Financial Performance - The group's total revenue increased from approximately RMB 95,217,000 in the previous year to approximately RMB 97,941,000, representing a growth of about 2.9%[9] - The overall loss attributable to the company's owners decreased to approximately RMB 110,464,000, down by about RMB 36,502,000 or 24.8% compared to last year's loss of RMB 146,966,000[9] - Gross profit increased by approximately RMB 10,482,000 or 153.4%, rising from RMB 6,835,000 to RMB 17,317,000, with the gross profit margin improving from 7.2% to 17.9%[14] - The increase in revenue was primarily driven by the recovery of the prepaid card and film and entertainment investment businesses[14] - Other income decreased by approximately RMB 856,000 or 27.4% from last year's RMB 3,121,000 to this year's RMB 2,265,000, primarily due to a reduction in bank interest income[26] - Selling and distribution expenses decreased by approximately 22.2% from last year's RMB 6,057,000 to this year's RMB 4,715,000, attributed to effective cost control measures implemented during the year[28] - Administrative expenses increased by approximately 7.4% from last year's RMB 26,189,000 to this year's RMB 28,140,000, mainly due to increased public relations and corporate expenses[30] Business Segments - The flat media advertising segment recorded a loss of approximately RMB 1,000, significantly reduced from a loss of approximately RMB 463,000 in the previous year, mainly due to effective cost-cutting measures[16] - Outdoor and digital advertising revenue decreased by approximately RMB 4,250,000 or 6.7% from last year's RMB 63,559,000 to this year's RMB 59,309,000, primarily due to intense industry competition during the Double Eleven shopping festival[19] - Film and entertainment investment revenue increased by approximately RMB 4,716,000 or 40.0% from last year's RMB 11,785,000 to this year's RMB 16,501,000, reflecting a gradual recovery in the industry compared to the early stages of the COVID-19 pandemic[20] - The film and entertainment segment reported a loss of approximately RMB 100,247,000 this year, an increase of approximately RMB 8,609,000 or 9.4% compared to last year, mainly due to impairment of film and entertainment prepayments of approximately RMB 65,395,000[20] - Prepaid card business revenue increased by approximately RMB 3,107,000 or 16.3% from last year's RMB 19,024,000 to this year's RMB 22,131,000, driven by an increase in sales channels and customer numbers[25] Corporate Governance - The company has maintained high levels of corporate governance to meet shareholder expectations and comply with GEM listing rules[45] - The board of directors consists of a balanced mix of executive and independent non-executive directors, ensuring compliance with GEM listing rules regarding independent directors[49] - The company has adopted a code of conduct for securities trading by directors, confirming compliance by all directors during the year[46] - The company has implemented a board diversity policy, recognizing the benefits of a diverse board for improving performance[60] - The board diversity policy includes measurable objectives related to gender, ethnicity, age, and tenure, which are regularly reviewed[62] - The chairman and CEO roles are separated to ensure a balance of power and authority within the company[55] - The company will continue to review its corporate governance practices to enhance standards and meet regulatory requirements[45] Risk Management - The company maintains a robust internal control and risk management system, reviewed by the audit committee[72] - The board is responsible for establishing, maintaining, and reviewing the group's risk management and internal control systems[90] - The group has developed a risk management policy that outlines the identification, assessment, and management processes for major business risks[91] - An external consultant was hired to conduct an annual review of the group's risk management and internal control systems, with no significant concerns identified[92] - Each department is responsible for identifying and assessing major risks quarterly and developing plans to manage identified risks[93] Environmental and Social Responsibility - The total greenhouse gas emissions for the group in 2021 were 6.5 tons of CO2 equivalent, a decrease of 61% from 16.6 tons in 2020, resulting in a reduction in emissions density from 0.46 tons to 0.17 tons per employee[112] - The total energy consumption for the group in 2021 was 17.7 MWh, down 46% from 32.6 MWh in 2020, with energy consumption density decreasing from 0.91 MWh to 0.45 MWh per employee[121] - The group has implemented various environmental measures, including the installation of LED lights, to enhance energy efficiency and reduce greenhouse gas emissions[121] - The group emphasizes corporate social responsibility and sustainable development, actively engaging with stakeholders to enhance operational transparency[106] - The group has adopted a waste reduction philosophy, promoting recycling and efficient resource use in daily operations[117] - The company is committed to improving waste management mechanisms despite its minimal direct environmental impact[127] Employee and Workplace Practices - The company employed a total of 39 employees as of December 31, 2021, down from 52 employees in 2020, with total employee costs of approximately RMB 11,105,000[42] - The employee count at the end of the reporting period was 39, a decrease from 52 in 2020, with 37 being full-time employees[133] - 