Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 1,221.8 million, representing a 28.4% increase from RMB 951.5 million in 2022 [23]. - The company achieved a gross profit of RMB 481.6 million, with a gross margin of 39.4%, slightly up from 39.3% in the previous year [30]. - The net profit attributable to equity holders of the parent company was RMB 213,628,000, a significant recovery from a loss of RMB 732,034,000 in the previous year [76]. - The pre-tax profit for the year was RMB 285,498,000, compared to a loss of RMB 689,929,000 in the previous year, marking a turnaround [102]. - Adjusted net profit for the year ended December 31, 2023, was RMB 227.4 million, representing a 60.4% increase compared to RMB 141.8 million for the previous year [198]. - The total comprehensive income for the year ended December 31, 2023, was RMB 213.6 million, recovering from a loss of RMB 732.0 million in the previous year [183]. Revenue Growth - Short drama-related revenue surged to RMB 32.2 million, a remarkable increase of 1,241.7% compared to RMB 2.4 million in 2022 [23]. - The company’s short drama business contributed RMB 3,223 million in revenue, reflecting a year-on-year growth of over 1,200% [16]. - The revenue from mainland China for 2023 was RMB 1,182,938 thousand, up from RMB 930,941 thousand in 2022, indicating a growth of about 27% [65]. - The annual signing amount for artist business collaborations exceeded RMB 40 million, with revenue from this segment increasing more than 2.5 times year-on-year [39]. - The company's revenue for the year ended December 31, 2023, increased by 28.4% to RMB 1,221.8 million from RMB 951.5 million for the year ended December 31, 2022 [187]. Expenses and Cost Management - Administrative expenses decreased by 26.6% to RMB 206.2 million from RMB 280.9 million in 2022, primarily due to reduced listing costs and lower share-based payment expenses [7]. - Other income decreased by 13.3% to RMB 121.7 million, mainly due to reduced foreign exchange gains, despite increases in interest income and government subsidies [27]. - The total amount of raw materials increased to RMB 218,985,000 in 2023 from RMB 120,700,000 in 2022, reflecting higher production costs [150]. - The company’s administrative expenses included amortization of other intangible assets, impacting overall profitability [122]. Cash Flow and Investments - Cash generated from operating activities for the year ended December 31, 2023, was RMB 353.9 million, a significant increase of 277.8% from a cash outflow of RMB 199.0 million in the previous year [190]. - The net cash outflow from investment activities for the year ended December 31, 2023, was RMB 296.9 million, compared to RMB 284.9 million in 2022, showing a stable trend [43]. - The company utilized idle funds to subscribe to wealth management products to enhance capital yield during the reporting period [45]. Assets and Liabilities - The company’s non-current assets totaled RMB 302,197 thousand as of December 31, 2023, compared to RMB 273,748 thousand in 2022, reflecting an increase of approximately 10.4% [59]. - Trade receivables increased to RMB 600,876,000 in 2023 from RMB 377,404,000 in 2022, reflecting a growth of 59% [133]. - Trade payables rose to RMB 57,315,000 in 2023 from RMB 40,357,000 in 2022, marking an increase of 42% [138]. - Contract liabilities decreased to RMB 692,633,000 in 2023 from RMB 695,140,000 in 2022, primarily due to the recognition of several other advances as income in 2023 [143]. Shareholder Information - The company plans to propose a final dividend subject to shareholder approval at the upcoming annual general meeting [128]. - The company proposed a final dividend of RMB 0.218 per ordinary share for 2023, compared to no dividend in 2022 [147]. - The company plans to hold its annual general meeting on June 20, 2024 [50]. Strategic Developments - The company expanded its overseas business platform, "Lingmeng International," and localized content production, achieving significant project breakthroughs in the film sector [13]. - The company actively developed strategic brand resources, enhancing its service system to provide comprehensive marketing services [186]. - The company successfully produced and aired three high-quality licensed dramas during the year, achieving record quality levels [181].

