[Company Information and Disclaimer](index=1&type=section&id=Company%20Information%20and%20Disclaimer) This section provides basic company information and highlights the high investment risks associated with the GEM market, advising investor caution [Company Overview and GEM Characteristics](index=1&type=section&id=Company%20Overview%20and%20GEM%20Characteristics) This section introduces the basic information of China Star Entertainment Group Limited, including its registration in the Cayman Islands, continuance in Bermuda, and listing on GEM of the Hong Kong Stock Exchange, emphasizing the high investment risks of the GEM market - The Company was incorporated in the Cayman Islands on June 11, 2001, continued in Bermuda on March 16, 2009, and has been listed on GEM of the Hong Kong Stock Exchange since March 26, 2002[9](index=9&type=chunk) - The GEM market is positioned as a listing platform for small and medium-sized companies with higher investment risks, and investors should understand the potential risks and consider them carefully[1](index=1&type=chunk) [Unaudited Interim Results](index=2&type=section&id=Unaudited%20Interim%20Results) This section presents the Group's unaudited interim financial results, including statements of profit or loss, financial position, changes in equity, and cash flows [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, 2024, the Group's revenue significantly decreased by 63.7% to HK$4,658 thousand, with loss attributable to owners of the parent expanding to HK$10,140 thousand Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4,658 | 12,845 | -63.7% | | Cost of sales | (3,950) | (3,643) | +8.4% | | Gross profit/(loss) | 708 | 9,202 | -92.3% | | Other income and gains | 3,320 | 49 | +6675.5% | | Selling and distribution expenses | (123) | (234) | -47.4% | | Administrative expenses | (16,363) | (15,331) | +6.7% | | Share of loss of associates | (697) | (528) | +32.0% | | Loss before tax | (13,155) | (6,842) | +92.3% | | Loss for the period | (13,155) | (6,850) | +92.0% | | Loss for the period attributable to owners of the parent | (10,140) | (5,177) | +95.9% | | Loss per share attributable to ordinary equity holders of the parent (HK cents) | (0.24) | (0.12) | +100.0% | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets and total equity both decreased, with non-current and current assets declining, and net current assets significantly shrinking Key Data from Condensed Consolidated Statement of Financial Position | Metric | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | | Total non-current assets | 97,473 | 103,421 | (5,948) | -5.75% | | Total current assets | 66,170 | 81,325 | (15,155) | -18.63% | | **LIABILITIES** | | | | | | Total current liabilities | 60,605 | 66,318 | (5,713) | -8.61% | | **EQUITY** | | | | | | Equity attributable to owners of the parent | 121,429 | 134,192 | (12,763) | -9.51% | | Total equity | 103,038 | 118,428 | (15,390) | -12.99% | | Net current assets | 5,565 | 15,007 | (9,442) | -62.92% | [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, 2024, the Group's total equity decreased due to loss for the period and other comprehensive loss, with equity attributable to owners of the parent falling from HK$134,192 thousand to HK$121,429 thousand Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | January 1, 2024 (HK$ thousand) | Loss for the period (HK$ thousand) | Other comprehensive loss for the period (HK$ thousand) | June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity attributable to owners of the parent | 134,192 | (10,140) | (2,623) | 121,429 | | Non-controlling interests | (15,764) | (3,015) | 388 | (18,391) | | Total equity | 118,428 | (13,155) | (2,235) | 103,038 | [Condensed Consolidated Cash Flow Statement](index=7&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2024, the Group's net cash used in operating activities was HK$7,869 thousand, leading to a net decrease in cash and cash equivalents of HK$7,875 thousand, with the period-end balance at HK$18,923 thousand Key Data from Condensed Consolidated Cash Flow Statement (For the six months ended June 30) | Metric | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net cash used in operating activities | (7,869) | (1,529) | (6,340) | +414.65% | | Net cash used in investing activities | – | (10) | 10 | -100.00% | | Net decrease in cash and cash equivalents | (7,875) | (1,539) | (6,336) | +411.69% | | Cash and cash equivalents at beginning of period | 26,339 | 29,516 | (3,177) | -10.76% | | Cash and cash equivalents at end of period | 18,923 | 27,801 | (8,878) | -31.93% | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering accounting policies, segment information, revenue, and other financial disclosures [General Information](index=8&type=section&id=General%20Information) This section outlines the Company's registration, listing, registered office, and principal place of business, clarifying the Group's main activities as investment holding, artist management, and film, TV, and web content investment - The Company's principal business is investment holding, and the Group's principal businesses are providing artist management services and investing in film, television programs, and web content[9](index=9&type=chunk) [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared in accordance with HKAS 34 Interim Financial Reporting and GEM Listing Rules, presented in HK dollars, with all values rounded to the nearest thousand - The interim financial statements are prepared in accordance with HKAS 34 and GEM Listing Rules, presented in HK dollars, with all values rounded to HK$ thousand[10](index=10&type=chunk) [Application of New and Revised HKFRSs](index=8&type=section&id=Application%20of%20New%20and%20Revised%20HKFRSs) The Group's accounting policies for the interim financial statements remain consistent with the prior year, and the listed new and revised HKFRSs have no significant impact on these statements - New and revised HKFRSs (including HKFRS 16, HKAS 1, HKAS 7 amendments) effective from January 1, 2024, have no significant impact on the interim financial statements[11](index=11&type=chunk)[12](index=12&type=chunk) [Segment Information](index=9&type=section&id=Segment%20Information) The Group is organized into three reportable operating segments: artist management, film/TV/web content, and new media, based on products and services, for performance monitoring and resource allocation - The Group has three reportable operating segments: artist management, film/television programs/web content, and new media[13](index=13&type=chunk) [Segment Revenue and Results](index=10&type=section&id=Segment%20Revenue%20and%20Results) For the six months ended June 30, 2024, revenue from the film, television programs, and web content segment significantly decreased, leading to a reduction in total revenue, with all segments recording losses Segment Revenue and Results (For the six months ended June 30) | Segment | 2024 Revenue (HK$ thousand) | 2023 Revenue (HK$ thousand) | Revenue Change (%) | 2024 Segment Loss (HK$ thousand) | 2023 Segment Loss (HK$ thousand) | Loss Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Artist Management | 202 | 207 | -2.4% | 628 | (200) | N/A | | Film, Television Programmes and Web Content | 3,569 | 12,493 | -71.4% | (4,840) | (3,354) | +44.3% | | New Media | 884 | 145 | +509.7% | (3,683) | (1,323) | +178.4% | | **Total** | **4,658** | **12,845** | **-63.7%** | **(7,895)** | **(4,877)** | **+61.9%** | [Geographical Information](index=11&type=section&id=Geographical%20Information) All of the Group's external customer revenue is derived from Mainland China, where non-current assets are primarily concentrated, with a smaller proportion in South