Financial Performance - In the fiscal year 2022, the company's total revenue was approximately RMB 694.8 million, a decrease of 23.2% compared to RMB 904.1 million in fiscal year 2021[20] - The company's net profit for fiscal year 2022 was approximately RMB 28.2 million, down from RMB 102.6 million in fiscal year 2021, resulting in a net profit margin of 4.1% compared to 11.3% in the previous year[20] - In the second half of 2022, the company recorded revenue of RMB 522.0 million and a net profit of RMB 36.7 million, indicating a recovery from a loss of RMB 8.5 million in the first half of the year[19] - The adjusted net profit for fiscal year 2022 was RMB 54.5 million, with an adjusted net profit margin of 7.8%[20] - The group's net profit for FY2022 was RMB 28.2 million, a significant decrease of 72.5% from RMB 102.6 million in FY2021, with a net profit margin dropping from 11.3% to 4.1%[55] - The group's gross profit decreased by 24.4% from RMB 267.3 million in FY2021 to RMB 202.2 million in FY2022, with the overall gross margin declining from 29.6% to 29.1%[71] Revenue Breakdown - Revenue from the mainland China segment was RMB 669.6 million, accounting for 96.4% of total revenue, while revenue from Hong Kong and Singapore was RMB 25.2 million, accounting for 3.6%[7] - The experience marketing segment generated revenue of RMB 513.9 million, a decline from RMB 686.0 million in the previous year, while the digital marketing and promotion segment earned RMB 154.4 million, down from RMB 201.7 million[8] - The group's experience marketing segment generated revenue of RMB 513.9 million in FY2022, a decrease of 25.1% from RMB 686.0 million in FY2021, accounting for 74.0% of total revenue[46] - The digital marketing segment reported revenue of RMB 154.4 million in FY2022, down 23.5% from RMB 201.7 million in FY2021, representing 22.2% of total revenue[48] - The IP expansion business saw revenue increase by 62.6% to RMB 26.5 million in FY2022, compared to RMB 16.3 million in FY2021, contributing 3.8% to total revenue[49] Strategic Initiatives - The company plans to increase investment in digital marketing and seek acquisitions or partnerships to expand its digital marketing services, targeting a market size of RMB 914.39 billion in China's advertising sector[24] - The group announced a strategic partnership with Baidu to develop the interactive online platform D UNIVERSE, aimed at enhancing high-end and luxury brand experiences in China through Web3.0[30] - The strategic partnership with the independent luxury goods group, Fulong Group, which went public in 2022, is expected to enhance the company's operational growth potential[27] - The group has been actively involved in the live e-commerce business since the second half of 2021, establishing a joint venture focused on Douyin live streaming e-commerce[66] - The company has engaged in strategic investments and partnerships in the sports market, including collaborations with La Liga clubs and the Tour de France for marketing and sponsorship opportunities[69] Operational Highlights - The group successfully hosted over 170 offline events in FY2022, including major projects for brands like CHANEL, DIOR, and GUCCI, despite earlier pandemic-related disruptions[45] - The company has secured multiple marketing service projects from global and local clients in mainland China and Hong Kong, expected to be executed in 2023[21] - The company plans to enhance its experience marketing services by leveraging both offline and data-driven online marketing opportunities[127] - The company will resume previously postponed events, including the Tour de France and La Liga club activities[129] Corporate Governance - The company emphasizes strict corporate governance principles, ensuring high levels of ethics, transparency, accountability, and integrity in all business operations[95] - The board is responsible for overseeing the company's operational and financial performance, as well as establishing robust internal control and risk management systems[96] - The company has a commitment to maintaining effective internal control measures across all business areas, in accordance with applicable laws and regulations[95] - The company has been recognized for its commitment to corporate governance, receiving accolades for its transparency and accountability to shareholders[95] - The board includes independent non-executive directors, ensuring a balance of power and independent oversight in decision-making processes[89] Employee Welfare and Safety - The company has implemented various health and safety measures to protect employees during the pandemic, including regular health check-ups for full-time employees[170] - The company organized first aid training for employees, focusing on CPR and emergency response skills, which received positive feedback and high participation[165] - The company has established a monthly employee birthday celebration to enhance employee engagement and sense of belonging[173] - The company provided food supplies to employees in Shanghai during the pandemic to support them while working from home[175] - The company has not received any complaints or lawsuits regarding health