2023, mainly due to impairment of long-aged TV series[59]. - The gross profit decreased from RMB 281.1 million in 2022 to a gross loss of RMB 59.4 million in 2023, reflecting a significant decline in profitability across various segments[62]. Goodwill and Impairment - The company recognized a goodwill impairment loss of RMB 1,191,617,000, which represents approximately 60% of the initially recognized goodwill amount[42]. - The company recorded a goodwill impairment loss of RMB 1,191.6 million in 2023, compared to no impairment loss in 2022, due to anticipated significant declines in music copyright licensing and offline activities[70]. - Goodwill decreased by RMB 1,187.0 million or 79.8% to RMB 301.3 million, mainly due to expected declines in music copyright licensing and offline activities[77]. Corporate Governance - The company has adopted the principles and provisions of the Corporate Governance Code as the basis for its corporate governance practices[102]. - The audit committee has reviewed the audited consolidated financial statements for the year ending December 31, 2023[104]. - The company has complied with the Corporate Governance Code during the reporting period[102]. - The audit committee consists of three members, with Mr. Chan as the chairman, who possesses appropriate professional qualifications[104]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[102]. Future Plans and Strategies - The company plans to enhance its IP creation and operation capabilities, focusing on music, film, and variety shows to adapt to changing market demands[47]. - The company aims to expand its audience reach and brand influence by increasing partnerships with media platforms and enhancing live experience offerings[47]. - The company is actively seeking quality acquisition targets to further expand its business and integrate valuable industry resources[47]. - The company is committed to attracting top talent in IP production, operation, and management through competitive compensation and training programs[47].

Financial Performance - The company recorded revenue of RMB 144.1 million for the six months ended June 30, 2023, a decrease of 21.1% from RMB 182.6 million in the same period last year[13][15]. - The net loss for the six months ended June 30, 2023, was RMB 17.2 million, compared to a net loss of RMB 13.4 million in the same period last year, reflecting a worsening of the financial position[13]. - Revenue from variety show IP production, operation, and licensing decreased by 44.8% to RMB 75.4 million, accounting for approximately 52.3% of total revenue[14][17]. - Revenue from film and series IP operation and licensing increased by 70.1% to RMB 23.3 million, driven by higher income from overseas markets[19]. - Revenue from other IP-related businesses rose by 103.1% to RMB 26.2 million, attributed to the recovery of the market post-COVID-19[20]. - The gross profit decreased by 16.1% from RMB 56.5 million in the six months ended June 30, 2022, to RMB 47.4 million in the same period of 2023[25]. - The gross profit margin for music IP operation and licensing dropped significantly from 64.1% to 13.0%, attributed to higher costs from lower-margin old songs[26]. - The gross profit for film and television IP operation and licensing increased by 108.5% from RMB 8.2 million to RMB 17.1 million, with the gross profit margin rising from 59.9% to 73.4%[26]. - The company reported a loss of RMB 17,218,000 for the six months ended June 30, 2023, compared to a loss of RMB 13,374,000 in the same period of 2022, indicating an increase in losses of approximately 28%[80]. Revenue Sources - Revenue from mainland China for the six months ended June 30, 2023, was RMB 120,766 thousand, down 28.5% from RMB 168,906 thousand in the same period of 2022[94]. - Revenue from other regions increased to RMB 23,301 thousand for the six months ended June 30, 2023, compared to RMB 13,694 thousand in the same period of 2022, representing a growth of 70.5%[94]. - Revenue recognized at a point in time was RMB 27,489 thousand for the six months ended June 30, 2023, down 48.3% from RMB 53,050 thousand in the same period of 2022[98]. - Revenue recognized over time was RMB 116,578 thousand for the six months ended June 30, 2023, a decrease of 10% from RMB 129,550 thousand in the same period of 2022[98]. Cost and Expenses - The total