Financial Performance - The company recorded total revenue of approximately HKD 24,100,000 for the nine-month period ending March 31, 2022, compared to HKD 18,000,000 for the same period in 2021, representing a year-over-year increase of approximately 34%[4] - The loss attributable to the company's owners for the nine-month period was approximately HKD 77,000,000, an improvement from a loss of HKD 110,500,000 in the previous year, indicating a reduction in losses by about 30%[4] - Revenue from the entertainment business was approximately HKD 19,800,000, up from HKD 13,100,000 in the previous year, reflecting a growth of approximately 51%[4] - The company's revenue for the three months ended March 31, 2022, was HKD 4,031,000, a decrease of 9.4% compared to HKD 4,450,000 in the same period of 2021[11] - For the nine months ended March 31, 2022, revenue increased to HKD 24,085,000, up 33.5% from HKD 18,033,000 in the previous year[11] - The net loss for the nine months ended March 31, 2022, was HKD (77,106,000), a decrease of 30.7% from HKD (111,149,000) in the same period of 2021[11] - Basic and diluted loss per share for the nine months was HKD (21.91 cents), an improvement from HKD (40.72 cents) in the previous year[13] - The total comprehensive loss for the nine months ended March 31, 2022, was HKD (77,229,000), a decrease from HKD (135,486,000) in the same period of 2021[13] Financial Management and Strategy - The company has been actively negotiating with financing providers to waive certain repayment terms and covenants to manage liquidity needs[6] - The company is exploring the possibility of selling certain assets, including non-core assets, to improve its financial situation[10] - The company aims to improve the speed of recovering outstanding trade receivables and other receivables[10] - The company is in discussions with convertible bondholders regarding potential actions, including repayment and refinancing[27] Operational Challenges - The ongoing impact of COVID-19, particularly the rapid spread of the Omicron variant, continues to pose challenges to the company's future business development[5] - The operational agreement with a business partner for developing the HMV brand remains uncertain following the liquidation of HMV Marketing Limited[9] - The company has implemented measures to accelerate the release of certain films to significantly increase cash flow[10] Share Capital and Equity - As of March 31, 2022, the company's issued share capital remained unchanged at 390,607,779 shares[8] - As of March 31, 2022, total equity amounted to HKD 1,260,620,000, reflecting a decrease from HKD 1,189,483,000 as of July 1, 2021[20] - The company’s accumulated losses reached HKD 3,612,380,000 as of March 31, 2022[20] - The company’s equity attributable to owners decreased from HKD 726,585,000 to HKD 1,228,143,000 over the reported periods[20] Corporate Governance - The company has established a remuneration committee consisting of three independent non-executive directors and one executive director to review and recommend compensation policies for directors and senior management[36] - The audit committee, comprising three independent non-executive directors, has reviewed the unaudited consolidated results for the nine-month period, ensuring compliance with applicable accounting standards[35] - The company has adhered to all corporate governance codes as per GEM listing rules during the nine-month period, enhancing transparency and accountability to shareholders[33] - The chairman and CEO positions are held by the same individual, which the board believes strengthens leadership and efficiency in strategic planning[34] - The company has a nomination committee that prioritizes candidates based on relevant experience, skills, and time commitment for board recommendations[37] - All directors have complied with the trading standards set forth in the company's securities trading code throughout the nine-month period[38] - No repurchase, sale, or redemption of the company's listed securities occurred within the nine-month period[39] - The board of directors includes executive and independent non-executive members, with the chairman being Mr. Xiao Dingyi[40] Stock Options - The new share option plan approved on July 9, 2014, allows for the issuance of up to 10% of the total ordinary shares as of the approval date[29] - The company issued 1,192,000 shares during the placement, resulting in a total of HKD 6,448,000 in transaction costs[20] - The company’s new stock option plan is valid for ten years from the adoption date, with no minimum holding period specified[30] - The new stock option plan allows the company to grant options to eligible participants as a reward for their contributions, with a maximum of 30% of the issued share capital available for unexercised options[30] - The company’s board can grant stock options to full-time or part-time employees, directors, suppliers, customers, and consultants, with the total number of options granted in any 12-month period not exceeding 1% of the issued share capital[30] - The exercise price for the stock options will be determined by the board but cannot be lower than the higher of the share's par value, the closing price on the grant date, or the average closing price over the five trading days preceding the grant date[30]

