Business Performance - The company achieved a GMV of $1.3 billion for its self-built e-commerce platform MARTOP within two years, focusing on the ASEAN market[9]. - The blockchain business, in collaboration with Poly Culture Technology, generated a total GMV of over 2.4 billion RMB in 2024 from digital asset services[13]. - The company has transitioned from big data algorithm marketing to AI algorithm marketing, significantly enhancing its overseas e-commerce GMV[12]. - The group’s revenue for the year ended December 31, 2024, was HKD 113.31 million, a decrease of 97.77% compared to HKD 5,083.99 million in 2023[17]. - The gross profit for the same period was HKD 1.05 million, down 99.77% from HKD 459.57 million in 2023[17]. - The net loss attributable to shareholders for the year was HKD 1,068.48 million, an increase of 36.26% from HKD 784.17 million in 2023[17]. - The company reported a net loss margin of 942.97% for 2024, compared to 15.42% in 2023, reflecting a significant decline[17]. - The overseas e-commerce sales revenue was HKD 32.80 million, a decrease of 99.29% from HKD 4,587.90 million in 2023[19]. - The group recorded a net loss of HKD 1,107,321,000 and negative operating cash flow of HKD 54,538,000 for the year ended December 31, 2024[196]. Technological Advancements - The AIGC technology has been successfully applied in film production, with the film "Another Hopeful Day" winning the "Best Small and Medium Budget Story Film" award at the 37th China Golden Rooster Awards[14]. - The establishment of a mixed-ownership reform company with Poly Culture has allowed the company to leverage AI and blockchain technologies in the cultural industry[9]. - The company has made significant investments in AI capabilities, completing the development of its proprietary AI model knowledge base[10]. - The company is leveraging its AI model development capabilities in the field of AI mental healthcare, contributing to innovative healthcare solutions[23]. - The company has successfully completed its first data asset entry work by the end of 2024, marking a significant achievement as the first state-owned cultural enterprise to do so, enhancing its competitive advantage in the digital entertainment sector[29]. - The company has integrated AIGC technology into film production, significantly reducing costs while improving efficiency and quality, with notable success in the short film market[32]. - The company is actively developing AIGC applications, integrating advanced algorithm marketing into local markets to capture opportunities in Southeast Asia[50]. Strategic Partnerships and Collaborations - The company has established a strategic partnership with JD Technology Group to create a leading AI blockchain platform in China[13]. - The "Kongjian" platform, developed in collaboration with Poly Culture and JD Technology Group, serves as a digital asset service platform for the film and entertainment industry, focusing on customer value and consumption insights[27]. - The company has partnered with Minsheng Bank to create a co-branded credit card in the cultural sector, promoting the integration of finance and culture[34]. - The company has signed a strategic cooperation agreement with Hainan Publishing and Distribution Group to enhance short drama production capabilities[37]. - The company has secured initial cooperation agreements with multiple local governments for cultural tourism projects, including the Yangxi Cultural City project[38]. - The group has initiated multiple cooperation projects in film and entertainment content incubation, online promotion, and digital asset business with state-owned enterprises[72]. Financial Management and Capital Structure - The company is actively seeking strategic investors and partners to inject new capital and assets to improve financial performance[10]. - The company plans to complete the construction of its AI application service system and achieve business profitability by 2025, enhancing customer experience and expanding market reach[43]. - The company's capital-to-debt ratio increased to 49.02% as of December 31, 2024, compared to 15.66% as of December 31, 2023, indicating a significant rise in leverage[105]. - The current ratio decreased from 7.75 times as of December 31, 2023, to 1.86 times as of December 31, 2024, reflecting a tighter liquidity position[106]. - The company believes it has sufficient financial resources to repay due debts within the next twelve months[196]. - The company had no significant investments or acquisitions during the reporting period, indicating a conservative approach to capital allocation[100]. Governance and Corporate Structure - The company has adopted a corporate governance code to ensure high standards of governance and protect shareholder interests[144]. - The board consists of experienced individuals who regularly meet to discuss business matters affecting the company[145]. - The company has established a board diversity policy to achieve diversity goals[147]. - The company emphasizes the importance of a robust risk management and internal control system for achieving long-term goals[197]. - The board of directors is responsible for ensuring effective risk management and internal control systems to protect assets and shareholder interests[198]. - The company has established a "three lines of defense" risk management model to clarify responsibilities and reporting processes[199]. Employee Incentives and Development - The company adopted a share incentive plan on June 21, 2021, to motivate directors and employees, with no shares granted under the plan in the last 12 months[110][111]. - The company adopted the "Leisure International Share Incentive Plan" on September 28, 2023, aimed at incentivizing certain directors and employees to contribute to the group's ongoing operations and development[118]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[183]. - The employee count as of December 31, 2024, was 70, with over 58.6% engaged in R&D, technology, and operations, highlighting a focus on innovation and operational efficiency[109].

