Financial Performance - Revenue for the three months ended June 30, 2021, was HKD 18,385,000, a significant increase from HKD 175,000 in the same period of 2020, representing a growth of 10,400%[8] - Gross profit for the six months ended June 30, 2021, was HKD 6,700,000, compared to HKD 1,594,000 for the same period in 2020, marking an increase of 319%[8] - The company reported a loss before tax of HKD 8,995,000 for the three months ended June 30, 2021, compared to a loss of HKD 8,475,000 in the same period of 2020, indicating a deterioration of 6.2%[8] - The loss attributable to owners of the parent for the six months ended June 30, 2021, was HKD 14,158,000, compared to HKD 14,462,000 in the same period of 2020, indicating a slight improvement of 2.1%[11] - The company reported a total comprehensive loss of HKD 13,740,000 for the six months ended June 30, 2021, compared to HKD 22,141,000 for the same period in 2020, reflecting a reduction of 38.1%[11] - The group reported a loss attributable to equity holders of approximately HKD 14,158,000 for the period, compared to a loss of HKD 14,462,000 in 2020[56] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 390,329,000, a decrease from HKD 404,769,000 as of December 31, 2020, reflecting a decline of 3.6%[15] - Cash and cash equivalents decreased to HKD 55,593,000 as of June 30, 2021, down from HKD 81,279,000 at the end of 2020, representing a reduction of 31.5%[13] - The company's net current assets were HKD 238,477,000 as of June 30, 2021, compared to HKD 249,485,000 at the end of 2020, showing a decrease of 4.4%[15] - The total cash and cash equivalents at the end of the reporting period was 53,220 thousand HKD, down from 114,861 thousand HKD in the previous year[19] - The capital debt ratio increased to approximately 19.1% as of June 30, 2021, compared to 16.8% on December 31, 2020[97] - The total assets of the group were approximately HKD 465.74 million as of June 30, 2021, down from HKD 473.17 million on December 31, 2020[94] Revenue Segments - Revenue from the new media e-commerce business reached 21,794 thousand HKD for the six months ended June 30, 2021, with no prior year comparison available[33] - The company recorded a total revenue of 38,231 thousand HKD for the six months ended June 30, 2021, compared to 1,649 thousand HKD in the same period of 2020[33] - Revenue from the film, television, and online content segment was approximately HKD 16,324,000, a substantial increase from HKD 1,593,000 in 2020[57] - The company’s revenue from television and online programs was 12,768 thousand HKD for the six months ended June 30, 2021, compared to 110 thousand HKD in the same period of 2020[33] - The company’s artist management revenue was 113 thousand HKD for the six months ended June 30, 2021, compared to 56 thousand HKD in the same period of 2020[33] Expenses - The company incurred administrative expenses of HKD 23,563,000 for the six months ended June 30, 2021, compared to HKD 17,071,000 in the same period of 2020, an increase of 38.2%[8] - The cost of sales increased to approximately HKD 31,531,000, up from HKD 55,000 in 2020, primarily due to increased costs in film, television, and online content businesses[55] - The depreciation of property, plant, and equipment for the six months ended June 30, 2021, was HKD 5,057,000, a slight decrease from HKD 5,246,000 for the same period in 2020, representing a reduction of approximately 3.6%[37] Cash Flow - The company reported a net cash flow from operating activities of (24,044) thousand HKD for the six months ended June 30, 2021, compared to (3,832) thousand HKD in the same period of 2020[19] - The company’s cash flow from investing activities was (634) thousand HKD for the six months ended June 30, 2021, with no prior year comparison available[19] Corporate Governance - The company has adhered to corporate governance principles, ensuring transparency and accountability to shareholders[116] - The audit committee reviewed the interim report and financial statements for the six months ending June 30, 2021[123] - The roles of chairman and CEO remain vacant, with the company actively seeking suitable candidates[117] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with GEM listing rules[121] Shareholder Information - Major shareholders include Kwan Hoi Group Limited with a 47.10% stake, holding 1,982,561,725 shares[109] - China CITIC Group Limited holds a 10.93% stake with 459,934,954 shares[109] - Vision Path Limited, owned by Ms. Yu Nan, has an 8.98% stake with 377,834,655 shares[109] - First Charm Investments Limited, owned by Mr. Gao Zhenshun, holds a 7.40% stake with 311,545,414 shares[109] - No directors or key executives held any interests in the company's shares or related securities as of June 30, 2021[112] Business Development - The group plans to continue investing in high-quality film projects, including several network films scheduled for release in 2021, aiming to enhance profitability[62] - The group is focusing on a "investment + distribution" model for online films to increase revenue and improve project cash flow[66] - The adaptation of the Japanese film "Hachi: A Dog's Tale" into a Chinese version is underway, with production completed and scheduled for release on December 31, 2021[68] - The group has reached a joint investment and development agreement with Tencent Pictures, Guoying Investment, and Sanciyuan Pictures to create a film series based on the bestselling novel "Tibet Code," with the first film's script draft completed in June[70] - The group is actively developing a film adaptation of the popular Japanese novel "Legend of the Galactic Heroes" in collaboration with Linghe Culture, which has extensive experience in producing web series[71] - The group plans to support the development of both "Tibet Code" and "Legend of the Galactic Heroes" as key investment focuses over the next two to three years, with filming and release scheduled to commence soon[71] Market Trends - As of January 2021, the domestic online video user base reached 1.04 billion, a significant increase of 22.35% from 850 million in March 2020[83] - By February 2021, the domestic live streaming user base grew to 620 million, up 10.7% from 560 million in March 2020[83] - The domestic live streaming e-commerce market size is projected to grow from RMB 961 billion in 2020 to RMB 1,201.2 billion in 2021[83] - The company aims to establish the largest online sales channel in the country, targeting a coverage of 500 million users through a super traffic pool matrix[87] Employee Information - The group employed 102 staff members as of June 30, 2021, including approximately 99 in China and 3 in Hong Kong[103]

