Share Option Plan Details - The total number of options available under the new share option plan is 420,913,104 shares, accounting for approximately 10% of the total issued shares as of June 21, 2024, which is 4,209,131,046 shares[3]. - The service provider limit under the new share option plan is capped at 21,045,655 shares, which is 0.5% of the issued share capital as of the adoption date[4]. - Following the share consolidation effective on May 29, 2025, the total number of options available under the new share option plan will be adjusted to 42,091,310 shares[5]. - The total number of shares that may be issued under the share option plan and any other share plans combined cannot exceed 10% of the issued shares at any time without prior shareholder approval[8]. - The maximum number of shares that can be issued to any individual participant under the share option plan within any twelve-month period is limited to 1% of the total issued shares[9]. - The company has adopted a new share option plan effective June 21, 2024, following the expiration of the old plan on June 9, 2024[3]. - The company clarifies that the terms of the new share option plan should reflect the latest provisions adopted on June 21, 2024[5]. - Eligible participants for the share option plan include full-time and part-time employees, directors, and service providers who contribute to the company's long-term development[6]. - The company emphasizes that any options granted under the plan must not exceed 10% of the issued shares without prior shareholder approval[8]. - The company will not issue more than 0.1% of the issued shares to major shareholders or independent non-executive directors without prior shareholder approval[9]. Option Exercise Conditions - The company requires option holders to hold their options for at least 12 months before exercising them[10]. - Options must be accepted within 28 days from the grant date, with a payment of HKD 1 required[10]. - All unexercised options will vest within one year from the grant date[10].

| 2. 股份分類 | 優先股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 否 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08172 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 200,000,000 | HKD | | 0.1 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 200,000,000 | HKD | | 0.1 | HKD | | 20,000,000 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 拉近網娛集團有限公司 (於開曼群島註冊成立及於百慕達存續之有限公司) 呈交日期: 2025年10月8日 I. 法 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 拉近網娛集團有限公司 (於開曼群島註冊成立及於百慕達存續之有限公司) 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 本月底法定/註冊股本總額： HKD 100,000,000 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08172 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 420,913,104 | | 0 | | 420,913,104 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 42 ...

Core Viewpoint - The company reported a narrower loss for the first half of 2025, indicating some improvement despite a significant decline in revenue [1] Financial Performance - The company's revenue for the first half of 2025 was HKD 214.5 million, representing a decrease of 53.95% year-on-year [1] - The loss attributable to shareholders was HKD 8.377 million, which is a reduction of 17.39% compared to the previous year [1] - The basic loss per share was HKD 0.02 [1]

Core Viewpoint - 拉近网娱 (08172) reported a significant decline in revenue for the first half of 2025, indicating ongoing challenges in its business operations [1] Financial Performance - Revenue for the first half of 2025 was 2.145 million HKD, representing a year-on-year decrease of 53.95% [1] - The loss attributable to shareholders was 8.377 million HKD, which is a year-on-year reduction of 17.39% [1] - Basic loss per share was 0.02 HKD [1]

• Interim Report 2025 Lajin Entertainment Network Group Limited 拉 近 網 娛 集 團 有 限 公 司* (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) （在開曼群島註冊成立及於百慕達存續之有限公司） （Stock Code 股份代號：8172） NOTIFICATION LETTER 通 知 信 函 Dear Non-registered Shareholder (Note 1) , 3 September 2025 The following document(s) of Lajin Entertainment Network Group Limited ("Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.irasia.com/listco/h ...

Lajin Entertainment Network Group Limited 拉 近 網 娛 集 團 有 限 公 司* The following document(s) of Lajin Entertainment Network Group Limited ("Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.irasia.com/listco/hk/lajin and The Stock Exchange of Hong Kong Limited at www.hkexnews.hk (collectively "Websites"):- • Interim Report 2025 (If you have previously requested to receive Corporate Communication(s)(Note) in printed form, the printed copy (or copie ...

[Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's financial performance, position, equity changes, and cash flows for the period [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue decreased by 54.0% year-on-year to 2,145 thousand HKD, but gross profit turned from loss to gain, and both total loss and loss attributable to owners of the company narrowed, with loss per share also decreasing Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Year-on-year Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | (2,513) | -54.0% | | Cost of Sales | (1,293) | (3,950) | 2,657 | -67.3% | | Gross Profit / (Loss) | 852 | 708 | 144 | 20.3% | | Other Income and Gains | 1,856 | 3,320 | (1,464) | -44.1% | | Administrative Expenses | (13,847) | (16,363) | 2,516 | -15.4% | | Loss Before Tax | (11,139) | (13,155) | 2,016 | -15.3% | | Loss for the Period | (11,139) | (13,155) | 2,016 | -15.3% | | Loss for the Period Attributable to Owners of the Company | (8,377) | (10,140) | 1,763 | -17.4% | | Basic and Diluted Loss Per Share | (0.20) HK cents | (0.24) HK cents | 0.04 HK cents | -16.7% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets slightly decreased, non-current assets remained stable, but net current assets significantly reduced, mainly due to a substantial decline in trade receivables, and total equity also decreased Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Total Non-current Assets | 91,254 | 91,168 | 86 | 0.09% | | Total Current Assets | 38,576 | 45,094 | (6,518) | -14.5% | | Trade Receivables | 769 | 7,035 | (6,266) | -89.1% | | Cash and Cash Equivalents | 8,685 | 7,626 | 1,059 | 13.9% | | Total Current Liabilities | 22,830 | 21,182 | 1,648 | 7.8% | | Net Current Assets | 15,773 | 23,912 | (8,139) | -34.0% | | Net Assets | 68,095 | 77,271 | (9,176) | -11.9% | | Total Equity | 68,095 | 77,271 | (9,176) | -11.9% | [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the company decreased due to loss for the period and total other comprehensive loss, and non-controlling interests also declined, leading to a reduction in total equity Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | | :--- | :--- | :--- | | Equity Attributable to Owners of the Company at January 1 | 98,949 | 134,192 | | Loss for the Period (Attributable to Owners of the Company) | (8,377) | (10,140) | | Other Comprehensive Income / (Loss) for the Period (Attributable to Owners of the Company) | 2,608 | (2,623) | | Equity Attributable to Owners of the Company at June 30 | 93,180 | 121,429 | | Total Equity at June 30 | 68,095 | 103,038 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities generated a net cash inflow of 241 thousand HKD, a significant improvement from the prior year, while cash outflow from investing activities slightly increased, and cash and cash equivalents at period-end grew Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Net Cash Flows From Operating Activities | 241 | (7,869) | 8,110 | | Net Cash Flows Used in Investing Activities | (33) | (6) | (27) | | Net Increase / (Decrease) in Cash and Cash Equivalents | 208 | (7,875) | 8,083 | | Cash and Cash Equivalents at End of Reporting Period | 8,685 | 18,923 | (10,238) | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. General Information](index=9&type=section&id=1.