51% of employees are female and 49% are male, with 41% located in China and 13% in Hong Kong[134] - The company provided training to 20 employees in Hong Kong, representing 51% of the workforce, with an average training duration of approximately 1.35 hours for females and 1.58 hours for males[140] - There were no reported fatalities or serious workplace accidents in the past three years, maintaining a fatality rate of 0%[139] - The company encourages a family-friendly work environment, providing various leave benefits and establishing breastfeeding rooms for employees[135] Shareholder Communication - Multiple communication channels have been established for shareholders and investors, including annual meetings and reports[95] - The group has established communication channels with stakeholders, including annual reports and shareholder meetings, to address their concerns and interests[107] - The company has a dividend policy in place since January 1, 2019, to establish appropriate dividend and recommendation procedures[102] - The board will consider the declaration of dividends based on the company's actual and expected financial performance, cash flow, and overall business conditions[103] - The group will regularly review and reassess its dividend policy and its effectiveness[104] Supplier and Customer Relations - The company has a total of 26 suppliers, primarily from China, reflecting its focus on the Chinese market[145] - The group reported that sales to the top five customers accounted for approximately 60.2% of total sales for the year, up from 50.6% in 2020, with the largest customer contributing about 29.0% of total sales, compared to 17.3% in 2020[189] - The group’s major suppliers accounted for approximately 45.1% of total sales costs, an increase from 30.8% in 2020, with the largest supplier contributing about 14.9% of total sales costs, compared to 9.1% in 2020[189] - The company received five complaints regarding products and services during the reporting period, which were addressed by the customer service department[149]

Financial Performance - The company's revenue for the nine months ended September 30, 2021, was RMB 85,711,000, representing a 18.5% increase from RMB 72,370,000 in the same period of 2020[4] - Gross profit for the nine months ended September 30, 2021, was RMB 10,487,000, up 8.6% from RMB 9,656,000 in the previous year[4] - The net loss before tax for the nine months ended September 30, 2021, was RMB 4,075,000, a significant improvement compared to a loss of RMB 34,737,000 in the same period of 2020[4] - The company reported a net profit of RMB 519,000 for the third quarter of 2021, compared to a loss of RMB 8,229,000 in the third quarter of 2020[4] - Total comprehensive income for the third quarter of 2021 was RMB 2,508,000, compared to a loss of RMB 17,305,000 in the same quarter of 2020[4] - The net loss attributable to shareholders for the nine months ended September 30, 2021, was RMB 4,061,000, a significant improvement from a loss of RMB 34,660,000 in the same period of 2020[24] - Basic and diluted loss per share for the nine months ended September 30, 2021, was RMB 0.0059, compared to a loss of RMB 0.0595 per share in 2020[24] Revenue Breakdown - Total revenue for the nine months ended September 30, 2021, was RMB 85,711,000, an increase of 18.9% compared to RMB 72,370,000 for the same period in 2020[17] - Outdoor and digital advertising revenue reached RMB 56,683,000, up 14.1% from RMB 49,596,000 in 2020[17] - Film and entertainment investment revenue increased significantly to RMB 12,907,000, compared to RMB 7,213,000 in the previous year, representing an increase of 78.5%[17] - Prepaid card revenue also saw growth, totaling RMB 16,121,000, compared to RMB 15,247,000 in 2020, marking a 5.7% increase[17] - Revenue from outdoor and digital advertising rose by approximately RMB 7,087,000 or 14.3% to RMB 56,683,000, primarily due to an increase in the number of clients[31] - Revenue from film and entertainment investments increased by approximately RMB 5,694,000 or 78.9% to RMB 12,907,000, reflecting a gradual recovery in the industry[33] - Prepaid card business revenue grew by approximately RMB 874,000 or 5.7% to RMB 16,121,000[34] Expenses and Cost Management - The company incurred administrative expenses of RMB 12,593,000 for the nine months ended September 30, 2021, down from RMB 36,365,000 in the previous year, indicating cost control measures[4] - Financial costs for the six months ended September 30, 2021, amounted to RMB 910,000, compared to RMB 276,000 in 2020, indicating a significant increase[20] - Total sales cost increased by approximately RMB 12,510,000 or 19.9% to RMB 75,224,000, mainly due to rising costs in outdoor and digital advertising and film production[35] - Other income for the nine months ended September 30, 2021, was RMB 1,235,000, compared to RMB 2,337,000 in the same period of 2020[4] - Other income decreased by approximately RMB 1,102,000 or 47.2% to RMB 1,235,000, primarily due to a reduction in bank interest income[36] - Administrative expenses decreased by approximately RMB 23,772,000 or 65.4% to RMB 12,593,000, mainly due to costs related to the sale of a subsidiary recognized in the previous year[41] Future Plans and Business Development - The company plans to continue expanding its outdoor and digital advertising services, as well as its film and entertainment investments[11] - The company plans to continue focusing on business development in outdoor and digital advertising as