Financial Performance - The adjusted net profit of the group decreased by 49.3% from RMB 279.5 million for the year ended December 31, 2021, to RMB 141.8 million for the year ended December 31, 2022, primarily due to delays in production and broadcasting of certain series caused by the COVID-19 pandemic [1]. - Revenue declined by 23.8% from RMB 1,249.0 million for the year ended December 31, 2021, to RMB 951.5 million for the year ended December 31, 2022, largely due to the postponement of the series "Love Is Only" to March 27, 2023 [14]. - The gross profit decreased by 33.1% from RMB 559.0 million for the year ended December 31, 2021, to RMB 374.0 million for the year ended December 31, 2022, with the gross margin dropping from 44.8% to 39.3% [22]. - The company reported a total comprehensive loss of RMB 732,034,000 for the year, compared to a profit of RMB 60,913,000 in the previous year, indicating a significant decline in performance [84]. - The basic and diluted loss per share for the company was RMB 2.95, compared to earnings of RMB 0.61 in the prior year [87][88]. Equity and Debt - Total equity attributable to the owners of the company increased to RMB 2,390.5 million as of December 31, 2022, compared to a deficit of RMB 1,322.5 million as of December 31, 2021, mainly due to the issuance of ordinary shares related to the IPO [4]. - Total debt decreased by 79.2% from RMB 4,285.6 million as of December 31, 2021, to RMB 891.8 million as of December 31, 2022, primarily due to the conversion of redeemable convertible preferred shares into ordinary shares post-IPO [4]. - The company’s share premium reserve increased significantly to RMB 4,437,226,000 from RMB 23,983,000, indicating strong investor confidence [96]. Cash Flow and Investments - Cash outflow from operating activities was RMB 199.0 million for the year ended December 31, 2022, compared to an inflow of RMB 436.1 million for the year ended December 31, 2021, a decrease of 145.6% [6]. - Cash outflow from investing activities was RMB 284.9 million for the year ended December 31, 2022, compared to an inflow of RMB 328.9 million for the year ended December 31, 2021, a decrease of 186.6% [8]. - Cash inflow from financing activities increased by 709.4% to RMB 329.1 million for the year ended December 31, 2022, compared to an outflow of RMB 54.0 million for the year ended December 31, 2021, primarily due to funds raised from the IPO [9]. Operational Highlights - The company launched several successful dramas, achieving an average Douban score of 7.9 for four major series, the highest in its history [30]. - The short video business saw significant growth, with the short drama "Twenty-Nine" achieving over 790 million total views and a peak single episode view of over 140 million [38]. - The company is actively developing local adaptations of its dramas, including a Thai version of "Thirty Only," set to start production in Q2 2023 [40]. - The company has established its own YouTube channel, which has rapidly increased viewership and will serve as a key distribution channel for overseas dramas [41]. - The company continues to enhance its operational control and cost management to improve production efficiency [30]. Strategic Initiatives - The company has strengthened its strategic brand client development, collaborating with 46 brands including Yum China and PepsiCo for IP integration, and is currently following up on 6 external key drama integration projects [44]. - The company launched NFT digital blind boxes for "Twenty Not Confused 2," which sold out within one day, becoming the most popular project on the platform [45]. - The company is actively developing IP derivatives, with successful launches of a musical, audiobook, and merchandise for "Hunting Crime" achieving a high rating of 9.3 on the Damai platform [47]. - The company plans to enhance its operational management capabilities and accelerate new business development, including international operations covering overseas distribution and local production [52]. Employee and Governance - As of December 31, 2022, the company had 181 employees, maintaining high recruitment standards and competitive compensation to promote business development [54]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the corporate governance code [71]. Tax and Liabilities - Income tax expenses decreased by 33.1% from RMB 62.9 million for the year ended December 31, 2021, to RMB 42.1 million for the year ended December 31, 2022, due to a reduction in taxable income [110]. - The company has not faced any significant contingent liabilities or foreign exchange losses during the year ended December 31, 2022, and will continue to monitor foreign exchange risk exposure [59]. Future Outlook - The company plans to expand its IP library, with 10% of the net proceeds (HKD 31.2 million) designated for this purpose, of which HKD 26.1 million has been used [60]. - The company has plans for potential strategic investments and acquisitions, allocating 15% of the net proceeds (HKD 46.8 million) for this purpose, which remains unutilized [60].