%20General%20Information) The company was incorporated in the Cayman Islands, later re-domiciled in Bermuda, and its shares are listed on GEM of the Hong Kong Stock Exchange, primarily engaged in investment holding, with the group mainly providing artist management services and investing in film, television programs, and online content - The company has been listed on GEM of the Hong Kong Stock Exchange since **March 26, 2002**[12](index=12&type=chunk) - The Group's principal businesses include artist management services and investment in film, television programs, and online content[12](index=12&type=chunk) [2. Basis of Preparation](index=9&type=section&id=2.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the GEM Listing Rules, presented in HKD, and should be read in conjunction with the annual financial statements - The interim financial statements comply with Hong Kong Accounting Standard 34 and the disclosure requirements of the GEM Listing Rules[13](index=13&type=chunk) - All values are presented in **Hong Kong Dollars** and rounded to the nearest thousand[13](index=13&type=chunk) [3. Application of New and Revised Hong Kong Financial Reporting Standards](index=9&type=section&id=3.%20Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies used in these interim financial statements are consistent with those of the previous year, and the new and revised Hong Kong Financial Reporting Standards have no significant impact on the interim financial statements - The application of new and revised Hong Kong Financial Reporting Standards has **no significant impact** on the interim financial statements[15](index=15&type=chunk) [4. Segment Information](index=10&type=section&id=4.%20Segment%20Information) The Group has three reportable operating segments: artist management, film/television programs/online content, and new media; for the six months ended June 30, 2025, new media business revenue significantly increased, while film, television programs, and online content business revenue substantially decreased - The Group has three reportable operating segments: artist management, film/television programs/online content, and new media[17](index=17&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (thousand HKD) | 2024 Revenue (thousand HKD) | Revenue Change Rate | 2025 Results (thousand HKD) | 2024 Results (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Artist Management | 105 | 205 | -48.8% | (6) | 628 | | Film, Television Programs and Online Content | 397 | 3,569 | -88.9% | (9,181) | (4,840) | | New Media Business | 1,643 | 884 | 85.9% | (334) | (3,683) | | Total | 2,145 | 4,658 | -54.0% | (9,521) | (7,895) | - All revenue from external customers is derived from **Mainland China**[20](index=20&type=chunk) [5. Revenue](index=12&type=section&id=5.%20Revenue) For the six months ended June 30, 2025, new media business revenue significantly increased by 1,643 thousand HKD, becoming the primary source of income, while revenue from television and online programs, distribution agency services, and artist management all decreased Revenue Breakdown (For the six months ended June 30) | Business Type | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | New Media Business | 1,643 | 884 | 759 | 85.9% | | Television and Online Programs | 396 | 2,713 | (2,317) | -85.4% | | Distribution Agency Services | – | 855 | (855) | -100.0% | | Artist Management | 105 | 205 | (100) | -48.8% | | Total | 2,145 | 4,658 | (2,513) | -54.0% | [6. Other Income and Gains / (Losses)](index=13&type=section&id=6.%20Other%20Income%20and%20Gains%20%2F%20%28Losses%29) For the six months ended June 30, 2025, total other income and gains amounted to 1,856 thousand HKD, a decrease from the prior year, mainly due to the absence of film investment income, though rental income maintained stable growth Other Income and Gains Breakdown (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Film Investment Income | – | 1,039 | (1,039) | | Interest Income | 6 | 39 | (33) | | Rental Income | 1,077 | 1,037 | 40 | | Other Gains | 778 | 1,195 | (417) | | Total | 1,856 | 3,320 | (1,464) | [7. Loss Before Tax](index=14&type=section&id=7.%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax was 11,139 thousand HKD, a narrowing from the prior year, with major expenses including depreciation and staff costs (salaries and allowances, pension scheme contributions) Loss Before Tax Components (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 2,556 | 2,683 | (127) | | Staff Costs (including directors' emoluments) | 8,060 | 8,562 | (502) | | - Salaries and Allowances | 7,576 | 8,067 | (491) | | - Pension Scheme Contributions | 484 | 495 | (11) | [8. Income Tax Expense](index=15&type=section&id=8.%20Income%20Tax%20Expense) No provision for income tax expense was made for the period as the Group generated no assessable profits or had assessable profits fully absorbed by carried forward tax losses in Hong Kong, Korea, and China - No provision for income tax expense was made for the period, as the Group had **no assessable profits** or they were offset by tax losses in Hong Kong, Korea, and China[24](index=24&type=chunk) [9. Loss Per Share Attributable to Ordinary Equity Holders of the Company](index=15&type=section&id=9.%20Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Company) For the six months ended June 30, 2025, basic and diluted loss per share was 0.20 HK cents, a narrowing from 0.24 HK cents in the prior year, mainly due to a decrease in loss attributable to owners of the company Loss Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Loss Attributable to Ordinary Equity Holders of the Company | 8,377 thousand HKD | 10,140 thousand HKD | (1,763) thousand HKD | | Weighted Average Number of Issued Shares | 4,209,130,000 shares | 4,209,130,000 shares | – | | Basic and Diluted Loss Per Share | (0.20) HK cents | (0.24) HK cents | 0.04 HK cents | - Share options and preference shares had an **anti-dilutive effect** on basic loss per share, thus no conversion was assumed for diluted loss per share calculation[25](index=25&type=chunk) [10. Trade Receivables](index=16&type=section&id=10.%20Trade%20Receivables) As of June 30, 2025, the balance of trade receivables significantly decreased to 769 thousand HKD, an 89.1% decline from 7,035 thousand HKD as of December 31, 2024, indicating improved trade receivables management Ageing Analysis of Trade Receivables (As of reporting period end) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Within 1 year | 769 | 7,035 | (6,266) | -89.1% | | Total | 769 | 7,035 | (6,266) | -89.1% | - The Group implements **strict control** over unpaid trade receivables, with a credit period generally ranging from **6 months to 1 year**[26](index=26&type=chunk) [11. Film Rights and Films and Television Programs in Progress](index=17&type=section&id=11.%20Film%20Rights%20and%20Films%20and%20Television%20Programs%20in%20Progress) As of June 30, 2025, the balance of film rights and films and television programs in progress was 14,638 thousand HKD, a slight decrease from 15,940 thousand HKD as of December 31, 2024, with no impairment indicators identified or impairment losses recognized during the period Balance of Film Rights and Films and Television Programs in Progress | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Film Rights and Films and Television Programs in Progress | 14,638 | 15,940 | (1,302) | - No impairment indicators were identified for film rights and films and television programs in progress during the period, and **no impairment losses were recognized**[28](index=28&type=chunk) [12. Trade Payables](index=17&type=section&id=12.%20Trade%20Payables) As of June 30, 2025, trade payables amounted to 343 thousand HKD, a decrease from 427 thousand HKD as of December 31, 2024, with all trade payables due within 1 year Ageing Analysis of Trade Payables (As of reporting period end) | Ageing | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Within 1 year | 343 | 427 | (84) | | Total | 343 | 427 | (84) | [13. Share Capital](index=18&type=section&id=13.