Financial Performance - In 2022, the company's revenue decreased by 60.7% to RMB 68,969,000 from RMB 175,360,000 in 2021[18] - The gross loss for 2022 was RMB (4,499,000), compared to a gross profit of RMB 30,568,000 in 2021, indicating a significant decline[18] - The loss attributable to equity shareholders for the year was RMB (39,760,000), a drastic change from a profit of RMB 4,871,000 in 2021[18] - The Group reported a net loss of approximately RMB 39.8 million for the year, compared to a net profit of approximately RMB 4.9 million in 2021[30] - The decline in service revenue was primarily due to significant reductions in advertising budgets from major customers in traditional offline media, impacted by COVID-19[30] - The Group's revenue for the year amounted to RMB 69.0 million, representing a decrease of 60.7% compared to RMB 175.4 million in 2021[50] - Revenue from traditional offline media advertising services decreased by 55.5% to approximately RMB 60.9 million, primarily due to brand customers cutting their marketing budgets amid the COVID-19 pandemic[53] - Online media advertising services revenue fell by 86.1% to RMB 4.3 million, largely due to a major customer reducing its online advertising strategy[57] - Revenue from PR, marketing campaigns, and other services decreased from RMB 7.3 million in 2021 to RMB 3.8 million in 2022, a decline of RMB 3.5 million[59] - The Group recorded a gross loss of approximately RMB 4.5 million for the year, compared to a gross profit of RMB 30.6 million in 2021, resulting in a gross loss margin of approximately 6.5%[64] Advertising Services - Revenue from traditional offline media advertising services accounted for 88.2% of total revenue in 2022, amounting to RMB 60,850,000[19] - Online media advertising services generated RMB 4,317,000, representing 6.3% of total revenue in 2022[19] - Public relations and marketing campaigns contributed RMB 3,802,000, or 5.5% of total revenue in 2022[19] - The overall advertising market in China was expected to decline by 9.2% in 2022, with 74% of advertisers perceiving a downward trend in marketing investment[25] - The Group has shifted its focus towards performance-based advertising, with 53% of advertisers prioritizing this approach[25] - The Group aims to merge online media services with offline media services to enhance business expansion and brand awareness[45] - Community media, particularly elevator media, is expected to continue as a main growth force in outdoor advertising, with new strategic partnerships being formed[45] Strategic Initiatives - The company is focused on improving its financial performance and exploring new strategies for market expansion[23] - There are ongoing efforts in research and development of new products and technologies to enhance service offerings[23] - The Group is exploring new profit models, including self-operated accounts for promoting pre-made dishes and seeding accounts on Xiaohongshu, with expectations for these to become new revenue sources in the near future[38] - Marketing expenditures of brand companies are projected to recover in 2023, with an expected growth rate of 16% for total marketing investment by brand customers[41] - The reopening of the border between Hong Kong and Mainland China on February 6, 2023, is expected to significantly increase traffic at Shenzhen Futian Transportation Hub, enhancing advertising business opportunities[45] - Live-streaming E-commerce will focus on "content is king," with increased investment in short video production to drive traffic and sales conversion[45] Management and Governance - The management is committed to ensuring the accuracy and completeness of financial reporting in compliance with GEM Listing Rules[5] - The company has appointed independent non-executive directors to enhance compliance and corporate governance oversight[150] - The management team has a strong educational background, with degrees from reputable institutions such as the University of New South Wales and Northumbria University[154] - The company is committed to maintaining high standards of corporate governance and compliance through its independent directors[155] - The diverse experience of the management team supports the company's strategic initiatives and market expansion efforts[169] Financial Management - The Group increased its provision for credit loss allowance due to expected slow collection in trade receivables[30] - Administrative expenses increased to approximately RMB 37.6 million from RMB 15.8 million in 2021, mainly due to an increase in credit loss allowance for trade receivables, which amounted to approximately RMB 26.7 million for the year[72][76] - The group recorded a loss attributable to equity shareholders of approximately RMB 39.8 million for the year, compared to a net profit of RMB 4.9 million in 2021[75][79] - The group had outstanding bank loans of RMB 20.0 million as of December 31, 2022, resulting in a gearing ratio of 27.6%[82] - The group recognized an income tax benefit of approximately RMB 6.8 million for the year, compared to a tax expense of approximately RMB 2.7 million in 2021, mainly due to deferred tax assets from credit loss allowances[74] Awards and Recognition - The Group won the "Golden Prize for Innovation Marketing Category" at the Creative Awards Innovation 2022 for its successful live-streaming marketing case[34] - The Group received the "South China E-commerce Gold Label Award — Most Growing Enterprise Award" in 2022, highlighting its growth and recognition in the industry[39] - The company has been recognized with multiple marketing industry awards, showcasing its effectiveness in digital transformation and brand management[175] Future Outlook - The Group expects 2023 to be a challenging year but is prepared to implement a clear business strategy and cost-cutting measures to ensure sustainable development[48] - The annual economic growth rate in China is expected to return to potential growth rates in 2023, with market demand anticipated to gradually increase in the second half of the year[40] - The company aims to provide comprehensive marketing solutions and generate satisfactory returns for shareholders through a prudent and proactive business approach[49]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公 告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 Icon Culture Global Company Limited 天 泓 文 創 國 際 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8500） 截至2022年12月31日止 年度全年業績公告 天泓文創國際集團有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事 （「董事」）會（「董事會」）欣然公告本集團截至2022年12月31日止年度之經審核綜合 財務業績。本公告列載本公司2022年年報全文（「2022年年報」），並遵照聯交所 GEM證券上市規則（「GEM上市規則」）有關年度業績初步業績公告須包括的資料 的 相 關 規 定 。 本 公 司 2022 年 年 報 的 印 刷 版 本 將 適 時 寄 發 予 本 公 司 股 東 ， 並 將按GEM上市規則所規定的方式於聯交所網站www.hkexnews.hk及本公司網站 www.iconspace.com ...