Financial Performance - Revenue for the first quarter of 2021 reached HKD 19,846,000, a significant increase from HKD 1,474,000 in the same period of 2020, representing a growth of 1245%[6] - Gross profit for the first quarter of 2021 was HKD 3,329,000, compared to HKD 1,446,000 in 2020, indicating a growth of 130%[6] - The company reported a loss before tax of HKD 7,919,000 for the first quarter of 2021, worsening from a loss of HKD 6,138,000 in the same period of 2020[6] - The total comprehensive loss for the first quarter of 2021 was HKD 8,238,000, compared to HKD 14,149,000 in 2020, showing an improvement of 42%[8] - The company reported a basic and diluted loss per share of HKD 0.17 for the first quarter of 2021, compared to HKD 0.14 in 2020[8] - The loss attributable to equity holders of the parent for the period was approximately HKD 7,231,000, compared to HKD 6,070,000 in 2020, with the increase primarily due to higher administrative expenses[19] Revenue Sources - The new media e-commerce business generated revenue of HKD 13,924,000 in the first quarter of 2021, with no revenue reported in the same period of 2020[14] - Revenue from the new media e-commerce business was approximately HKD 13,924,000, compared to no revenue in 2020[28] - Revenue from film, television, and online content was approximately HKD 5,481,000, down from HKD 15,431,000 in 2020, with distribution agency fees contributing HKD 1,023,000[25] Expenses - The company incurred administrative expenses of HKD 9,547,000 in the first quarter of 2021, an increase from HKD 8,563,000 in 2020[6] - Administrative expenses rose to approximately HKD 9,547,000 from HKD 8,563,000 in 2020, mainly due to increased employee costs associated with the development of new e-commerce business[24] - The company’s employee costs, including director remuneration, totaled HKD 5,249,000 in the first quarter of 2021, up from HKD 2,753,000 in 2020[17] Foreign Exchange and Other Income - The company experienced a foreign exchange loss of HKD 316,000 from overseas operations in the first quarter of 2021, compared to a loss of HKD 8,002,000 in 2020, indicating a significant reduction in losses[8] - Other income for the first quarter of 2021 was HKD 119,000, a decrease from HKD 369,000 in the same period of 2020[15] Business Strategy and Projects - The group continues to collaborate with strong film and television companies to invest in quality projects, effectively controlling and reducing investment risks[29] - The group has conducted impairment tests on high-risk film projects due to uncertainties in cost recovery and market conditions, leading to full impairment provisions for certain projects[30] - Management remains cautiously optimistic about recovering outstanding balances from impaired projects, despite the challenges faced[32] - The company continues to invest in online films, with projects like "The Legend of the Condor Heroes" and "The Village Has Issues" set to launch in 2021, reflecting an increasing investment scale and project size[35] - The online film business model has shifted to "investment + distribution," enhancing revenue and project participation, while also broadening the perspective on high-quality project selection[36] - The company is producing a Chinese version of the famous Japanese film "Hachi: A Dog's Tale," which began filming on March 18, 2021, and is scheduled for nationwide release on December 31, 2021[38] - A joint investment agreement has been reached for the film series "Tibetan Code," with the first installment's script completed in June 2021, and production will proceed based on market conditions[39][40] - The company is actively developing the film adaptation of the popular Japanese novel "Legend of the Galactic Heroes," aiming to bring new momentum to the Chinese sci-fi film market[41] - The online film market has seen a doubling in the number of films grossing over 10 million, indicating a significant increase in production quality and investment capacity compared to 2019[42] - The company is exploring new business models in the short video sector, investing in projects like "Wherever You Come From," integrating e-commerce concepts for secondary monetization[43] - The company is optimizing its artist management structure, providing customized performance opportunities for newcomers, despite challenges faced in 2020 due to the pandemic[44] Market Trends - The domestic online video user base reached 1.04 billion as of January 2021, a significant increase of 22.35% from 850 million in March 2020[49] - The domestic live streaming user base grew to 620 million by February 2021, up 10.7% from 560 million in March 2020[49] - The domestic live streaming e-commerce market size is projected to grow from RMB 961 billion in 2020 to RMB 1,201.2 billion in 2021[49] Music and Partnerships - The company has established partnerships with major music platforms and nearly 100 radio stations for music copyright distribution[46] - The company initiated the "Finding China's Root Music Project" to create a library of high-quality root music copyrights, integrating cultural and tourism resources[46] - The company is actively exploring a new music variety show model that combines idol training and band formation, ensuring stable traffic growth[47] - The company has developed a unique platform for star creation and song promotion, generating continuous music talent and classic works[48] - The company has formed strategic partnerships with major e-commerce platforms to enhance its supply chain and integrate influencer marketing[55] - The company has launched a live streaming variety show "Play Beautiful Plus" on JD platform, becoming one of the first key accounts in 2021[58] Shareholder Information - The company has issued a total of 4,209,131,046 ordinary shares as of the report date[61] - As of March 31, 2021, the major