%20Share%20Capital) As of June 30, 2025, the company's issued and fully paid ordinary shares numbered 4,209,130 thousand, with share capital of 42,090 thousand HKD, remaining unchanged from December 31, 2024 Share Capital Composition (As of reporting period end) | Share Type | June 30, 2025 (thousand shares) | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand shares) | December 31, 2024 (thousand HKD) | | :--- | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares of HKD0.01 each | 4,209,130 | 42,090 | 4,209,130 | 42,090 | [14. Fair Value Measurement](index=19&type=section&id=14.%20Fair%20Value%20Measurement) The Board believes that the carrying amounts of the Group's financial instruments approximate their fair values at the end of the reporting period - The carrying amounts of the Group's financial instruments are **similar to their fair values**[31](index=31&type=chunk) [15. Commitments](index=19&type=section&id=15.%20Commitments) As of June 30, 2025, the Group's contracted but not yet provided commitments primarily relate to film rights and films and television programs in progress, totaling 45,741 thousand HKD, a slight increase from the end of last year Contracted but Not Yet Provided Commitments (As of reporting period end) | Item | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Film Rights and Films and Television Programs in Progress | 45,741 | 45,060 | 681 | [16. Significant Related Parties and Related Party Transactions](index=19&type=section&id=16.%20Significant%20Related%20Parties%20and%20Related%20Party%20Transactions) For the six months ended June 30, 2025, total remuneration for key management personnel was 1,069 thousand HKD, largely consistent with the prior year Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (thousand HKD) | 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Salaries and Allowances | 1,006 | 996 | 10 | | Pension Scheme Contributions | 66 | 73 | (7) | | Total | 1,069 | 1,072 | (3) | [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) This section offers insights into the Group's financial performance, business operations, and future outlook [Interim Dividend](index=20&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does **not recommend** the payment of an interim dividend for the first half of 2025[34](index=34&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) For the six months ended June 30, 2025, the Group's revenue decreased by 54.0% year-on-year to 2,145 thousand HKD, mainly due to a decline in film, television programs, and online content business revenue; both cost of sales and administrative expenses decreased, and loss attributable to owners of the company narrowed Key Financial Review Data (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | -54.0% | | Cost of Sales | 1,293 | 3,950 | -67.3% | | Administrative Expenses | 13,847 | 16,363 | -15.4% | | Loss for the Period Attributable to Owners of the Company | 8,377 | 10,140 | -17.4% | - The decrease in revenue was primarily due to reduced revenue from the **film, television programs, and online content business**[35](index=35&type=chunk) [Business Review](index=21&type=section&id=Business%20Review) The Group adopts a cautious investment strategy in film, television programs, and online content, actively exploring re-distribution opportunities for existing works; artist management continues to discover potential artists; music business has accumulated a large number of copyrights and initiated agency distribution, while exploring a self-publishing model for independent musicians; new media business, centered on the Amber APP, integrates Web3.0 and AIGC technologies, achieving significant collaborations and breakthroughs in music, cultural tourism, and membership services, and plans to build a decentralized short video copyright trading platform [Film, Television Programs and Online Content](index=20&type=section&id=Film%2C%20Television%20Programs%20and%20Online%20Content) This segment's revenue significantly decreased; the Group maintains a cautious approach to online film investment, shifting towards re-distribution of existing works and overseas pre-sales. The theatrical film market is polarized, and the Group's invested comedy film "Moonlight Before the Window, Bang!" underperformed expectations, but a sequel "Diary of Prosperity 2" is planned for production. Leveraging its licensing advantages, the Group will explore customized content for online platforms and actively deploy a decentralized short video copyright trading platform Film, Television Programs and Online Content Segment Revenue (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 397 | 3,569 | -88.9% | - The Chinese online film market is facing a bottleneck, with only **3 new films** exceeding ten million in revenue in the first half, and total and average box office significantly decreased[40](index=40&type=chunk) - The Group continued a **cautious investment strategy** in online films during the first half, actively promoting multi-round distribution of historical projects "Tibetan Raiders" on CCTV6 and "See the Strange" overseas, effectively improving fund recovery rates[41](index=41&type=chunk) - The Group's co-invested comedy film "Moonlight Before the Window, Bang!" achieved a final box office of nearly **40 million HKD**, lower than expected due to market competition and other factors[43](index=43&type=chunk) - The sequel comedy film "Diary of Prosperity 2" is expected to start production in **November 2025** and be released in **2026**, aiming for the theatrical film market[43](index=43&type=chunk) - The Group plans to leverage blockchain technology to build a **decentralized short video copyright trading platform**, addressing traditional copyright transaction pain points through fragmentation, rights confirmation, and tokenization[45](index=45&type=chunk) [Artist Management](index=21&type=section&id=Artist%20Management) Artist management segment revenue decreased; the Group will continue to discover potential artists, collaborate with management teams, and leverage its resource advantages, combined with new media business, to create income streams and increase exposure opportunities for artists Artist Management Segment Revenue (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 105 | 205 | -48.8% | - The Group will leverage its resource advantages and integrate various business segments to **create income streams and increase exposure opportunities** for artists[46](index=46&type=chunk) [Music](index=25&type=section&id=Music) Lajin Music has accumulated a large number of original music copyrights and built a complete promotion and distribution channel, collaborating with mainstream domestic and international music platforms. Despite monetization efforts, impairment losses were recognized due to recoverable amounts being lower than costs. The Group is building a "self-publishing" one-stop service business model for original independent musicians, relying on its new media business - Lajin Music has accumulated a large number of **high-quality original music copyrights** and fully launched its music copyright agency distribution business, collaborating with mainstream domestic music platforms and radio stations[47](index=47&type=chunk) - Management has made corresponding impairment due to the **recoverable amount of music copyrights being lower than cost**[47](index=47&type=chunk) - The Group is building a "self-publishing" one-stop service business model specifically for original independent musicians, addressing issues such as creation, publishing, copyright, and revenue[48](index=48&type=chunk) [New Media Business](index=21&type=section&id=New%20Media%20Business) New media business revenue significantly increased, centered on the Amber APP, integrating Web3.0, AIGC, blockchain, and other technologies to provide creators with a self-publishing experience. The Amber PASS card product achieved significant breakthroughs in music, cultural tourism, and