Financial Performance - The group's revenue for the year ended December 31, 2024, was HKD 113.31 million, a decrease of 97.77% compared to HKD 5,083.99 million in 2023[3]. - The gross profit for the same period was HKD 1.05 million, down 99.77% from HKD 459.57 million in the previous year[3]. - The net loss attributable to shareholders increased by 36.26% to HKD 1,068.48 million from HKD 784.17 million in 2023[3]. - The revenue from interactive entertainment and digital product marketing services in 2024 was HKD 56.93 million, down 69.48% from HKD 186.56 million in the previous year, primarily due to tightened regulations on game approvals in China[56]. - The company reported a total loss of HKD 1,107,321 thousand for the year ended December 31, 2024, compared to a loss of HKD 793,243 thousand in 2023[121]. - The company reported a net loss attributable to shareholders of HKD 1,068,481,000 for the year ended December 31, 2024, compared to a loss of HKD 784,166,000 in 2023, indicating a significant increase in losses[125]. E-commerce and Digital Marketing - The overseas e-commerce sales dropped to HKD 32.80 million, a decline of 99.29% from HKD 4,587.90 million in 2023[5]. - The domestic short video e-commerce marketing transaction volume fell by 95.91% to HKD 22.04 million from HKD 539.09 million[5]. - The company has adjusted its overseas e-commerce strategy to a light-asset transformation, focusing on its self-built e-commerce platform MARTOP to optimize transaction models and improve cash flow[36]. - The company is currently testing a new business model for e-commerce product sales and has not recorded any revenue from this model in the current year[116]. - The company has suspended traditional inventory procurement and e-commerce product sales, shifting to a light-asset operating model focused on overseas short video platforms[116]. Strategic Initiatives and Partnerships - The company has established a mixed-ownership reform company with a state-owned enterprise, enhancing its digital marketing capabilities in the cultural industry[7]. - The strategic partnership with Poly Culture has led to the launch of a national AI blockchain platform, generating a GMV of over RMB 2.4 billion in 2024[11]. - The company established a mixed-ownership reform company, Poly Cultural Technology, in collaboration with Poly Culture Group and Poly Film Investment, to explore digital cultural entertainment and internet technology integration[13]. - The company has signed a strategic cooperation agreement with Hainan Publishing Group to develop short drama projects, capitalizing on the booming short drama market[24]. - The company is actively seeking strategic investors to improve financial performance and market confidence amid ongoing challenges[10]. Technology and Innovation - The company has developed the first holographic AI digital human product, significantly reducing production costs while enhancing efficiency and quality[12]. - The company has integrated AIGC technology into film production, significantly reducing costs while enhancing efficiency and quality, with successful applications in both short films and movies[18][19]. - AIGC technology has been utilized in the award-winning film "Another Hopeful Day," showcasing the company's advancements in film production technology[19]. - The company is actively developing AIGC applications, integrating advanced algorithm marketing into local markets, and innovating in virtual digital human services[37]. - The company aims to fully embrace AI technology in the second half of 2024, focusing on building an AI application-level service system to drive business transformation and growth[29]. Market Trends and Future Outlook - The digital economy related industries show clear industry prospects and significant market space, particularly in Southeast Asia, which is one of the fastest-growing regions for e-commerce globally[46]. - The rapid development of AI technology presents new opportunities for the film, culture, and entertainment sectors, enabling automated content generation that can learn and understand human language[47]. - The company aims to expand its market presence in Southeast Asia, projecting a revenue growth of 40% in that region by 2026[170]. - The company has set a performance guidance of HKD 1.5 billion in revenue for the fiscal year 2025, indicating a growth target of 25%[168]. - The company plans to launch three new mobile applications in 2025, targeting a 30% market share in the interactive entertainment sector[170]. Financial Position and Cash Flow - Total assets decreased from HKD 1,868,777 thousand in 2023 to HKD 727,230 thousand in 2024, representing a decline of approximately 61%[96]. - Cash and cash equivalents decreased from HKD 367.92 million in 2023 to HKD 272.35 million in 2024, mainly due to platform traffic procurement and operational expenses[74]. - The company's net cash used in operating activities improved from HKD 237.76 million in 2023 to HKD 54.54 million in 2024, reflecting a reduction in cash outflows due to business scale contraction[78]. - The capital-to-debt ratio increased to 49.02% as of December 31, 2024, compared to 15.66% as of December 31, 2023[89]. - The current ratio decreased from 7.75 times as of December 31, 2023, to 1.86 times as of December 31, 2024[90]. Corporate Governance and Compliance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[156]. - The audit committee reviewed the consolidated financial statements for the fiscal year ending December 31, 2024, and found them compliant with applicable accounting standards and regulations[160]. - The company has adopted a standard code for securities trading by directors, and all directors confirmed compliance during the reporting period[158]. - The company has maintained sufficient public float as per listing rules[159]. - The company did not declare or propose any dividends for the year ended December 31, 2024, consistent with 2023[126].