Company Overview - Linmon Media Limited produced and distributed a total of 19 high-quality drama series, with 17 being original series where the company acted as the lead/sole investor and executive producer[10]. - The company ranked fourth among all Chinese drama series companies in terms of revenue in 2021, according to Frost & Sullivan[12]. - Linmon Media has a strong reserve of original IPs, positioning itself as a top brand in the industry[12]. - The company aims to reinforce its leadership in the industry through diversified growth strategies[13]. Content Production and Performance - From 2019 to 2021, 75.0% of the original drama series broadcast by Linmon Media were high viewership series, accumulating over 16.3 billion view counts on online platforms during their first-run broadcast[11]. - The annual viewership rate of high viewership drama series on TV channels exceeded 1.0% during the same period[11]. - The original drama series "Beyond" achieved a highest viewership rate of 3.52%, covering over 200 million viewers[28]. - The original drama series "Under the Skin" ranked first in terms of accumulated effective view counts per episode every 30 days on major platforms[28]. - The Company launched new original drama series "Nobody Knows" and "Twenty Your Life On II" in August 2022, both achieving great broadcast effects[28]. Financial Performance - Revenue for the six months ended June 30, 2022, amounted to approximately RMB480.2 million, representing a decrease of 15.1% from approximately RMB565.4 million for the same period in 2021[22]. - Gross profit for the same period was approximately RMB189.1 million, a decrease of 36.8% from approximately RMB299.2 million in 2021[22]. - Net loss for the six months ended June 30, 2022, was approximately RMB65.2 million, a decrease of 178.1% from net profit of approximately RMB83.5 million in 2021[22]. - Adjusted net profit for the same period was approximately RMB105.2 million, representing a decrease of 44.2% from approximately RMB188.6 million in 2021[22]. - Revenue from the broadcasting of original drama series amounted to RMB460 million, representing a year-on-year increase of 7.1%, accounting for 96.5% of total revenue[25]. Revenue Breakdown - Revenue from broadcasting rights of original drama series increased by 7.1% from RMB 432.7 million in the first half of 2021 to RMB 463.3 million in the first half of 2022[57][59]. - Revenue from content marketing decreased by 70.5% from RMB 53.9 million in the first half of 2021 to RMB 15.9 million in the first half of 2022[60][61]. - Revenue from other businesses decreased by 98.7% from RMB 78.8 million in the first half of 2021 to RMB 1.0 million in the first half of 2022[62]. Operational Strategies - Linmon Media is exploring new growth avenues such as content marketing, derivative licensing, and overseas distribution to maximize the commercial value of its proprietary IP rights[13]. - The Company has deepened IP placement in consumption scenarios and has established cooperation for 4 external drama series[32]. - The Company is actively expanding its overseas business by partnering with major international media platforms such as Disney+, HBO Max, and Netflix[34]. - The Company aims to enhance its IP operating and management capacity and seeks to create collections of original drama series to build the "Linmon Universe" brand[41]. Employee and Corporate Governance - As of June 30, 2022, the group had 170 employees, primarily based in Shanghai, Beijing, and Hangzhou[51][54]. - The company maintains high recruitment standards and continuously refines its remuneration and incentive policies to motivate business development[52][54]. - The roles of chairman and president are currently performed by the same individual, Mr. Su Xiao, which deviates from code provision C.2.1 of the Corporate Governance Code[108]. - The Board believes that the current structure does not impair the balance of power and authority within the Company[111]. Shareholder Information - As of the interim report date, Mr. Su Xiao holds a 44.33% shareholding interest in the company, amounting to 159,782,040 shares[126]. - Ms. Chen Fei, Ms. Xu Xiao'ou, and Mr. Zhou Yuan also hold a 44.33% shareholding interest each, with the same number of shares[126]. - The interests stated in the report are all long positions, indicating a positive outlook on the company's performance[127]. Cash Flow and Financial Position - Cash generated from operations for the first half of 2022 was RMB 320,829,000, an increase from RMB 302,612,000 in the prior year[157]. - Total cash and cash equivalents at the end of the period reached RMB 1,192,772,000, up from RMB 422,650,000 at the end of the same period in 2021[158]. - The company reported a net cash inflow from investing activities of RMB 120,833,000, compared to RMB 94,039,000 in the previous year[157]. - The Group has available bank facilities totaling RMB 1,992,500,000 that can be utilized in the next twelve months, ensuring sufficient financial resources for ongoing operations[163]. Taxation and Dividends - The statutory corporate income tax rate for certain PRC subsidiaries is 25%, with no Hong Kong profits tax provided due to no assessable profit arising in Hong Kong during the reporting period[185]. - For the six months ended June 30, 2022, the total tax charge for the period was RMB 23,923,000, a decrease from RMB 29,919,000 in the same period of 2021, representing a reduction of approximately 20.4%[187]. - No interim dividend has been paid or declared for the six months ended June 30, 2022, consistent with the same period in 2021[188].