membership services, including strategic cooperation with Alipay, trial operation at tourist attractions like Badaling Great Wall, negotiations for cooperation with major cities, and expansion of personalized membership services New Media Business Segment Revenue (For the six months ended June 30) | Indicator | 2025 (thousand HKD) | 2024 (thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Segment Revenue | 1,643 | 884 | 85.9% | - The Group invested resources to build the Amber APP, integrating blockchain, AIGC, digital watermarking, NFC, AR, and other technologies to explore a new business model of "**creator economy + musician self-publishing + music trendy play**"[49](index=49&type=chunk) - Amber APP provides original musicians with **100% copyright autonomy**, offering official blockchain notarization and ISRC certification through cooperation with China Copyright Chain Company[49](index=49&type=chunk) - The new media business achieved **significant collaborations and breakthroughs** in cultural tourism and membership services in the first half of 2025[50](index=50&type=chunk) - Strategic cooperation with Alipay was established to jointly develop cultural tourism projects and promote the cultural tourism PASS card, with Alipay providing technical support for developing the "**ticket stub**" economy[50](index=50&type=chunk) - The cultural tourism PASS card was **trial-operated at Badaling Great Wall in May 2025** and transitioned to a "to B" business model, where operators purchase and sell it[53](index=53&type=chunk) - The cultural tourism PASS card has been issued and sold in **other national-level scenic spots and popular museums**, and reported by CCTV News Channel[54](index=54&type=chunk) - The Group is negotiating strategic cooperation with major cities like **Xi'an** to extensively promote the PASS card and stimulate local consumption[56](index=56&type=chunk) - PASS card applications have expanded to personalized membership services, with contracts signed for medical systems and online consumption platform membership management systems, and negotiations for designing VR/AR promotional PASS cards for property developers[57](index=57&type=chunk) [Events After Reporting Period](index=30&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the balance sheet date - No **significant events** occurred after the reporting period[58](index=58&type=chunk) [Liquidity and Financial Resources](index=30&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets were approximately 129,830 thousand HKD, and cash and cash equivalents increased to 8,685 thousand HKD; the Group primarily funds its operations through proceeds from fundraising activities Liquidity and Financial Resources (As of reporting period end) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Total Assets | 129,830 | 136,262 | (6,432) | | Cash and Cash Equivalents | 8,685 | 7,626 | 1,059 | - The Group funds its operations primarily through **proceeds from fundraising activities**[59](index=59&type=chunk) [Capital Structure](index=30&type=section&id=Capital%20Structure) As of the date of this report, the company has a total of 4,209,131,046 ordinary shares issued - The company has a total of **4,209,131,046 ordinary shares** issued[60](index=60&type=chunk) [Gearing Ratio](index=31&type=section&id=Gearing%20Ratio) As of June 30, 2025, the gearing ratio was approximately 66.3%, an increase from 59.6% as of December 31, 2024 Gearing Ratio | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 66.3% | 59.6% | 6.7% | [Pledge of the Group's Assets](index=31&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, the Group had no pledge of any assets - The Group had **no pledge of any assets** at the end of the reporting period[62](index=62&type=chunk) [Foreign Exchange Risk](index=31&type=section&id=Foreign%20Exchange%20Risk) The majority of the Group's revenue and expenses are denominated in RMB, and currently, no foreign currency derivative instruments are used to hedge foreign exchange risk, but management closely monitors and will consider hedging when necessary - The majority of the Group's revenue and expenses are denominated in **RMB**, and no foreign currency derivative instruments are used to hedge foreign exchange risk[63](index=63&type=chunk) [Commitments](index=31&type=section&id=Commitments) As of June 30, 2025, the Group's capital commitments were approximately 45,741 thousand HKD, a slight increase from the end of last year Capital Commitments (As of reporting period end) | Indicator | June 30, 2025 (thousand HKD) | December 31, 2024 (thousand HKD) | Change (thousand HKD) | | :--- | :--- | :--- | :--- | | Capital Commitments | 45,741 | 45,060 | 681 | [Contingent Liabilities](index=31&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities** at the end of the reporting period[65](index=65&type=chunk) [Employees](index=31&type=section&id=Employees) As of June 30, 2025, the Group had a total of 54 employees, with 50 in China and 4 in Hong Kong; employee remuneration is assessed based on responsibilities, performance, experience, and industry practices Number of Employees | Region | Number of Employees | | :--- | :--- | | China | 50 | | Hong Kong | 4 | | Total | 54 | [Material Investments](index=32&type=section&id=Material%20Investments) For the period ended June 30, 2025, the Group held no material investments - The Group held **no material investments** during the reporting period[67](index=67&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) The company adopted a new share option scheme in June 2024, valid for 10 years; as of June 30, 2025, there were no outstanding share options - The company adopted a new share option scheme on **June 21, 2024**, valid until **June 2034**[68](index=68&type=chunk) - As of June 30, 2025, there were **no outstanding share options**[69](index=69&type=chunk) [Arrangement to Purchase Shares or Debentures](index=32&type=section&id=Arrangement%20to%20Purchase%20Shares%20or%20Debentures) Except for the share option scheme and employee incentive scheme, neither the company nor its subsidiaries entered into any arrangements during the reporting period that would enable directors and chief executives to benefit from purchasing shares or debentures of the company or any other body corporate - During the reporting period, neither the company nor its subsidiaries entered into any arrangements that would enable directors and chief executives to **benefit from purchasing shares or debentures**[70](index=70&type=chunk) [Other Information](index=33&type=section&id=Other%20Information) This section includes details on major shareholders, directors' interests, corporate governance, and other statutory disclosures [Major Shareholders](index=33&type=section&id=Major%20Shareholders) As of June 30, 2025, Jiaxuan Group Co., Ltd., CITIC Group Corporation, and First Charm Investments Limited were the company's major shareholders, holding 47.10%, 10.93%, and 7.40% of the issued share capital respectively Major Shareholders' Shareholding (As of June 30, 2025) | Major Shareholder Name | Capacity | Interests in Shares (shares) | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Jiaxuan Group Co., Ltd. | Beneficial Owner | 1,982,561,725 | 47.10% | | Pengjian Investment Holdings Limited | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | Mr. Huang Guangyu | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | Weihao Global Holdings Limited | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | Mr. Xu Zhongmin | Interest of Controlled Corporation | 1,982,561,725 | 47.10% | | CITIC Group Corporation | Interest of Controlled Corporation | 459,934,954 | 10.93% | | CITIC Limited | Interest of Controlled Corporation | 459,934,954 | 10.93% | | Famous Peak Investments Limited | Beneficial Owner | 459,934,954 | 10.93% | | First Charm Investments Limited | Beneficial Owner | 311,545,414 | 7.40% | | Mr. Ko Chun Shun, Johnson | Interest of Controlled Corporation | 311,545,414 | 