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].