well as prepaid card services, while actively seeking growth opportunities despite ongoing impacts from COVID-19[44] Shareholder Information - As of September 30, 2021, Mr. Ruan Deqing holds 57,602,000 shares, representing approximately 8.33% of the company's issued share capital[49] - The company has a total of 57,600,000 unexercised share options under the new share option scheme as of September 30, 2021[55] - The major shareholders include Lin Pintong and Ruan Deqing, each holding 57,602,000 shares, equating to 8.33% of the issued share capital[52] - The company’s shareholding structure indicates that 48.73% of the issued share capital of Li Zhong Limited is owned by Xie Wang Limited[49] Compliance and Governance - The company has adopted a code of conduct for securities trading by directors, which complies with GEM Listing Rules[54] - The audit committee has been established in accordance with GEM Listing Rules and corporate governance codes, consisting of three independent non-executive directors[59] - The audit committee reviewed the unaudited performance for the nine months ending September 30, 2021, and confirmed compliance with applicable accounting standards and GEM Listing Rules[59] - The chairman of the audit committee, Ms. Zheng Xueli, possesses appropriate professional qualifications and expertise in accounting and financial management[59] - The company confirms compliance with the standards of the code of conduct for securities trading during the nine-month period ended September 30, 2021[54] Tax and Accounting Policies - The company has not made any tax provisions for the period due to sufficient tax losses carried forward to offset estimated taxable profits[21] - The company applied new and revised International Financial Reporting Standards effective from January 1, 2021, with no significant impact on its accounting policies or reported amounts[14] - The company did not declare any dividends for the nine months ended September 30, 2021, consistent with the previous year[23] Events After Reporting Period - The company has not reported any significant events after the reporting period up to the date of the quarterly report[56] - No share options were granted, exercised, expired, or cancelled under either the old or new share option schemes during the nine months ended September 30, 2021[55]

2021 中期報告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。 有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司通常為中小公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市 場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完備性亦無發表任何聲明， 並明確表示不會就因本報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。 本報告（中國三三傳媒集團有限公司（「本公司」）的董事（「董事」）願共同及個別地承擔全部責任）乃遵照聯 交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關本公司的資料。本公司董事在作出一切 合理查詢後，確認就其所深知及確信，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分， 且並無遺漏任何事項，以致本報告所載任何陳述或本報告產生誤導。 目錄 | 簡明綜合損益及其他全面收入報表 | 3 | | ...

Financial Performance - The company's revenue for the three months ended March 31, 2021, was RMB 428.571 million, representing a 91.7% increase compared to RMB 224.43 million in the same period of 2020[4] - Gross profit for the same period was RMB 5.039 million, up from RMB 2.699 million year-over-year, indicating a significant improvement in profitability[4] - The company reported a pre-tax loss of RMB 1.272 million, which is an improvement from a loss of RMB 2.641 million in the previous year[4] - The total comprehensive income for the period was RMB 328,000, compared to RMB 1.121 million in the same period last year, reflecting a decrease in overall profitability[4] - Basic and diluted loss per share for the period was RMB 0.18, compared to RMB 0.04 in the previous year, indicating a worsening in per-share performance[6] Expenses and Costs - The company incurred selling and distribution expenses of RMB 2.488 million, which increased from RMB 1.508 million in the previous year, suggesting higher costs associated with sales efforts[4] - Administrative expenses rose to RMB 6.583 million from RMB 4.697 million year-over-year, indicating increased operational costs[4] - The company incurred interest expenses of RMB 304,000 for the three months ended March 31, 2021, compared to RMB 25,000 in the previous year[20] - Administrative expenses increased by approximately RMB 1,886,000 or 40.2% to RMB 6,583,000 for the three months ended March 31, 2021, compared to RMB 4,697,000 in the same period last year, primarily due to increased legal and professional fees and expenses related to office relocation[35] Revenue Breakdown - Total revenue for the three months ended March 31, 2021, was approximately RMB 28,571,000, an increase of about RMB 6,128,000 or 27.3% compared to RMB 22,443,000 for the same period in 2020[26] - Gross profit increased by approximately RMB 2,340,000 or 86.7% to about RMB 5,039,000, with a gross margin rising from approximately 12.0% to about 17.64%[26] - Outdoor and digital advertising revenue rose by approximately RMB 1,872,000 or 10.5% to RMB 19,633,000, driven by an increase in the number of clients[28] - Film and entertainment investment revenue increased by approximately RMB 3,760,000 or 100%, reflecting a recovery in the industry post-COVID-19[31] - Prepaid card revenue grew by approximately RMB 608,000 or 13.3% to RMB 5,178,000, attributed to an increase in prepaid card sales and related transaction fees[32] Other Income and Losses - The company recorded other income of RMB 407,000, down from RMB 722,000 in the previous year, reflecting a decline in additional revenue