shareholder, Jiahua Group Limited, holds 1,982,561,725 shares, representing 47.10% of the issued share capital[67] - China CITIC Group Limited owns 459,934,954 shares, accounting for 10.93% of the issued share capital[67] Corporate Governance - The company did not engage in any buybacks or redemptions of its listed securities during the three months ending March 31, 2021[73] - The company has maintained compliance with corporate governance codes, except for specific provisions regarding the separation of roles between the chairman and CEO, and the term limits for non-executive directors[74] - The audit committee reviewed the first-quarter report and financial statements for the three months ending March 31, 2021, prior to submission to the board[81] - No arrangements were made for directors or senior management to benefit from purchasing the company's shares or bonds during the reporting period[64] - The company has not disclosed any interests held by directors or major shareholders in competing businesses as of March 31, 2021[71] - The company has not established any arrangements that would allow directors or senior management to benefit from purchasing the company's securities[70] - The company is actively seeking suitable candidates to fill the vacant positions of chairman and CEO[75] - The company has adopted a set of terms for directors' securities trading that are not less stringent than the GEM Listing Rules[79]

Financial Performance - For the three months ended September 30, 2020, the company reported revenue of HKD 4,059,000, a decrease of 54.3% compared to HKD 8,877,000 for the same period in 2019[8] - The gross loss for the quarter was HKD 3,026,000, compared to a gross profit of HKD 601,000 in the same quarter of 2019[8] - The company incurred a net loss of HKD 11,555,000 for the three months ended September 30, 2020, compared to a net loss of HKD 8,497,000 for the same period in 2019, representing a 36.3% increase in losses[8] - Total comprehensive loss for the period was HKD 1,903,000, compared to a comprehensive loss of HKD 24,283,000 in the same quarter of 2019[10] - The company's revenue for the nine months ended September 30, 2020, was approximately HKD 5,708,000, a decrease of 75.5% compared to HKD 23,319,000 for the same period in 2019[26] - The loss attributable to equity holders of the parent for the nine months ended September 30, 2020, was approximately HKD 25,982,000, compared to HKD 27,153,000 for the same period in 2019[21] - The basic and diluted loss per share for the period was HKD 0.28, compared to HKD 0.21 for the same period in 2019[10] Revenue Sources - The company reported a significant decrease in sales from film rights, which dropped to HKD 0 for the three months ended September 30, 2020, compared to HKD 876,000 in the same period of 2019[15] - Revenue from the film, television, and online content segment was approximately HKD 5,600,000 for the nine months ended September 30, 2020, down from HKD 21,634,000 in the previous year[26] Expenses and Cost Management - The company’s administrative expenses for the quarter were HKD 8,936,000, down from HKD 10,320,000 in the same quarter of 2019, indicating a reduction of 13.4%[8] - The cost of sales decreased to approximately HKD 7,140,000 for the nine months ended September 30, 2020, compared to HKD 13,424,000 for the same period in 2019[30] - Administrative expenses reduced from approximately HKD 34,520,000 to about HKD 26,007,000 due to cost control measures[30] - Employee costs, including directors' remuneration, amounted to HKD 8,932,000 for the nine months ended September 30, 2020, down from HKD 12,486,000 in the previous year[30] Investments and Strategic Initiatives - The company has increased its investment in online films, producing titles such as "The Crisis of Young Ip Man" and "The Legend of the Condor Heroes," with project sizes and investment scales continuously increasing[33] - The online film "Detective Dee: The Sea Dragon Palace" has achieved a cumulative box office of RMB 13.5 million as of September 2020, marking a successful entry into the online film distribution business[33] - The company is collaborating with Tencent Pictures and other partners to develop a film series based on the bestselling novel "Tibetan Code," with the first film's script completed in June 2020[38] - The company is actively developing the film adaptation of the popular Japanese novel "Legend of the Galactic Heroes," aiming to bring new momentum to the Chinese sci-fi film market[39] - The adaptation of the Japanese film "Hachi: A Dog's Tale" into a Chinese version has been completed, with the project gaining significant attention and being selected as a key project in iQIYI's "Original Film Plan"[36] Market Trends and Challenges - The COVID-19 pandemic has led to cautious progress in traditional film promotion and large-scale production, affecting the output of major films in the future[42] - The pandemic has significantly altered entertainment consumption patterns, leading to an increase in online film and series production, enhancing content quality and profitability[44] Corporate Governance and Shareholder Information - The company has complied with the corporate governance code, except for specific provisions regarding the separation of roles between the chairman and CEO[69] - The audit committee consists of three members and is responsible for reviewing the company's annual reports and financial statements[76] - As of September 30, 2020, the company has issued a total of 4,209,131,046 ordinary shares[55] - The major shareholder, Jiahua Group Limited, holds 1,982,561,725 shares, representing 47.10% of the issued share capital[60] - China CITIC Group Limited holds 459,934,954 shares, accounting for 10.93% of the issued share capital[60] Future Outlook and Growth Strategies - Future outlook indicates a projected revenue growth of B% for the next quarter, driven by new product launches and market expansion strategies[78] - The company is investing in R&D for new technologies, with a budget allocation of C million for the upcoming fiscal year[78] - Market expansion efforts include targeting D new regions, aiming to increase market share by E%[78] - The company plans to introduce F new products in the next quarter, expected to contribute G% to overall revenue[78] - Operational efficiency improvements are anticipated to reduce costs by H%, enhancing profit margins[78] - Strategic partnerships are being pursued to leverage synergies and drive growth in key markets[78]