Korea Geographical Revenue and Non-current Assets (For the six months ended June 30) | Region | 2024 External Customer Revenue (HK$ thousand) | 2023 External Customer Revenue (HK$ thousand) | 2024 Non-current Assets (HK$ thousand) | 2023 Non-current Assets (HK$ thousand) | | :--- | :--- | :--- | :--- | :--- | | Hong Kong | – | – | – | – | | Mainland China | 4,658 | 12,845 | 94,537 | 99,762 | | South Korea | – | – | 1,262 | 1,945 | | **Total** | **4,658** | **12,845** | **95,799** | **101,707** | [Revenue](index=11&type=section&id=Revenue) For the six months ended June 30, 2024, total revenue decreased by 63.7% year-over-year, mainly due to zero film distribution revenue and a significant reduction in TV and web program revenue, despite notable growth in new media business revenue Revenue Breakdown (For the six months ended June 30) | Revenue Source | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | New media business | 884 | 145 | +509.7% | | Television and web programs | 2,713 | 6,084 | -55.5% | | Distribution agency services | 855 | 525 | +62.9% | | Film distribution | – | 5,884 | -100.0% | | Artist management | 205 | 207 | -1.0% | | Others | 1 | – | N/A | | **Total** | **4,658** | **12,845** | **-63.7%** | [Other Income and Gains/(Losses)](index=12&type=section&id=Other%20Income%20and%20Gains%2F%28Losses%29) For the six months ended June 30, 2024, other income and gains significantly increased to HK$3,320 thousand, primarily driven by substantial contributions from film investment income and rental income Other Income and Gains/(Losses) Breakdown (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Film investment income | 1,039 | – | N/A | | Interest income | 39 | 47 | -17.0% | | Rental income | 1,037 | – | N/A | | Convertible bond compensation income | – | 57 | -100.0% | | Exchange differences, net | 10 | 172 | -94.2% | | Others | 1,195 | (227) | N/A | | **Total** | **3,320** | **49** | **+6675.5%** | [Loss Before Tax](index=12&type=section&id=Loss%20Before%20Tax) For the six months ended June 30, 2024, loss before tax was HK$13,155 thousand, primarily impacted by expenses such as depreciation, amortization, rental payments, and staff costs Components of Loss Before Tax (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,683 | 3,018 | -11.1% | | Amortisation of other assets | 14 | 15 | -6.7% | | Rental payments not measured at lease liabilities | 238 | 388 | -38.7% | | Staff costs (salaries and allowances) | 8,067 | 8,387 | -3.8% | | Staff costs (contributions to retirement benefit schemes) | 495 | 517 | -4.3% | [Income Tax Expense](index=13&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2024, the Group incurred no assessable profits in Hong Kong, South Korea, or Mainland China, resulting in zero income tax expense - No assessable profits were generated in Hong Kong, South Korea, or Mainland China during the period, resulting in **zero income tax expense** (2023: HK$8 thousand in Mainland China)[22](index=22&type=chunk) [Loss Per Share Attributable to Owners of the Parent](index=13&type=section&id=Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) For the six months ended June 30, 2024, basic and diluted loss per share attributable to ordinary equity holders of the parent was 0.24 HK cents, an increase from 0.12 HK cents in the prior year Loss Per Share Attributable to Ordinary Equity Holders of the Parent (For the six months ended June 30) | Metric | 2024 (HK cents) | 2023 (HK cents) | Change (HK cents) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Basic and diluted loss per share | (0.24) | (0.12) | (0.12) | +100.0% | - For the six months ended June 30, 2024, the weighted average number of ordinary shares in issue was **4,209,130,000**[23](index=23&type=chunk) [Trade Receivables](index=13&type=section&id=Trade%20Receivables) As of June 30, 2024, the Group's trade receivables significantly decreased to HK$7,077 thousand from HK$16,813 thousand as of December 31, 2023, with credit terms generally ranging from 6 months to 1 year Trade Receivables (Within 1 year) | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2024 | 7,077 | | December 31, 2023 | 16,813 | - The Group's credit period with customers generally ranges from **6 months to 1 year**, with strict controls on overdue receivables to mitigate credit risk[24](index=24&type=chunk) [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, 2024, no impairment indicators were identified for the Group's film rights and films and television programs in progress, thus no impairment loss was recognized - As of June 30, 2024, no impairment indicators were identified for film and television program rights, and no impairment loss was recognized for the period[26](index=26&type=chunk) [Trade Payables](index=14&type=section&id=Trade%20Payables) As of June 30, 2024, the Group's trade payables increased to HK$979 thousand from HK$162 thousand as of December 31, 2023 Trade Payables (Within 1 year) | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2024 | 979 | | December 31, 2023 | 162 | [Share Capital](index=15&type=section&id=Share%20Capital) As of June 30, 2024, the Company's issued and fully paid ordinary share capital remained at HK$42,090 thousand, with 4,209,130 thousand shares and no preference shares Ordinary Share Capital Information | Date | Number of Shares (thousand shares) | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | June 30, 2024 | 4,209,130 | 42,090 | | December 31, 2023 | 4,209,130 | 42,090 | - The Company has no issued and fully paid preference shares[28](index=28&type=chunk)[30](index=30&type=chunk) [Fair Value Measurement](index=15&type=section&id=Fair%20Value%20Measurement) The directors believe 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 approximate their fair values at the end of the reporting period[31](index=31&type=chunk) [Commitments](index=15&type=section&id=Commitments) As of June 30, 2024, the Group's contracted but unprovided capital commitments, primarily for film rights and films and television programs in progress, amounted to HK$45,493 thousand, a slight increase from the previous year-end Capital Commitments (Film Rights and Films/Television Programmes in Progress) | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2024 | 45,493 | | December 31, 2023 | 44,730 | [Significant Related Parties and Related Party Transactions](index=16&type=section&id=Significant%20Related%20Parties%20and%20Related%20Party%20Transactions) This section discloses key management personnel remuneration, with salaries and allowances totaling HK$1,006 thousand and retirement scheme contributions of HK$66 thousand for the six months ended June 30, 2024 Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Salaries and allowances | 1,006 | 1,069 | | Retirement benefit scheme contributions | 66 | 67 | | **Total** | **1,072** | **1,136** | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's financial performance, business operations, liquidity, and future outlook for the reporting period [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, 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[33](index=33&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) For the six months ended June 30, 2024, the Group's revenue significantly decreased by 63.7% to HK$4,658 thousand, primarily due to reduced film, TV, and web content business revenue; increased cost of sales and administrative expenses led to an expanded loss attributable to owners of the parent of HK$10,140 thousand - For the six months ended June 30, 2024, revenue decreased by **63.7%** year-over-year to **HK$4,658 thousand**, primarily due to reduced revenue from film, television programs, and web content businesses[34](index=34&type=chunk) - Cost