sales cost decreased by 23.4% from RMB 126.1 million in the six months ended June 30, 2022, to RMB 96.7 million in the same period of 2023[21]. - The sales cost for variety show IP production, operation, and licensing decreased by 44.8% from RMB 107.5 million to RMB 59.3 million, consistent with a decrease in revenue from this segment[21]. - The sales cost for music IP operation and licensing increased by 138.6% from RMB 7.0 million to RMB 16.7 million, primarily due to higher costs associated with re-licensing older music tracks[22]. - Selling and distribution expenses increased by 29.3% from RMB 9.2 million to RMB 11.9 million, driven by increased sales and marketing activities post-COVID-19[29]. - Administrative expenses rose by 6.2% from RMB 51.5 million to RMB 54.7 million, primarily due to increased office and professional service costs following the end of the pandemic[30]. Assets and Liabilities - Property, plant, and equipment increased to RMB 181.7 million as of June 30, 2023, up RMB 9.3 million or 5.4% from RMB 172.4 million as of December 31, 2022, primarily due to investments in the "Songjiang Starry Sky Variety Production Base"[37]. - Goodwill increased to RMB 1,498.6 million as of June 30, 2023, up RMB 10.3 million or 0.7% from RMB 1,488.3 million as of December 31, 2022, mainly due to foreign exchange fluctuations[38]. - Trade receivables decreased to RMB 459.1 million as of June 30, 2023, down RMB 166.9 million or 26.7% from RMB 626.0 million as of December 31, 2022, primarily due to the collection of receivables from variety shows produced in 2022[46]. - Cash and cash equivalents decreased to RMB 404.9 million as of June 30, 2023, from RMB 587.6 million as of December 31, 2022, indicating a decline in liquidity[49]. - The total liabilities decreased from RMB 488,453,000 to RMB 392,105,000, reflecting a reduction of approximately 19.7%[82]. Shareholder Information - As of June 30, 2023, the total issued shares of the company amounted to 398,538,168[63]. - Unionstars holds a beneficial interest of 236,465,996 shares, representing approximately 59.33% of the total shares[67]. - Harvest Sky also holds a beneficial interest of 79,740,381 shares, accounting for about 20.01% of the total shares[67]. - Tian Ming holds a controlled interest in 316,206,377 shares, which is approximately 79.34% of the total shares[68]. - The group’s ultimate controlling shareholders include Huaren Culture, Tian Ming, Jin Lei, and Xu Xiangdong[63]. Future Plans and Strategies - The company plans to launch new variety shows including "The Voice of China 2023" and "This! Is Street Dance 2023" in the second half of 2023[7]. - Future initiatives include enhancing IP creation and operation capabilities, expanding audience reach, and increasing monetization through new partnerships[12]. - The company plans to pursue acquisitions that complement its business strategy and enhance its entertainment value chain[12]. - The company aims to attract top talent in IP production, operation, and management through competitive compensation and training programs[12]. Legal and Compliance - The company is currently involved in ongoing litigation with a claim of RMB 16.3 million for service fees, with a favorable ruling received in June 2023[59]. - The company has maintained compliance with all applicable corporate governance codes during the reporting period[71]. - The company has established written guidelines for employees regarding securities trading to ensure compliance with internal information handling[72]. Market and Industry Trends - The company’s artist management and performance activities have rapidly recovered since Q2 2023, benefiting from the post-pandemic entertainment market[7]. - The company has introduced a new live streaming business on Taobao, integrating entertainment consumption with quality IP[7]. - The company is focused on expanding its market presence and exploring new strategies for growth[148].

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份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 STAR CM Holdings Limited 星空華文控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：6698） 截至2023年6月30日止六個月的 中期業績公告 | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|-----------------------|----------------------------| | | | | | | 董事會宣佈本公司、其附屬公司及綜合聯屬實體（統稱「 月 30 日止六個月的未經審核綜合業績連同截至 數字。該 ...