sources[4] - The foreign exchange gain from overseas operations was RMB 1.6 million, compared to a gain of RMB 3.771 million in the previous year, indicating a decrease in currency-related income[4] - Other income and losses increased by approximately RMB 2,489,000 or 1,481.6%, mainly due to fair value gains on financial assets[33] Shareholder Information - As of March 31, 2021, the major shareholder, Mr. Ruan Deqing, held 63,362,000 shares, representing approximately 9.17% of the total shareholding[44] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2021[41] Corporate Governance - The company maintained compliance with the corporate governance code, except for a specific provision regarding the appointment of non-executive directors[39] - The company is committed to maintaining high standards of corporate governance for the benefit of shareholders[39] - The company has adopted a code of conduct for directors' securities trading, confirming compliance with relevant regulations as of March 31, 2021[50] Employee Information - Total employee costs, including directors' remuneration, were approximately RMB 2,472,000 for the three months ended March 31, 2021, compared to RMB 2,375,000 in 2020[37] - The group employed a total of 45 employees in China and Hong Kong as of March 31, 2021, down from 49 employees in 2020[37] Future Outlook - The company will continue to focus on business development in outdoor and digital advertising, as well as prepaid card businesses, while actively seeking growth opportunities despite the ongoing impact of COVID-19[38] - The group will continue to monitor the development of the COVID-19 pandemic and implement appropriate measures to mitigate its negative impact on business performance[38] Audit and Compliance - The audit committee reviewed the unaudited performance for the three months ending March 31, 2021, and confirmed compliance with applicable accounting standards and GEM listing rules[53] - No significant events occurred after the reporting period up to the date of this report[52] - The company has no significant contingent liabilities as of March 31, 2021[37]

Financial Performance - The group's revenue increased from approximately RMB 79,568,000 in the previous year to RMB 95,217,000, representing a growth of about 19.7%[10] - The total comprehensive loss attributable to the owners of the company was approximately RMB 146,966,000, an increase of about RMB 83,026,000 or 129.8% compared to last year's loss of RMB 63,940,000[10] - Revenue from outdoor and digital advertising grew by 42.0% to RMB 63,559,000, accounting for 66.7% of total revenue[16] - Revenue from prepaid card business increased by 31.6% to RMB 19,024,000, representing 20.0% of total revenue[16] - Revenue from film and entertainment investment decreased by 38.6% to RMB 11,785,000, contributing 12.4% to total revenue[16] - Print media advertising revenue decreased by approximately RMB 285,000 or 25.1% to about RMB 849,000, primarily due to a reduction in the number of clients advertising in the magazine "Travel Companion"[17] - Outdoor and digital advertising revenue increased by approximately RMB 18,785,000 or 42.0% to about RMB 63,559,000, driven by an increase in clients for digital advertising[20] - Film and entertainment investment revenue decreased by approximately RMB 7,424,000 or 38.6% to RMB 11,785,000, significantly impacted by the COVID-19 pandemic leading to cinema closures[21] - The film and entertainment segment recorded a loss of approximately RMB 91,638,000, an increase of about RMB 27,930,000 or 43.8% compared to the previous year, primarily due to impairment provisions for film rights[21] - Other income rose to approximately RMB 3,121,000 from RMB 1,482,000, mainly due to government subsidies and increased interest income[27] Business Strategy and Outlook - The company plans to focus on the development of outdoor and digital advertising as well as prepaid card business in 2021[11] - The company has obtained a new license for its prepaid card business, expecting revenue growth in this segment for 2021[11] - The impact of the COVID-19 pandemic may continue to affect the company's financial performance in 2021[11] - The company aims to strengthen cost control and take appropriate measures to promote business development amid adverse conditions[11] - The management expresses confidence in creating better performance and greater value returns for shareholders and employees in the future[12] Expenses and Financial Position - Selling and distribution expenses increased by approximately 9.7% to about RMB 6,057,000, primarily due to higher marketing costs[29] - Administrative expenses increased by approximately 19.8% to about RMB 26,189,000, mainly due to increased public relations costs[30] - As of December 31, 2020, the group's cash and cash equivalents increased by approximately RMB 491,000 or 2.6% to about RMB 19,064,000[35] - As of December 31, 2020, the group's net asset value was approximately RMB 236,802,000, a decrease of about 34.7% from RMB 362,711,000 in 2019[43] - Restricted cash increased by approximately 42.8% to RMB 123,035,000 as of December 31, 2020, compared to RMB 86,153,000 in 2019, due to an increase in prepaid card sales[37] - The total employee cost for the year was approximately RMB 10,255,000, an increase from RMB 9,589,000 in 2019[45] - The group reported a significant increase in trade payables to approximately RMB 147,380,000 from RMB 109,132,000 in 2019[43] - The group’s current assets were approximately RMB 