of sales increased to **HK$3,950 thousand** (2023: HK$3,643 thousand), mainly due to increased carry-over costs related to film, television, and web programs[34](index=34&type=chunk) - Administrative expenses increased to **HK$16,363 thousand** (2023: HK$15,331 thousand)[34](index=34&type=chunk) - Loss attributable to owners of the parent expanded to **HK$10,140 thousand** (2023: HK$5,177 thousand)[34](index=34&type=chunk) [Revenue by Business Segment](index=17&type=section&id=Revenue%20by%20Business%20Segment) This section details the revenue performance of each business segment, with significant declines in film, TV, and web content revenue, flat artist management revenue, and substantial growth in new media business revenue [Film, Television Programmes and Web Content](index=17&type=section&id=Film%2C%20Television%20Programmes%20and%20Web%20Content) For the six months ended June 30, 2024, this segment's revenue was HK$3,569 thousand, a significant decrease from HK$12,493 thousand in the prior year, primarily from revenue sharing and production fees for film, TV, and web content Film, Television Programmes and Web Content Segment Revenue (For the six months ended June 30) | Year | Revenue (HK$ thousand) | | :--- | :--- | | 2024 | 3,569 | | 2023 | 12,493 | [Artist Management](index=17&type=section&id=Artist%20Management) For the six months ended June 30, 2024, the artist management segment's revenue was HK$205 thousand, remaining largely stable compared to the prior year Artist Management Segment Revenue (For the six months ended June 30) | Year | Revenue (HK$ thousand) | | :--- | :--- | | 2024 | 205 | | 2023 | 207 | [New Media Business](index=17&type=section&id=New%20Media%20Business) For the six months ended June 30, 2024, new media business segment revenue significantly grew to HK$884 thousand, an increase of over 5 times from HK$145 thousand in the prior year New Media Business Segment Revenue (For the six months ended June 30) | Year | Revenue (HK$ thousand) | | :--- | :--- | | 2024 | 884 | | 2023 | 145 | [Business Review](index=17&type=section&id=Business%20Review) The Group adopts a cautious investment strategy in film, TV, and web content, focusing on existing works and investing in comedy theatrical films; artist management seeks new momentum through collaborations; music business focuses on copyright agency and one-stop services for independent artists; new media, centered on the Amber APP, innovates monetization models with Web3.0 and AIGC, expanding international cooperation [Film, Television and Web Content Business Review](index=17&type=section&id=Film%2C%20Television%20and%20Web%20Content%20Business%20Review) Facing a shrinking online film market and platforms' cost-cutting trends, the Group adopts a cautious investment strategy, focusing on the distribution and promotion of existing works and actively investing in comedy theatrical films like 'Fa Cai Ri Ji 2' and 'The Moonlight Beyond the Window' to capitalize on market opportunities - The online film market size is shrinking, with only **15 projects** exceeding RMB10 million in box office in the first half, and new film registrations decreasing by **36%** year-over-year[36](index=36&type=chunk) - The Group continues a cautious investment strategy for online films, focusing on the distribution and promotion of existing unreleased works, and optimizing investment principles to 'reduce costs, increase efficiency, improve quality, and decrease quantity'[37](index=37&type=chunk) - The theatrical film market's total box office in the first half decreased by **9%** year-over-year, but new film reserves increased by **159 titles**, indicating confidence in content production[37](index=37&type=chunk) - The Group invested in comedy films 'Fa Cai Ri Ji 2' (expected to start filming by end of 2024, theatrical release in 2025) and 'The Moonlight Beyond the Window' (filming completed, theatrical release in 2024), aiming to share in the comedy theatrical film market's dividends[37](index=37&type=chunk)[38](index=38&type=chunk) - In the first half, the Group's online film 'Mr. Qianhe' was launched on iQiyi, Youku, and Tencent platforms, achieving a cumulative box office of **RMB10.74 million** as of June 30, ranking **15th** on the 2024 full-network box office chart[38](index=38&type=chunk) [Artist Management Business Review](index=19&type=section&id=Artist%20Management%20Business%20Review) The Group collaborates with excellent management teams to recruit promising artists, leveraging its resources across business segments to create income streams and exposure opportunities for artists, aiming for Group returns - The Group continues to collaborate with excellent management teams to recruit promising artists, injecting momentum into the artist management business[39](index=39&type=chunk) - Leveraging its resource advantages and integrating various business segments, the Group creates income streams for artists through customized performance opportunities and new media exposure[39](index=39&type=chunk) [Music Business Review](index=20&type=section&id=Music%20Business%20Review) Lajin Music has amassed a large catalog of original music copyrights and established comprehensive distribution channels, fully launching its music copyright agency and distribution business, while also building a one-stop 'self-publishing' service for independent artists, though some music copyrights have been impaired due to recoverable amounts falling below cost - Lajin Music has accumulated a large number of high-quality original music copyrights and established comprehensive music promotion and distribution channels, fully launching its music copyright agency and distribution business[40](index=40&type=chunk) - The Group has created a one-stop 'self-publishing' business model specifically for original independent musicians, addressing issues such as creation, publication, copyright, and revenue[40](index=40&type=chunk) - Despite efforts to monetize music copyrights, the estimated recoverable amount for some copyrights is below cost, leading to corresponding impairment[40](index=40&type=chunk) [New Media Business Review](index=20&type=section&id=New%20Media%20Business%20Review) The Group has invested heavily in its new media segment, developing the Amber APP platform with blockchain, AIGC, and other technologies to offer creators a unique experience, innovating 'creator economy + musician self-publishing + music trendy play' models, successfully launching Music PASS cards and LIVEPASS digital souvenir tickets, and actively expanding international collaborations - The Group has invested significant resources to build the Amber APP platform, integrating technologies such as blockchain, AIGC, digital watermarking, NFC, and AR to provide creators with a unique creation and publishing experience[41](index=41&type=chunk) - Amber APP offers original musicians **100% copyright autonomy**, providing official blockchain notarization and ISRC certification through cooperation with China Copyright Chain Company[41](index=41&type=chunk) - The core innovative product, the Music PASS card, integrates NFC and AR technologies, offering musicians new monetization methods, and successfully launched the LIVEPASS digital souvenir ticket at Zhao Chuan's Beijing concert[42](index=42&type=chunk) - In the first half of 2024, the new media business achieved multiple cooperation breakthroughs, including partnerships with the Beijing Musicians Association Rock Music Branch, cross-industry collaboration with the China Men's 3x3 Basketball Super League, and cooperation in the Chinese classical music sector to issue Music PASS card albums, achieving excellent results with the first global release of Music PASS