Financial Performance - For the fiscal year ending December 31, 2022, the company reported total revenue of RMB 873.4 million, a decrease of 22.5% compared to RMB 1,126.7 million for the fiscal year ending December 31, 2021[10]. - The company achieved a net profit of RMB 84.6 million for the fiscal year ending December 31, 2022, a significant improvement from a net loss of RMB 351.7 million in the previous year[10]. - The turnaround from net loss to net profit was primarily due to the absence of goodwill impairment losses in 2022, which amounted to RMB 380.7 million in 2021, and a reduction in overall administrative expenses[10]. - The company's revenue for the year ended December 31, 2022, was RMB 873.4 million, a decrease of 22.4% from RMB 1,126.7 million in 2021[29]. - The net profit for 2022 was RMB 84.6 million, a significant turnaround from a net loss of RMB 351.7 million in 2021, primarily due to the absence of goodwill impairment losses in 2022[29]. - Adjusted net profit (non-IFRS measure) for 2022 was RMB 120.8 million, compared to an adjusted net loss of RMB 304.3 million in 2021, reflecting overall reduced administrative expenses[61]. - The gross profit increased by 2.5% from RMB 274.3 million in 2021 to RMB 281.1 million in 2022, with an overall gross margin improvement from 24.3% to 32.2%[43]. - Other income and gains decreased by 31.1% from RMB 39.9 million in 2021 to RMB 27.5 million in 2022, primarily due to a reduction in government subsidies[50]. - Administrative expenses decreased by 18.9% from RMB 180.9 million in 2021 to RMB 146.7 million in 2022, attributed to lower employee salaries and benefits, reduced R&D expenses, and decreased professional service costs[52]. Revenue Breakdown - Revenue from variety show IP production, operation, and licensing accounted for 80.4% of total revenue in 2022, down from 78.1% in 2021[30]. - Revenue from variety show IP production, operation, and licensing decreased by 20.1% to RMB 702.4 million in 2022 from RMB 879.5 million in 2021[31]. - Revenue from music IP operation and licensing fell by 46.2% to RMB 63.6 million in 2022 from RMB 118.3 million in 2021[32]. - Revenue from film and TV series IP operation and licensing decreased by 32.1% to RMB 58.7 million in 2022 from RMB 86.4 million in 2021[35]. - Revenue from other IP-related businesses increased by 14.6% to RMB 48.7 million in 2022 from RMB 42.5 million in 2021[36]. Business Strategy and Outlook - The company plans to launch several new variety shows in 2023, including "Amazing! Dance Society" and "The Voice of China," to enrich and expand its variety IP[11]. - The company believes that the overall outlook for the entertainment IP industry remains promising, driven by increasing demand for high-quality entertainment products and innovative collaboration models between content media platforms and IP producers[13]. - The company will continue to monitor the overall economic outlook in China and globally, taking appropriate measures to address any potential negative impacts on its business and financial performance[13]. - The company emphasizes its strong IP creation capabilities and diversified distribution channels as key factors for maintaining its leading position in a competitive market[11]. - The company aims to enhance its IP creation and operation capabilities and expand its audience reach through increased partnerships with media platforms[27]. - The company aims to pursue strategic acquisitions to further expand its business and integrate quality industry resources[27]. Awards and Recognition - The company received multiple awards in 2022, including recognition for shows like "Street Dance of China 2022" and "The Voice of China 2022"[19]. Market Challenges - The company relies on its major variety shows, and any decline in their popularity could significantly impact business performance[136]. - The company may face challenges in adapting to changes in the Chinese entertainment content market, affecting its ability to meet evolving demands[136]. Corporate Governance and Compliance - The company has not reported any serious violations of applicable laws and regulations during the reporting period[151]. - The company is committed to environmental protection and has adhered to all relevant laws and regulations regarding environmental protection[149]. - The company has not experienced any significant disputes with customers or suppliers during the reporting period[129]. Financial Position and Assets - The company's property, plant, and equipment increased by RMB 118.0 million or 216.9% to RMB 172.4 million, primarily due to investments in the "Songjiang Starry Sky Cultural and Film Production Base"[69]. - Goodwill increased by RMB 23.0 million or 1.6% to RMB 1,488.3 million, mainly due to foreign exchange fluctuations[70]. - Investments in associates rose by RMB 195.7 million or 46.4% to RMB 617.9 million, including a total investment of RMB 444.7 million in Shanghai Binqiao[72]. - Cash and cash equivalents at year-end increased to RMB 587.6 million from RMB 547.2 million, reflecting a net increase of RMB 34.7 million[86]. - As of December 31, 2022, the company's debt-to-asset ratio was 0.3%, up from 0.1% in 2021[90]. Shareholder and Financing Information - The company did not conduct any