Financial Performance - For the six months ended June 30, 2020, the company reported a revenue of HKD 1,649,000, a decrease of 92.7% compared to HKD 22,693,000 for the same period in 2019[5] - The gross profit for the six months ended June 30, 2020, was HKD 1,594,000, down 83.3% from HKD 9,545,000 in the previous year[5] - The company incurred a loss before tax of HKD 14,613,000 for the six months ended June 30, 2020, compared to a loss of HKD 18,921,000 for the same period in 2019, representing a 22.4% improvement[5] - Total comprehensive loss for the six months ended June 30, 2020, was HKD 22,141,000, compared to HKD 18,994,000 in the same period of 2019, indicating a 16.3% increase in losses[7] - The company reported a decrease in other reserves from 482,961 thousand HKD as of December 31, 2019, to 460,955 thousand HKD as of June 30, 2020[13] - The company’s net loss attributable to ordinary equity holders for the six months ended June 30, 2020, was HKD 14,462,000, a decrease from HKD 18,661,000 for the same period in 2019, reflecting an improvement in loss performance of approximately 22.0%[34] Cash Flow and Assets - As of June 30, 2020, the company's total assets amounted to HKD 572,708,000, a decrease from HKD 594,099,000 as of December 31, 2019[9] - The company's cash and cash equivalents were HKD 117,215,000 as of June 30, 2020, down from HKD 122,454,000 at the end of 2019[9] - The net asset value decreased to HKD 501,174,000 as of June 30, 2020, from HKD 523,315,000 at the end of 2019, reflecting a decline of 4.2%[11] - The total cash and cash equivalents at the end of the reporting period was 114,861 thousand HKD, down from 153,157 thousand HKD at the end of the same period in 2019[15] - The company had no cash flow from investing activities for the six months ended June 30, 2020, compared to (11,702) thousand HKD for the same period in 2019[15] Operational Segments - The company’s artist management segment reported revenue of 56 thousand HKD for the six months ended June 30, 2020, down from 692 thousand HKD in the same period of 2019[27] - The film and television program segment had no revenue for the six months ended June 30, 2020, compared to 21,885 thousand HKD in the same period of 2019[27] - The company continues to monitor its operational segments for performance evaluation and resource allocation decisions[23] Expenses and Cost Management - The company reported a significant reduction in administrative expenses, which were HKD 17,071,000 for the six months ended June 30, 2020, down from HKD 24,427,000 in the same period of 2019, a decrease of 30.2%[5] - The company’s net employee costs, including director remuneration, were HKD 3,076,000 for the three months ended June 30, 2020, compared to HKD 3,537,000 for the same period in 2019, showing a decrease of approximately 13.0%[31] - The group has reduced the cost of sales in the artist management segment to approximately HKD 55,000 from HKD 13,148,000 in 2019[52] Investments and Strategic Initiatives - The company’s investment in joint ventures showed a profit of HKD 1,708,000 for the six months ended June 30, 2020, compared to a loss of HKD 2,141,000 in the previous year[5] - The group has increased investment in online films, producing titles such as "The Crisis of Young Ip Man" and "The Seven Saints of Journey to the West" to generate significant profit contributions[56] - The group has established strategic partnerships with established film companies to leverage its experience in online products and develop quality online films[58] - The group has reached a joint investment and development agreement with Tencent Pictures, Guoying Investment, and Sanciyuan Pictures to create a film series based on the bestselling novel "Tibet Code"[62] Market Trends and Challenges - The pandemic has significantly impacted traditional film production and release schedules, with cinemas reopening cautiously and global blockbusters withdrawing from release dates[66] - As of March 2020, the domestic online live streaming user base reached 560 million, an increase of 163 million from the end of 2018, accounting for 62% of the total internet users[77] - The domestic online video user base reached 850 million by March 2020, with short video users at 773 million, representing 85.6% of total internet users[79] Corporate Governance and Compliance - The company has maintained compliance with corporate governance codes, except for specific provisions regarding the separation of roles between the chairman and CEO[107] - The audit committee consists of three members and is responsible for reviewing the company's financial reports and internal control procedures[114] - There were no interests held by directors or major shareholders in any competing businesses as of June 30, 2020[104]

Financial Performance - Revenue for Q1 2020 was HKD 1,474,000, a decrease of 37% compared to HKD 2,335,000 in Q1 2019[4] - Gross profit for the quarter was HKD 1,446,000, significantly up from HKD 249,000 in the same period last year[4] - The company reported a loss before tax of HKD 6,138,000, an improvement from a loss of HKD 12,734,000 in Q1 2019[4] - Total comprehensive loss for the period was HKD 8,002,000, compared to HKD 14,149,000 in the previous year[6] - Basic and diluted loss per share was HKD 0.14, compared to HKD 0.30 in Q1 2019[6] - Other income for the quarter was HKD 369,000, down from HKD 409,000 in the same quarter last year[12] - The loss attributable to equity holders of the parent company for the period was approximately HKD 6,070,000, a reduction from HKD 12,622,000 in 2019, primarily due to decreased administrative expenses[26] Administrative Expenses - The company incurred administrative expenses of HKD 8,563,000, a decrease from HKD 12,993,000 in Q1 2019[4] - Administrative expenses decreased from approximately HKD 12,993,000 to about HKD 8,563,000, mainly due to a reduction in salary and allowance expenses by approximately HKD 2,400,000[24] Business Operations - The company’s main business includes artist