Financial Performance - For the nine months ended September 30, 2022, the company reported a revenue of RMB 96,000,000, which is an increase compared to the same period in 2021[40]. - The Group recorded revenue of approximately RMB 60.0 million for the nine months ended 30 September 2022, a decrease of 53.6% compared to RMB 129.3 million for the same period in 2021[54]. - Revenue from traditional offline media advertising services decreased by 46.7% to approximately RMB 47.0 million compared to the corresponding period of 2021[74]. - Revenue for the three months ended September 30, 2022, was RMB 9,674,000, a decrease of 20.4% compared to RMB 12,154,000 for the same period in 2021[147]. - Total revenue from PR, marketing campaigns, and other services was RMB 9,674,000 in Q3 2022, compared to RMB 12,154,000 in Q3 2021, reflecting a decline of 20.4%[177]. Loss and Expenses - The net loss for the period was approximately RMB 25.3 million, compared to a net profit of approximately RMB 1.4 million in the same period of 2021, representing a significant increase in loss of 1,906.6%[54]. - The Group recorded a gross loss of approximately RMB 4.6 million with a gross loss margin of approximately 7.7%, compared to a gross profit of approximately RMB 18.4 million and a gross profit margin of approximately 14.2% for the same period in 2021[77]. - Administrative expenses increased to approximately RMB 29.6 million, up from approximately RMB 11.3 million for the nine months ended September 30, 2021, primarily due to an increase in credit loss allowance for trade receivables[88]. - The Group recognized a credit loss allowance for trade receivables of approximately RMB 21.4 million for the period, compared to approximately RMB 2.6 million for the same period in 2021[88]. - The company reported a loss attributable to owners of RMB 943,000 in Q3 2022, compared to a loss of RMB 4,011,000 in Q3 2021[192]. Strategic Focus and Future Outlook - The company is focusing on expanding its market presence and enhancing user engagement through new product offerings and technological advancements[40]. - Future outlook remains positive, with management projecting continued revenue growth and potential profitability improvements in the upcoming quarters[40]. - The company is actively exploring strategic partnerships and potential acquisitions to bolster its market position and diversify its product portfolio[40]. - The management highlighted ongoing research and development efforts aimed at innovating new products that align with market demands[40]. - The Group plans to accelerate the selection and development of major customers to adapt to media and customer needs[64]. Corporate Governance and Compliance - The company is committed to maintaining robust corporate governance practices to ensure transparency and accountability in its operations[40]. - The audit committee reviewed the unaudited condensed consolidated results and confirmed compliance with applicable accounting standards and GEM Listing Rules[142]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[142]. - The Group's financial report has been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (HKFRSs) as of November 11, 2022[157]. Shareholding and Equity - As of September 30, 2022, the total number of shares issued by the company was 180,000,000[122]. - Shining Icon held 69,660,000 shares, representing 38.70% of the total shareholding[124]. - Focus Wonder owned 33,750,000 shares, accounting for 18.75% of the total shareholding[124]. - Sense One had 18,090,000 shares, which is 10.05% of the total shareholding[124]. - The total equity as of September 30, 2022, was RMB 87,006,000, a decrease from RMB 112,257,000 as of January 1, 2022, reflecting a decline of approximately 22.5%[151].

