Financial Performance - The company reported revenue of HKD 3,344,000 for Q1 2023, a decrease of 3.2% compared to HKD 3,455,000 in Q1 2022[4] - Gross profit for the quarter was HKD 1,710,000, down 19.2% from HKD 2,117,000 in the same period last year[4] - The company incurred a loss before tax of HKD 6,669,000, an improvement of 42.5% compared to a loss of HKD 11,481,000 in Q1 2022[4] - Total comprehensive loss for the period was HKD 5,385,000, which is a 44.5% reduction from HKD 9,695,000 in the previous year[7] - The basic and diluted loss per share was HKD 0.13, compared to HKD 0.24 in Q1 2022[7] - The loss attributable to equity holders of the parent for the period was approximately HKD 5,633,000, down from HKD 10,094,000 in 2022, reflecting a reduction in administrative expenses[29] - The company reported a pre-tax loss of HKD 6,669,000 for the three months ended March 31, 2023, compared to a loss of HKD 11,481,000 in the previous year[21] Revenue Breakdown - Revenue from the new media business was HKD 119,000, a significant drop from HKD 2,749,000 in the previous year[18] - Revenue from television and online programs was HKD 2,778,000, compared to HKD 344,000 in the same period last year[30] - Revenue from the artist management segment was approximately HKD 114,000 in Q1 2023, compared to HKD 108,000 in 2022, reflecting a slight increase[32] - Revenue from the new media business segment was approximately HKD 119,000 in Q1 2023, a significant decrease from HKD 2,749,000 in 2022[33] - The group generated revenue of HKD 4,800,000 from one online movie and HKD 3,400,000 from remaining box office shares in Q1 2023, indicating a challenging market environment[36] Cost Management - Administrative expenses decreased significantly to HKD 7,811,000 from HKD 13,529,000, reflecting cost control measures[4] - Administrative expenses decreased significantly from approximately HKD 13,529,000 to HKD 7,811,000, mainly due to reduced employee costs resulting from a decrease in e-commerce operations[29] - The cost of sales increased to approximately HKD 1,634,000, up from HKD 1,338,000 in the previous year, primarily due to increased costs in the film, television, and online content segments[29] Strategic Focus and Future Outlook - The company is focusing on expanding its artist management and media content divisions to drive future growth[13] - The management is optimistic about future performance, aiming to leverage new media strategies for market expansion[13] - The group is actively exploring new business growth paths by leveraging quality film and television IPs and integrating digital copyright technology[39] - The company is leveraging blockchain technology to protect copyright for short video content through the Amber APP, which is now available on major app stores[51] - The Amber APP has introduced a "premium content subscription service" aimed at connecting creators directly with fans, enhancing content monetization[53] - The company is focusing on diversifying and developing sustainable business models to maximize returns for shareholders[53] Corporate Governance - The company emphasized adherence to corporate governance principles, enhancing accountability and transparency to boost shareholder confidence[66] - The company has maintained compliance with the corporate governance code, except for specific provisions regarding the separation of roles between the chairman and CEO[66] - The company has a structured approach to the appointment and re-election of non-executive directors, ensuring compliance with governance standards[69] - The audit committee reviewed the first quarter report and performance for the three months ended March 31, 2023, prior to submission to the board for approval[73] Shareholder Information - The company has issued a total of 4,209,131,046 ordinary shares as of the report date[55] - Major shareholder, Jiahua Group Limited, holds 1,982,561,725 shares, representing 47.10% of the issued share capital[60] - The average number of shares issued during the period was 4,209,131,000, with basic loss per share attributable to equity holders of the parent calculated at approximately HKD 0.00134[24] Market Environment - The group recorded total revenue of HKD 31,600,000 for the year ended December 31, 2021, but faced a substantial decline in revenue due to the ongoing impacts of the COVID-19 pandemic and changes in streaming platform revenue-sharing policies[34] - The number of new online movies released decreased from 769 in 2020 to 551 in 2021, and further down to 388 in 2022, highlighting a cautious investment atmosphere in the industry[37] - Three reserve projects have completed production and are scheduled for release in 2023, with one project expected to launch in Q3 2023[39] - The group is advancing its distribution strategy by promoting domestic films to international markets, achieving multiple overseas copyright transactions[42] - The box office for the jointly produced film "Hachi: A Dog's Tale" exceeded RMB 285 million as of the report date, indicating a recovery in the cinema market[43] Other Information - The company did not declare any dividends for the three months ended March 31, 2023, consistent with the previous year[28] - The company incurred a tax expense of HKD 3,000 for taxable profits