significant acquisitions or disposals during 2022[91]. - The board decided not to declare a final dividend for the year ended December 31, 2022[121]. - The company has no bank loans or other borrowings as of December 31, 2022[124]. - The company maintained a public float of at least 20.58% as per the exemption granted by the stock exchange[106]. Contractual Arrangements - The company operates various businesses in China, including media production and streaming, under contractual arrangements due to foreign investment restrictions[178]. - The exclusive consulting and service agreement allows the company to provide media and program production services, with service fees based on the net profit after deducting cumulative losses[186]. - The exclusive purchase rights agreement grants the company the right to acquire shares or assets of its consolidated affiliated entities at a minimum price of RMB 1, subject to applicable laws[187]. - The company has established contractual arrangements to maintain effective control over its businesses while complying with Chinese laws and regulations[179]. - The company has reported that the majority of its total revenue and certain net assets are derived from consolidated entities bound by contractual arrangements[199].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 873.4 million, a decrease of 22.5% compared to RMB 1,126.7 million in 2021[2] - Adjusted net profit for the year was RMB 120.8 million, compared to a loss of RMB 304.3 million in 2021[2] - The company reported a pre-tax profit of RMB 104.4 million, a significant recovery from a loss of RMB 327.4 million in the prior year[2] - The net profit attributable to equity holders of the parent was RMB 86.9 million, compared to a loss of RMB 345.0 million in 2021[3] - The net profit for 2022 was RMB 84.6 million, a significant turnaround from a net loss of RMB 351.7 million in 2021[46] - The adjusted net profit for 2022 was RMB 120.8 million, compared to an adjusted net loss of RMB 304.3 million in 2021[46] Revenue Breakdown - Revenue from mainland China was RMB 812,375 thousand in 2022, down 22.3% from RMB 1,045,035 thousand in 2021[15] - Revenue from variety show IP production, operation, and licensing accounted for approximately 80.4% of total revenue in 2022, down from 78.1% in 2021[47] - Revenue from music IP operation and licensing was RMB 63,653 thousand in 2022, down 46.3% from RMB 118,335 thousand in 2021[19] - Revenue from variety show IP production, operation, and licensing decreased by 20.1% from RMB 879.5 million in 2021 to RMB 702.4 million in 2022[50] - Revenue from film and TV series IP operation and licensing decreased by 32.1% from approximately RMB 86.4 million in 2021 to approximately RMB 58.7 million in 2022[52] - Revenue from other IP-related businesses increased by 14.6% from approximately RMB 42.5 million in 2021 to approximately RMB 48.7 million in 2022[53] Cost and Profitability - Gross profit increased by 2.5% to RMB 281.1 million from RMB 274.3 million in the previous year[2] - Total sales cost decreased by 30.5% from RMB 852.4 million in 2021 to RMB 592.3 million in 2022[54] - Gross margin improved from 24.3% in 2021 to 32.2% in 2022[59] - Gross profit from variety show IP production, operation, and licensing rose by 41.5% to RMB 164.4 million in 2022, with a gross margin of 23.4%[60] - Gross profit from music IP operation and licensing decreased by 44.7% to RMB 47.2 million in 2022, maintaining a gross margin of 74.2%[61] Assets and Liabilities - Total assets increased to RMB 4,508.98 million from RMB 4,061.41 million in 2021, reflecting a growth in the company's asset base[6] - The company reported a net asset value of RMB 4,478.29 million, up from RMB 4,047.86 million in the previous year[8] - Cash and cash equivalents increased to RMB 587.59 million from RMB 547.18 million, indicating improved liquidity[6] - Trade receivables decreased to RMB 625,956,000 in 2022 from RMB 859,332,000 in 2021, reflecting a reduction in credit risk[29] - Trade payables decreased to RMB 253,252,000 in 2022 from RMB 343,532,000 in 2021, indicating improved cash flow management[34] Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[93] - The audit committee has reviewed the audited consolidated financial statements for the year ended December 31, 2022, and discussed accounting policies and internal controls with senior management[95] - The company has complied with the Corporate Governance Code since its listing date up to the announcement date[93] - The chairman and CEO roles are held by the same individual, which deviates from the recommendation of separating these roles, but the board believes this arrangement benefits the company's business outlook[93] - The company will continue to review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[93] Future Plans and Developments - The company plans to continue expanding its IP-related business, focusing on production, operation, and licensing of various entertainment properties[10] - The company plans to launch multiple new variety shows in 2023, focusing on music, dance, and talent shows[41] - The company aims to expand its audience reach and brand influence by increasing partnerships with media platforms and enhancing its content production capabilities[45]