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 111.23 million, a decrease of 94.82% compared to HKD 2,148.18 million for the same period in 2023[4]. - Gross profit for the same period was HKD 0.44 million, down 99.79% from HKD 211.79 million year-over-year[4]. - The net loss attributable to owners for the period was HKD 355.20 million, an increase of 82.31% from HKD 194.83 million in the previous year[4]. - The overseas e-commerce sales revenue was HKD 32.80 million, a decline of 98.31% from HKD 1,944.14 million in the same period last year[5]. - Domestic short video e-commerce marketing transaction volume was HKD 23.18 million, down 90.91% from HKD 255.01 million year-over-year[5]. - The revenue from interactive entertainment and digital product marketing services was HKD 56.67 million in the first half of 2024, a slight increase of 2.33% from HKD 55.38 million in the same period last year[38]. - The revenue from domestic e-commerce product marketing was HKD 20.88 million in the first half of 2024, down 85.95% from HKD 148.59 million in the same period last year[39]. - The company reported a basic and diluted loss per share of HKD 14.98 for the six months ended June 30, 2024, compared to HKD 8.22 for the same period in 2023[123]. - The total comprehensive loss for the period was HKD 384,021 thousand, compared to HKD 284,947 thousand in the previous year, reflecting an increase in overall losses[123]. Business Strategy and Development - The company is focusing on technology innovation and digital business integration, leveraging its algorithm technology for overseas e-commerce operations[6]. - The company has established a mixed-ownership reform company with Poly Culture Group to explore digital asset services in the cultural entertainment sector[6]. - The company is transitioning to a light-asset strategy in its overseas e-commerce business, focusing on its self-built e-commerce platform MARTOP to optimize transaction models[21]. - The company is actively exploring AIGC applications in cultural and entertainment products, integrating AI technology into its offerings[22]. - The company is developing a Web3.0 digital asset service platform, focusing on blockchain technology for user-driven and decentralized network ecosystems[23]. - The company is focusing on the development of its self-built e-commerce platform MARTOP to meet the needs of overseas e-commerce business, with current R&D efforts aimed at team refinement and technology accumulation[40]. - The company is exploring opportunities for mergers and acquisitions to enhance its business portfolio[172]. Marketing and User Engagement - The company has established partnerships with major state-owned enterprises for online marketing, enhancing its digital marketing capabilities[11]. - The company's marketing strategies are primarily executed through well-known internet social platforms and short video platforms in mainland China[21]. - The short video marketing business is focused on e-commerce sales through major domestic and overseas short video platforms, with increasing user engagement leading to more marketing opportunities[25]. - The core service of the internet marketing segment involves assisting clients with sales and marketing through recommendation algorithms, significantly enhancing user engagement and satisfaction[27]. - The company is increasing its investment in AIGC application development to lower digital content production costs while improving quality and diversity[44]. Financial Position and Cash Flow - Cash and cash equivalents decreased to HKD 273.10 million as of June 30, 2024, from HKD 378.92 million as of June 30, 2023, reflecting a net cash outflow of HKD 41.03 million[64]. - Net cash used in operating activities was HKD 36.48 million for the six months ended June 30, 2024, a significant improvement from HKD 131.39 million for the same period in 2023[65]. - Trade receivables decreased by 29.85% to HKD 156.42 million as of June 30, 2024, from HKD 222.99 million as of December 31, 2023, primarily due to reduced revenue from performance marketing services[56]. - The company’s total equity attributable to owners decreased from HKD 1,599,342 thousand to HKD 1,249,468 thousand, a decline of about 21.9%[126]. - The company reported a net cash outflow from operating activities of HKD 36,480 thousand for the six months ended June 30, 2024, compared to HKD 131,386 thousand for the same period in 2023, indicating an improvement of approximately 72.2%[129]. Corporate Governance and Compliance - The company has adopted the corporate governance code and has complied with all applicable provisions as of June 30, 2024, except for the separation of the roles of Chairman and CEO, which are both held by Mr. Zhu[100]. - The board believes that the current governance structure does not impair the balance of power between the board and management[100]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[100]. - The company has confirmed that all directors have complied with the securities trading code during the six months ending June 30, 2024[101]. Share Incentive Plans - The company has adopted a share incentive plan on June 21, 2021, to motivate certain directors, employees, consultants, and advisors[78]. - The share incentive plan is valid for ten years unless terminated early by the board[79]. - The company has established a performance-based compensation reward plan to link employee remuneration with overall performance[77]. - The company has granted a total of 1,000 reward shares under the stock incentive plan, with 200 shares vesting during the reporting period[93]. Future Outlook and Investments - The company plans to invest HKD 106.42 million, representing 7.10% of the original net proceeds, for potential investments or acquisitions of top mobile self-media platforms[109]. - The company aims to enhance its algorithm and data collection capabilities with an investment of HKD 23.98 million, which is 1.60% of the original net proceeds[108]. - The company aims to expand its short video mobile media monetization business, with a focus on user traffic development and team expansion[111].