earned in China, with a tax rate of 25%[23] - The company has initiated a "Searching for Chinese Root Music Project" to establish a repository of high-quality root music copyrights, although the project is currently on hold due to pandemic restrictions[48] - The new media e-commerce business has not stabilized due to high costs and competition, leading the company to explore other opportunities in the digital technology and cultural arts market[50] - The company is exploring synergies between its film and television IP and digital rights to create new growth points[50] - The company is in the process of identifying suitable candidates to fill the vacant positions of chairman and CEO[67] - There were no interests held by directors or major shareholders in any competing businesses as of March 31, 2023[63] - As of March 31, 2023, there were no interests or short positions held by directors or senior management in the company's shares or related securities[62] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM listing rules[71] - The company has not disclosed any new product developments or market expansion strategies in the current report[65]

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） 截至二零二三年三月三十一日止三個月之 第一季度業績公佈 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上市公司普遍為中小型公司，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。 本公佈之資料乃遵照聯交所GEM證券上市規則之規定而刊載，旨在提供有關拉近網娛集 團有限公司（「本公司」）之資料；本公司各董事（「董事」）願就本公佈之資料共同及個別 ...

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五月十五日（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三月三十一日止三個月 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，二零二三年四月二十八日 ...

Financial Performance - The total revenue for the group for the year ended December 31, 2022, was approximately HKD 10,533,000, a decrease of 84.6% compared to HKD 68,340,000 in 2021[32]. - Revenue from the film, television, and online content segment was approximately HKD 4,874,000, down from HKD 31,637,000 in the previous year[36]. - Revenue from the new media business was approximately HKD 5,297,000, a decline from HKD 35,223,000 in 2021[38]. - The group reported a loss attributable to equity holders of approximately HKD 94,607,000 for the year, compared to a loss of HKD 131,259,000 in 2021[33]. - The total assets of the group as of December 31, 2022, were approximately HKD 224,506,000, down from HKD 344,864,000 in 2021[40]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year 2022, representing a Y% growth compared to the previous year[72]. - The net loss for the year was HKD 102,693,000, a reduction from HKD 140,133,000 in the previous year, representing a 26.7% improvement[195]. - Total comprehensive loss for 2022 was HKD 120,620,000, compared to HKD 130,072,000 in 2021, indicating a 7.4% decrease[195]. Impairment and Asset Management - As of December 31, 2022, the impairment loss on film rights and in-production films and television programs accounted for 84.9% of the total impairment losses recognized[8]. - The impairment amount for overdue trade receivables was 85.7% of the total impairment losses recognized for trade receivables[9]. - The company recognized impairment losses on films and in-progress television programs totaling HKD 12,348,000, down from HKD 33,496,000 in the previous year, suggesting better asset management[200]. - The impairment assessment process for film copyrights and in-production films and television programs is complex and highly judgmental, based on assumptions regarding future film market and customer demand[179]. - Management's impairment assessment for non-financial assets requires significant judgment, particularly regarding revenue forecasts, operating profit margins, and discount rates[181]. - The company has identified potential impairment of non-financial assets as a key audit matter due to the significant judgments and estimates involved[181]. Business Strategy and Growth Initiatives - The group is actively exploring new business growth paths by integrating quality film and television IP with digital copyright technology[10]. - The group plans to promote domestic films to international markets, covering East Asia, Southeast Asia, South Asia, Europe, and South America, with multiple overseas copyright transactions already achieved[12]. - The group is advancing the distribution of films suitable for rural markets, aiming to cover over 300 rural cinema lines across 32 provinces and regions in China[12]. - The group has upgraded its distribution business to include television station distribution, rural cinema distribution, overseas distribution, and multi-channel distribution[10]. - The group continues to focus on the "investment + promotion + distribution" business model for online films, enhancing marketing and distribution revenue while deepening project involvement[13]. - The group plans to launch a "premium content subscription service" on the Amber APP to enhance creator monetization and user engagement[30]. - The group aims to optimize its investment strategy in the online film market by focusing on cost reduction and quality improvement[27]. Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and business ethics to enhance shareholder value[82]. - The board consists of eight members, including two executive directors and three independent non-executive directors, ensuring a balance between executive and non-executive roles[85]. - The company has complied with the GEM Listing Rules corporate governance code, with some deviations noted, particularly regarding the separation of the roles of chairman and CEO[94]. - The company has established a robust internal control system to enhance accountability and transparency, thereby boosting public confidence[83]. - The board is responsible for overseeing the company's business strategies and performance, including major transactions and financial matters[84]. - The company has engaged an independent professional firm to establish and maintain an effective internal audit function[125]. Market and Operational Insights - The group is closely monitoring platform revenue-sharing rules and market changes to adjust its distribution strategies accordingly[12]. - The company is investing in new technology development, focusing on F, which aims to improve operational efficiency and customer experience[72]. - The company is considering strategic acquisitions to bolster its portfolio, targeting companies with complementary technologies and customer bases[72]. - The company has reported a foreign exchange loss of HKD 15,225,000 in 2022, contrasting with a gain of HKD 10,838,000 in 2021[195]. - The company incurred financing costs of HKD 74,000, a decrease from HKD 105,000 in the previous year, suggesting lower borrowing costs[200]. Employee and Stakeholder Engagement - The company employed 69 staff members as of December 31, 2022, including 66 in China and 3 in Hong Kong[62]. - The company encourages all shareholders to attend annual general meetings or appoint representatives to vote, enhancing shareholder engagement[103]. - The company provided comprehensive training for newly appointed directors to ensure familiarity with their roles and responsibilities[104]. - All directors participated in ongoing professional development, confirming their commitment to enhancing their knowledge and skills relevant to board contributions[105].

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） 截至二零二二年十二月三十一日止年度之 全年業績公佈 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企提供一個 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企，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。 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司）（「本公司」 ...

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三月三十一日（星期五）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二零二二年十二月三十一日止之 經審核全年綜合業績。 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，二零二三年三月二十一日 ...

Financial Performance - For the six months ended June 30, 2022, the company reported total revenue of HKD 6,464,000, a decrease of 6.5% compared to HKD 6,066,000 for the same period in 2021[8]. - The gross loss for the six months ended June 30, 2022, was HKD 26,800,000, compared to a gross loss of HKD 16,917,000 for the same period in 2021, indicating a significant decline in profitability[8]. - The total comprehensive loss for the six months ended June 30, 2022, was HKD 36,276,000, compared to HKD 13,740,000 for the same period in 2021, reflecting a worsening financial position[10]. - The company reported a basic and diluted loss per share of HKD 0.57 for the six months ended June 30, 2022, compared to HKD 0.34 for the same period in 2021[10]. - The company reported a net loss of HKD 26,800,000 for the six months ended June 30, 2022, compared to a net loss of HKD 16,917,000 for the same period in 2021, representing an increase of 58%[17]. - The total comprehensive loss for the period ended June 30, 2022, was HKD 36,276,000, compared to a total comprehensive loss of HKD 14,440,000 for the same period in 2021, indicating an increase of 151%[17]. Assets and Liabilities - As of June 30, 2022, the company's total assets amounted to HKD 303,058,000, down from HKD 344,425,000 as of December 31, 2021[12]. - The company's current liabilities totaled HKD 64,637,000 as of June 30, 2022, compared to HKD 70,167,000 as of December 31, 2021, showing a reduction in short-term obligations[14]. - The net asset value decreased to HKD 238,421,000 as of June 30, 2022, from HKD 274,697,000 as of December 31, 2021, indicating a decline in equity[14]. - The company's total liabilities decreased to HKD 64,637,000 as of June 30, 2022, from HKD 70,167,000 as of December 31, 2021, reflecting improved financial management[14]. - The total reserves as of June 30, 2022, amounted to HKD 210,145,000, down from HKD 243,858,000 as of December 31, 2021, indicating a decrease of 14%[17]. Cash Flow and Liquidity - The cash and cash equivalents decreased to HKD 44,496,000 as of June 30, 2022, from HKD 50,666,000 as of December 31, 2021, indicating a decline in liquidity[12]. - The net cash flow used in operating activities for the six months ended June 30, 2022, was HKD (8,422,000), a significant improvement from HKD (24,678,000) in the previous year, representing a reduction of 66%[19]. - The cash and cash equivalents at the end of the reporting period were HKD 42,086,000, down from HKD 53,220,000 at the end of June 2021, reflecting a decrease of 21%[19]. - The company experienced a significant foreign exchange loss of HKD 11,262,000 for the six months ended June 30, 2022, compared to a gain of HKD 3,177,000 for the same