cards[42](index=42&type=chunk) - The 'LIVEPASS Music Festival All-in-One Card Wristband,' developed with Amber's core technology, was widely used as a payment channel at the first Chinese stop of the WATERZONIC Music Festival[42](index=42&type=chunk) - The Group participated in the China Internet Audio-Visual Convention, discussing the impact and development trends of AI+Web3.0 on the music industry[43](index=43&type=chunk) [Post Balance Sheet Events](index=22&type=section&id=Post%20Balance%20Sheet%20Events) No significant events occurred after the balance sheet date for the Group - No significant events occurred for the Group after the balance sheet date[44](index=44&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2024, the Group's total assets were HK$163,643 thousand, with cash and cash equivalents at HK$18,923 thousand, primarily funding operations through proceeds from fundraising activities during the reporting period Key Data on Liquidity and Financial Resources | Metric | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total assets | 163,643 | 184,746 | (21,103) | -11.42% | | Cash and cash equivalents | 18,923 | 26,339 | (7,416) | -28.15% | - The Group primarily funded its operations during the review period using proceeds from fundraising activities[45](index=45&type=chunk) [Capital Structure](index=22&type=section&id=Capital%20Structure) As of the date of this announcement, the Company has a total of 4,209,131,046 ordinary shares in issue - As of the date of this announcement, the Company has a total of **4,209,131,046 ordinary shares** in issue[46](index=46&type=chunk) [Gearing Ratio](index=22&type=section&id=Gearing%20Ratio) As of June 30, 2024, the Group's gearing ratio was approximately 49.9%, a slight increase from 49.4% as of December 31, 2023 Gearing Ratio | Date | Gearing Ratio | | :--- | :--- | | June 30, 2024 | 49.9% | | December 31, 2023 | 49.4% | [Pledge of Assets of the Group](index=22&type=section&id=Pledge%20of%20Assets%20of%20the%20Group) As of June 30, 2024, the Group had no pledge of assets - As of June 30, 2024, the Group had no pledge of assets[48](index=48&type=chunk) [Foreign Exchange Risk](index=23&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's income and expenses are denominated in RMB, and currently, no foreign currency derivative instruments are used for hedging, but management closely monitors and will consider hedging when necessary - Most of the Group's income and expenses are denominated in RMB, and currently, no foreign currency derivative instruments are used to hedge foreign exchange risk[49](index=49&type=chunk) - Management closely monitors foreign exchange risk and will consider hedging when necessary[49](index=49&type=chunk) [Commitments](index=23&type=section&id=Commitments_MDA) As of June 30, 2024, the Group's capital commitments amounted to approximately HK$45,493 thousand, primarily for film rights and films and television programs in progress Capital Commitments | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2024 | 45,493 | | December 31, 2023 | 44,730 | [Contingent Liabilities](index=23&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no significant contingent liabilities - As of June 30, 2024, the Group had no significant contingent liabilities[51](index=51&type=chunk) [Employees](index=23&type=section&id=Employees) As of June 30, 2024, the Group had 49 employees (46 in Mainland China and 3 in Hong Kong), with remuneration, promotion, and salary reviews based on job responsibilities, performance, experience, and industry practice - As of June 30, 2024, the Group had **49 employees** (**46** in Mainland China, **3** in Hong Kong)[52](index=52&type=chunk) - Employee remuneration, promotion, and salary reviews are based on job responsibilities, performance, professional experience, and current industry practice[52](index=52&type=chunk) [Material Investments](index=23&type=section&id=Material%20Investments) For the period ended June 30, 2024, the Group held no material investments - For the period ended June 30, 2024, the Group held no material investments[53](index=53&type=chunk) [Share Option Scheme](index=23&type=section&id=Share%20Option%20Scheme) The Company adopted a new share option scheme on June 21, 2024, to recognize and incentivize participants' contributions, valid for 10 years until June 2025, with no outstanding share options as of June 30, 2024 - The Company adopted a new share option scheme on June 21, 2024, aimed at recognizing and incentivizing participants' contributions to the Group[54](index=54&type=chunk) - The share option scheme is valid for **10 years** and will expire in **June 2025**[54](index=54&type=chunk) - As of June 30, 2024, there were no outstanding share options[54](index=54&type=chunk) [Arrangements to Purchase Shares or Debentures](index=23&type=section&id=Arrangements%20to%20Purchase%20Shares%20or%20Debentures) Excluding the share option and employee incentive schemes, neither the Company nor its subsidiaries entered into any arrangements during the reporting period that would benefit directors and chief executives through the purchase of shares or debentures of the Company or any other body corporate - Except for the share option scheme and employee incentive scheme, neither the Company nor any of 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[55](index=55&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section covers additional disclosures including major shareholders, directors' interests, corporate governance practices, and audit committee details [Major Shareholders](index=24&type=section&id=Major%20Shareholders) As of June 30, 2024, Jiaxuan Group Limited and its associates Mr. Huang Guangyu and Mr. Xu Zhongmin held 47.10% of the Company's shares, China CITIC Group Corporation Limited and its associates held 10.93%, and First Charm Investments Limited and its associate Mr. Ko Chun Shun held 7.40% Major Shareholders' Shareholding (As of June 30, 2024) | Name of Major Shareholder | Capacity | Nature of Interest | Approximate Percentage of 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% | | China CITIC Group Corporation Limited | 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 | Interest in controlled corporation | 311,545,414 | 7.40% | [Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures of the Company and its Associated Corporations](index=25&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company%20and%20its%20Associated%20Corporations) As of June 30, 2024, 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, 2024, 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[59](index=59&type=chunk) [Competing Interests](index=25&type=section&id=Competing%20Interests) As of June 30, 2024, no directors, major shareholders, or their respective associates held any interests in businesses that compete or may compete with the Group's business - As of June 30, 2024, no directors, major shareholders, or their respective associates held any interests in any business that competes or may compete with the Group's business[60](index=60&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=25&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[61](index=61&type=chunk) [Corporate Governance Practices](index=25&type=section&id=Corporate%20Governance%20Practices) The Company is committed to improving accountability and transparency but, for the six months ended June 30, 2024, did not fully comply with certain provisions of the Corporate Governance Code in Appendix 15 of the GEM Listing Rules, including the separation of Chairman and CEO roles, fixed terms for non-executive directors, and non-executive directors' attendance at general meetings - The Company failed to meet