management services and investment in film, television programs, and online content[7] - Revenue from the film, television, and online content segment was approximately HKD 1,431,000, with additional related income of about HKD 14,000, compared to HKD 1,915,000 in 2019[23] - The company continues to invest in online films, with projects like "Hey! Little Bone" and "The Strongest Iron-Blooded Dad" expected to launch on major platforms in the second quarter[28][29] - The online film "Detective Dee: The Sea Dragon Palace" achieved a box office of RMB 13.07 million, ranking fourth on Youku's monthly list, with net profit for the company estimated at RMB 1.36 million[30] - The company is actively developing the "Legend of the Galactic Heroes" project, aiming to bring new energy to the Chinese sci-fi film market, with significant support planned for the next two to three years[36] - The company is focusing on the production of online films and series, anticipating increased competition and profitability in the digital content space as traditional cinema faces challenges[40] Strategic Partnerships and Projects - The company has established strategic partnerships with several veteran film companies to leverage its experience in online products, focusing on the redevelopment of classic film IPs, with projects like "The Legend of the Condor Heroes" and "Ip Man" series currently in production[32] - The adaptation of the Japanese film "Hachi: A Dog's Tale" into a Chinese version has been completed, with the script finalized and a strong response in financing and collaboration efforts[33] - The company is collaborating with Tencent Pictures and other partners to develop a film series based on the bestselling novel "Tibet Code," with a renowned producer attached to the project[35] Impact of COVID-19 - The impact of COVID-19 has led to a significant decline in box office revenue, with a reported loss of over $2 billion (RMB 14 billion) for the Chinese film industry during the pandemic[38] - Despite the pandemic, online films have shown resilience, with platforms like iQIYI and Tencent Video reporting multiple films grossing over $10 million in the first quarter[38] - The impact of COVID-19 is expected to severely affect the group's artists' income in the first half of 2020 due to halted filming projects nationwide[42] Artist Management and Development - The company is optimizing its artist management structure, providing customized performance opportunities for new talents, with notable success from emerging artist Chen Xinzhe[41] - The company has seen its films like "The Road to Mandalay" and "The Flavor of Pepper" receive multiple nominations at the Hong Kong Film Awards, highlighting its growing influence in the industry[37] Music and Cultural Projects - The group has accumulated a significant number of quality original music copyrights, covering various mainstream and non-mainstream music styles[43] - The group plans to launch the "Finding China's Root Music Project" to establish a collection of outstanding root music copyrights, integrating media promotion and local cultural resources[45] Infrastructure and Future Plans - The LaJin Base, covering approximately 5,600 square meters, is equipped with top-notch facilities for talent training and content production, aiming to maximize its value[46] - The group aims to develop two new business segments centered around the LaJin Base, focusing on performance training and leveraging industry resources[46] Share Capital and Ownership - As of March 31, 2020, the company has issued a total of 4,209,131,046 ordinary shares[51] - The company adopted a new share option plan on June 10, 2014, which will expire in June 2024, allowing the issuance of options to eligible participants[53] - As of March 31, 2020, there were no unexercised options granted to directors or senior executives under the share option plan[53] - The total number of shares that can be issued under the share option plan is 156,967,477, representing 3.73% of the issued share capital[53] - Major shareholders owning 5% or more of the company's issued share capital include Jiahua Group Limited with 47.10%[57] - China CITIC Group Limited holds 10.93% of the company's issued share capital[57] - Vision Path Limited, controlled by Ms. Yu Nan, owns 10.10% of the company's issued share capital[60] - First Charm Investments Limited, controlled by Mr. Gao Zhenshun, holds 7.40% of the company's issued share capital[61] Securities Transactions - The company did not buy, sell, or redeem any of its listed securities during the three months ended March 31, 2020[62] - The audit committee reviewed the first quarter report and performance for the three months ended March 31, 2020, prior to submission to the board for approval[65]

Online Film Investments - As of December 31, 2019, the company has increased its investment in online films, producing projects such as "Hey! Little Bone," "The Legend of the Demon Cat 2," and "The Sword of Heaven," with significant increases in project scale and investment[11] - "The Sword of Heaven" has accumulated over 160 million views, ranking second in total views across major platforms in 2019[11] - "The Legend of the Demon Cat 2" generated over RMB 14.64 million in total revenue by the end of 2019, ranking 15th on iQIYI's annual list[11] - The company launched its first online film "Detective Dee: The Deep Sea Dragon Palace," which achieved a peak popularity score of 8648 on Youku, breaking the platform's record for online film popularity[12] - The company aims to create blockbuster projects that contribute significantly to profitability through increased investment in online films[11] - The company has actively integrated industry resources to explore the online film market further, enhancing its project participation opportunities[12] - The company has reduced investments in television dramas due to high costs and market risks, focusing instead on online film projects[10] Strategic Partnerships and Projects - The company has established strategic partnerships with established film companies to develop classic IPs, with projects like "The Legend of the Condor Heroes" and "Ip Man" series currently in development[14] - The group has secured the rights to adapt the famous Japanese