period in 2021[10]. Segment Performance - The company has three reportable segments: Artist Management, Film, TV, and Online Content, and New Media E-commerce, which are monitored for performance and resource allocation[27]. - The company has expanded its New Media E-commerce business, which is content-driven retail, since 2020, indicating a strategic focus on this segment[28]. - Revenue from the film, television, and online content segment was approximately HKD 1,500,000, down from HKD 16,324,000 in the previous year[59]. - Revenue from the new media e-commerce business was approximately HKD 4,732,000, a decrease from HKD 21,794,000 in the previous year[61]. Strategic Initiatives - The group plans to release several projects in the second half of 2022, including "藏地奇兵" and "狄仁杰之龍隱迷窟," with promotional activities already underway[64]. - The company is producing the Chinese version of "Hachi: A Dog's Tale," which is expected to be released in theaters nationwide in 2022, with post-production nearly complete[68]. - The company has partnered with Tencent Pictures and others to develop a film series based on the bestselling novel "Tibetan Code," with a renowned director and production team involved[70]. - The online live shopping sector is projected to exceed 660 million users in 2022, with the company focusing on integrating entertainment content with e-commerce to enhance user engagement[75]. Employee and Governance - As of June 30, 2022, the group had 98 employees, including approximately 95 in China and 3 in Hong Kong[86]. - The audit committee consists of three members and is responsible for reviewing the company's financial reports and internal control procedures[106]. Market and Growth Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2024[109]. - New product launches are expected to contribute an additional $20 million in revenue by the end of 2022[109]. - The company is investing $10 million in research and development for new technologies aimed at enhancing user experience[109]. - A strategic partnership is being formed with a leading tech firm to leverage AI capabilities, projected to improve operational efficiency by 20%[109]. - The company has set a performance guidance of $320 million in revenue for the full year 2022, reflecting a 10% growth target[109].

Financial Performance - For the first quarter of 2022, the company reported total revenue of HKD 3,455,000, a decrease of 82.6% compared to HKD 19,846,000 in the same period of 2021[7] - The gross profit for the first quarter of 2022 was HKD 2,117,000, down from HKD 3,329,000 in the first quarter of 2021, representing a decline of 36.4%[7] - The company incurred a loss before tax of HKD 11,481,000 for the first quarter of 2022, compared to a loss of HKD 7,919,000 in the same period of 2021, indicating a 45.5% increase in losses[7] - The basic and diluted loss per share for the first quarter of 2022 was HKD 0.24, compared to HKD 0.17 in the first quarter of 2021, reflecting a 41.2% increase in loss per share[9] - The company reported a total comprehensive loss of HKD 9,695,000 for the first quarter of 2022, compared to HKD 8,238,000 in the same period of 2021, which is an increase of 17.7%[9] - The loss attributable to equity holders of the parent for the period was approximately HKD 10,094,000, compared to HKD 7,231,000 in 2021, indicating an increase in losses primarily due to higher administrative expenses[20] Revenue Breakdown - Revenue from the new media e-commerce business was HKD 2,749,000, a significant drop of 80.3% from HKD 13,924,000 in the previous year[15] - Revenue from the film, television, and online content segment was approximately HKD 254,000 for agency fees and HKD 344,000 from TV and online programs, down from HKD 1,023,000 and HKD 4,458,000 respectively in 2021[29] - Revenue from the new media e-commerce business was approximately HKD 2,749,000, a decrease from HKD 13,924,000 in the previous year[32] - The group's revenue for the three months ended March 31, 2022, was approximately HKD 3,455,000, a decrease of 82.59% compared to HKD 19,846,000 for the same period in 2021[28] Expenses and Costs - The company’s total expenses, including administrative and distribution costs, amounted to HKD 13,529,000 for the first quarter of 2022, compared to HKD 9,547,000 in the same period of 2021, reflecting an increase of 42.5%[7] - The cost of sales for the same period decreased to approximately HKD 1,338,000 from HKD 16,517,000 in 2021, primarily due to reduced costs in film, television, and online content businesses[28] - Administrative expenses increased from approximately HKD 9,547,000 to HKD 13,529,000, mainly due to increased employee costs associated with the development of new e-commerce businesses[28] - The depreciation of property, plant, and equipment for the first quarter of 2022 was HKD 3,128,000, up from HKD 2,816,000 in the first quarter of 2021, indicating an increase of 11.0%[18] Strategic Initiatives - The company is focusing on high-quality film and television projects to mitigate investment risks and has upgraded its distribution business, actively pursuing various distribution partnerships[33] - The company plans to release four projects in the second to third quarter of 2022, including "藏地奇兵" and "見怪," which have made