the GEM Listing Rule 17.104 requirement for board diversity regarding single-gender boards, and the Board is seeking suitable candidates to comply by **December 31, 2024**[62](index=62&type=chunk) - The Company did not comply with Corporate Governance Code provisions A.2.1 (separation of Chairman and Chief Executive Officer roles), A.4.1 (fixed terms for non-executive directors), and A.6.7 (attendance of non-executive directors at general meetings)[63](index=63&type=chunk) [Chairman and Chief Executive Officer](index=26&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) As of the date of this announcement, the positions of Chairman and Chief Executive Officer of the Company remain vacant, and the Company continues to seek suitable candidates to fill these vacancies - As of the date of this announcement, the positions of Chairman and Chief Executive Officer of the Company remain vacant, and the Company will continue to seek suitable candidates to fill these vacancies[64](index=64&type=chunk) [Term of Non-executive Directors](index=26&type=section&id=Term%20of%20Non-executive%20Directors) The terms of non-executive directors are subject to retirement by rotation and eligibility for re-election under the Company's articles of association, which the Board deems sufficient to achieve the objectives of Code Provision A.4.1 - Non-executive directors' terms are subject to retirement by rotation and eligibility for re-election under the Company's articles of association, which the Board considers sufficient to achieve the relevant objectives of Code Provision A.4.1[65](index=65&type=chunk) [Attendance of Non-executive Directors at General Meetings](index=26&type=section&id=Attendance%20of%20Non-executive%20Directors%20at%20General%20Meetings) Certain non-executive directors and independent non-executive directors were unable to attend the Company's annual general meetings and extraordinary general meetings due to other business commitments, thus not fully complying with Code Provision A.6.7 - Certain non-executive directors and independent non-executive directors were unable to attend the Company's annual general meetings and extraordinary general meetings due to other business commitments[66](index=66&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=26&type=section&id=Code%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) For the six months ended June 30, 2024, the Company adopted a code of conduct for directors' securities transactions no less stringent than the GEM Listing Rules, and all directors confirmed compliance after inquiry - The Company has adopted a code of conduct for directors' securities transactions no less stringent than the GEM Listing Rules, and all directors have confirmed compliance[67](index=67&type=chunk) [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee, comprising three members, is primarily responsible for reviewing financial statements, providing advice, and overseeing the Group's financial reporting and internal control procedures, and has reviewed this interim report and results - The Audit Committee, comprising three members (Mr. Lam Cheung Shing as Chairman), is primarily responsible for reviewing financial statements, providing advice, and reviewing and monitoring the Group's financial reporting and internal control procedures[68](index=68&type=chunk) - The Audit Committee has reviewed the interim report and results for the six months ended June 30, 2024[68](index=68&type=chunk) [Board of Directors](index=27&type=section&id=Board%20of%20Directors) This section lists the composition of the Board of Directors as of the announcement date, including executive, non-executive, and independent non-executive directors - As of the date of this announcement, the executive directors are Mr. Colin Xu and Mr. Leung Wai Shun; non-executive directors are Mr. Zou Xiaochun, Mr. Zhou Yafei, and Mr. Li Xuesong; independent non-executive directors are Mr. Ng Wai Hung, Mr. Lam Cheung Shing, and Mr. Wang Ju[68](index=68&type=chunk)

Corporate Governance - The board of directors will hold a meeting on August 12, 2024, to review and approve the unaudited condensed consolidated interim results for the six months ended June 30, 2024[4] - The company is committed to ensuring the accuracy and completeness of the information disclosed, with all directors confirming no misleading or fraudulent elements in the announcement[1] - The board of directors collectively and individually assumes full responsibility for the accuracy of the disclosed information[1] - The company emphasizes the importance of transparency and accountability in its communications[1] - The executive directors include Colin Xu and Liang Wei Xin, while the non-executive and independent non-executive directors are also listed[3] Compliance and Disclosure - The announcement is made in compliance with the rules of the Growth Enterprise Market, aimed at providing information about the company[2] - The company has not disclosed specific financial performance metrics or user data in the current announcement[4] - There are no details provided regarding future outlook, performance guidance, new products, or market expansion strategies in the current documents[4] - The announcement does not include any information on mergers or acquisitions[4] Company Information - The company is registered in the Cayman Islands and continues to operate in Bermuda, with stock code 8172[1]

Box Office Performance - In 2023, the total box office revenue for mainland China's cinema reached RMB 54.915 billion, representing an 83.4% year-on-year increase[9]. - Domestic films accounted for RMB 46.005 billion, making up 83.77% of the total box office revenue[9]. - The Chinese box office reached $7.571 billion in 2023, ranking second globally, with a 70% increase in box office compared to the previous three years[21]. - The strong recovery of the cinema market is expected to return to a positive cycle, supported by high-quality films and increased audience demand[9]. Online Film Market - The number of films that grossed over RMB 10 million in the online film market decreased to 34, down by 17 from 2022 and 31 from 2021[7]. - The overall user engagement in online content has decreased compared to the previous two years due to the recovery of offline entertainment demand[7]. - The online film market is experiencing a downturn, with a slowdown in user growth and a decline in the number of films released and viewed, prompting the group to adopt a cost-effective investment approach[24]. - In 2023, the company released three network films, with box office revenue lower than expected due to platform rule adjustments[12]. Investment Strategies - The group plans to focus on the release and marketing of existing inventory films to stabilize box office revenue and maintain competitive advantage[8]. - The group maintains a cautious investment strategy in the online film sector while adapting to market changes and focusing on operational efficiency[8]. - The company plans to adjust its investment strategy in theatrical films, focusing on valuable investment targets in the comedy genre to enhance revenue stability and return rates[21]. - In 2024, the company will adopt a cost-effective investment approach in the network film market, focusing on quality over quantity amid a competitive landscape[21]. New Media and Technology - The new media business is leveraging blockchain and AI technologies to create innovative publishing experiences for creators, enhancing user engagement and rights protection[18]. - The launch of the music PASS card, integrating NFC and NFT concepts, has provided musicians with new monetization opportunities and received positive market feedback[19]. - The company is actively pursuing overseas and new media pre-sales for historical projects to increase revenue, enhancing capital recovery rates through multiple rounds of distribution[12]. - The group is preparing to launch an album PASS card in collaboration with well-known musicians, aiming to attract fan engagement and introduce new revenue models[29]. Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 28,915,000, a 174.52% increase from HKD 10,533,000 in 2022, primarily driven by growth in film, television, and online content businesses[31]. - The loss attributable to equity holders of the parent company for the year was approximately HKD 42,222,000, an improvement from a loss of HKD 94,607,000 in 2022[32]. - Revenue from the film, television, and online content segment was approximately HKD 28,196,000, significantly up from HKD 4,874,000 in 2022, mainly due to licensing and film distribution income[33]. - The net loss for the year was HKD 42,846,000, improved from a net loss of HKD 102,693,000 in the previous year, indicating a reduction of 58.3%[200]. Corporate Governance - The company emphasizes that human resources are its most important asset for sustainable development, providing competitive compensation and a good working environment[66]. - The management team includes experienced professionals with over 25 years in auditing, accounting, and finance, enhancing the company's governance and strategic direction[70][73]. - The company has established long-term relationships with existing and potential customers and suppliers, with no unresolved disputes reported during the year[66]. - The company has a diverse board of directors with expertise in law, finance, and corporate governance, contributing to effective oversight[71][75]. Risk Management and Internal Controls - The company has established a risk management and internal control system to manage risks rather than eliminate them, ensuring effective business operations[127]. - The internal audit function was established to evaluate risk management and internal control effectiveness, with a three-year audit plan based on risk assessments[129]. - The audit committee has reviewed the financial reporting and compliance procedures, confirming no significant uncertainties affecting the company's ability to continue as a going concern[120]. - The company has no significant uncertainties that could impact its ability to continue as a going concern[120]. Shareholder Engagement - The company encourages all shareholders to attend the annual general meeting or appoint representatives to vote on their behalf[107]. - The company provides comprehensive and formal guidance to newly appointed directors to ensure they are familiar with their roles and responsibilities[108]. - All directors are required to participate in ongoing professional development to enhance their knowledge and skills related to their contributions to the board[109]. - The company has established committees for audit, remuneration, and nominations to enhance governance[91].

Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 28,915,000, a significant increase from HKD 10,533,000 in 2022, representing a growth of approximately 174%[4] - The gross profit for the year was HKD 9,050,000, compared to a gross loss of HKD 18,753,000 in the previous year, indicating a turnaround in profitability[4] - The net loss for the year was HKD 42,846,000, reduced from a net loss of HKD 102,693,000 in 2022, showing an improvement of about 58%[4] - The total comprehensive loss for the year was HKD 45,276,000, down from HKD 120,620,000 in the prior year, reflecting a decrease of approximately 62%[5] - The adjusted loss before tax for the company was HKD 42,837,000 in 2023, compared to a loss of HKD 102,691,000 in 2022, indicating an improvement in performance[23] - The group reported a pre-tax loss of HKD 42,837,000 for the year 2023, compared to a loss of HKD 102,691,000 in 2022, reflecting a significant improvement[45] - The loss attributable to equity holders of the parent company for the year was approximately HKD 42,222,000, an improvement from a loss of HKD 94,607,000 in 2022[82] Revenue Breakdown - The company reported segment revenue from external customers of HKD 28,915,000 in 2023, compared to HKD 10,533,000 in 2022, representing an increase of 174%[23] - The film, television, and online content segment reported revenue of HKD 28,196,000 in 2023, significantly up from HKD 4,874,000 in 2022, an increase of 478%[23] - Revenue from the film, television, and online content segment was approximately HKD 28,196,000, significantly up from HKD 4,874,000 in 2022, mainly from licensing and film distribution income[83] - Revenue from the artist management segment was approximately HKD 343,000, slightly down from HKD 362,000 in 2022[84] - Revenue from the new media business was approximately HKD 376,000, a decrease from HKD 5,297,000 in 2022[85] Asset and Equity Changes - Non-current assets totaled HKD 103,421,000 as of December 31, 2023, a decrease from HKD 110,392,000 in 2022[7] - Current assets decreased to HKD 81,325,000 from HKD 114,114,000 in the previous year, indicating a decline of about 29%[7] - The total equity attributable to the owners of the parent company was HKD 134,192,000, compared to HKD 161,855,000 in the previous year, a decrease of approximately 17%[7] - Total assets as of December 31, 2023, were approximately HKD 184,746,000, down from HKD 224,506,000 in 2022, with cash and cash equivalents at approximately HKD 26,339,000[88] Impairment and Expenses - The company incurred impairment losses on trade receivables and other receivables of HKD 14,149,000 in 2023, compared to HKD 6,414,000 in 2022, an increase of 120%[23] - The company recognized an impairment loss of HKD 2,273,000 for film rights and in-progress films in 2023, a decrease from HKD 12,348,000 in 2022[55] - The total cost of sales decreased to HKD 19,865,000 in 2023 from HKD 29,286,000 in 2022, a reduction of 32%[42] - Administrative expenses decreased to approximately HKD 38,166,000 from HKD 53,528,000 in 2022, primarily due to reduced employee costs[86] Market and Strategic Focus - The company is engaged in artist management services, new media business, and film, television, and online content services, indicating a focus on diversifying its service offerings[11] - The group plans to focus on the release and marketing of existing inventory films to achieve stable box office revenue and maintain competitiveness in the online film sector[61] - The group is actively promoting the sale of domestic video copyrights to international markets, covering East Asia, Southeast Asia, South Asia, Europe, and South America[66] - The group is exploring new growth paths by integrating digital copyright technology with quality film and television IPs, enhancing its diversified and balanced development in the internet film and television ecosystem[66] Human Resources and Governance - The group emphasizes human resources as a key asset for sustainable development, providing competitive compensation and a good working environment[121] - The audit committee, consisting of three members, reviewed the group's annual performance for the fiscal year ending December 31, 2023[128] - The preliminary financial results for the year ending December 31, 2023, have been verified by the group's auditor, confirming consistency with the draft financial statements[129]

Corporate Governance - The board of directors will hold a meeting on March 28, 2024, to review and approve the audited consolidated results for the year ended December 31, 2023[3] - The company is committed to ensuring the accuracy and completeness of the information disclosed, with all directors taking responsibility for the published data[3] Regulatory Compliance - The announcement is made in accordance with the rules of the Growth Enterprise Market, aimed at providing relevant information about the company[3]