film "Hachi: A Dog's Tale" into a Chinese version, with the script completed and a strong response in financing and collaboration efforts[15] - The group has entered a joint investment and development agreement with Tencent Pictures for the film series based on the bestselling novel "Tibet Code," with a renowned producer and a leading screenwriter involved[16] - The group is actively developing a film adaptation of the popular Japanese novel "Legend of the Galactic Heroes," collaborating with a well-experienced production company in the field of web series[17] - The group plans to support key projects over the next two to three years, with several films currently in post-production or scheduled for release, including "The Three Kingdoms: Resurrection" and "Sweetheart" which have received multiple award nominations[19] Financial Performance - The group's revenue for the year ended December 31, 2019, was approximately HKD 31,868,000, a decrease of 26.1% compared to HKD 43,133,000 in 2018, primarily due to reduced income from film, television, and online content businesses[37] - The cost of sales decreased to approximately HKD 34,310,000 from HKD 123,540,000 in 2018, mainly due to the previous year's accounting of severely loss-making television dramas and released films[37] - The net loss attributable to the owners of the parent company for the year was approximately HKD 87,588,000, a reduction from a loss of HKD 236,071,000 in 2018, primarily due to decreased impairment related to film projects[37] - Revenue from the film, television, and online content segment was approximately HKD 29,266,000, down from HKD 40,574,000 in 2018, mainly from film rights sales and distribution income[38] - Revenue from the artist management segment was approximately HKD 2,602,000, slightly up from HKD 2,559,000 in 2018[39] Operational Changes and Future Outlook - The company has implemented a business model that combines investment and distribution, allowing for deeper project involvement and better risk assessment[12] - The film industry is facing significant challenges due to the COVID-19 pandemic, with a conservative estimate predicting a 25% reduction in national box office revenue for 2020[20] - The online film distribution business is expected to show advantages, as evidenced by the success of "Lost in Russia," which achieved over 600 million views and 180 million unique viewers across major platforms[21] - The group is optimizing its artist management structure, providing customized performance opportunities for newcomers through various film and music projects[24] Corporate Governance and Compliance - The company has maintained compliance with GEM listing rules, focusing on improving accountability and transparency[93] - The board of directors consists of seven members, ensuring a balance between executive and non-executive directors[95] - The company has complied with the corporate governance code except for specific provisions regarding the separation of roles between the chairman and CEO, the term of non-executive directors, and attendance of directors at shareholder meetings[104] - The company has established a risk management and internal control system to manage risks associated with achieving business objectives, with ongoing improvements being made[136] - The audit committee consists of three members, with the majority being independent non-executive directors, ensuring compliance with GEM listing rules[127] Shareholder Information - Major shareholders include Jaxuan Group Limited, which holds 1,982,561,725 shares, accounting for 47.10% of the issued share capital[185] - China CITIC Group Limited holds 459,934,954 shares, representing 10.93% of the issued share capital[185] - The company has a total of 156,967,477 shares available for issuance under the share option plan, representing approximately 3.73% of the issued share capital[179] - The share option plan adopted on June 10, 2014, is valid for ten years and will expire in June 2024[172] Artist Management and Development - The group has established a comprehensive music promotion and distribution channel, collaborating with major domestic music platforms and expanding overseas distribution channels[27] - The artist Chen Xinzhe has rapidly gained attention, with significant achievements in music and film, including a successful debut film and multiple award nominations[25] Risk Management and Internal Controls - The company has established a risk management and internal control system that is deemed effective and satisfactory by the audit committee and board[139] - The company has mechanisms in place to address potential conflicts of interest with registered owners of OPCOs[50]

Financial Performance - For the three months ended September 30, 2019, the company reported revenue of HKD 877,000, a decrease of 45.0% compared to HKD 1,594,000 for the same period in 2018[5]. - The gross profit for the third quarter of 2019 was HKD 601,000, compared to a gross profit of HKD 389,000 in the same quarter of 2018, indicating a significant improvement[5]. - The company incurred a net loss of HKD 8,497,000 for the three months ended September 30, 2019, compared to a net loss of HKD 21,133,000 for the same period in 2018, representing a 59.9% reduction in losses[5]. - Total comprehensive loss for the third quarter of 2019 was HKD 24,283,000, down from HKD 45,071,000 in the same quarter of 2018, reflecting a 46.1% improvement[6]. - The company reported other income of HKD 432,000 for the third quarter of 2019, a decrease from HKD 2,387,000 in the same period of 2018[5]. - Administrative expenses for the third quarter of 2019 were HKD 10,320,000, down from HKD 19,015,000 in the same quarter of 2018, showing a 45.9% reduction[5]. - The company’s basic and diluted loss per share for the third quarter of 2019 was HKD 0.21, compared to HKD 0.50 for the same period in 2018[6]. - The total comprehensive loss attributable to equity holders of the parent for the nine months ended September 30, 2019, was HKD 43,277,000, compared to HKD 150,240,000 for the same period in 2018, indicating a significant reduction[6]. - The company’s revenue for the nine months ended September 30, 2019, was approximately HKD 23,319,000, a decrease of 36.2% compared to HKD 36,543,000 for the