7.40% | [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=34&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2025, no directors, chief executives, or their associates held any interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations - As of June 30, 2025, no directors, chief executives, or their associates held any **interests or short positions** in the company's or its associated corporations' shares, underlying shares, or debentures[73](index=73&type=chunk) [Competing Interests](index=34&type=section&id=Competing%20Interests) As of June 30, 2025, none of the directors, major shareholders, or their respective associates had any interests in any business that competes or is likely to compete with the Group's business - As of June 30, 2025, none of the directors, major shareholders, or their associates had any **competing interests** with the Group's business[74](index=74&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=35&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the company nor its subsidiaries **purchased, sold, or redeemed any listed securities**[76](index=76&type=chunk) [Corporate Governance Practices](index=35&type=section&id=Corporate%20Governance%20Practices) The company generally complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules during the reporting period, but there were three deviations concerning the distinction between the roles of Chairman and Chief Executive, designated terms for non-executive directors, and attendance of non-executive directors at general meetings - The company generally complied with the Corporate Governance Code, but there were **three deviations**: distinction between Chairman and Chief Executive roles, designated terms for non-executive directors, and non-executive directors' attendance at general meetings[77](index=77&type=chunk) - The positions of Chairman and Chief Executive remain vacant, and the company is **seeking suitable candidates**[78](index=78&type=chunk) - Non-executive directors do not have designated terms, but are subject to **retirement by rotation and eligible for re-election** in accordance with the company's articles of association[79](index=79&type=chunk) - Certain non-executive directors and independent non-executive directors were **unable to attend general meetings** due to other business commitments[80](index=80&type=chunk) [Code for Securities Transactions by Directors](index=36&type=section&id=Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted a code for directors' securities transactions no less stringent than the GEM Listing Rules, and all directors confirmed compliance with the code and required standards of dealing - The company has adopted a code for directors' securities transactions, and all directors confirmed **compliance**[81](index=81&type=chunk) [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising three members, is responsible for reviewing annual reports, financial statements, and interim reports, and providing advice and oversight on financial reporting and internal control procedures; the committee has reviewed this interim report and results - The Audit Committee consists of **three members** and is responsible for reviewing financial statements, internal controls, and financial reporting matters[83](index=83&type=chunk) - The Audit Committee has reviewed the interim report and results for the **six months ended June 30, 2025**[83](index=83&type=chunk)

Report Overview [GEM Characteristics and Disclaimer](index=1&type=section&id=GEM%20Characteristics%20and%20Disclaimer) This report presents China Netcom Entertainment Group Limited's unaudited interim results for the six months ended June 30, 2025, highlighting GEM as a platform for high-risk SMEs and including a Stock Exchange disclaimer - The GEM market serves as a listing platform for high-investment-risk SMEs, requiring investors to carefully consider potential risks[2](index=2&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this announcement's content, make no accuracy or completeness claims, and disclaim any liability for loss[2](index=2&type=chunk) Financial Statements [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, group revenue significantly decreased by **54.0%** to **HK$2,145 thousand**, gross profit turned to a gain of **HK$852 thousand**, and loss for the period narrowed to **HK$11,139 thousand** with a basic loss per share of **0.20 HK cents** Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | -54.0% | | Cost of sales | (1,293) | (3,950) | -67.3% | | Gross profit/(loss) | 852 | 708 | +20.3% | | Other income and gains | 1,856 | 3,320 | -44.0% | | Administrative expenses | (13,847) | (16,363) | -15.4% | | Loss before tax | (11,139) | (13,155) | -15.4% | | Loss for the period | (11,139) | (13,155) | -15.4% | | Loss for the period attributable to owners of the parent | (8,377) | (10,140) | -17.4% | | Loss per share attributable to ordinary equity holders of the parent (HK cents) | (0.20) | (0.24) | -16.7% | - For the three months ended June 30, 2025, revenue was **HK$2,026 thousand** (2024: HK$895 thousand), and loss for the period was **HK$4,892 thousand** (2024: HK$7,500 thousand)[4](index=4&type=chunk) - Exchange differences from the translation of overseas operations turned from a loss of **HK$2,235 thousand** in the same period of 2024 to a gain of **HK$1,963 thousand** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, total group assets slightly decreased, with trade receivables significantly reduced, net current assets declined from **HK$23,912 thousand** to **HK$15,773 thousand**, and total equity also decreased Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total non-current assets | 91,254 | 91,168 | +0.1% | | Total current assets | 38,576 | 45,094 | -14.4% | | Trade receivables | 769 | 7,035 | -89.1% | | Film rights and films and television programmes in progress | 14,638 | 15,940 | -8.1% | | Cash and cash equivalents | 8,685 | 7,626 | +13.9% | | Total current liabilities | 22,830 | 21,182 | +7.8% | | Net current assets | 15,773 | 23,912 | -34.1% | | Total equity | 68,095 | 77,271 | -11.9% | [Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, equity attributable to owners of the parent decreased from **HK$98,949 thousand** to **HK$93,180 thousand**, primarily due to loss for the period and changes in non-controlling interests Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | June 30, 2025 (HK$ Thousand) | June 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Equity attributable to owners of the parent | 93,180 | 121,429 | | Non-controlling interests | (25,085) | (18,391) | | Total equity | 68,095 | 103,038 | | Loss for the period | (11,139) | (13,155) | | Total comprehensive loss for the period | (9,176) | (15,390) | - As of June 30, 2025, accumulated losses attributable to owners of the parent increased to **HK$1,081,747 thousand** from **HK$1,073,370 thousand** as of January 1, 2024[9](index=9&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities generated a net cash inflow of **HK$241 thousand**, investing activities resulted in a net cash outflow of **HK$33 thousand**, and cash and cash equivalents increased to **HK$8,685 thousand** at period-end Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net cash flows from operating activities | 241 | (7,869) | | Net cash flows from investing activities | (33) | (6) | | Net increase/(decrease) in cash and cash equivalents | 208 | (7,875) | | Cash and cash equivalents at beginning of period | 7,626 | 26,339 | | Cash and cash equivalents at end of period | 8,685 | 18,923 | - The net effect of exchange rate changes on cash and cash equivalents was **HK$851 thousand**, higher than **HK$459 thousand** in the same period last year[12](index=12&type=chunk) Notes to the Condensed Consolidated Financial Statements [General Information and Basis of Preparation](index=8&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company, incorporated in the Cayman Islands and re-domiciled in Bermuda, is