significant progress in production and marketing preparations[35] - The investment strategy remains cautious, with a focus on controlling project quantity and scale, while the new business model of "investment + distribution" aims to enhance revenue and strengthen project involvement[36] - The company has reached a joint investment and development agreement with Tencent Pictures and others to create a film series based on the bestselling novel "Tibet Code," with a renowned director and production team involved[39] - The company is producing the Chinese version of the film "Hachi: A Dog's Tale," which has entered the review process and is set to be released in national theaters in the first half of 2022[38] Corporate Governance - The company emphasizes strong corporate governance principles to enhance accountability and transparency to shareholders[63] - The audit committee, consisting of three independent non-executive directors, reviews the company's financial reports and internal control procedures[70] - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM listing rules[68] - The board of directors did not recommend any dividend payment for the three months ended March 31, 2022, consistent with the previous year[27] Shareholder Information - Major shareholder, Jiahua Group Limited, holds 47.10% of the company's issued share capital, with 1,982,561,725 shares[54] - CITIC Group Limited and CITIC Limited collectively own 10.93% of the company, representing 459,934,954 shares[54] - First Charm Investments Limited, controlled by Mr. Gao Zhenshun, holds 7.40% of the company with 311,545,414 shares[54] - The company has issued a total of 4,209,131,046 ordinary shares as of the report date[49] - There have been no reported interests or short positions in the company's shares by directors or senior management as of March 31, 2022[58] - There have been no changes in the interests of directors or senior management in the company's shares as of March 31, 2022[62] Market Trends and Opportunities - The online live streaming user base in China is expected to exceed 660 million in 2022, with live e-commerce becoming the largest category of online live streaming[45] - The company has signed contracts with various merchants for live streaming e-commerce, focusing on talent incubation and agricultural sectors, with preparations underway for content creation and training[47] - The company has established a comprehensive music promotion and distribution channel, collaborating with major domestic music platforms and nearly 100 radio stations[42] - The company aims to establish a root music copyright library to promote Chinese cultural confidence, although progress has been hindered by the pandemic[44] - The company is leveraging its resources to enhance artist management and increase revenue opportunities through customized performance opportunities and online marketing[41] Share Options and Management - The company has adopted a new share option plan effective for ten years, set to expire in June 2024[50] - As of March 31, 2022, there were no unexercised share options remaining[51] - The company is in the process of appointing suitable candidates to fill the vacant positions of chairman and CEO[64] - The company has not engaged in any buybacks or redemption of its listed securities in the last three months as of March 31, 2022[60]

Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 68,340,000, a 230.8% increase from HKD 20,660,000 in 2020, primarily driven by the growth in new media e-commerce business[43]. - The cost of sales increased to approximately HKD 109,840,000 for the year ended December 31, 2021, compared to HKD 25,370,000 in 2020, mainly due to the rise in sales costs associated with the new media e-commerce business[43]. - The loss attributable to the owners of the parent company for the year was approximately HKD 131,259,000, slightly higher than the loss of HKD 130,339,000 in 2020[44]. - Revenue from the film, television programs, and online content segment was approximately HKD 31,637,000, up from HKD 16,995,000 in 2020, mainly from licensing and film distribution income[45]. - Revenue from the artist management segment was approximately HKD 1,480,000, significantly up from HKD 41,000 in 2020[48]. - Revenue from the new media e-commerce segment was approximately HKD 35,223,000, a substantial increase from HKD 3,624,000 in 2020[49]. Impairment and Asset Management - Management has recognized impairment losses totaling 56.7% related to early projects, which include a well-known sci-fi intellectual property acquired in 2016[11]. - The company has also identified additional impairment losses of 28.9% from recent investments due to financial difficulties faced by counterparties and market trends[13]. - Management has conducted thorough assessments of project recoverability, leading to necessary impairment adjustments[10]. - The overall financial performance has been influenced by the need to write down the value of underperforming assets[10]. - The company reduced the remaining value of partially impaired film projects, which accounted for 14.4% of the total confirmed impairment losses related to film copyrights and in-production films and TV programs[15]. Project Development and Investment Strategy - Management has taken a