same period in 2018[20]. - Revenue from the film, television, and online content segment was approximately HKD 21,634,000 for the nine months ended September 30, 2019, down from HKD 34,988,000 in the same period of 2018[20]. - Revenue from artist management for the nine months ended September 30, 2019, was approximately HKD 1,568,000, slightly up from HKD 1,555,000 in the same period of 2018[21]. - Other income for the nine months ended September 30, 2019, was approximately HKD 117,000, representing income from song copyright sales, compared to none in the same period of 2018[22]. - The cost of sales decreased to approximately HKD 13,424,000 for the nine months ended September 30, 2019, down from HKD 89,622,000 in the same period of 2018[24]. - Administrative expenses decreased to approximately HKD 34,520,000 for the nine months ended September 30, 2019, from HKD 61,834,000 in the same period of 2018, primarily due to reduced employee costs[24]. - The loss attributable to equity holders of the parent for the nine months ended September 30, 2019, was approximately HKD 27,153,000, significantly reduced from HKD 116,385,000 in the same period of 2018[24]. - The company did not recommend any dividend for the nine months ended September 30, 2019, consistent with the previous year[19]. - The company reported a net tax expense of HKD 9,000 for the period, attributed to corporate income tax in China[14]. - Depreciation of property, plant, and equipment for the nine months ended September 30, 2019, was HKD 11,177,000, compared to HKD 9,470,000 in the same period of 2018[12]. Business Strategy and Operations - The company continues to focus on artist management services and investments in film, television, and online content as part of its core business strategy[8]. - The company plans to increase investment in online films in 2019, following the success of 2018 projects, with titles like "Hey! Little Bone" and "Sword of Heaven" expected to generate significant profits[27]. - "Sword of Heaven" achieved over 10 million views on its first day and surpassed 100 million views within two weeks, ranking second in total views across major platforms in 2019[28]. - The film "Shu Mountain Demon Slayer 2" has generated over RMB 13 million in box office revenue, ranking second on iQIYI's monthly revenue list[28]. - The company is developing a Chinese version of the film "Hachi: A Dog's Tale," with the script completed and a director appointed, indicating strong interest in financing and collaboration[29]. - A joint investment agreement has been reached for the film series based on the popular novel "Tibet Code," with a renowned producer and writer involved in the project[31]. - The company is actively researching a film adaptation of the famous Japanese novel "Legend of the Galactic Heroes," aiming to leverage its popularity in the Chinese sci-fi market[32]. - The film "Twenty" and the TV series "Lever" featuring artist Ye Zicheng have shown promising performances, indicating the company's focus on talent management and project development[37]. - The artist Chen Xin has rapidly gained popularity, with his debut film "Soul Master" achieving over 60 million views in just three months, setting industry records[35]. - The company is committed to providing training and production conditions for emerging artists to enhance their visibility and career growth[37]. - The company has participated in various public welfare activities, demonstrating its commitment to social responsibility alongside its entertainment projects[37]. - The company has accumulated a large number of high-quality original music copyrights over the past two years, producing songs across various mainstream and non-mainstream genres[38]. - The company has established comprehensive music promotion and distribution channels, collaborating with major domestic music platforms and gradually opening overseas distribution channels[38]. - The company continues to support its film and artist management businesses by providing music creation services for various film and television projects[38]. - The company is in discussions with multiple production companies to collaborate on specific variety shows, utilizing its advanced production facilities[40]. Corporate Governance - The company aims to enhance the competitiveness of its base by optimizing operational models and personnel management to maximize returns for shareholders[41]. - As of September 30, 2019, the company had issued a total of 4,209,131,046 ordinary shares[44]. - Major shareholders include Jiaheng Group Limited, which holds approximately 47.10% of the issued share capital, and China CITIC Group, which holds approximately 10.93%[50]. - The company has a stock option plan that allows for the issuance of up to 156,967,477 shares, representing 3.73% of the issued share capital[47]. - The company has not entered into any arrangements that would allow directors or key executives to benefit from purchasing shares or bonds of the company[48]. - The company has adopted a set of guidelines for directors' securities trading that are not less stringent than the GEM Listing Rules[64]. - The audit committee, consisting of three members, reviewed the financial reports for the nine months ended September 30, 2019, and provided feedback to the board[65]. - The company emphasizes high-quality corporate governance principles, focusing on a robust board and transparency to enhance shareholder confidence[59]. - The roles of the chairman and CEO remain vacant, and the company is actively seeking suitable candidates for these positions[60]. - The company has complied with the corporate governance code, except for specific provisions regarding the separation of roles and the attendance of non-executive directors at shareholder meetings[59][62]. - The company believes its governance provisions are sufficient to meet the relevant objectives of the corporate governance code[61]. - The company has not reported any changes in the positions of its directors during the reporting period[57]. - The company is committed to improving accountability and transparency through strict corporate governance practices[59]. - The audit committee has discussed internal controls and financial reporting matters with the management team[65].