listed on the HKEX GEM, with principal activities including artist management, film/TV/online content investment, and new media business, and interim financial statements are prepared in HKD under HKAS 34 and GEM Listing Rules - The Company was incorporated in the Cayman Islands on June 11, 2001, re-domiciled in Bermuda on March 16, 2009, and its shares have been listed on the HKEX GEM since March 26, 2002[13](index=13&type=chunk) - The Group's principal activities are providing artist management services and investing in film, television programmes, and online content[13](index=13&type=chunk) - The interim financial statements are prepared in Hong Kong Dollars in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure provisions of the GEM Listing Rules[14](index=14&type=chunk) [Application of New and Revised Hong Kong Financial Reporting Standards](index=8&type=section&id=Application%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The accounting policies used in the interim financial statements are consistent with the prior year, and newly revised HKFRSs, such as lack of exchangeability, have no significant impact on the interim financial statements - The accounting policies used in the interim financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2024[15](index=15&type=chunk) - The application of these revised HKFRSs has no significant impact on the interim financial statements[16](index=16&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group operates in three reportable segments: artist management, film/TV/online content, and new media; for the six months ended June 30, 2025, film/TV/online content revenue significantly decreased, new media revenue grew substantially, artist management revenue slightly declined, and all revenue originated from Mainland China - The Group has three reportable operating segments: artist management, film, television programmes and online content, and new media[18](index=18&type=chunk) Segment Revenue and Results (For the six months ended June 30) | Segment | 2025 Revenue (HK$ Thousand) | 2024 Revenue (HK$ Thousand) | Year-on-Year Change (%) | 2025 Results (HK$ Thousand) | 2024 Results (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Artist Management | 105 | 205 | -48.8% | (6) | 628 | | Film, Television Programmes and Online Content | 397 | 3,569 | -88.9% | (9,181) | (4,840) | | New Media Business | 1,643 | 884 | +85.9% | (334) | (3,683) | | Total | 2,145 | 4,658 | -54.0% | (9,521) | (7,895) | - For the six months ended June 30, 2025, all revenue of **HK$2,145 thousand** from external customers originated from Mainland China[21](index=21&type=chunk) [Revenue Breakdown](index=11&type=section&id=Revenue%20Breakdown) For the six months ended June 30, 2025, new media business became the primary revenue source, contributing **HK$1,643 thousand** with **85.9%** year-on-year growth, while film and online program revenue significantly declined, and distribution services generated no revenue Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | New Media Business | 1,643 | 884 | +85.9% | | Television and Online Programmes | 396 | 2,713 | -85.4% | | Distribution Agency Services | – | 855 | -100.0% | | Artist Management | 105 | 205 | -48.8% | | Others | 1 | 1 | 0.0% | | Total | 2,145 | 4,658 | -54.0% | [Other Income and Gains/(Losses)](index=12&type=section&id=Other%20Income%20and%20Gains%2F(Losses)) For the six months ended June 30, 2025, total other income and gains amounted to **HK$1,856 thousand**, a decrease from **HK$3,320 thousand** in the prior year, primarily due to the absence of film investment income, while rental income maintained steady growth Other Income and Gains/(Losses) (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Film investment income | – | 1,039 | -100.0% | | Interest income | 6 | 39 | -84.6% | | Rental income | 1,077 | 1,037 | +3.9% | | Exchange differences, net | (5) | 10 | -150.0% | | Others | 778 | 1,195 | -34.9% | | Total | 1,856 | 3,320 | -44.0% | [Components of Loss Before Tax](index=12&type=section&id=Components%20of%20Loss%20Before%20Tax) For the six months ended June 30, 2025, loss before tax was primarily influenced by staff costs, depreciation, and amortization, with both staff costs and depreciation expenses showing slight year-on-year decreases Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,556 | 2,683 | -4.7% | | Amortisation of other assets | 14 | 14 | 0.0% | | Staff costs (including directors' emoluments) | 8,060 | 8,562 | -5.9% | | - Salaries and allowances | 7,576 | 8,067 | -6.1% | | - Pension scheme contributions | 484 | 495 | -2.2% | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) During the reporting period, the Group incurred no income tax expense as no taxable profits were generated in Hong Kong, Korea, or Mainland China, or estimated taxable profits were fully absorbed by tax losses brought forward - No provision for Hong Kong profits tax and Korea corporate income tax was made as the Group generated no taxable profits or estimated taxable profits were fully absorbed by tax losses brought forward during the review period[25](index=25&type=chunk) - No tax was calculated at a 25% rate on taxable profits earned in Mainland China during the period[25](index=25&type=chunk) [Loss Per Share Attributable to Ordinary Equity Holders of the Parent](index=13&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Ordinary%20Equity%20Holders%20of%20the%20Parent) For the six months ended June 30, 2025, basic loss per share attributable to ordinary equity holders of the parent narrowed to **0.20 HK cents** from **0.24 HK cents** in the prior year, with no diluted loss per share calculated due to the anti-dilutive effect of share options and preference shares Loss Per Share Attributable to Ordinary Equity Holders of the Parent | Metric | For the six months ended June 30, 2025 (HK cents) | For the six months ended June 30, 2024 (HK cents) | | :--- | :--- | :--- | | Basic and diluted loss per share | (0.20) | (0.24) | | Loss attributable to ordinary equity holders of the parent (HK$ Thousand) | (8,377) | (10,140) | | Weighted average number of shares in issue (Thousand shares) | 4,209,130 | 4,209,130 | - No conversion of potential dilutive shares was assumed when calculating diluted loss per share due to the anti-dilutive effect of the Company's share options and preference shares on basic loss per share calculation[26](index=26&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of June 30, 2025, trade receivables significantly decreased by **89.1%** to **HK$769 thousand** from **HK$7,035 thousand** as of December 31, 2024, with all balances due within one year - The Group's trading terms with customers are primarily on credit, with credit periods generally ranging from 6 months to 1 year[27](index=27&type=chunk) Ageing Analysis of Trade Receivables (Within 1 year) | Period | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 year | 769 | 7,035 | [Film Rights and Films and Television Programmes in Progress](index=14&type=section&id=Film%20Rights%20and%20Films%20and%20Television%20Programmes%20in%20Progress) As of June 30, 2025, no impairment indicators were identified for film rights and films and television programmes in progress, resulting in no impairment losses recognized for the period, and the Group regularly assesses the recoverable amounts of related assets - At each reporting period end, the Group assesses whether there are any indications that film rights and films and television programmes in progress may be impaired[29](index=29&type=chunk) - As of June 30, 2025, no impairment indicators were identified for film and television programme rights, and thus no impairment losses were recognized by the Group for the six months ended June 30, 2025[29](index=29&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2025, trade payables decreased to **HK$343 thousand** from **HK$427 thousand** as of December 31, 2024, with all balances due within one year Ageing Analysis of