Financial Performance - The company recorded total revenue of approximately HKD 20,100,000 for the six-month period ending December 31, 2021, compared to HKD 13,600,000 for the same period in 2020, representing a year-over-year increase of approximately 47%[4] - The loss attributable to the owners of the company for the six-month period was approximately HKD 49,200,000, an improvement from a loss of HKD 57,900,000 in the previous year[4] - Revenue from the entertainment business was approximately HKD 17,300,000, up from HKD 10,600,000 in the previous year, indicating a growth of about 63%[4] - The company reported revenue of HKD 13,812,000 for the three months ended December 31, 2021, compared to HKD 3,753,000 for the same period in 2020, representing a growth of 268%[15] - For the six months ended December 31, 2021, revenue was HKD 20,054,000, an increase of 48% from HKD 13,583,000 in the same period of 2020[15] - The company reported a total comprehensive loss of HKD 49,395,000 for the six months ended December 31, 2021, compared to a loss of HKD 58,514,000 for the same period in 2020, indicating an improvement of approximately 15.5%[21] Debt and Liquidity - The total borrowings of the group as of December 31, 2021, amounted to approximately HKD 1,069,400,000, an increase from HKD 991,900,000 as of June 30, 2021[8] - The group's debt-to-asset ratio was reported at 1,200% as of December 31, 2021, down from 2,082% as of June 30, 2021, indicating improved financial leverage[8] - The company is actively negotiating with financing providers to manage liquidity needs and improve its financial condition[6] - The company is exploring the possibility of selling certain assets, including non-core assets, to enhance liquidity[10] - As of December 31, 2021, the total current liabilities amounted to HKD 1,321,889,000, an increase from HKD 1,236,828,000 as of June 30, 2021, representing a growth of approximately 6.9%[20] Cash Flow and Assets - The company had a net cash balance of HKD 7,941,000 as of December 31, 2021, compared to HKD 4,686,000 as of June 30, 2021, reflecting an increase of 69%[18] - The total assets of the company amounted to HKD 67,782,000 as of December 31, 2021, significantly up from HKD 26,327,000 as of June 30, 2021[18] - The cash and cash equivalents at the end of the period increased to HKD 7,941,000 from HKD 4,188,000, marking a growth of 89.5%[22] - The total liabilities as of December 31, 2021, were HKD 1,232,786,000, compared to HKD 1,189,483,000 as of June 30, 2021, indicating an increase of approximately 3.6%[20] Operational Changes - The company plans to invest more resources in media content creation, film production, and distribution to adapt to the rapid development of global media content[5] - The company aims to accelerate the release of certain films to significantly increase cash flow[10] - The company reported a decrease in employee count from 29 to 27 as of December 31, 2021[12] - The company has faced uncertainties regarding its operational agreements following the liquidation of its subsidiary, HMV Marketing Limited[13] Share Capital and Equity - The company completed a placement of 65,000,000 shares at HKD 0.05 per share on November 26, 2021, increasing the total number of issued shares from 325,607,779 to 390,607,779[10] - The total equity attributable to owners of the company as of December 31, 2021, was HKD (1,200,339,000), a slight increase from HKD (1,157,106,000) as of June 30, 2021[21] - The company issued shares during the period, resulting in an increase in share capital to HKD 3,906,000 from HKD 2,714,000[21] - The company does not recommend the payment of an interim dividend for the six-month period ended December 31, 2021[57] Corporate Governance - The company has confirmed compliance with the trading standards set forth in GEM Listing Rules during the six-month period[69] - The company has adhered to all corporate governance codes as per GEM Listing Rules during the reporting period[70] - The chairman and CEO positions are held by the same individual, which the board believes does not undermine the balance of power and responsibilities[71] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[73] - The audit committee has reviewed the unaudited interim results for the six-month period, confirming compliance with applicable accounting standards and sufficient disclosure[76] Investments and Financial Instruments - The company subscribed to convertible notes issued by Maventus Group Inc. with a principal amount of USD 500,000 (approximately HKD 3,900,000) at an annual interest rate of 10%[50] - The fair value of film and television series investments is determined based on expected returns and market data[49] - The company has not recognized any conversion rights for the Maventus notes due to the issuer not initiating the next equity financing[50] Employee and Operational Costs - The company’s employee costs totaled HKD 2,938,000 for the six months ended December 31, 2021, a decrease from HKD 6,400,000 in the previous year, reflecting a reduction in operational expenses[34] - The total operating expenses for the six months ended December 31, 2021, were HKD 11,952,000, compared to HKD 8,385,000 in the previous year, an increase of 42.5%[32]