363,362,000, down from RMB 413,162,000 in 2019, with a net current asset value of RMB 200,167,000[43] Corporate Governance - The board of directors has confirmed the independence of all independent non-executive directors as per GEM listing rules[53] - The board of directors is responsible for major decisions, including policies, strategies, budgets, and risk management systems[57] - The chairman and CEO roles are separated to ensure a balance of power and authority within the company[58] - One-third of the directors must retire at each annual general meeting, with a minimum three-year term for re-election[59] - The board has adopted a diversity policy to enhance performance efficiency, considering various factors such as skills, experience, and gender[62][63] - The board's diversity policy has been effectively implemented, with ongoing monitoring by the nomination committee[67] - All directors have participated in continuous professional development to ensure compliance with corporate governance codes[72] - The audit committee, established in December 2010, reviews financial statements and risk management systems, holding five meetings in the past year[74] - The audit committee members had a 100% attendance rate for all meetings held, with each member attending 5 out of 5 meetings[75] - The remuneration committee held one meeting during the year to review the remuneration policy and structure, with all members attending[77] - The nomination committee conducted two meetings to review the board's structure and diversity policy, with a 100% attendance rate from its members[79] - The board is responsible for maintaining an effective risk management and internal control system, ensuring shareholder interests are protected[89] - An external consultant was hired to review the effectiveness of the risk management and internal control system, with no significant concerns identified[94] - The company has established a risk management policy to identify, assess, and manage key business risks[90] - The board confirmed that there are no significant uncertainties affecting the company's ability to continue as a going concern[87] - The remuneration committee consists of two members as of December 31, 2020, ensuring no conflicts in determining their own remuneration[77] - The nomination committee is tasked with identifying suitable candidates for the board, ensuring diversity and relevant experience[82] Environmental and Social Responsibility - The total energy consumption of the group during the reporting period was 32.6 MWh, a decrease from 38.5 MWh in 2019, representing a reduction of approximately 15.5%[111] - The energy consumption density per full-time employee was 0.91 MWh, down from 0.96 MWh in 2019, indicating improved energy efficiency[111] - The group has implemented energy-saving lighting systems and policies to turn off lights and air conditioning after office hours, leading to a significant reduction in energy consumption by 57% since 2018[111] - The group emphasizes corporate social responsibility and has engaged in various charitable activities to create long-term value for stakeholders[105] - The group has maintained communication with stakeholders through annual reports, interim reports, and quarterly reports, enhancing operational transparency[105] - The group has not exceeded the water usage limits set by the property management company during the reporting period, although specific water consumption data is difficult to obtain[112] - The group is committed to sustainable development and has adopted a "reduce, reuse, recycle" approach in its daily operations[110] - The total greenhouse gas emissions for the reporting period were 16.6 tons of CO2 equivalent, a significant decrease from 45.7 tons in 2019, representing a reduction of approximately 63.7%[118] - The company generated 0.15 tons of non-hazardous waste during the reporting period, an increase from 0.01 tons in 2019, indicating a rise of 1400%[119] - The company produced a total of 0.18 tons of packaging materials for its prepaid card business, down from 0.33 tons in 2019, marking a reduction of 45.5%[114] - The company has implemented a strict waste management principle, resulting in the recycling of all hazardous waste generated, which totaled 0.84 kg during the reporting period[119] - The company has established a breastfeeding room in the workplace to support employees, reflecting its commitment to family-friendly policies[128] - The company has complied with all relevant employment laws and regulations, with no incidents of non-compliance reported during the reporting period[124] - The company aims to continuously monitor and disclose its carbon performance to effectively manage its operational impact on climate change[118] - The company encourages double-sided printing and the use of electronic documents to reduce office solid waste[119] Customer and Community Engagement - During the reporting period, the group received five complaints regarding products and services, which were addressed by the customer service department[142] - The group has accumulated a large amount of user data due to the continuous growth of its prepaid card business, emphasizing the importance of data privacy protection[142] - The group has not encountered any violations of data privacy laws during the year ending December 31, 2020[143] - The group donated RMB 10,000 to support COVID-19 relief efforts, demonstrating its commitment to community involvement[149] - The group has a total of 11 suppliers, primarily from