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 111.23 million, a decrease of 94.82% compared to HKD 2,148.18 million in the same period of 2023[2]. - The gross profit for the same period was HKD 0.44 million, down 99.79% from HKD 211.79 million year-on-year[2]. - The net loss attributable to owners of the company was HKD 355.20 million, representing an increase of 82.31% compared to a loss of HKD 194.83 million in the previous year[2]. - The overseas e-commerce sales revenue was HKD 32.80 million, a significant decline of 98.31% from HKD 1,944.14 million in the prior year[3]. - The domestic short video e-commerce marketing transaction volume was HKD 23.18 million, down 90.91% from HKD 255.01 million year-on-year[3]. - The revenue from domestic e-commerce product marketing was HKD 20.88 million, down 85.95% from HKD 148.59 million in the same period last year, primarily due to a sluggish marketing environment[39]. - The company reported a total loss of HKD 366,994 thousand for the six months ended June 30, 2024, compared to a much higher loss in the previous year[86]. - The company’s revenue from e-commerce product marketing significantly dropped by 86.0% from HKD 148,586 thousand in 2023 to HKD 20,882 thousand in 2024[85]. Strategic Developments - The company has established a mixed-ownership reform company with Poly Culture Group to enhance its digital cultural and entertainment technology business[5]. - The company is developing a blockchain platform, "Poly Entertainment Technology Chain," to support digital asset services and enhance operational cash flow in overseas e-commerce[6]. - A strategic partnership was formed with ShouCang Digital Technology to create a new model in the digital collectibles space, leveraging blockchain technology for digital asset verification[7]. - The company is actively developing a short drama platform called "Red Fox," aiming to provide high-quality original content and enhance user experience in the short video sector[11]. - The company has signed a strategic cooperation agreement with Hainan Publishing and Distribution Group to enhance its short drama business, capitalizing on the booming short drama market[13]. - The company is integrating film and tourism by creating interactive entertainment and cultural IP derivative products, with initial cooperation agreements signed with multiple local governments[14]. - The company is focusing on the film and cultural industry, supported by a 50 billion RMB cultural industry fund established by the Ministry of Finance and the Publicity Department[11]. Technology and Innovation - The company is exploring AI-generated content (AIGC) applications in various entertainment sectors, including virtual digital humans and holographic display systems[8]. - The company is leveraging AIGC technology to innovate in virtual digital human services, AI video scripting, and post-production processes[21]. - The company is developing a Web3.0 platform for digital asset services in the film and entertainment sector, focusing on user-driven and decentralized network ecosystems[22]. - The company is focusing on developing AIGC technology applications to reduce digital content production costs while enhancing quality and diversity[44]. Marketing and Sales - The company has expanded its digital marketing capabilities by leveraging resources from government and state-owned enterprises, successfully collaborating with major clients like China State Construction Group and Poly Group[9]. - The core service of the algorithm marketing business is to assist clients in sales and marketing services using recommendation algorithm technology on mobile internet platforms, which is the primary revenue source for the company[26]. - The company is one of the earliest adopters of interest-based algorithm marketing in China, focusing on large and dispersed mid-to-long tail traffic for online marketing, significantly enhancing user efficiency and satisfaction[26]. - The company has made significant advancements in short video marketing, capitalizing on the growing user engagement on mobile internet platforms[24]. Financial Management - The company's cash and cash equivalents decreased to HKD 273,102 thousand from HKD 325,973 thousand, a decline of 16.1%[77]. - The group's cash flow from operating activities showed a net outflow of HKD 36.48 million for the six months ended June 30, 2024, a significant improvement from HKD 131.39 million for the same period in 2023[63]. - The company has no inventory as of June 30, 2024, down from HKD 108.68 million on December 31, 2023, due to strategic adjustments in the overseas e-commerce business[56]. - The company's total trade and other payables decreased to HKD 164,846,000 as of June 30, 2024, from HKD 204,567,000 as of December 31, 2023[103]. Corporate Governance - The board has confirmed compliance with the corporate governance code for the six months ending June 30, 2024, except for the combined roles of Chairman and CEO held by Mr. Zhu[110]. - The board will review the effectiveness of its corporate governance structure to assess the necessity of separating the roles of Chairman and CEO[110]. - The company has not been made aware of any incidents of employees not complying with the securities trading standards[110]. - The company will continue to monitor its corporate governance practices to ensure adherence to the corporate governance code[110].