Financial Performance - Revenue for the three months ended March 31, 2022, was RMB 28,565,000, a decrease of 35.7% compared to RMB 44,419,000 in the same period of 2021[34]. - Gross profit for the same period was RMB 5,779,000, reflecting a significant decline from RMB 9,640,000, indicating a challenging market environment[34]. - Profit for the period dropped to RMB 1,271,000, down 76.4% from RMB 5,379,000 in the previous year, highlighting the impact of reduced revenue on profitability[34]. - For the three months ended March 31, 2022, the Group recorded revenue of approximately RMB 28.6 million, representing a decrease of 35.7% compared to RMB 44.4 million for the same period in 2021[42]. - The net profit for the same period was approximately RMB 1.3 million, a decrease of 76.4% from RMB 5.4 million in the prior year[63]. - Gross profit decreased from approximately RMB 9.6 million in the corresponding period of 2021 to approximately RMB 5.8 million, with a gross profit margin of 20.2% compared to 21.7% in the previous year[56]. - Profit before taxation for the period was RMB 1,875,000, a decline of 73.8% from RMB 7,172,000 in the same period of 2021[136]. - Total comprehensive income for the period was RMB 1,271,000, compared to RMB 5,379,000 in the previous year, representing a decrease of 76.4%[136]. - Basic and diluted earnings per share for the period were both RMB 0.01, down from RMB 0.03 in the same period of 2021[136]. Revenue Sources - The company reported that traditional offline media advertising services accounted for 89.7% of total revenue, amounting to RMB 25,622,000[35]. - The contribution from public relations and online media marketing campaigns was RMB 1,026,000, representing only 3.6% of total revenue[35]. - Revenue from traditional offline media advertising services was RMB 25,622,000 for the first quarter of 2022[159]. Cost and Expenses - Administrative expenses increased to approximately RMB 3.1 million from RMB 2.4 million in the same period of 2021, primarily due to increased credit loss provisions for trade receivables[57]. - Selling expenses increased to RMB 787,000 from RMB 512,000, reflecting a rise of 53.7% year-over-year[136]. - Administrative expenses rose to RMB 3,079,000, compared to RMB 2,406,000 in the previous year, marking an increase of 28%[136]. Strategic Focus and Future Plans - The company is focused on enhancing its service offerings in public relations and online marketing to diversify revenue streams[38]. - Management indicated plans for future market expansion and the introduction of new services to improve financial performance[38]. - The Group plans to increase integrated investment in new businesses and enhance service offerings through a combination of "Creative + Media" services to capture market opportunities[70]. - The company continues to focus on integrated multimedia advertising and marketing media solutions, including OOH and indoor advertising platforms[157]. Corporate Governance - The board remains committed to improving corporate governance and transparency in financial reporting to build investor confidence[38]. - The company has adopted corporate governance practices in compliance with the Corporate Governance Code as set out in Appendix 15 to the GEM Listing Rules[82]. - The company maintained good corporate governance practices to promote accountability during the reporting period[82]. - The company has established an Audit Committee in accordance with GEM Listing Rules[131]. Shareholder Information - As of March 31, 2022, the Directors and chief executives held a total of 87,750,000 shares, representing a significant interest in the company[102]. - Shining Icon holds 69,660,000 shares, representing 38.70% of total shares[108]. - Focus Wonder owns 33,750,000 shares, accounting for 18.75% of total shares[108]. - Sense One has 18,090,000 shares, which is 10.05% of total shares[108]. - Master Connection possesses 13,500,000 shares, equating to 7.5% of total shares[108]. - The company disclosed substantial shareholders' interests in shares and underlying shares as required by the SFO[108]. Market Challenges - The decrease in revenue was mainly attributed to clients reducing their traditional offline media advertising budgets due to the impact of the COVID-19 pandemic[52]. - The advertising and marketing industry faces challenges from macroeconomic slowdown and changing brand customer requirements, but opportunities exist with the upgrading of cultural and entertainment consumption[70]. - The financial results reflect the ongoing challenges faced by small and mid-sized companies listed on GEM, which are more susceptible to market volatility[5].

Company Overview - Icon Culture Global Company Limited is listed on the GEM of the Stock Exchange with stock code 8500[25]. Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 100 million, representing a 20% growth compared to the previous year[13]. - Revenue for 2021 was RMB 175.36 million, a decrease of 34.7% compared to RMB 268.61 million in 2020[28]. - Gross profit for 2021 was RMB 30.57 million, down 70.9% from RMB 104.90 million in 2020[28]. - Profit attributable to equity shareholders for 2021 was RMB 4.87 million, a decline of 92.2% from RMB 62.73 million in 2020[28]. - The Group recorded revenue of approximately RMB 175.4 million in 2021, a decrease of 34.7% compared to 2020[41]. - Profit attributable to equity shareholders was RMB 4.9 million, representing a decrease of 92.2% from the previous year[41]. - The total value of contracts for online media advertising services was RMB 97.0 million in 2021, an increase of RMB 33.3 million or 52.4% compared to 2020[47]. - Revenue from traditional offline media advertising services decreased by 46.4% to RMB 136.9 million, primarily due to brand customers reducing their