Production and Content Strategy - By the end of June 2023, the Group produced and distributed a total of 20 high-quality drama series, with 18 being original series where the Group acted as the lead/sole investor and executive producer[5]. - The drama series include popular titles such as "A Love for Separation," "A Little Reunion," and "Under the Skin," focusing on contemporary topics like family life and female empowerment[5]. - The Group is committed to diversified growth strategies, exploring new avenues such as content marketing, micro drama series, overseas business, and IP derivative development[6]. - The mission of the Group is to operate across the full value chain of drama series, including investment, production, distribution, promotion, and licensing of derivatives[12]. - The Group aims to maximize the commercial value of its proprietary IP rights and build a diversified business structure to reinforce its industry leadership[6]. - The Group has established itself as a top brand in the industry due to its abundant original IP reserve and high-quality content products[5]. - The focus on producing high viewership drama series has allowed the Group to inspire extensive discussions and deliver positive value propositions[5]. - The Group's strategy includes producing made-to-order drama series and developing films, further expanding its business lines[12]. - The Group's leadership in the industry is reinforced by its commitment to exploring new growth avenues and maximizing the value of its IP[6]. - The Group's operations since its inception in 2014 have been dedicated to creating a full value chain in the drama series market[12]. Financial Performance - Revenue for the six months ended June 30, 2023, was approximately RMB 422.1 million, a decrease of 12.1% from RMB 480.2 million in the same period of 2022[20]. - Gross profit for the same period was approximately RMB 209.9 million, an increase of 11.0% from RMB 189.1 million in 2022[20]. - Net gain for the six months ended June 30, 2023, was approximately RMB 131.0 million, a significant increase of 301.0% from a net loss of approximately RMB 65.2 million in 2022[20]. - Adjusted net profit for the same period was approximately RMB 139.0 million, representing a 32.1% increase from RMB 105.2 million in 2022[20]. - Revenue from original drama series broadcasting was RMB 377 million, accounting for 89.4% of total revenue in the first half of 2023[22]. - The content marketing segment recorded a year-on-year revenue increase of nearly 150% and a gross profit increase of nearly 260% in the first half of 2023[26]. - The Group's revenue decreased by 12.1% from RMB 480.2 million in the first half of 2022 to RMB 422.1 million in the first half of 2023, primarily due to a decline in broadcasting rights revenue for original drama series[56]. - The Group achieved an adjusted net profit of RMB 139 million, representing a year-on-year increase of 32.1%[39][40]. - Revenue from broadcasting rights of original drama series decreased by 18.5% from RMB463.3 million in H1 2022 to RMB377.4 million in H1 2023, primarily due to only one original series being broadcast during the period[71]. - Total revenue decreased by 12.1% from RMB480.2 million in H1 2022 to RMB422.1 million in H1 2023, mainly attributed to the decline in broadcasting rights revenue[87]. Viewer Engagement and Popularity - The original drama series "Nothing But You" achieved a rating of 8.2 on Douban.com, ranking TOP1 among urban romance drama series since 2023[22]. - The number of viewers for the micro drama "Beneath the Headlines" reached 170 million, with the highest viewership per episode exceeding 280 million[28]. - The micro drama series "Twenty Nine" achieved over 800 million total viewership on Douyin, with an average viewership per episode exceeding 40 million, ranking first in the micro drama category for four consecutive weeks[61][62]. International Expansion - The Group established "Linmon International" as an overseas business platform, focusing on overseas distribution and production of original content, and actively expanded into Greater Mandarin, Thai, and Indonesian markets[49][64]. - The first overseas localized production, the Thai version of "Thirty" (三十而已), has commenced filming in Bangkok[51]. - The Thai version of "Nothing But Thirty" is currently under production, indicating ongoing efforts in overseas