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 5,083.99 million, representing a 36.49% increase compared to HKD 3,724.81 million in 2022[13]. - The gross profit for 2023 was HKD 459.57 million, a 5.17% increase from HKD 436.96 million in the previous year[13]. - The net loss attributable to shareholders for 2023 was HKD 784.17 million, which is a 131.01% increase from a loss of HKD 339.45 million in 2022[13]. - The company reported a loss before tax of HKD (793,102) thousand for 2023, worsening from a loss of HKD (331,888) thousand in 2022[18]. - Total comprehensive loss for the year was HKD (844,492) thousand, compared to a loss of HKD (570,215) thousand in 2022, reflecting a 48% increase in losses[18]. - The overall gross margin decreased to 9.04% in 2023 from 11.73% in 2022, a decline of 2.69 percentage points, primarily due to the lower margin of overseas e-commerce sales[90]. E-commerce Performance - The overseas e-commerce sales amounted to HKD 4,587.90 million, marking a 47.78% increase from HKD 3,104.61 million in 2022[15]. - The sales volume for overseas e-commerce reached 3,776,891 units, a 35.21% increase from 2,793,265 units in the previous year[15]. - Revenue from overseas e-commerce sales reached HKD 4,587.90 million in 2023, accounting for 90.24% of total revenue, compared to HKD 3,104.61 million in 2022, which was 83.35% of total revenue[88]. - The company facilitated 77.95 million effective billing actions, including recharges, downloads, and installations, in its online product digital distribution business throughout 2023[36]. - The company has established a robust supply chain and inventory for overseas e-commerce sales, focusing on promoting domestic products abroad[41]. Research and Development - Research and development expenses increased by 32.67% to HKD 70.01 million from HKD 52.77 million in 2022[15]. - The group invested HKD 70.01 million in R&D in 2023, focusing on data analysis, algorithm modeling, and overseas short video platform e-commerce[78]. - The number of data models established by the group reached 192 sets as of December 31, 2023, a growth of 1.05% from 190 sets in 2022[78]. - The company is exploring AIGC applications in various innovative business areas, including virtual digital humans and AI-generated content[30]. - The company aims to increase R&D investment in AIGC and Web3.0 applications, having launched a digital asset service platform in collaboration with a state-owned enterprise[83]. Business Strategy and Transformation - The company has shifted its business model to focus on providing precise marketing traffic promotion services for overseas short video e-commerce platforms[10]. - The launch of the digital asset service platform "Kongjian" marks the company's entry into the Web 3.0 era, responding to national digital economy strategies[11]. - The company plans to shift its focus from traditional trade in 3C electronic products to a light asset business model, reducing reliance on heavy asset trading and improving operational cash flow[44]. - The company is focusing on digital transformation in the cultural industry, integrating entertainment and technology to create new digital business models[21]. - The Southeast Asian market is identified as a key growth area, with the company leveraging overseas short video platforms for marketing and sales[45]. Corporate Governance - The company has complied with all applicable corporate governance code provisions as of December 31, 2023, except for the separation of the roles of chairman and CEO[168]. - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[172]. - The company is committed to maintaining high standards of corporate governance to protect shareholder rights and enhance corporate value[167]. - The company has established three main board committees: audit committee, nomination committee, and remuneration committee[191]. - The Audit Committee reviewed the financial reporting system, compliance procedures, and risk management systems, ensuring no deviation from the recommendations regarding the external auditor[195]. Employee Incentives - The company has implemented a share incentive plan to motivate employees and align their performance with the company's growth objectives[126]. - The share incentive plan aims to motivate certain directors and employees to contribute to the group's ongoing business operations and development[138]. - The company adopted the LeXiang International Limited share incentive plan on September 28, 2023, with a total of 10,000 shares issued[137]. - The vesting period for the granted shares is at least 12 months, barring special circumstances[146]. - The company has not adopted any other employee incentive plans apart from the LeXiang International share incentive plan[141].

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 5,083.99 million, representing a 36.49% increase compared to HKD 3,724.81 million in 2022[3]. - The gross profit for the same period was HKD 459.57 million, up 5.17% from HKD 436.96 million in 2022[3]. - The net loss attributable to shareholders increased to HKD 784.17 million, a 131.01% rise from HKD 339.45 million in the previous year[3]. - The overseas e-commerce sales revenue increased by 36.49% from HKD 3,724.81 million in 2022 to HKD 5,083.99 million in 2023, driven by deep analysis of the Southeast Asian market and algorithm marketing capabilities[49]. - The company incurred a loss of HKD 793.24 million in 2023 due to investments in traffic promotion and physical subsidies in overseas markets[50]. - The company reported a net loss of HKD 793,243,000 for 2023, significantly higher than the net loss of HKD 339,120,000 in 2022[98]. - The company achieved a gross profit of HKD 459.57 million in 2023, a 5.18% increase from HKD 436.96 million in 2022, with a gross margin of 9.04%, down 2.69 percentage points from 11.73% in 2022[64]. - The gross profit from overseas e-commerce sales increased by 50.37% to HKD 282.32 million, with a gross margin of 6.15%, up 0.1 percentage points from 6.05% in 2022[64]. - Domestic business revenue decreased by 20.01% year-on-year to HKD 496.10 million due to tightened regulations on game licenses and paid literature[48]. E-commerce Operations - The overseas e-commerce sales business generated revenue of HKD 4,587.90 million, marking a 47.78% increase from HKD 3,104.61 million in 2022[4]. - The number of items sold in the overseas e-commerce segment rose by 35.21% to 3,776,891 