budgets amid Covid-19 uncertainties[61]. - Online media advertising services saw a significant increase of 161.0%, rising from RMB 11.9 million in 2020 to RMB 31.2 million in 2021, accounting for 17.8% of total revenue[71]. - Gross profit for the year was approximately RMB 30.6 million, down from RMB 104.9 million in 2020, with a gross profit margin of 17.4% compared to 39.1% in the previous year[76]. Market Expansion and Strategy - The user base expanded by 15%, reaching 500,000 active users by the end of the fiscal year[13]. - The company plans to launch two new products in the upcoming quarter, aiming to capture a larger market share[13]. - Future guidance indicates an expected revenue growth of 25% for the next fiscal year, driven by new product launches and market expansion strategies[13]. - The company aims to expand its operations into Southeast Asia, targeting a market size of approximately HKD 200 million[13]. - The Group's strategic focus remains on exploring business potential in online media advertising services, reflecting a shift in consumer behavior[71]. - The Group plans to further develop comprehensive marketing services for the online media advertising segment, particularly with the expansion of its live-streaming e-commerce operations[71]. Research and Development - Investment in research and development increased by 30%, focusing on innovative technologies to improve user experience[13]. - A dedicated team will be set up to research marketing methods for new products and E-commerce marketing[55]. Digital Marketing and E-commerce - The management highlighted a strategic shift towards digital marketing, which is projected to increase customer engagement by 40%[13]. - The Group established a live streaming e-commerce operation team focusing on platforms like Douyin and TikTok, enhancing the trading volume for brand customers[39]. - The Group established a dedicated live-streaming E-commerce marketing team in Q1 2021 and further developed a live-streaming E-commerce center in Q4 2021[42]. - The Group aims to improve its media investment strategy to enhance bargaining power and profitability[57]. - The Group is actively developing online advertisement demand, aiming to increase both revenue and its proportion within the overall business[1]. Corporate Governance and Compliance - The board of directors emphasized the importance of corporate governance and compliance with GEM listing rules to ensure transparency and accountability[20]. - The Group has not reported any employee infections related to Covid-19 as of the report date[1]. - The Group has implemented contingency measures in response to the impact of the Covid-19 outbreak[116]. - There was no material breach of applicable laws and regulations by the Group during the Year, indicating strong compliance with regulatory requirements[198]. Management and Leadership - The Group's management team includes experienced professionals with backgrounds in media, business development, and compliance[130][138]. - The management team is committed to achieving assigned growth ambitions through effective sales and marketing strategies[167]. - The executive team is committed to driving growth and enhancing shareholder value through effective management practices[130]. - The Group aims to strengthen its market position through strategic management and operational improvements[130]. Sustainability and Social Responsibility - The Group is committed to operating sustainably while balancing the interests of various stakeholders, including customers, suppliers, and employees[191]. - The Group's commitment to becoming an environmentally-friendly corporation is emphasized in its sustainability initiatives[194]. - Details of the environmental, social, and governance policies and performance during the Year are disclosed in the "Environmental, Social and Governance Report" of this annual report[194]. Future Outlook - The Group is exploring potential mergers and acquisitions to enhance its market position and diversify its product offerings[13]. - The Group's focus on innovation and market expansion is expected to drive future growth and enhance competitive advantage[168].

Financial Performance - For the six months ended June 30, 2021, the company reported unaudited revenue of RMB 000, compared to RMB 000 in the same period of 2020, reflecting a percentage change of % [19] - The Group recorded revenue of approximately RMB117.1 million for the six months ended June 30, 2021, representing a 9.9% increase compared to RMB106.5 million in the same period of 2020[20] - Excluding a one-off event from 2020, revenue growth for the six months ended June 30, 2021 was 159.0% compared to the corresponding period in 2020[21] - Profit for the period turned to a profit, with a reported profit of RMB5.4 million, compared to a loss of RMB31.2 million in the same period of 2020[20] - Revenue from online media advertising services amounted to RMB24.0 million, an increase of RMB19.0 million from RMB5.0 million in the corresponding period in 2020[35] - Online media advertising services accounted for 20.5% of total revenue in the first half of 2021, up 15.8 percentage points from 4.7% in the first half of 2020[35] - The Group's continuous market expansion contributed to the recovery from the Covid-19 pandemic, supporting overall revenue growth[21] - Gross profit for the Period was RMB16.2 million, with a gross profit margin of approximately 13.8%, down from 49.8% in the same period of 2020[56] - Net profit amounted to approximately RMB5.4 million for the Period, a decrease from RMB31.2 million in the first half of 2020, primarily due to a decrease in gross profit[66] Company Strategy and Operations - The management discussion and analysis section will provide insights into the company's performance