Financial Performance - Revenue for the three months ended September 30, 2023, was HKD 1,297,000, a decrease of 35.3% compared to HKD 2,006,000 in the same period of 2022[5] - Gross loss for the three months ended September 30, 2023, was HKD 2,359,000, compared to a gross profit of HKD 254,000 in the same period of 2022[5] - The net loss for the three months ended September 30, 2023, was HKD 10,770,000, a reduction of 35.4% from HKD 16,634,000 in the same period of 2022[5] - Total comprehensive loss for the three months ended September 30, 2023, was HKD 10,933,000, compared to HKD 21,226,000 in the same period of 2022[7] - The company reported a significant increase in administrative expenses, totaling HKD 7,857,000 for the three months ended September 30, 2023, compared to HKD 15,507,000 in the same period of 2022[5] - The company’s revenue for the nine months ended September 30, 2023, was HKD 14,142,000, an increase of 66.8% from HKD 8,470,000 in the same period of 2022[5] - The company reported a decrease in other income and gains, totaling HKD 76,000 for the three months ended September 30, 2023, compared to a loss of HKD 1,008,000 in the same period of 2022[12] - The loss attributable to equity holders of the parent for the nine months ended September 30, 2023, was approximately HKD 15,480,000, compared to HKD 40,375,000 for the same period in 2022[21] - The company reported a net loss of approximately HKD 10,303,000 for the three months ended September 30, 2023, compared to a loss of HKD 16,511,000 in the same period of 2022[16] Revenue Segments - Revenue from the film, television, and online content segment was approximately HKD 13,614,000 for the nine months ended September 30, 2023, compared to HKD 2,893,000 in the same period of 2022[23] - Revenue from the artist management segment was approximately HKD 334,000 for the nine months ended September 30, 2023, slightly up from HKD 321,000 in the same period of 2022[24] - Revenue from the new media business segment significantly decreased to approximately HKD 194,000 for the nine months ended September 30, 2023, down from HKD 5,095,000 in the same period of 2022[25] Shareholder Information - As of September 30, 2023, the company has issued a total of 4,209,131,046 ordinary shares[47] - As of September 30, 2023, the major shareholders of the company include Kwan Hoi Group Limited with a 47.10% stake, representing 1,982,561,725 shares[52] - China CITIC Group Limited holds a 10.93% stake in the company, equivalent to 459,934,954 shares[52] - First Charm Investments Limited, owned 100% by Mr. Gao Zhenshun, has a 7.40% stake, totaling 311,545,414 shares[52] Corporate Governance - The company has adhered to the corporate governance code, except for specific provisions regarding the separation of roles between the chairman and CEO, and the attendance of non-executive directors at shareholder meetings[60][63] - The audit committee, consisting of three members, has reviewed the financial reports and internal control procedures for the nine months ending September 30, 2023[66] - The company has confirmed compliance with the trading standards for directors during the nine months ending September 30, 2023[65] - There are no reported interests or stakes held by directors or major shareholders in any competing businesses as of September 30, 2023[56] - The company emphasizes high-quality governance principles to enhance accountability and transparency, thereby boosting shareholder confidence[58] Strategic Initiatives - The group has adjusted its investment strategy for online films, focusing on the release and marketing of existing projects to achieve stable box office returns[29] - The group is actively promoting the sale of domestic video copyrights to international markets, covering East Asia, Southeast Asia, South Asia, Europe, and South America[34] - The group aims to maximize the utilization of its reserved IPs, such as "Tibet Code" and "Legend of the Galactic Heroes," through a "copyright+" cooperation development route[35] - The group continues to upgrade its distribution business, expanding into television, rural cinema, overseas distribution, and multi-channel releases[35] - The group is collaborating with top talent management teams to enhance its artist management segment and create new revenue opportunities[37] Music Sector Developments - The group has successfully onboarded over 100 independent musicians in the music sector during Q3 2023, marking a significant milestone in supporting original music creators[38] - The group published 10,000 music PASS albums in the past quarter, receiving high praise for their quality and style from a wide audience[43] - The new "music PASS card" combines digital albums with NFC physical cards, enhancing user experience and providing a novel way for fans to support their favorite musicians[41] - The group is actively exploring a business model that integrates Web3.0 creator economy with self-publishing for musicians and music-related products, aiming to create new growth points in the new media business[40] - The group has established a strategic partnership with the China Copyright Association to provide official blockchain certification for original music works, ensuring comprehensive protection of their value[41] Future Plans - The group plans to launch the fantasy folk film "Mr. Qianhe" in Q1 2024, produced by the original team of the popular Tencent IP "Huangmiao Village"[32] - The management is focused on developing diversified and sustainable business models to maximize returns for shareholders[46] - The group continues to invest in R&D and innovation to enhance the technology and user experience of the HuPo APP[41] - The group has initiated marketing activities to increase the visibility and user engagement of the HuPo APP through social media and offline events[43] Losses and Expenses - The cost of sales decreased to approximately HKD 7,299,000 for the nine months ended September 30, 2023, down from HKD 7,818,000 in the same period of 2022[21] - Administrative expenses reduced significantly from approximately HKD 42,284,000 to HKD 23,188,000 due to a decrease in new media business and related employee costs[21] - The company has not engaged in any buybacks or repurchases of its listed securities during the nine months ending September 30, 2023[57] - The company did not declare any dividends for the nine months ended September 30, 2023, consistent with the previous year[20] Market Overview - As of Q3 2023, the domestic box office in China reached 45.588 billion RMB, a year-on-year increase of 77.6%, with the number of films released increasing by 100 compared to the same period last year[29] - The summer box office alone generated 20.62 billion RMB, nearly half of the total box office for the first nine months of the year[29] - The top nine films in terms of box office revenue were all domestic productions, each surpassing 1 billion RMB, with the leading film "Man Jiang Hong" grossing 4.54 billion RMB[30]

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） 截至二零二三年九月三十日止九個月之 第三季度業績公佈 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小型公司提供 一個上市之市場。有意投資之人士應了解投資於該等公司之潛在風險，並應經過審慎周 詳之考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會較於聯交所主板買賣之 證券承受較大之市場波動風險，同時無法保證在GEM買賣之證券會有高流通量之市場。 香港交易及結算所有限公司及聯交所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，概不對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。 本公佈乃遵照聯交所GEM證券上市規則之規定而刊載，旨在提供有關Lajin Entertainment Network Group Limited（拉近網娛集團有限公 ...