from 2,793,265 in 2022[4]. - The overseas e-commerce platform operates on a "traffic + supply chain = GMV" model, leveraging established supply chains and inventory for international sales[24]. - The company collaborates with domestic brand suppliers to sell quality domestic products overseas, adopting a heavy asset business model for trade sales[25]. - The company is leveraging established algorithm marketing models to expand into overseas markets, particularly through its self-built e-commerce platform MARTOP[26]. - The company plans to shift its strategic focus from traditional trade in 3C electronic products to a light asset business model, reducing reliance on heavy asset trading and improving operational cash flow[28]. - The company plans to adopt a light-asset business model for its e-commerce product sales, aiming to improve operational cash flow through targeted traffic marketing services on overseas short video platforms[127]. - The company has suspended its overseas e-commerce sales operations as part of a strategic review of its e-commerce business[196]. Research and Development - Research and development expenses increased by 32.67% to HKD 70.01 million from HKD 52.77 million in the previous year[4]. - The company has developed 192 data models and utilized 2,855 data labels, reflecting its strong technical capabilities and valuable assets[20]. - The company plans to enhance R&D investment in AIGC and Web3.0 applications to improve content production efficiency and reduce costs[57]. - The company invested HKD 70.01 million in R&D in 2023, focusing on data analysis and algorithm modeling, with the number of established data models increasing by 1.05% to 192[53]. Strategic Initiatives - The company is focusing on digital asset services and has launched the "Kongjian" platform for digital asset services, which will expand into virtual and metaverse applications[9]. - The establishment of a mixed-ownership reform company with Poly Culture Group aims to integrate cultural and technological innovations in the entertainment sector[7]. - The company aims to leverage its partnership with state-owned enterprises to expand into areas like Web 3.0 and blockchain, enhancing its business scope and client base[45]. - The company is focusing on AIGC (Artificial Intelligence Generated Content) applications, exploring innovations such as virtual digital humans and AI-generated scripts[15]. - The company plans to launch its own short drama platform, leveraging its extensive IP resources and experience in short video production to provide high-quality content[18]. - The company is actively exploring AIGC applications in various fields, including virtual digital humans and AI video script generation, to enhance its cultural entertainment offerings[30]. Market Trends and Opportunities - The film and entertainment industry is expected to experience rapid growth, supported by a 50 billion RMB cultural industry fund established by the Ministry of Finance and the Publicity Department of the Communist Party of China[12]. - The digital economy in China is projected to exceed 60 trillion RMB by 2025, supported by government policies and market growth[36]. - The overseas e-commerce market, particularly through short video platforms, is in its early stages, presenting substantial growth potential[37]. - The Southeast Asian market presents significant growth opportunities due to its young population and high GDP growth rate, making it favorable for Chinese products[42]. - The company is positioned to benefit from the booming short video market, which is becoming a primary channel for marketing and sales[33]. Financial Management and Cash Flow - Cash used in operating activities improved to HKD 237.76 million in 2023 from HKD 526.29 million in 2022, reflecting better cash management despite increased inventory procurement[81]. - The company's inventory balance increased from HKD 40.25 million in 2022 to HKD 108.68 million in 2023, driven by the expansion of overseas e-commerce sales[71]. - Cash and cash equivalents decreased from HKD 572.93 million in 2022 to HKD 367.92 million in 2023, mainly due to increased funds used for inventory procurement in the expanding overseas e-commerce business[76]. - The net cash used in operating activities for the year ended December 31, 2023, was HKD (237,757,000), an improvement from HKD (526,293,000) in 2022, indicating a reduction in cash outflow[109]. - The total cash and cash equivalents at the end of 2023 decreased to HKD 325,973,000 from HKD 533,944,000 at the beginning of the year, indicating a net decrease of HKD (214,780,000)[109]. Corporate Governance and Compliance - The company has adopted the corporate governance code and confirmed compliance with all applicable provisions, except for the separation of the roles of chairman and CEO[190]. - The board emphasizes high standards of corporate governance to protect shareholder interests and enhance corporate value[189]. - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and regulations[194]. - The company maintains sufficient public float as per listing rules, ensuring compliance with regulatory requirements[192]. Future Outlook - Future guidance suggests a projected revenue growth of approximately 10% for the next fiscal year[105]. - The company plans to expand its digital marketing services and e-commerce offerings, aiming to capture a larger market share in the growing online retail sector[111].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部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。 Joy Spreader Group Inc. 樂 享 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6988） 有關截至2022年12月31日止年度之年報及 截至2023年6月30日止六個月之中期報告之 補充公告 茲提述樂享集團有限公司（「本公司」）於2023年4月27日刊發之截至2022年12月31 日止年度之年報（「2022年年報」）及本公司截至2023年6月30日止六個月之中期報 告（「2023年中期報告」）。除另有界定者外，本公告所用詞彙與2022年年報及2023 年中期報告所界定者具有相同涵義。 本公告旨在為2022年年報及2023年中期報告提供有關本公司於2021年6月21日採 納之股份獎勵計劃（「股份獎勵計劃」）的補充資料。 根據股份獎勵計劃，倘董事會根據股份獎勵計劃授出股份導致股份面值超過本公 司不時已發行股本的百分之十，董事會將不會進一步授出獎勵股份作獎勵。根 ...