and safety violations in the past three years[170] - The company emphasizes a people-oriented approach, offering various employee care measures and activities to improve employee well-being[171] - The company has adopted a strategy of "prevention first" in fire safety, conducting regular fire drills and training for employees[167] - The company has established emergency measures for fire safety and requires employees to participate in fire escape drills[167] - The company has implemented strict COVID-19 prevention measures, including mask-wearing and social distancing protocols in the workplace[169] - The company has committed to continuously investing resources to reduce health and safety risks for employees[170] Market Outlook - In 2022, China's luxury goods market sales reached RMB 956 billion, accounting for 38% of the global luxury market[127] - The luxury goods market in China is expected to grow to USD 412 billion by 2025, driven by a robust consumer base[126] - The middle class in China is expanding rapidly, leading to increased disposable income for luxury goods consumption[127] - The luxury market in China is expected to continue growing despite global economic slowdowns, maintaining its status as a key growth engine[126] - The company anticipates significant marketing and promotional activities from luxury brands in the Chinese market in the coming years[127] - The company aims to solidify its market position and enhance competitiveness through strategic expansion of its customer base and event cases[127] Financial Position - As of December 31, 2022, the group's cash and cash equivalents were approximately RMB 300.3 million, down from RMB 405.8 million on December 31, 2021[74] - Trade receivables rose from RMB 231.7 million on December 31, 2021, to RMB 308.9 million on December 31, 2022, while trade payables increased from RMB 221.8 million to RMB 289.6 million during the same period[80] - The group has no interest-bearing borrowings as of December 31, 2022, maintaining a capital debt ratio of zero[77][78] - The group maintained a strong liquidity position with sufficient financial resources to meet operational needs and future expansions[59] Training and Development - The average training hours for female employees were 4.00 hours with a training participation rate of 79.87%[181] - The average training hours for male employees were 4.00 hours with a training participation rate of 79.41%[181] - The training participation rate for full-time junior employees was 80.00%[181] - The training participation rate for full-time middle management was 79.44%[181] - The training participation rate for full-time senior management was 78.57%[181] Asset Management - The company capitalizes significant inspection costs as part of the asset's carrying value if they meet recognition criteria[188] - The company recognizes lease liabilities and right-of-use assets for all leases, except for short-term leases and low-value asset leases[190] - Financial assets are initially measured at fair value plus transaction costs, except for trade receivables that do not contain significant financing components[195]

Revenue and Financial Performance - The group reported a decrease in revenue due to temporary impacts from COVID-19 measures in multiple Chinese cities, leading to cancellations or postponements of major events and exhibitions[21]. - The group's revenue for the first half of 2022 was approximately RMB 172.8 million, a decrease of 55.1% from RMB 385.2 million in the same period of 2021[31]. - Experience marketing services generated revenue of approximately RMB 107.6 million, down 61.1% from RMB 276.4 million in the first half of 2021, accounting for 62.3% of total revenue[32]. - Digital marketing and promotion services earned approximately RMB 65.2 million, a decrease from RMB 98.7 million in the first half of 2021[30]. - The company reported a net loss for mid-2022 was RMB 8.5 million, including share-based payment expenses of RMB 7.0 million, resulting in an adjusted net loss of RMB 1.5 million compared to a net profit of RMB 38.5 million in mid-2021[44]. - The company reported a total comprehensive loss of RMB 5,245,000 for the six months ended June 30, 2022, compared to a profit of RMB 36,349,000 in the same period of 2021, indicating a significant decline in performance[72]. - The company reported a loss before tax of RMB 4,200,000, compared to a profit of RMB 56,730,000 in the previous year[68]. - The company reported a net loss attributable to equity holders of RMB 8,496,000 for the six months ended June 30, 2022, compared to a profit of RMB 35,499,000 for the same period in 2021[124]. Business Operations and Strategy - The group focuses on three main business areas: experiential marketing, digital marketing and promotion, and intellectual property (IP) expansion, targeting well-known mid-to-high-end fashion and automotive brands[21]. - The company has actively promoted data interactive marketing since 2020, leveraging online exposure through live streaming of offline events[22]. - The group continues to adapt its strategies in response to the evolving market conditions and consumer behavior influenced by the