cautious approach to project development, particularly in light of changing audience preferences and market conditions[12]. - The company has maintained a prudent investment strategy, negotiating fixed return terms to mitigate market risks[13]. - The company continues to monitor the financial health of its investment projects, especially those affected by the pandemic[13]. - Efforts to attract new investment for television and film projects initiated in 2016 have not yielded significant progress, reflecting a shift in market trends[12]. - The company is collaborating with strong industry partners to invest in high-quality film projects, effectively controlling and reducing investment risks[15]. New Media and E-commerce Initiatives - The company is focusing on the development of new media e-commerce, capitalizing on the growing demand for online services and live shopping[25]. - The online live streaming user base reached 635 million in 2021, accounting for 62.4% of the total internet users, with expectations to exceed 660 million in 2022[25]. - The company has entered the live e-commerce sector, collaborating with various celebrities and attempting to incubate its own hosts, resulting in significant operational experience and a strong team foundation[26]. - The program "Play Beautiful Plus" became one of the top 20 official accounts on JD.com in 2022, ranking in the top three for fashion accounts, showcasing the effectiveness of the company's live streaming strategy[26]. - The company plans to focus on incubating influencers, brand store broadcasting, and the "three rural" sectors (agriculture, rural areas, and farmers) in the upcoming year, aiming for sustained growth in live e-commerce[30]. Corporate Governance and Management - The management emphasized the importance of maintaining high corporate governance standards to enhance shareholder value[99]. - The board of directors consists of seven members, ensuring a diverse range of expertise and oversight[102]. - The company has adhered to the GEM listing rules and corporate governance code throughout the fiscal year, with minor deviations noted[100]. - The board consists of six non-executive directors, including three independent non-executive directors, ensuring a reasonable balance between executive and non-executive roles[106]. - The company has received annual independence confirmation from all independent non-executive directors, affirming their status as independent individuals[109]. Future Outlook and Growth Projections - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming to reach $625 million[97]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on expanding the product line in the digital entertainment sector[97]. - Market expansion plans include entering two new international markets, which are projected to generate an additional $30 million in revenue[97]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $20 million earmarked for potential targets[97]. - The group is actively researching a business model that combines its strengths with market ecology and future development concepts, aiming for innovation and management to achieve a competitive edge in 2022[39].

Financial Performance - For the three months ended September 30, 2021, the company reported revenue of HKD 21,862,000, a significant increase from HKD 4,059,000 in the same period of 2020, representing a growth of 438%[8] - The cost of sales for the same period was HKD (37,673,000), leading to a gross loss of HKD (15,811,000), compared to a gross loss of HKD (3,026,000) in Q3 2020[8] - The company recorded other income and gains of HKD 1,527,000 for the three months ended September 30, 2021, compared to HKD 46,000 in the same period of 2020[8] - The net loss for the three months ended September 30, 2021, was HKD (29,122,000), compared to a net loss of HKD (11,555,000) in the same period of 2020, reflecting an increase in losses of 152%[8] - For the nine months ended September 30, 2021, total revenue was HKD 60,093,000, up from HKD 5,708,000 in the same period of 2020, marking an increase of 951%[8] - The company reported a basic and diluted loss per share of HKD (0.66) for the three months ended September 30, 2021, compared to HKD (0.28) in Q3 2020[11] - The loss attributable to equity holders of the parent for the nine months ended September 30, 2021, was approximately HKD 42,239,000, compared to HKD 25,982,000 for the same period in 2020[22] Expenses - Administrative expenses increased to HKD (14,924,000) from HKD (8,936,000) year-over-year, indicating a rise of 67%[8] - The cost of sales increased to approximately HKD 69,204,000 for the nine months ended September 30, 2021, compared to HKD 7,140,000 for the same period in 2020[30] - Administrative expenses rose from approximately HKD 26,007,000 to about HKD 38,487,000, primarily due to increased employee costs related to the development of the e-commerce business[30] - Employee costs, including director remuneration, totaled approximately HKD 19,955,000 for the nine months ended September 30, 2021, compared to HKD 8,932,000 for the same period in 2020[30] Revenue Segments - Revenue from the film, television, and online content segment was approximately HKD 30,558,000 for the nine months ended September 30, 2021, compared to HKD 5,600,000 