China, reflecting its strategic partnership approach in supply chain management[137] - The group has implemented a business continuity plan to address potential disruptions, ensuring stability and security for its customers[143] - The group has established a strong anti-corruption framework, with no reported incidents of non-compliance with anti-corruption laws during the reporting period[146] - The group encourages employee participation in volunteer services to enhance personal skills while contributing to the community[148] - The group has a dedicated customer service hotline to provide ongoing technical support and solutions to clients nationwide[143] Shareholder Information - The company reported no dividend payment for the year ended December 31, 2020, consistent with the previous year[167] - The group’s financial performance and position as of December 31, 2020, are detailed in the consolidated financial statements on pages 56 to 139 of the annual report[166] - The company’s main business is investment holding, with further details provided in note 38 of the consolidated financial statements[164] - The company has committed to reducing its negative environmental impact and enhancing its influence among stakeholders, as outlined in the Environmental, Social, and Governance report[169] - The company has complied with GEM listing rules regarding the number of independent non-executive directors following the appointment of a new director on February 23, 2021[170] - The group’s property, plant, and equipment changes are detailed in note 15 of the consolidated financial statements[173] - There were no agreements linked to share capital other than the company's share option plan disclosed in note 27 of the consolidated financial statements[172] - The company did not purchase, sell, or redeem any of its listed securities during the year[176] - The company’s reserves changes for the year are detailed on pages 58 and 138 of the annual report[177] - The group’s five-year financial summary is included in the annual report, providing an overview of published performance and assets, liabilities, and non-controlling interests[168] - The company's distributable reserves as of December 31, 2020, were approximately RMB 144,856,000, a decrease from RMB 292,666,000 in 2019[178] - Sales to the top five customers accounted for approximately 50.6% of total sales for the year, down from 57.7% in 2019, with the largest customer contributing about 17.3%[179] - The company granted a total of 57,600,000 stock options at an exercise price of HKD 0.078 per share on December 11, 2020, with 115,200,000 options remaining unexercised as of December 31, 2020[181] - The board of directors includes five executive directors and three independent non-executive directors, with specific terms for re-election and rotation outlined[183] - As of December 31, 2020, the beneficial ownership of shares by directors included 63,362,000 shares held by Mr. Ruan Deqing, representing approximately 9.17% of the total shares[199] - As of December 31, 2020, no directors or senior executives of the company held any shares, related shares, or debentures that required disclosure under the Securities and Futures Ordinance[200]

GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。有意投資的 人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司通常為中小公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風險， 同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完備性亦無發表任何聲明，並明確表示 不會就因本報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。 本報告（中國三三傳媒集團有限公司（「本公司」）的董事（「董事」）願共同及個別地承擔全部責任）乃遵照聯交所GEM證 券上市規則（「GEM上市規則」）而刊載，旨在提供有關本公司的資料。本公司董事在作出一切合理查詢後，確認就其所 深知及確信，本報告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐成分，且並無遺漏任何事項，以致本報告所 載任何陳述或本報告產生誤導。 CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COM ...

Financial Performance - The group's revenue increased from approximately RMB 68,639,000 in the previous year to RMB 79,568,000, representing a growth of 15.9%[9] - The total comprehensive loss attributable to the owners of the company was approximately RMB 63,940,000, an increase of about RMB 55,779,000 or 683.5% compared to last year's loss of RMB 8,161,000[9] - Revenue from outdoor and digital advertising surged by 343.0% to RMB 44,774,000, accounting for 56.3% of total revenue[17] - Prepaid card business revenue rose by 52.1% to RMB 14,451,000, representing 18.2% of total revenue[17] - Revenue from traditional print media advertising plummeted by 92.9% to RMB 1,134,000, contributing only 1.4% to total revenue[17] - The overall loss increased by approximately RMB 55,682,000 to a loss of RMB 67,467,000, a 472.5% increase compared to the previous year's loss of RMB 11,785,000, mainly due to film rights provisions and impairment losses[26] - The group recorded a net loss margin of approximately 111.2%, compared to 46.7% in the previous year[38] - The company's distributable reserves as of December 31, 2019, were approximately RMB 292,666,000, a decrease from RMB 457,621,000 in 2018[189] Business Development and Strategy - The company anticipates challenges in 2020 due to the impact of COVID-19, particularly in the film and entertainment sector and prepaid card business[10] - The management believes that the current situation presents opportunities for advancing the digital advertising business post-COVID-19[10] - The company will continue to focus on business development across its various segments, especially the newly acquired digital advertising business[10] - The group aims to strengthen cost control and