localized production[68]. - The Group aims to strengthen its full-chain marketing system and expand strategic brand resources in overseas markets[67]. Corporate Governance and Financial Management - The Company has adopted the principles and code provisions of the Corporate Governance Code to enhance corporate value and accountability[158]. - The Audit Committee has reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2023[164]. - The Company confirmed that there is no information required to be disclosed pursuant to Rule 13.51B(1) of the Listing Rules[165]. - The Group maintained a stable financial position with net current assets of RMB2,577.7 million as of 30 June 2023, compared to RMB2,475.0 million as of 31 December 2022[151]. - The Group's gearing ratio decreased to 31.8% as of June 30, 2023, from 37.3% as of December 31, 2022, due to a 9.9% decrease in total liabilities and a 5.8% increase in total equity[114]. - The effective tax rate increased from a negative 58.0% for the six months ended June 30, 2022, to 21.6% for the six months ended June 30, 2023[105]. - The income tax expense increased from RMB23.9 million for the six months ended 30 June 2022 to RMB36.1 million for the same period in 2023, with the effective tax rate rising from negative 58.0% to 21.6%[123]. Shareholding and Investments - As of June 30, 2023, directors and chief executives hold a combined interest of 44.33% in the company through controlled corporations[187]. - Lemontree Harvest Investment Limited holds 71,136,000 shares, representing a 44.33% equity interest in the Company[198]. - Faye Free Flight Limited directly holds 33,014,520 shares, also contributing to the 44.33% equity interest in the Company[198]. - A&O Investment Limited holds 33,014,520 shares, maintaining the same 44.33% equity interest in the Company[198]. - Linmon Run Limited directly holds 22,617,000 shares, which is part of the overall shareholding structure[198]. - The total number of shares held by concert parties amounts to 159,782,040, indicating significant collective ownership[198]. - The Company has a structured shareholding arrangement with multiple parties acting in concert, enhancing control and influence[194]. Utilization of Proceeds - The company utilized HK$ 155.9 million for drama series production and promotion, accounting for 50% of the total proceeds[171]. - The total net proceeds amounted to HK$ 311.8 million, with HK$ 130.9 million remaining unutilized at the end of the reporting period[171]. - The company plans to invest HK$ 46.8 million in potential strategic investment and acquisition opportunities by the end of 2025[171]. - The company has allocated 15% of the proceeds, equivalent to HK$ 46.8 million, for initiatives into emerging business opportunities[171]. - The company has not utilized HK$ 31.1 million for working capital and general corporate purposes as of the reporting period[171]. - The company has deposited unutilized net proceeds into interest-bearing accounts with licensed banks in Hong Kong or the PRC[184].

Financial Performance - In the first half of 2023, the company achieved an adjusted net profit of RMB 139 million, representing a year-on-year growth of 32.0%[5] - The company's revenue decreased by 12.1% from RMB 480.2 million for the six months ended June 30, 2022, to RMB 422.1 million for the six months ended June 30, 2023, primarily due to a decline in copyright drama broadcasting rights revenue[73] - The adjusted net profit for the first half of 2023 was RMB 139.0 million, compared to an adjusted net profit of RMB 105.3 million in the same period of 2022, reflecting a year-on-year increase of 32.0%[103][127] - The net profit for the period was RMB 130,952 thousand, a significant recovery from a loss of RMB 65,162 thousand in the same period last year[137] - The effective tax rate increased to 21.6% for the first half of 2023, compared to a negative rate of 58.0% in the same period of 2022, primarily due to increased taxable profits[126] Revenue Sources - Copyright drama broadcasting rights revenue fell by 18.5% to RMB 377.4 million for the six months ended June 30, 2023, compared to RMB 463.3 million for the same period in 2022[73] - Content marketing revenue increased significantly by 149.7% to RMB 39.7 million for the six months ended June 30, 2023, from RMB 15.9 million in the previous year[73] - Other revenue sources grew by 400% to RMB 