Trade and Market Growth - In 2022, trade between China and ASEAN reached 6.52 trillion RMB, a year-on-year increase of 15%, with exports amounting to 3.79 trillion RMB, growing by 21.7%[1]. - The company has strategically positioned itself in the ASEAN market since 2021, benefiting from the region's trade growth, which has averaged 99% annually over the past decade[86]. - Southeast Asia's e-commerce retail market reached $154.8 billion in 2022, growing by 20.7% year-on-year, and is expected to reach $188.6 billion in 2023[123]. - The company has strategically positioned itself in the Southeast Asian e-commerce market, leveraging the growth potential of trade partnerships with China[63]. - The company is focusing on the integration of digital algorithm technology with the cultural and entertainment industry, aiming to capitalize on emerging opportunities in the sector[69]. Financial Performance - The company’s revenue for the six months ended June 30, 2023, was HKD 2,148.18 million, representing a 57.18% increase compared to HKD 1,366.71 million for the same period in 2022[58]. - Gross profit for the same period was HKD 211.79 million, up 12.38% from HKD 188.46 million year-on-year[58]. - The company reported a loss attributable to owners of HKD 194.83 million, compared to a profit of HKD 75.48 million in the previous year, indicating a significant decline[58]. - The net loss margin was (9.07)%, a decrease of 14.59 percentage points from a profit margin of 5.52% in the prior year[58]. - The company reported a credit loss provision of HKD 12,744,000 for the six months ended June 30, 2023, compared to HKD 8,396,000 for the same period in 2022, indicating an increase of approximately 51.5%[150]. E-commerce and Sales - In the first half of 2023, the company recorded overseas e-commerce sales of HKD 1,944.14 million, a 90.36% increase from HKD 1,021.27 million in the same period last year[26]. - The sales volume for overseas e-commerce reached 1,432,074 units, representing a 76.06% increase compared to 813,415 units in the previous year[45]. - The company achieved a sales volume of 1,432,074 units and sales revenue of HKD 1,944.14 million in the first half of 2023, representing a year-on-year growth of 90.36%[131]. - The company has established a complete online and offline sales system through the MARTOP e-commerce platform, enhancing its supply chain capabilities[51]. - The company has initiated sales of non-mobile electronic consumer products, such as tablets, on the MARTOP platform, successfully breaking sales records and capturing more market share[15]. Technological Development - The group has developed 192 data models tailored for different products and media, with 2,855 data labels applied in algorithm models, showcasing its technological capabilities[22]. - The group is leveraging AI technology and has developed a digital holographic display system, integrating AIGC with holographic display technology for various market applications[18]. - The company is actively exploring innovations in the AIGC field, successfully developing a digital holographic display system that integrates AIGC with holographic display technology[31]. - The AIGC (AI-Generated Content) project is accelerating development, covering areas such as digital human interaction, voice services, and design services, aiming to enhance content production efficiency and reduce costs significantly[99][100]. - The digital holographic display system is positioned as a breakthrough technology for creating virtual worlds, integrating digital twin and AI technologies[109]. Market Strategies and Collaborations - The company has implemented a market subsidy program since the second half of last year to boost sales volume in the ASEAN market[30]. - The company has established a strategic partnership with Poly Culture Group, participating in its mixed-ownership reform, enhancing business collaboration[126]. - The company is actively collaborating with state-owned enterprises to expand its presence in the film and entertainment industry[48]. - The company is leveraging AI technology to create new content production methods, enhancing competitiveness in the cultural digitalization industry[128]. - The company is focusing on IP incubation and digital asset services through its Web3.0 initiatives, enhancing its entertainment technology business[119]. Challenges and Financial Adjustments - The company reported a net impairment loss of HKD 28.64 million for trade receivables and other receivables in the first half of 2023, compared to HKD 3.95 million in the same period of 2022[140]. - The company has recognized right-of-use assets and lease liabilities of HKD 11.53 million for new lease agreements in the first half of 2023[144]. - The company has returned a deposit of HKD 200 million for not conducting business in certain countries as of June 30, 2023[148]. - The company’s total liabilities decreased to HKD 199,181,000 as of June 30, 2023, from HKD 294,332,000 as of December 31, 2022, indicating a reduction of approximately 32.3%[156]. - Other income decreased by 69.63% from approximately HKD 20.25 million for the six months ended June 30, 2022, to approximately HKD 6.15 million for the same period in 2023, mainly attributed to investment income from film and television projects recorded in the prior year[189].