and strategic direction, although specific details are not yet available [8] - The Group plans to enhance its digital marketing efforts in the second half of the year, including building an exclusive digital marketing team and providing comprehensive services[45] - The Group aims to assist traditional brands in transitioning to digital marketing to create new sales scenarios and broaden sales channels[36] - The Group successfully completed the business transformation from traditional marketing services to comprehensive marketing services during the period[35] Financial Position - The Group's net current assets as of 30 June 2021 were approximately RMB108.7 million, compared to RMB105.4 million as of 31 December 2020[73] - The current ratio was 2.2 times as of 30 June 2021, slightly up from 2.1 times as of 31 December 2020[73] Expenses and Dividends - Selling expenses for the Period amounted to approximately RMB1.7 million, an increase from RMB0.8 million in the same period of 2020[58] - Administrative expenses decreased to approximately RMB7.3 million from RMB9.4 million in the first half of 2020, mainly due to non-recurring professional service fees[63] - The company did not declare an interim dividend for the period, consistent with the previous year[84] Share Capital and Ownership - The company completed a share offer of 4,500,000 public offer shares and 40,500,000 placing shares at an offer price of HK$1.39 per share, resulting in net proceeds of approximately HK$30.6 million after expenses[84][85] - As of June 30, 2021, the company utilized HK$29.534 million of the net proceeds, leaving a remaining balance of HK$1.093 million[87] - As of June 30, 2021, Mr. Chow holds 87,750,000 shares, representing 48.75% of the company's total shares[151] - Mr. Lau holds 13,500,000 shares, representing a controlled corporation interest[151] - Ms. Cai holds 33,750,000 shares, also representing a controlled corporation interest[151] - Shining Icon holds 69,660,000 shares, representing 38.70% of total shares[167] - Focus Wonder owns 33,750,000 shares, accounting for 18.75% of total shares[167] - Sense One has 18,090,000 shares, which is 10.05% of total shares[167] - Master Connection possesses 13,500,000 shares, equating to 7.5% of total shares[167] - As of June 30, 2021, the total number of shares issued was 180,000,000[161] Audit and Compliance - The Audit Committee reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards[188] - The Audit Committee consists of three independent non-executive directors[188] - The company established the Audit Committee on December 11, 2019, in compliance with GEM Listing Rules[188] - The chairman of the Audit Committee is Mr. Lee Siu Hang Foster[188] - The interim financial report for Icon Culture Global Company Limited as of June 30, 2021, complies with Hong Kong Accounting Standard 34[195] - The review conducted by KPMG did not identify any significant issues with the interim financial report[198] - The report includes the consolidated statement of financial position and the consolidated statement of profit or loss for the six-month period ending June 30, 2021[197] - The company is required to prepare interim financial reports in accordance with the GEM Listing Rules and relevant accounting standards[195] - The scope of the review was less extensive than a full audit, which limits the assurance provided[197] - The report is intended solely for the board of directors and not for any other purpose[196] - The financial report includes explanatory notes that provide additional context to the financial statements[195] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[197] - The company is responsible for the preparation and presentation of the interim financial report[195] - The report was issued on August 12, 2021, indicating the date of the review conclusion[199] Risks and Governance - The company faces several business risks, including the inability to retain advertising resources, competition in online advertising, and potential credit risks from delayed customer payments[122] - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[134] - The company did not redeem or purchase any of its listed securities during the reporting period[146] - There were no convertible securities, options, or similar rights issued or granted during the period[148] - The company has not faced any conflicts of interest with its directors or controlling shareholders during the reporting period[147] - The company has limited foreign currency risk as most transactions are conducted in the same currency as the functional currency of operations[95] - The company adopted a share option scheme on December 11, 2019, as an incentive for directors and eligible employees, but no options have been granted since the listing[120] - As of June 30, 2021, there were no significant events that occurred after this date[121] Employment and Resources - As of June 30, 2021, the company employed 47 staff members, an increase from 43 in December 2020, to support growth in online advertising services[111] - The company has entered into agreements with suppliers for additional exclusive out-of-home and online advertising resources, with HK$14.594 million allocated for this purpose[87][91] - The company has made prepayments and/or deposits on advertising resources amounting to HK$10.010 million to support online advertising needs[87][93] - The company has no current plans for material investments and capital assets beyond those disclosed in the prospectus dated December 30, 2019[97][104]