Trade Payables (Within 1 year) | Period | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Within 1 year | 343 | 427 | [Share Capital and Fair Value Measurement](index=15&type=section&id=Share%20Capital%20and%20Fair%20Value%20Measurement) As of June 30, 2025, the company's issued ordinary share capital remained unchanged at **HK$42,090 thousand**, and directors believe the carrying amounts of financial instruments approximate their fair values Share Capital Information | Share Type | June 30, 2025 (Thousand shares) | June 30, 2025 (HK$ Thousand) | December 31, 2024 (Thousand shares) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Ordinary shares of HK$0.01 par value each | 4,209,130 | 42,090 | 4,209,130 | 42,090 | - The Company's directors believe that the carrying amounts of the Group's financial instruments approximate their fair values as of June 30, 2025, and December 31, 2024[32](index=32&type=chunk) [Commitments and Related Party Transactions](index=15&type=section&id=Commitments%20and%20Related%20Party%20Transactions) As of June 30, 2025, the Group's contracted but unprovided commitments for film rights and films and television programmes in progress amounted to **HK$45,741 thousand**, and key management personnel emoluments remained consistent with the prior year Contracted but Unprovided Commitments | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Film rights and films and television programmes in progress | 45,741 | 45,060 | Key Management Personnel Emoluments (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Salaries and allowances | 996 | 1,006 | | Pension scheme contributions | 73 | 66 | | Total | 1,069 | 1,072 | [Interim Dividend](index=16&type=section&id=Interim%20Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[35](index=35&type=chunk) Management Discussion and Analysis [Financial Review](index=16&type=section&id=Financial%20Review) For the six months ended June 30, 2025, group revenue decreased by **54.0%** to **HK$2,145 thousand**, primarily due to reduced film, TV, and online content revenue, while cost of sales and administrative expenses both declined, and loss attributable to owners of the parent narrowed to **HK$8,377 thousand** Financial Performance Overview (For the six months ended June 30) | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 2,145 | 4,658 | -54.0% | | Cost of sales | 1,293 | 3,950 | -67.3% | | Administrative expenses | 13,847 | 16,363 | -15.4% | | Loss for the period attributable to owners of the parent | 8,377 | 10,140 | -17.4% | - The decrease in revenue was primarily attributable to reduced revenue from the Group's film, television programmes, and online content businesses[36](index=36&type=chunk) [Business Review](index=17&type=section&id=Business%20Review) The Group adopts cautious investment in film, TV, and online content, while artist management develops talent and income. Music business leverages Amber APP for artist "self-publishing," and new media, centered on Amber PASS card, achieved significant partnerships and breakthroughs in cultural tourism and membership services - Revenue from the film, television programmes, and online content segment was approximately **HK$397 thousand** (2024: HK$3,569 thousand), primarily comprising revenue sharing and production fees from film, television programmes, and online content[38](index=38&type=chunk) - Revenue from the artist management segment was approximately **HK$105 thousand** (2024: HK$205 thousand)[39](index=39&type=chunk) - Revenue from the new media business segment was approximately **HK$1,643 thousand** (2024: HK$884 thousand)[40](index=40&type=chunk) [Film, Television Programmes and Online Content](index=17&type=section&id=Film%2C%20Television%20Programmes%20and%20Online%20Content) The Group adopts a cautious investment strategy in the challenging Chinese online film market, focusing on re-distribution and overseas pre-sales, while its comedy film underperformed, and it plans to leverage licenses for co-developing platform-customized content - China's online film market is in a bottleneck, with only **3 new films** generating over **RMB10 million** in revenue in H1 2025, and total and average box office significantly declining[41](index=41&type=chunk) - In H1 2025, the Group continued its cautious investment strategy in online films, actively promoting second and third-round overseas and new media pre-sales of historical projects to improve capital recovery rates[42](index=42&type=chunk) - The Group's invested comedy film "Moonlight by the Window, Bang!" underperformed pre-release box office expectations due to market competition, low screening rates, and insufficient promotion[44](index=44&type=chunk) - The Group plans to leverage its "Radio and Television Program Production and Operation License" and other permits to actively explore new film and television business lines, co-developing and producing high-profile, platform-customized films or series with partners, subject to sufficient funding[45](index=45&type=chunk) [Short Video Copyright Trading Platform](index=19&type=section&id=Short%20Video%20Copyright%20Trading%20Platform) The Group is developing a decentralized short video copyright trading platform using existing licenses and blockchain technology for rights confirmation and tokenized transactions, aiming to fragment content and resolve traditional copyright challenges to promote efficient content circulation and commercialization - The Group is actively researching and deploying a decentralized short video copyright trading platform, leveraging its existing qualifications and licenses[46](index=46&type=chunk) - The platform will utilize blockchain technology for rights confirmation and tokenized transactions, fragmenting short video content to significantly increase the number of investors and copyright owners[46](index=46&type=chunk) - This model aims to address pain points in traditional copyright trading, such as difficult rights confirmation, trading, and poor liquidity, to build a trustworthy, efficient, and transparent copyright trading ecosystem[46](index=46&type=chunk) [Artist Management](index=19&type=section&id=Artist%20Management) The Group continues to scout potential artists, collaborating with excellent management teams, leveraging its resources and new media exposure to create income streams and increase visibility for artists, while also generating returns for the Group - The Group continues to discover potential artists and collaborate with outstanding industry management teams to re-energize its artist management segment[47](index=47&type=chunk) - The Group will leverage its resource advantages, integrating various business segments, to create income streams for artists through customized performance opportunities and new media exposure[47](index=47&type=chunk) [Music Business](index=19&type=section&id=Music%20Business) Closer Music holds extensive original music copyrights and distribution channels; despite monetization attempts, impairment was recognized due to recoverable amounts below cost. The Group now leverages new media technology to offer a "self-publishing" one-stop service for independent original musicians, addressing creation, publishing, copyright, and revenue issues - Closer Music has accumulated a large number of high-quality original music copyrights and established comprehensive music promotion and distribution channels, collaborating with mainstream domestic and international music platforms[48](index=48&type=chunk)[49](index=49&type=chunk) - Although the Group attempted to monetize music copyrights, management recognized an impairment due to estimated recoverable amounts being below cost[49](index=49&type=chunk) - Leveraging the innovative thinking and technological advantages of its new media business, the Group has created a "self-publishing" one-stop service business model specifically for original independent musicians[49](index=49&type=chunk) [New Media