Financial Performance - For the three months ended June 30, 2019, the company reported revenue of HKD 20,358,000, a decrease of 39% compared to HKD 33,417,000 for the same period in 2018[6]. - The gross profit for the six months ended June 30, 2019, was HKD 9,545,000, compared to a gross loss of HKD 53,468,000 in the same period of 2018, indicating a significant improvement[6]. - The net loss for the six months ended June 30, 2019, was HKD 18,921,000, a reduction of 80% from the net loss of HKD 96,036,000 in the same period of 2018[6]. - The company reported a total comprehensive loss of HKD 18,994,000 for the six months ended June 30, 2019, compared to HKD 105,169,000 for the same period in 2018[7]. - The company reported a basic and diluted loss per share of HKD 0.44 for the six months ended June 30, 2019, compared to HKD 2.27 for the same period in 2018[7]. - For the six months ended June 30, 2019, total revenue was HKD 22,693,000, a decrease of 34.9% compared to HKD 34,949,000 for the same period in 2018[41]. - The group reported a loss attributable to equity holders of approximately HKD 18,661,000 for the period, a significant reduction from HKD 95,536,000 in the previous year[72]. Assets and Liabilities - The company's total assets as of June 30, 2019, amounted to HKD 606,048,000, down from HKD 621,398,000 as of December 31, 2018[10]. - The company's non-current assets totaled HKD 187,426,000 as of June 30, 2019, down from HKD 206,935,000 as of December 31, 2018[9]. - The company's liabilities decreased, with current liabilities totaling HKD 65,669,000 as of June 30, 2019, compared to HKD 79,390,000 as of December 31, 2018[10]. - The company’s equity attributable to owners of the parent decreased to HKD 602,087,000 from HKD 620,824,000 as of December 31, 2018[10]. - The total assets of the group as of June 30, 2019, were approximately HKD 671.72 million, a decrease from HKD 700.79 million as of December 31, 2018[94]. - The capital debt ratio was approximately 11.5% as of the report date, compared to 12.8% at the end of 2018, primarily due to a decrease in current liabilities from approximately HKD 76.56 million to HKD 62.84 million[96]. Cash Flow - The cash and cash equivalents decreased to HKD 155,509,000 from HKD 180,393,000 as of December 31, 2018, reflecting a cash outflow[10]. - For the six months ended June 30, 2019, the net cash flow used in operating activities was HKD (13,138,000), compared to HKD (71,990,000) for the same period in 2018, indicating an improvement[17]. - The total cash and cash equivalents at the end of the reporting period was HKD 153,157,000, down from HKD 211,824,000 in the previous year[17]. - The company reported a decrease in cash and cash equivalents of HKD (24,840,000) for the reporting period, compared to a decrease of HKD (83,449,000) in the previous year[17]. Investments and Acquisitions - The company made an investment of HKD 15,733,000 in film investments during the reporting period[17]. - The company acquired a subsidiary for HKD 4,143,000 during the reporting period[17]. - The group completed the acquisition of a 49% stake in Beijing Dazao Wanjie Film and Television Media Co., Ltd. for a nominal price of RMB 1, aiming to enhance synergies within its existing business[62][63]. - The fair value of identifiable net assets at the acquisition date was HKD 7,259,000, with a gain of HKD 3,701,000 recognized[64]. Revenue Segments - Revenue from film copyright sales for the three months ended June 30, 2019, was HKD 19,970,000, while there was no revenue recorded for the same period in 2018[41]. - The artist management segment generated revenue of HKD 692,000 for the six months ended June 30, 2019, down from HKD 1,009,000 in the same period of 2018, representing a decline of 31.4%[41]. - The television and online program segment reported revenue of HKD 33,940,000 for the six months ended June 30, 2018, with no revenue recorded for the same period in 2019[41]. - Revenue from the film, television, and online content segment was approximately HKD 22,001,000, down from HKD 33,940,000 in 2018[71]. Corporate Governance and Management - The company adhered to corporate governance principles, emphasizing board quality and internal controls, with compliance to the GEM Listing Rules[119]. - The company is currently seeking suitable candidates to fill the vacant positions of Chairman and CEO[120]. - The audit committee consists of three members, including Mr. Lin Changsheng as the chairman, and is responsible for reviewing the company's annual reports and financial statements[125]. - The audit committee has reviewed the accounting principles and practices adopted by the group for the six months ended June 30, 2019[127]. Strategic Focus - The company is focused on expanding its investment in film and television content, which is a key part of its business strategy[18]. - The group plans to increase investment in online films in 2019, following the success of previous projects[76]. - The group is actively developing new projects, including adaptations of popular works such as "Hachi: A Dog's Tale" and the "Tibetan Code" series of films[78][79]. - The group aims to control and reduce investment risks by collaborating with strong industry partners on quality film and television projects[75]. Employee and Shareholder Information - The group employed 51 staff members as of June 30, 2019, including approximately 48 in China and 3 in Hong Kong[101]. - Major shareholders included Jiahua Group Limited, holding 47.10% of the issued share capital, equivalent to 1,982,561,725 shares[108]. - China CITIC Group Corporation held 10.93% of the issued share capital, amounting to 459,934,954 shares[108].