Company Overview - Icon Culture Global Company Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange under stock code 8500[1]. - The company operates in a market designed for small and mid-sized companies, which may carry higher investment risks compared to those listed on the Main Board[2]. - Securities traded on GEM are generally more susceptible to high market volatility, and there is no assurance of a liquid market for these securities[3]. - The company has a principal place of business located in Guangzhou, Guangdong Province, China[11]. Financial Performance - The annual report includes a comprehensive financial summary, management discussion, and analysis, highlighting key financial metrics[8]. - The company's revenue for 2020 reached RMB 268,612,000, representing a 79.0% increase from RMB 150,099,000 in 2019[16]. - Gross profit for 2020 was RMB 104,904,000, a significant recovery from a loss of RMB 21,577,000 in 2019[16]. - The profit for the year was RMB 62,731,000, compared to a loss of RMB 42,289,000 in 2019, indicating a turnaround in financial performance[16]. - Revenue from traditional offline media advertising services accounted for 95.1% of total revenue in 2020, generating RMB 255,397,000[16]. - Revenue from online media advertising services was approximately RMB 11.9 million, representing a 23.1% increase from RMB 9.7 million in the previous year, accounting for 4.4% of total revenue[38]. - Revenue from contracts where the Group acted as an agent increased by 219.4% to approximately RMB 3.1 million during the year[38]. - The Group recorded an income tax expense of approximately RMB 23.0 million, contrasting with an income tax benefit of RMB 9.3 million in 2019[76]. - As of December 31, 2020, the Group's net current assets were approximately RMB 105.4 million, compared to net current liabilities of approximately RMB 16.1 million as of December 31, 2019, indicating a significant improvement in liquidity[79]. - The current ratio improved to 2.1 times as of December 31, 2020, up from 0.9 times as of December 31, 2019, reflecting enhanced financial stability[79]. Market Trends - The advertising market is expected to grow by 17% in 2021, significantly higher than the 8% growth in 2020[28]. - Digital marketing in China is projected to grow by 20% in 2021, up from 16% in 2020[29]. - 80% of high-budget advertisers (with annual budgets of RMB 10 million or above) plan to increase their total marketing budgets[29]. - The outdoor advertising sector is projected to grow at a rate of 20.2% in 2021, indicating a strategic opportunity for the Group[51]. Corporate Governance - The independent auditor for the company is KPMG, ensuring compliance with Hong Kong Financial Reporting standards[11]. - The report outlines the responsibilities of the directors regarding the accuracy and completeness of the information provided[5]. - The company has appointed Innovax Capital Limited as its compliance adviser, ensuring adherence to regulatory requirements[11]. - The company has appointed independent non-executive directors to supervise compliance and corporate governance matters since December 2019[145]. - The board of directors includes members with extensive experience in finance, compliance, and corporate governance[145]. Risk Management - The Group's business risks include potential loss of advertising resources and competition in online advertising[92]. - The Group's management is committed to risk management, including developing contingency plans for possible loss scenarios[92]. - The COVID-19 pandemic has led to a cautious attitude among advertisers, particularly affecting out-of-home (OOH) advertising revenue, which saw a significant decline during the lockdown in Q1 2020[112]. - The Group has implemented contingency measures, including reducing unnecessary business travel and costs, and adjusting advertising plans based on client needs[112]. Shareholder Information - The Board resolved not to recommend the payment of a final dividend for the year, compared to RMB 30.0 million in 2019[92]. - As of December 31, 2020, the Company's reserves available for distribution amounted to approximately RMB 70.9 million[199]. - The Group's net proceeds from the share offer amounted to approximately HK$30.6 million after deducting underwriting commissions and related listing expenses[99]. Management Team - The Group's management team is composed of experienced professionals with diverse expertise in business and media sectors[128][136]. - Ms. Cai is the sole director and shareholder of Focus Wonder Limited, a substantial shareholder of the Group[121]. - Mr. Lau has been with the Group since July 2009 and was promoted to executive Director on May 31, 2019[125]. - Ms. Liang has over 21 years of experience in business management and was appointed as an executive Director on May 31, 2019[128]. - The Group is actively expanding its leadership team with experienced professionals to enhance its operational capabilities[164][169]. Compliance and Legal Matters - The Group confirmed compliance with relevant laws and regulations, with no significant violations reported during the Year[188]. - The Group was involved in a legal proceeding regarding outstanding advertising fees totaling RMB 7,342,420, with a final judgment requiring Icon Media to pay an additional RMB 340,000 for breach of contract[81]. - The Restricted Deposit related to the legal proceeding was released in July 2020, and the Board believes the judgment amount does not materially impact the Group's financial position[84]. Environmental and Social Responsibility - The Group aims to enhance its environmental policies and performance, striving to become an environmentally friendly corporation[185]. - The environmental, social, and governance policies and performance details are disclosed in the "Environmental, Social and Governance Report" section of the annual report[185]. - The Group is committed to sustainable operations while balancing the interests of various stakeholders, including customers, suppliers, and employees[181].