implement appropriate measures to develop its business in response to the ongoing challenges[10] Operational Metrics - The cash and cash equivalents as of December 31, 2019, were approximately RMB 18,573,000, a decrease of about RMB 12,177,000 or 39.6% from RMB 30,750,000 as of December 31, 2018[39] - The current ratio as of December 31, 2019, was approximately 2.92, down from 4.45 in 2018, while the debt-to-equity ratio was approximately 0.08 compared to 0.03 in 2018[39] - Restricted cash increased by approximately 83.2% to RMB 86,153,000 as of December 31, 2019, from RMB 47,020,000 in 2018, due to an increase in prepaid card sales[43] - The net asset value of the group as of December 31, 2019, was approximately RMB 362,711,000, down from RMB 431,741,000 in 2018[46] - The group’s current assets were approximately RMB 413,162,000 as of December 31, 2019, slightly up from RMB 409,638,000 in 2018[46] Governance and Compliance - The board of directors is responsible for major decisions, including approving policies, overall strategy, and significant transactions[59] - The board has adopted a diversity policy to enhance performance efficiency, considering various factors such as skills, experience, and gender[66] - As of December 31, 2019, the audit committee held four meetings to review the group's performance and internal controls for the fiscal year[82] - All directors participated in continuous professional development, ensuring compliance with corporate governance codes and regulations[77] - The board's attendance rate for meetings was 100% for all members, demonstrating strong engagement in governance[74] - The company has established three sub-committees under the board: the audit committee, remuneration committee, and nomination committee[78] - The audit committee is tasked with reviewing significant investments, financial policies, and risk management systems[79] - The company has a clear separation of roles between the chairman and the CEO to ensure balanced power and authority[62] - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder interests and company assets[99] Environmental and Social Responsibility - The company is committed to corporate social responsibility and sustainable development, focusing on ethical and professional standards in its media business[115] - The group has implemented a waste reduction strategy, promoting the concepts of "reduce, reuse, recycle" to minimize environmental impact[119] - The company actively engages with stakeholders to enhance communication and operational transparency[116] - The company recognizes the collective responsibility of addressing environmental issues and aims to improve operational efficiency[119] - Total greenhouse gas emissions amounted to 45,654 kg of CO2, with a density of 1,141.4 kg of CO2 per full-time employee[120] - Electricity consumption decreased by approximately 37,867 kWh or 49.6% compared to the previous year, totaling 38,515 kWh[126] - The company has implemented energy-saving measures, including the installation of energy-efficient lighting systems[129] Employee and Labor Practices - The company has 51 employees as of the end of the reporting period, an increase from 40 employees in 2018[136] - The employee distribution by gender shows 36% male and 64% female[137] - The age distribution of employees indicates 20% are under 30, 34% are between 31-40, 39% are between 41-50, and 7% are over 50[137] - The training participation rates are 36% for male employees and 90% for female employees, with average training hours of approximately 35 hours for males and 3 hours for females[140] - The company emphasizes the importance of employee development, with 100% participation in training for junior and mid-level staff[140] - The company provides a five-day paternity leave for male employees to support family responsibilities[138] - The company has not encountered any workplace health and safety violations in the past three years[139] Financial Reporting and Audit - The board presented its report and audited consolidated financial statements for the year ended December 31, 2019[177] - The management discussion and analysis section of the annual report contains a review of the company’s business for the year ended December 31, 2019[179] - The company’s auditor received approximately RMB 699,000 for statutory audit services and RMB 50,000 for non-audit services during the year ending December 31, 2019[96] - An external consultant was hired to review the effectiveness of the internal control system, with no significant concerns identified that could impact financial or operational aspects[101] Shareholder Engagement - The company has established multiple communication channels with shareholders and investors, including annual meetings and financial reports[104] - The group has a structured process for shareholders to propose suggestions for consideration at annual meetings[110] - The company has adopted a dividend policy effective from January 1, 2019, which considers financial performance, cash flow, and overall business conditions[111] - The company reported no dividend payment for the year ended December 31, 2019, consistent with the previous year[181]