for the same period in 2020[32] - Revenue from the new media e-commerce business was approximately HKD 28,760,000 for the nine months ended September 30, 2021, with no revenue reported for the same period in 2020[34] - The new media e-commerce business generated revenue of HKD 6,966,000 for the three months ended September 30, 2021, with total revenue from television and online programs reaching HKD 12,472,000[16] Investments and Projects - The company has invested in multiple online films, including "The Legend of the Condor Heroes" (two parts), "The Tibetan Code," and "The Legend of the Dragon," with increasing project scale and investment size[37] - The online comedy film "Village Situation" ranked first in rural comedy revenue share on Youku as of March 2021, while "The Elegant Old Man" grossed over 10 million, ranking 13th on iQIYI's annual box office list[37] - The online film "The Desert Dragon" launched on iQIYI at the end of May 2021, achieving over 18 million in box office revenue, with a final investment return rate exceeding 100%[39] - The company is developing a Chinese version of the film "Hachi: A Dog's Tale," which is set to be released on December 31, 2021, after completing filming in May 2021[41] - The company has partnered with Tencent Pictures and others to develop a film series based on the bestselling novel "The Tibetan Code," with the first draft of the script completed in June 2021[43] - The company is actively developing the film adaptation of "Legend of the Galactic Heroes," aiming to leverage this well-known story to invigorate the Chinese sci-fi film market[44] - The company has several films, including "The Wind Rises Again," which are in post-production and scheduled for release in 2021[46] Market Trends - In the first half of 2021, China's box office revenue reached 27.5 billion yuan, three times that of North America, but down from 32 billion yuan in 2018 and 31.3 billion yuan in 2019[47] - The online film market is experiencing rapid growth in production quality, investment volume, and profitability, with top projects gaining significant strength[49] - The number of online films released in the first half of 2021 decreased compared to 2020, with box office revenue concentrated among top films, which still failed to exceed 50 million yuan[49] - By January 2021, the domestic online video user base reached 1.04 billion, a significant increase of 22.35% from 850 million in March 2020[56] - Daily active users on video platforms reached 600 million, reflecting a high engagement rate[56] Business Development - The company is exploring new business models by integrating e-commerce with entertainment, exemplified by the investment in the short video drama "管你來自哪顆星" on Tencent Video[50] - The company is actively optimizing its artist management structure to provide customized performance opportunities for new talents[52] - The music division has established partnerships with major music platforms and is expanding its copyright agency business, enhancing revenue streams[53] - The company is developing a unique music light variety model to create a sustainable flow of talent and classic works[55] - The domestic online live streaming e-commerce market size is projected to grow from RMB 961 billion in 2020 to RMB 1,201.2 billion in 2021[58] - The company aims to establish the largest online sales channel in the country, covering 500 million users through a super traffic pool matrix[59] - The company has over 100 self-developed hosts and is focused on enhancing brand growth through content-driven e-commerce strategies[61] - The company integrates over 100 well-known brands and more than 10,000 SKUs to empower hosts and enhance user engagement[64] Corporate Governance - The company has appointed Mr. Li Xuesong as a non-executive director since October 25, 2021[78] - The company has complied with the corporate governance code except for specific provisions regarding the separation of roles between the chairman and CEO, the designated term for non-executive directors, and attendance of non-executive directors at the annual general meeting[79] - The audit committee consists of three members, including Mr. Lin Changsheng as the chairman, and is responsible for reviewing the company's annual reports, financial statements, and internal control procedures[86] - The company has adopted a code of conduct for directors' securities transactions that is not less stringent than the GEM Listing Rules[84] - As of September 30, 2021, the company has not filled the positions of chairman and CEO, which remain vacant[81] - The company believes that its provisions for the rotation of non-executive directors at the annual general meeting are sufficient to meet the relevant goals of the corporate governance code[82] - Some non-executive directors were unable to attend the annual general meeting due to other business commitments[83] - The company is actively seeking suitable candidates to fill the vacancies for the chairman and CEO positions[81] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed internal control and financial reporting matters with the management team[86] - The company emphasizes high-quality board governance, robust internal controls, and transparency to enhance shareholder and public confidence[79]