5.0 million for the six months ended June 30, 2023, compared to RMB 1.0 million for the same period in 2022[73] - The revenue contribution from licensed dramas was RMB 377 million, accounting for 89.4% of total revenue in the first half of 2023[105] - Customer A generated revenue of RMB 350,907 thousand, significantly up from RMB 81,340 thousand in the previous year, indicating a growth of 331.5%[168] Expenses and Costs - Sales and distribution expenses fell by 37.4% to RMB 328 million for the six months ended June 30, 2023, down from RMB 524 million in the previous year, primarily due to fewer new releases[8] - Administrative expenses decreased by 26.0% to RMB 872 million for the six months ended June 30, 2023, compared to RMB 1,179 million in the same period last year, mainly due to the absence of listing expenses[35] - The cost of goods sold for the period was RMB 210,156 thousand, down from RMB 289,501 thousand, reflecting a decrease of 27.4%[178] Assets and Liabilities - Trade payables dropped by 63.9% to RMB 146 million as of June 30, 2023, from RMB 404 million at the end of 2022, primarily due to settlements[37] - Non-current liabilities increased to RMB 375.5 million as of June 30, 2023, from RMB 358.3 million as of December 31, 2022[48] - The total liabilities as of June 30, 2023, included trade payables of RMB 14,582 thousand, down from RMB 40,357 thousand at the end of 2022, a decrease of 63.8%[176] - The company's current assets as of June 30, 2023, were approximately RMB 3,005.7 million, slightly down from RMB 3,008.5 million as of December 31, 2022[154] Equity and Financial Ratios - The total equity increased to RMB 2,529 million as of June 30, 2023, compared to RMB 2,390 million at the end of 2022[24] - The company's net asset value rose to RMB 2,529.3 million as of June 30, 2023, compared to RMB 2,390.5 million as of December 31, 2022[48] - As of June 30, 2023, the company's debt-to-equity ratio decreased to 31.8% from 37.3% as of December 31, 2022, primarily due to a 9.9% reduction in total liabilities and a 5.8% increase in total equity[129] - The current ratio improved to approximately 7.0 as of June 30, 2023, up from 5.6 as of December 31, 2022[154] Corporate Governance and Compliance - The company has maintained compliance with all applicable corporate governance code provisions, except for a deviation noted in code provision C.2.1[42] - The board has established an audit committee to oversee financial reporting processes and internal controls[135] Strategic Initiatives and Future Plans - The company has no significant future plans for major investments or capital assets as of the announcement date[39] - The company plans to utilize RMB 311.8 million from its listing proceeds for various strategic initiatives, including IP library expansion and production of licensed dramas[117] - The company aims to strengthen its competitive advantage in the micro-short drama sector and explore various commercial transformation methods to ensure stable revenue contributions from new businesses[88] - The company plans to enhance its IP management and explore new technologies such as ChatGPT and AIGC to drive business innovation and efficiency[88] Workforce and Employment - The company maintained a diverse workforce, with female employees accounting for approximately 63.5% of the total workforce as of June 30, 2023[71] - As of June 30, 2023, the company had 178 employees, primarily located in Shanghai, Beijing, and Hangzhou[89] Market Performance and Content Production - The micro-short drama "Twenty-Nine" achieved over 800 million views on Douyin, with an average of over 40 million views per episode, marking a record for micro-short dramas on the platform[85] - The company launched the urban romance drama "Love Is Only" which ranked in the top 3 of Tencent Video's viewership chart for the first half of 2023, receiving a score of 8.2 on Douban[123] - The company expanded its overseas business, launching the localized production of the Thai version of "Thirty Only" and securing distribution deals for series on platforms like Disney+ and Netflix[86][87] - The company established an overseas business platform "Linmon International" to expand into markets such as Mandarin, Thai, and Indonesian, and showcased its 2023 film slate at the Hong Kong International Film & TV Market[98]

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].