Financial Performance - Revenue for the three months ended March 31, 2019, was RMB 11,117,000, a decrease of 26.5% compared to RMB 15,150,000 in the same period of 2018[4] - Gross profit for the same period was RMB 1,026,000, down 80.1% from RMB 5,142,000 year-over-year[4] - The company reported a loss before tax of RMB 5,541,000, compared to a loss of RMB 3,471,000 in the previous year, indicating a 59.5% increase in losses[4] - Total comprehensive loss for the period was RMB 13,949,000, significantly higher than RMB 6,821,000 in the same period last year, reflecting a 104.5% increase[4] - Basic and diluted loss per share was RMB 0.10, compared to RMB 0.06 in the previous year, representing a 66.7% increase in loss per share[6] - The total comprehensive expenses for the period increased by approximately 100.0% to about RMB 13,948,000 compared to RMB 6,964,000 in the previous year[24] - The loss attributable to owners of the company for the three months ended March 31, 2019, was RMB 5,540,000, compared to a loss of RMB 3,631,000 for the same period in 2018[22] Revenue Breakdown - Advertising revenue from print media fell by RMB 6,805,000 or 95.9% to RMB 288,000, primarily due to a decrease in the number of clients for the magazine "Companion"[27] - Outdoor advertising revenue decreased by RMB 1,281,000 or 54.5% to RMB 1,071,000[25] - Revenue from film and entertainment investments increased by RMB 1,821,000 or 43.7% to RMB 5,991,000[25] - Prepaid card revenue rose significantly by RMB 2,232,000 or 145.4% to RMB 3,767,000[25] - The print media advertising segment reported a loss of approximately RMB 655,000 for the three months ended March 31, 2019, a decrease of about 118.1% compared to a profit of approximately RMB 3,628,000 in the same period last year[28] - Outdoor advertising revenue decreased by approximately RMB 1,281,000 or 54.5% to approximately RMB 1,071,000 for the three months ended March 31, 2019, due to a reduction in the number of clients for promotional activities at train stations[29] - The film and entertainment investment segment's revenue increased by approximately RMB 1,821,000 or 43.7% to approximately RMB 5,991,000 for the three months ended March 31, 2019, compared to approximately RMB 4,170,000 in the same period last year[31] - Prepaid card business revenue increased by approximately RMB 2,232,000 or 145.4% to approximately RMB 3,767,000 for the three months ended March 31, 2019, due to a significant rise in the number and amount of prepaid cards sold compared to the same period last year[32] - The loss in the prepaid card business decreased by approximately 46.3% to about RMB 1,547,000 for the three months ended March 31, 2019, compared to approximately RMB 2,880,000 in the same period last year[32] Expenses and Losses - The company incurred a foreign exchange loss of RMB 8,408,000 due to the translation of overseas operations, compared to RMB 3,333,000 in the previous year[4] - Administrative expenses were RMB 4,850,000, slightly down from RMB 4,884,000 in the same period of 2018[4] - Sales and distribution expenses decreased to RMB 1,924,000 from RMB 2,115,000, a reduction of 9.0% year-over-year[4] Strategic Focus - The company continues to focus on media advertising services related to railway networks and film investments in China and Hong Kong[11] - The company plans to focus on launching an electronic wallet in 2019, aiming to diversify distribution channels and enhance product usage scenarios[36] - The company intends to shift its business focus from traditional media to new media opportunities, reducing the issuance of print publications after the expiration of a cooperation agreement[36] Shareholder Information - As of March 31, 2019, the company had a total of 576,020,000 shares held by major shareholders, representing 10.00% ownership each[44] - New Tong Investment Limited holds 398,622,000 shares, accounting for 6.92% of the total shares[44] - The company’s major shareholders include Lin Pintong and his spouse, holding significant interests in the company[44] - The total issued share capital of the company is held primarily by controlled corporations, with 48.73% owned by Bo Kai Limited and He Wang[49] Compliance and Governance - The audit committee reviewed the unaudited performance for the three months ending March 31, 2019, ensuring compliance with applicable accounting standards and GEM listing rules[50] - The company has adopted a code of conduct for securities trading by directors, confirming compliance during the review period[47] - The company has established an audit committee with three independent non-executive directors to oversee significant investments and financial systems[48] - The company has ensured full disclosure in its financial reporting as per GEM listing requirements[50] - The company disclosed no additional shareholders with interests in the company's shares beyond those listed as of March 31, 2019[46] Market Opportunities - The film market in China presents significant opportunities, with the total box office reaching approximately RMB 60.9 billion in 2018, an increase of about 9.06% from 2017[35] - The number of active stored value facility (SVF) accounts reached 54.10 million by the end of the third quarter of 2018, with 7 accounts per user on average[35]

2018 ANNUAL 年報 REPORT China 33 Media Group Limited 中國三三傳媒集團有限公司 ANNUAL REPORT 2018 年 報 2018 香港聯合交易所有限公司（「聯交所」）GEM 的特色 GEM 的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小公司提供一個上市的市場。有意 投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM 上市的公司通常為中小公司，在GEM 買賣的證券可能會較於主板買賣的證券承受較大的市場波動 風險，同時無法保證在GEM 買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報告全部或任何部分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。 本報告（中國三三傳媒集團有限公司（「本公司」）的董事（「董事」）願共同及個別地承擔全部責任）乃遵照聯 交所GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關本公司的資料。董事在作出一切合理查詢後， 確認就其所深知及所確信，本報告所載資料在各重 ...