Financial Performance - The company reported a consolidated profit of HKD 6 million for the first half of 2020, representing a decrease of 20% compared to the same period last year[8]. - The Group's revenue for the six months ended June 30, 2020, was approximately RMB 106.5 million, representing a 40.9% increase from approximately RMB 75.6 million for the same period in 2019[19]. - The Group achieved a net profit of approximately RMB 31.2 million for the Period, compared to a net loss of approximately RMB 1.7 million for the six months ended June 30, 2019, indicating a significant turnaround in performance[19]. - Profit before taxation for the Period was RMB 42.8 million, reflecting strong operational performance[42]. - The total comprehensive income for the period was RMB 31.9 million, compared to a loss of RMB 1.7 million in the same period of the previous year[43]. - Basic and diluted earnings per share for the Period were both RMB 0.18[42]. - The company reported a consolidated profit before taxation of RMB 42,762,000 for the six months ended June 30, 2020, compared to a loss in the previous year, showcasing a turnaround in financial performance[132]. - Basic earnings per share for the six months ended June 30, 2020, was RMB 0.177, compared to a loss per share of RMB 0.012 in the same period of 2019, marking a significant improvement[152]. Revenue and Growth - User data indicated a total of 150,000 active users on the platform, an increase of 15% year-over-year[9]. - The company expects revenue growth of 10% for the second half of 2020, driven by new product launches and market expansion strategies[9]. - The increase in revenue and profit was primarily driven by improved operational efficiency and market conditions[19]. - The increase in revenue reflects the Group's strategic focus on expanding its service offerings and enhancing market presence[106]. - Total revenue for the six months ended June 30, 2020, was RMB 106,516,000, compared to RMB 75,625,000 for the same period in 2019, representing an increase of approximately 40.8%[100]. - Revenue from traditional offline media advertising services was RMB 101,310,000, while online media advertising services generated RMB 4,554,000 for the same period[100]. - Reportable segment profit for the six months ended June 30, 2020, was RMB 57,403,000, a significant increase from RMB 23,485,000 in the same period of 2019, representing a growth of 144.4%[132]. Expenses and Costs - Research and development expenses increased by 25% to HKD 1.5 million, focusing on enhancing digital content offerings[9]. - Media costs increased to RMB 48,935,000 in the first half of 2020, up from RMB 46,615,000 in 2019, reflecting a rise of 5.0%[143]. - The company incurred finance costs of RMB 106,000 for the six months ended June 30, 2020, a decrease from RMB 407,000 in 2019, representing a reduction of 73.9%[137]. - Contributions to retirement schemes increased to RMB 4,433,000 in the first half of 2020, compared to RMB 3,781,000 in 2019, reflecting a rise of 17.3%[137]. - The depreciation expense for right-of-use assets was RMB 2,852,000 in the first half of 2020, down from RMB 4,698,000 in 2019, showing a decrease of 39.2%[143]. Assets and Liquidity - Total non-current assets amounted to RMB 4,320,000 as of June 30, 2020[50]. - Total current assets reached RMB 151,197,000, with cash and cash equivalents at RMB 13,870,000[50]. - Net current assets were RMB 72,471,000, indicating a strong liquidity position[50]. - Total equity as of June 30, 2020, was RMB 76,342,000, a significant increase from a deficit of RMB 281,000 at the end of 2019[51]. - The company reported a net cash used in operating activities of RMB 57,224,000 for the six months ended June 30, 2020, compared to a cash generated of RMB 485,000 in the same period of 2019[62]. - Cash and cash equivalents decreased by RMB 15,630,000, ending at RMB 13,870,000 as of June 30, 2020[65]. Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in that region[9]. - A strategic partnership was announced with a leading technology firm to enhance service delivery and user experience[9]. - The company is exploring potential acquisitions to diversify its product portfolio and strengthen market position[9]. - The Group continues to focus on expanding its market presence and enhancing its product offerings in the upcoming periods[19]. - The company aims to launch two new products by Q4 2020, which are expected to contribute significantly to revenue[9]. Accounting and Reporting - The interim financial report has been prepared in accordance with HKAS 34 and was authorized for issue on August 13, 2020[74]. - The interim financial report is unaudited but has been reviewed by KPMG in accordance with relevant standards[79]. - The report includes condensed consolidated financial statements and selected explanatory notes significant to understanding the Group's financial position[82]. - The Group's accounting policies remain consistent with those adopted in the 2019 annual financial statements, except for expected changes in 2020[74]. - The financial information included as comparative does not constitute statutory annual consolidated financial statements but is derived from those statements[85]. Share Capital and Equity - The company issued 134,999,000 shares at par value on January 13, 2020, increasing the total issued shares to 180,000,000[196]. - The gross proceeds from the global offering were approximately HK$62,550,000, equivalent to RMB 55,476,000[197]. - The company had no dilutive potential ordinary shares issued for the periods ending June 30, 2020, and December 31, 2019[156]. - The company’s issued and fully paid share capital increased to RMB 1,800,000 as of June 30, 2020[190]. - A total of 134,999,000 shares with a par value of HK$0.01 each were allotted and issued to shareholders on January 13, 2020[198]. - The company listed a total of 180,000,000 shares on the GEM of the Hong Kong Stock Exchange on January 14, 2020, with 45,000,000 shares (25% of total shares) offered to the public[198].