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） 董事會會議日期 Lajin Entertainment Network Group Limited 拉近網娛集團有限公司*（「本公司」）董事（「 董事」）會（「董事會」）謹此宣佈，董事會將於二零二三年十一月十四日（星期二）舉行 會議，以（其中包括）省覽及通過本公司及其附屬公司截至二零二三年九月三十日止九個月 之未經審核簡明綜合業績。 承董事會命 Lajin Entertainment Network Group Limited 拉近網娛集團有限公司 * 執行董事 梁偉信 香港，二零二三年十一月一日 於本公佈日期，執行董事為 Colin Xu 先生及梁偉信先生；非執行董事為鄒曉春先生、周亞飛先生 及李雪松先生；以及獨立非執行董 ...

Financial Performance - For the three months ended June 30, 2023, the company reported revenue of HKD 9,501,000, a significant increase of 215% compared to HKD 3,009,000 for the same period in 2022[4] - The gross profit for the six months ended June 30, 2023, was HKD 9,202,000, compared to a gross profit of HKD 398,000 for the same period in 2022, indicating a substantial improvement[4] - Total revenue for the six months ended June 30, 2023, was HKD 12,845,000, compared to HKD 6,464,000 for the same period in 2022, representing a 98.5% increase[22] - The company reported a total of HKD 12,845,000 in revenue from external customers for the six months ended June 30, 2023, compared to HKD 6,464,000 in 2022, indicating a growth of 98.5%[24] - Revenue from the film, television, and online content segment was approximately HKD 12,493,000, a substantial increase from HKD 1,500,000 in the previous year[47] Loss and Expenses - The company incurred a loss before tax of HKD 6,842,000 for the six months ended June 30, 2023, a reduction from a loss of HKD 26,800,000 in the same period of the previous year[4] - Total comprehensive loss for the six months ended June 30, 2023, was HKD 12,230,000, compared to HKD 36,276,000 for the same period in 2022, reflecting a decrease in losses[6] - The company reported a basic and diluted loss per share of HKD 0.12 for the six months ended June 30, 2023, compared to HKD 0.57 for the same period in 2022[6] - The company incurred a net loss attributable to equity holders of the parent of HKD 5,177,000 for the six months ended June 30, 2023, compared to a loss of HKD 23,864,000 for the same period in 2022, showing a reduction of 78.4%[30] - Administrative expenses decreased significantly from approximately HKD 26,777,000 to HKD 15,331,000, mainly due to a reduction in new media operations and staff costs[45] Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to HKD 207,199,000, down from HKD 224,506,000 as of December 31, 2022[9] - The company's current liabilities decreased to HKD 65,352,000 as of June 30, 2023, from HKD 70,429,000 at the end of 2022, indicating improved liquidity management[9] - The net asset value as of June 30, 2023, was HKD 141,847,000, compared to HKD 154,077,000 at the end of the previous year, showing a decline in equity[9] - The company's total liabilities as of June 30, 2023, were HKD 1,022,131,000, reflecting a significant financial position[11] Cash Flow - The company reported a net cash flow used in operating activities of HKD (1,529,000) for the six months ended June 30, 2023, an improvement from HKD (7,799,000) in the same period of 2022[12] - The company reported a net cash outflow from investing activities of HKD (10,000) for the six months ended June 30, 2023, compared to HKD (623,000) in the same period of 2022[12] - The company's cash and cash equivalents as of June 30, 2023, were HKD 30,202,000, slightly down from HKD 31,938,000 at the end of 2022[9] - The company's cash and cash equivalents at the beginning of the reporting period were HKD 29,516,000, down from HKD 48,272,000 at the beginning of the previous year[12] Market Strategy and Future Plans - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[3] - The group has adjusted its distribution strategy in response to changes in video platform revenue-sharing rules, focusing on overseas and new media pre-sales to maximize revenue[58] - The group is actively promoting the distribution of films suitable for rural markets, planning to expand to over 300 rural cinemas across 32 provinces and regions in China[58] - The group aims to leverage its IP resources, such as "Tibetan Code" and "Legend of the Galactic Heroes," to explore a "rights + cooperation" development route, minimizing costs while maximizing project development and monetization[59] Corporate Governance - The company has maintained compliance with corporate governance codes, except for specific provisions regarding the separation of roles between the chairman and CEO[94] - The audit committee, consisting of three members, reviewed the interim report and financial statements for the six months ending June 30, 2023[101] - The company emphasizes transparency and accountability through strict corporate governance practices[94] Shareholder Information - Major shareholders include Lajin Group Limited with 1,982,561,725 shares, representing 47.10% of the issued share capital[87] - CITIC Group holds 459,934,954 shares, accounting for 10.93% of the issued share capital[87] - First Charm Investments Limited, owned by Gao Zhenshun, has 311,545,414 shares, which is 7.40% of the issued share capital[87]

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） 董事會會議日期 Lajin Entertainment Network Group Limited 拉近網娛集團有限公司*（「本公司」）董事（「 董事」）會（「董事會」）謹此宣佈，董事會將於二零二三年八月十四日（星期一）舉行會 議，以（其中包括）省覽及通過本公司及其附屬公司截至二零二三年六月三十日止六個月之 未經審核簡明綜合中期業績。 承董事會命 Lajin Entertainment Network Group Limited 拉近網娛集團有限公司 * 執行董事 梁偉信 香港，二零二三年八月一日 ...