Business](index=20&type=section&id=New%20Media%20Business) The Group invested in Amber APP for its new media segment, integrating blockchain, AIGC, and other technologies to enhance creator experience and explore new business models. The Amber PASS card achieved progress in music, cultural tourism, and membership services, including a strategic partnership with Alipay and pilot operations in national scenic spots - The Group invested significant resources in developing the Amber APP, integrating technologies such as blockchain, Generative AI (AIGC), digital watermarks, NFC, and Augmented Reality (AR) to provide creators with a comprehensive creation and publishing experience[50](index=50&type=chunk) - The Amber APP offers a self-publishing platform for original musicians, ensuring copyright autonomy and value enhancement through official blockchain notarization and ISRC certification in collaboration with China Copyright Chain Company[50](index=50&type=chunk) - The Group has become a partner in the Alipay payment ecosystem, jointly undertaking cultural tourism projects, promoting the cultural tourism PASS card, and transitioning from a "to C" to a "to B" business model[51](index=51&type=chunk)[54](index=54&type=chunk) - The cultural tourism PASS card began pilot operations at Badaling Great Wall in May 2025, and has been issued and sold in other national scenic spots and popular museums, receiving national media coverage[54](index=54&type=chunk)[55](index=55&type=chunk) - The Company provides a one-stop membership service system to customers through its membership APP and PASS card, having signed contracts for medical systems and online consumption platform membership management systems, and is currently negotiating to design VR/AR technology-enabled PASS cards for property developers to promote property sales[58](index=58&type=chunk) Other Information [Events After the Reporting Period](index=23&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the balance sheet date - No significant events occurred after the balance sheet date[59](index=59&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2025, the Group's total assets were **HK$129,830 thousand**, cash and cash equivalents increased to **HK$8,685 thousand**, and the gearing ratio rose to **66.3%**; the Group had no pledged assets or significant contingent liabilities and closely monitors foreign exchange risk Liquidity and Financial Resources Overview | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total assets | 129,830 | 136,262 | | Cash and cash equivalents | 8,685 | 7,626 | | Gearing ratio | 66.3% | 59.6% | | Capital commitments | 45,741 | 45,060 | - Most of the Group's income and expenses are denominated in RMB, and management closely monitors foreign exchange risk, considering hedging when necessary[64](index=64&type=chunk) - As of June 30, 2025, the Group had no pledged assets or significant contingent liabilities[63](index=63&type=chunk)[66](index=66&type=chunk) [Employees](index=24&type=section&id=Employees) As of June 30, 2025, the Group had **54 employees**, with remuneration, promotion, and salary reviews based on job responsibilities, performance, experience, and industry practice; Hong Kong employees participate in the Mandatory Provident Fund Scheme - As of June 30, 2025, the Group had **54 employees** (including approximately **50 employees** in Mainland China and **4 employees** in Hong Kong)[67](index=67&type=chunk) - Employee remuneration, promotion, and salary reviews are assessed based on job responsibilities, work performance, professional experience, and current industry practices[67](index=67&type=chunk) [Significant Investments and Share Option Scheme](index=24&type=section&id=Significant%20Investments%20and%20Share%20Option%20Scheme) During the reporting period, the Group held no significant investments; a new share option scheme adopted on June 21, 2024, aims to recognize and incentivize participant contributions, valid until June 2034, with no outstanding share options as of June 30, 2025 - For the period ended June 30, 2025, the Group held no significant investments[68](index=68&type=chunk) - The Company adopted a new share option scheme to grant share options to eligible participants, recognizing and incentivizing their contributions to the Group[69](index=69&type=chunk) - The share option scheme is valid for **10 years** and will expire in June 2034; as of June 30, 2025, there were no outstanding share options[69](index=69&type=chunk)[70](index=70&type=chunk) [Principal Shareholders](index=25&type=section&id=Principal%20Shareholders) As of June 30, 2025, Jiaxuan Group Limited (controlled by Mr. Huang Guangyu and Mr. Xu Zhongmin) held **47.10%** of shares, CITIC Group Corporation held **10.93%** through its subsidiaries, and Mr. Ko Chun Shun, Peter held **7.40%** through First Charm Investments Limited Principal Shareholders' Shareholding (As of June 30, 2025) | Name of Principal Shareholder | Capacity | Interest in Shares | Approximate Percentage of the Company's Issued Share Capital | | :--- | :--- | :--- | :--- | | Jiaxuan Group Limited | Beneficial owner | 1,982,561,725 | 47.10% | | Pengjian Investment Holdings Limited | Interest in controlled corporation | 1,982,561,725 | 47.10% | | Mr. Huang Guangyu | Interest in controlled corporation | 1,982,561,725 | 47.10% | | Weihao Global Holdings Limited | Interest in controlled corporation | 1,982,561,725 | 47.10% | | Mr. Xu Zhongmin | Interest in controlled corporation | 1,982,561,725 | 47.10% | | CITIC Group Corporation | Interest in controlled corporation | 459,934,954 | 10.93% | | CITIC Limited | Interest in controlled corporation | 459,934,954 | 10.93% | | Famous Peak Investments Limited | Beneficial owner | 459,934,954 | 10.93% | | First Charm Investments Limited | Beneficial owner | 311,545,414 | 7.40% | | Mr. Ko Chun Shun, Peter | Interest in controlled corporation | 311,545,414 | 7.40% | - Jiaxuan is owned **55%** by Pengjian Investment Holdings Limited and **45%** by Weihao Global Holdings Limited; Mr. Huang Guangyu owns **100%** of Pengjian, and Mr. Xu Zhongmin owns **100%** of Weihao[77](index=77&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The Company is committed to enhancing board quality, internal controls, and shareholder transparency; for the six months ended June 30, 2025, it complied with the GEM Listing Rules' Corporate Governance Code, except for provisions on chairman/CEO roles, non-executive director tenure, and attendance at general meetings, and the Audit Committee reviewed the interim report and results - The Company has consistently complied with the Corporate Governance Code set out in Appendix 15 of the GEM Listing Rules, except for Code Provisions A.2.1 (separation of chairman and chief executive roles), A.4.1 (specific tenure for non-executive directors), and A.6.7 (attendance of non-executive directors at general meetings)[78](index=78&type=chunk) - The positions of the Company's Chairman and Chief Executive Officer remain vacant, and the Company continues to seek suitable candidates to fill these vacancies[79](index=79&type=chunk) - The Audit Committee, comprising three members, reviewed the accounting principles and practices adopted by the Group, discussed internal controls and financial reporting matters with the management team, and reviewed the interim report and results before submission to the Board for approval[83](index=83&type=chunk)

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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部或任何部份內容 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。 Lajin Entertainment Network Group Limited 拉 近 網 娛 集 團 有 限 公 司 * （ 在 開 曼 群 島 註 冊 成 立 及 於 百 慕 達 存 續 之 有 限 公 司 ） （股份代號：8172） 要求覆核聯交所 關於GEM上市規則第17.26條的決定 本公佈乃拉近網娛集團有限公司（「本公司」）根據香港聯合交易所有限公司（「聯交所」） GEM證券上市規則（「GEM上市規則」）第17.10條及香港法例第571章證券及期貨條例第 XIVA部內幕消息條文（定義見GEM上市規則）作出。 茲提述本公司日期為二零二五年八月十八日的公佈（「該公佈」），內容有關（其中包括）聯 交所發出函件通知本公司，聯交所上市科已決定本公司未能根據GEM上市規則第17.26條 所規定維持足夠的業務運作並且擁有相當價值的資產以令其股份得以繼續上市（「該決定」）， 惟本公司申請覆核該決定除外。 ...