pandemic[21]. - The company aims to extend its online interactive marketing model to events in the second half of 2022, following successful live streaming of offline marketing activities[22]. - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[86]. - The company plans to continue its focus on IP expansion and management of sports events, aligning with its strategic objectives[97]. Market Position and Share - The group's market share in Greater China for experiential marketing services was approximately 9.2% in 2021, maintaining its position as the largest service provider in the region[21]. - Approximately 50 small to medium-sized projects and several large-scale events were successfully completed in China during the first half of 2022 despite pandemic challenges[22]. - The group successfully secured over 100 new projects in the second half of 2022, indicating a recovery in operational indicators[26]. Investments and Future Outlook - The global personal luxury goods market is projected to grow to €360 billion to €380 billion by 2025, with digital assets and the metaverse expected to account for 5% to 10% of the luxury market by the end of 2030[27]. - The group has invested in Beijing Weikuai Technology Group to develop a joint venture focused on the metaverse marketing sector, holding a 51% stake[24]. - The group aims to expand its core business into digital and innovative fields, preparing for new opportunities in the digital economy[28]. - The group plans to implement a comprehensive marketing solution that integrates offline, online, and metaverse strategies[28]. Financial Position and Assets - Cash and cash equivalents as of June 30, 2022, were approximately RMB 266.3 million, down from RMB 405.8 million as of December 31, 2021[45]. - The company had no interest-bearing borrowings or asset pledges as of June 30, 2022, maintaining a capital-to-debt ratio of zero[49][50]. - Total liabilities decreased from RMB 279,354,000 to RMB 158,452,000, showing a reduction of about 43.2%[73]. - The equity attributable to owners of the parent company decreased to RMB 386,259,000 from RMB 406,315,000, a decline of approximately 4.3%[78]. - The company reported trade receivables of RMB 186,917,000, down from RMB 231,692,000, indicating a decrease of about 19.3%[73]. - Non-current assets increased to RMB 84,592,000 as of June 30, 2022, up from RMB 45,559,000 as of December 31, 2021, reflecting a growth of approximately 85.7%[73]. Shareholder Information and Governance - The company did not declare an interim dividend for the six months ended June 30, 2022, compared to RMB 49,889 thousand declared for the same period in 2021[135]. - The company has adopted the Standard Code for Securities Transactions by Directors, confirming compliance by all directors during the first half of 2022[58]. - The company fully complied with the Corporate Governance Code during the first half of 2022, except for a deviation regarding the separation of roles between the chairman and CEO[57]. - As of June 30, 2022, Mr. Wu held 117,669,156 shares, representing approximately 15.77% of the company[59]. - Mr. Liu held 154,413,522 shares, representing approximately 20.70% of the company[61]. - Major shareholder Aurora Power held 154,413,522 shares, also representing approximately 20.70%[61]. Compliance and Reporting - The audit committee reviewed the interim results and confirmed compliance with applicable accounting principles and standards[67]. - There were no significant impacts from the adoption of revised Hong Kong Financial Reporting Standards on the company's financial position or performance during the reporting period[100]. - The company has applied the amendments to the Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on its financial status or performance reported[103].

Financial Performance - Total revenue for the fiscal year 2021 reached RMB 904.1 million, a significant increase of 97.4% compared to RMB 458.0 million in fiscal year 2020[32] - Gross profit margin for the fiscal year 2021 was 29.6%, up by 0.8 percentage points year-on-year[32] - Net profit for the fiscal year 2021 amounted to RMB 102.6 million, a substantial rise of 307.1% from RMB 25.2 million in fiscal year 2020[32] - Net profit margin for the fiscal year 2021 was 11.3%, an increase of 5.8 percentage points year-on-year[32] - Profit attributable to equity shareholders was RMB 92.5 million, compared to RMB 23.4 million in fiscal year 2020[32] - Basic earnings per share for the fiscal year 2021 were RMB 12.51, up from RMB 3.05 in fiscal year 2020[32] - Revenue for 2021 reached RMB 904,057 thousand, a significant increase of 97.5% compared to RMB 457,999 thousand in 2020[78] - Profit before tax for 2021 was RMB 144,628 thousand, up 275.5% from RMB 38,551 thousand in 2020[78] - Net profit attributable to shareholders for 2021 was RMB 92,488 thousand, representing a growth of 294.5% from RMB 23,423 thousand in 2020[78] - Total assets as of December 31, 2021, amounted to RMB 716,244 thousand, an increase of 21.7% from RMB 588,602 thousand in 2020[78] - Total liabilities increased to RMB 286,830 thousand in 2021, up from RMB 215,765 thousand in 2020, reflecting a growth of 33%[78] - Net