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之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 Joy Spreader Group Inc. 樂 享 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：6988) 截至2023年6月30日止六個月之 中期業績公告 樂享集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈，本公司及 其附屬公司（「樂享集團」或「本集團」）截至2023年6月30日止六個月（「報告期」） 之未經審核簡明綜合中期業績，連同截至2022年6月30日止六個月之比較數據如 下： 財務業績摘要 截至6月30日止六個月 同比變動 2023年 2022年 增加╱（減少） （未經審核） （未經審核） （百萬港元，百分比除外） 收益 2,148.18 1,366.71 57.18% ...

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 3,724.81 million, representing a 166.84% increase compared to HKD 1,395.89 million in 2021[81]. - The gross profit for the same period was HKD 436.96 million, a slight decrease of 3.30% from HKD 451.85 million in 2021[81]. - The net loss attributable to shareholders was HKD (339.45) million, compared to a profit of HKD 244.64 million in 2021, indicating a significant shift in performance[81]. - The net profit margin was reported at (9.11)%, down from 17.53% in the previous year, reflecting a decline of 26.64 percentage points[81]. - Basic and diluted loss per share was HKD (15.03), compared to earnings of HKD 11.30 in 2021, marking a substantial change in earnings per share[81]. - The company's domestic business revenue decreased by 50.31% year-on-year to 620.20 million HKD due to the impact of domestic pandemic and regulatory issues, but it remained profitable[168]. - The company incurred a loss of 339.12 million HKD in 2022 due to a physical subsidy of 322.96 million HKD for expanding overseas e-commerce sales, compared to a profit of 244.64 million HKD in 2021[167]. Research and Development - R&D expenses decreased by 26.49% from HKD 71.79 million in 2021 to HKD 52.77 million in 2022, primarily due to increased investment in independent site development and digital supply chain for overseas e-commerce in the first half of 2022[2]. - The company is increasing its investment in research and development to enhance algorithm technology and maintain a competitive edge in the digital economy[78]. - The group plans to continue investing in R&D to support the rapid development of its overseas e-commerce sales business, particularly in data analysis and algorithm modeling[176]. - The group aims to increase investment in AIGC (Artificial Intelligence Generated Content) to improve content production efficiency and reduce costs significantly[195]. - The company has developed 190 data models and utilized 2,823 data labels in its algorithm marketing business, reflecting its strong technical capabilities[153]. - The company is accelerating the R&D of its AIGC project, which aims to enhance content production efficiency and reduce costs in various fields[151]. E-commerce and Market Expansion - The company is focused on expanding its overseas e-commerce business and enhancing its digital capabilities[2]. - The overseas e-commerce product sales business generated sales of HKD 3,104.61 million, a significant increase of 1,999.55% compared to HKD 147.87 million in 2021[83]. - The sales volume reached 2,793,265 units, representing a growth of 2,000.74% from 132,966 units in the previous year[83]. - The group recorded overseas e-commerce sales revenue of HKD 3,104.61 million, with a sales volume of 2,793,265 items, indicating significant growth in this segment, particularly in Southeast Asia[169]. - The company aims to create a globally competitive e-commerce platform for electronic consumer goods, targeting both domestic and overseas markets[121]. - The group aims to become the largest e-commerce platform in the Southeast Asian consumer electronics vertical within the next five years, focusing on expanding sales networks and enhancing supply chain systems[196]. Corporate Governance - The group plans to continue enhancing its corporate governance to protect shareholder interests and improve transparency[33]. - The board will continue to review and monitor the company's corporate governance practices to ensure compliance with governance codes and maintain high standards of corporate governance[55]. - The board has adopted a diversity policy to achieve a diverse board composition[34]. - The board is responsible for overseeing all major matters of the company and delegates daily operational and management powers to the management team[56]. Legal and Risk Management - The group had no significant legal, arbitration, or administrative litigation that could adversely affect its business or financial condition as of December 31, 2021, and December 31, 2022[12]. - There is currently no foreign exchange hedging policy in place, but management monitors foreign exchange risks[15]. Marketing and User Engagement - The entertainment content on mobile internet platforms attracts significant user traffic, indicating potential for business growth in areas such as content commercialization and interactive gaming[58]. - The company's algorithm marketing business primarily generates revenue through e-commerce sales on well-known short video platforms, both domestically and internationally[136]. - The company is leveraging its unique IP and content to cultivate proprietary traffic, aiming to reduce external traffic acquisition costs[125]. - The group aims to leverage its data collection and analysis capabilities to enhance marketing effectiveness and efficiency in new media commercial activities[179]. Financial Position - Non-current assets increased to HKD 423.09 million from HKD 155.62 million in 2021, reflecting a growth of 171.5%[85]. - Current assets rose to HKD 2,375.23 million, compared to HKD 2,304.65 million in 2021, indicating a growth of 3.07%[85]. - The group's cost of revenue increased by 248.27% from HKD 944.04 million in 2021 to HKD 3,287.84 million in 2022, mainly due to the rapid growth of overseas e-commerce sales[198]. - The gross margin decreased from 32.37% in 2021 to 11.73% in 2022, primarily due to the lower gross margin contribution from the overseas e-commerce sales business[200].