Company Overview - Icon Culture Global Company Limited is listed on the GEM of the Stock Exchange of Hong Kong with stock code 8500[18]. - The principal place of business in the PRC is located in Guangzhou, Guangdong Province[14]. - The company has a significant presence in Hong Kong, with its principal office situated at 31/F, 148 Electric Road, North Point[16]. - KPMG serves as the auditor for Icon Culture Global Company Limited, ensuring compliance with financial reporting standards[14]. - The company is advised by Innovax Capital Limited for compliance matters[14]. - The board of directors includes experienced individuals, with Mr. Chow Eric Tse To serving as the chairman[11]. Financial Performance - The company reported a consolidated statement of profit or loss, indicating financial performance for the year[8]. - The Group recorded revenue of approximately RMB150.1 million for the year, representing a decrease of 28.2% compared to RMB208.9 million for the financial year ended 31 December 2018[44]. - The Group incurred a loss of approximately RMB42.3 million, a decline of 328.9% compared to a profit of RMB18.5 million for the financial year ended 31 December 2018[44]. - The decrease in revenue was primarily due to reduced budgets from existing customers and the time required to develop new customers[44]. - Non-recurring listing expenses amounted to approximately RMB17.8 million, impacting overall profitability[44]. - The net proceeds from the Listing of Shares on GEM were approximately HK$30.6 million after deducting underwriting commissions and related expenses[46]. - The Group's revenue decreased by 28.2% to approximately RMB150.1 million in 2019, down from RMB208.9 million in 2018, primarily due to a decline in television advertising revenue[69]. - The gross loss for the year ended December 31, 2019, was approximately RMB21.6 million, compared to a gross profit of RMB41.2 million in 2018, resulting in a gross loss margin of approximately 14.4%[69]. - The cost of sales for the year ended December 31, 2019, amounted to approximately RMB171.7 million, an increase from RMB167.7 million in 2018, mainly due to increased license fees for exclusive resources[69]. - The Group anticipates a slight impact on the advertising industry in the short term due to the COVID-19 pandemic, but expects growth in consumption and retail markets post-epidemic[61]. Advertising Market Insights - The total advertising market size in China grew from approximately RMB 347.0 billion in 2014 to approximately RMB 652.8 billion in 2018, representing a CAGR of approximately 17.1%[23]. - The advertising industry in China is projected to expand at a CAGR of approximately 18.8%, reaching approximately RMB 1,589.8 billion by 2023[23]. - Out-of-home (OOH) advertising is expected to grow at a CAGR of approximately 12.9%, increasing from approximately RMB 54.2 billion in 2019 to approximately RMB 88.2 billion by 2023, accounting for approximately 45.6% of the offline advertising market[29]. - The advertising market in the Greater Bay Area, particularly in Shenzhen and Guangzhou, is expected to see substantial growth in OOH advertising[29]. - The Group is exploring new advertising forms, including online streaming, to provide innovative solutions for clients[34]. - The Group aims to provide holistic advertising solutions, including strategic planning and content production, to meet diverse client needs[30]. - The Group's advertising solutions cover traditional offline media, online media, and PR and marketing campaigns[44]. - The Group's integrated multimedia advertising services focus on maximizing the effectiveness of customers' advertisements[44]. Strategic Initiatives - The company aims to enhance its market position through strategic initiatives and potential market expansions[21]. - The Group's strategic focus includes leveraging technological advancements like AI and big data to enhance advertising effectiveness[25]. - The Group aims to increase its exclusive advertising resources and expand its customer base and sales through enhanced big data and information technology infrastructure[44]. - Management plans to explore new customers to increase revenue in 2020[44]. - The Group intends to increase its market share as an integrated advertising and marketing solution provider in the PRC by expanding the coverage of exclusive advertising resources[66]. - Future strategies include collaborating with property developers to increase the presence of outdoor advertising resources in premium locations in major cities[66]. - The Group believes that increasing the coverage of exclusive advertising resources will improve profitability[66]. Management and Governance - The Group's management team has extensive experience in the media industry, with key members having held significant roles in various companies prior to joining[143][152]. - The management team is focused on implementing new strategies and exploring potential market opportunities to increase revenue[151]. - The Group's leadership includes individuals with advanced degrees in business administration and relevant industry experience, contributing to informed decision-making[145][154]. - The company has appointed independent non-executive directors, including Ms. Tam and Mr. Lee, to enhance corporate governance and compliance oversight[165][163]. - The Group's management team includes individuals with extensive backgrounds in finance, compliance, and corporate governance, contributing to strategic decision-making[165][163]. - The Group is committed to maintaining high standards of corporate governance and compliance through the expertise of its independent directors[165][163]. - The management team is responsible for developing and implementing effective sales networks and maintaining customer relationships[158][159]. Risk Management - The Group's financial risk management policies are designed to address credit and liquidity risks effectively[105]. - The Group's exposure to credit risk is limited due to counterparties being high-credit-quality banks, with ongoing monitoring of credit risk exposures[106]. - The Group regularly monitors its liquidity requirements to ensure sufficient cash reserves and compliance with lending covenants[108]. - The management is responsible for identifying, analyzing, and managing risks associated with business activities[103]. Employee Relations - The Group recognizes employees as valuable assets and regularly reviews staff benefits for improvement[117]. - The Group has maintained strong relationships with its employees, providing a safe working environment[195]. Compliance and Sustainability - The Group maintains compliance with all relevant laws and regulations in Hong Kong, PRC, and other jurisdictions during the Year[120]. - The Group is committed to operating sustainably while balancing the interests of various stakeholders, including customers, suppliers, and employees[195]. - The Group has enhanced cooperation with suppliers to ensure the provision of high-quality products and services to customers, promoting sustainable development[195]. - The Company plans to publish a standalone ESG report by mid-August 2020, detailing environmental policies and compliance with relevant laws[187]. - Details of the Group's environmental, social, and governance policies and performance will be disclosed in the upcoming ESG Report[199].