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]

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]