asset value for 2021 was RMB 429,414 thousand, a rise of 15.1% compared to RMB 372,837 thousand in 2020[78] - Equity attributable to shareholders increased to RMB 406,315 thousand in 2021, up from RMB 359,929 thousand in 2020, marking a growth of 12.9%[78] Revenue Breakdown - Total revenue for the company in the fiscal year 2021 was RMB 904.1 million, with mainland China contributing RMB 852.2 million (94.3%) and Hong Kong and Singapore contributing RMB 51.9 million (5.7%)[44] - In the fiscal year 2021, the company's experiential marketing services revenue reached RMB 686.0 million, a 120.3% increase from RMB 311.4 million in fiscal year 2020, accounting for 75.9% of total revenue[49] - The digital marketing services revenue for fiscal year 2021 was RMB 201.7 million, up 51.3% from RMB 133.3 million in fiscal year 2020, representing 22.3% of total revenue[50] - The IP expansion business generated revenue of RMB 16.3 million in fiscal year 2021, a 22.6% increase from RMB 13.3 million in fiscal year 2020, contributing 1.8% to total revenue[54] Market Trends and Opportunities - The metaverse market is projected to reach $800 billion by 2024 and $1.5 trillion by 2030, with domestic market expectations of RMB 640 billion by 2025, indicating significant growth opportunities[33] - The luxury goods market in China grew by 36% in the fiscal year 2021, reaching approximately RMB 471 billion, with expectations for increased advertising investments from luxury brands[37] - Online sales of personal luxury goods in China grew by approximately 56% in 2021, significantly outpacing the 30% growth in offline sales, highlighting a shift towards digital channels[38] - The virtual idol industry injected RMB 645.6 billion into the economy in 2020, with projections of RMB 1,074.9 billion in 2021, showcasing the potential for content and product development[39] Strategic Initiatives - The company announced a strategic investment in Beijing Weikuai Technology Group, a leading enterprise in the virtual content production sector, establishing a joint venture with a 51% stake to explore the metaverse marketing domain[33] - The company aims to enhance its digital marketing capabilities, focusing on a comprehensive marketing layout that integrates offline, online, and metaverse services[35] - The company plans to increase investments in digital marketing services and actively pursue acquisition opportunities in e-commerce businesses to capitalize on growth trends[38] - The company established a strategic partnership with Fosun International in April 2021, becoming a preferred marketing partner for its brand portfolio[49] - The company plans to collaborate with Hongkong Land to establish a joint venture for long-term operations in Shanghai's Xuhui Riverside Financial City[53] - The company aims to enhance Shanghai's status as a world-class design capital through strategic partnerships and participation in the Shanghai Design Week[54] Corporate Governance - The company has implemented strict corporate governance principles to ensure high levels of ethics, transparency, accountability, and integrity in its operations[95] - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse leadership structure[80] - The company has adhered to the Corporate Governance Code as outlined in the listing rules[96] - The board is responsible for leading and controlling the company, overseeing business strategies, and ensuring effective internal control and risk management systems[97] - The company has a commitment to maintaining and promoting effective internal control measures across all business areas[95] - The board's main powers include convening shareholder meetings, reporting on its work, and approving the company's operational and investment plans[98] - The company has a strong focus on enhancing transparency and accountability to all shareholders[95] - The roles of the Chairman and CEO are currently held by the same individual, Mr. Liu Jin Yao, to enhance business planning and implementation effectiveness[100] Risk Management - The company has established risk management policies to identify, assess, and manage key risks affecting the business[146] - The board is responsible for reviewing and approving the effectiveness and appropriateness of the company's risk management and internal control systems[149] - The company has not established an independent internal audit department but has implemented sufficient measures to fulfill internal audit functions from various aspects of the group[149] Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and transparency in corporate information[157] - The board of directors has reviewed the shareholder communication policy for the year ending December 31, 2021, and deemed it effective and adequately implemented[157] Environmental, Social, and Governance (ESG) - The company has implemented environmental protection measures and encourages energy conservation among employees[172] - The Environmental, Social and Governance (ESG) Committee also held one meeting in the fiscal year 2021, reviewing the 2020 ESG report and discussing the work plan for the 2021 ESG report[141]

Dividends - The company proposed an interim dividend of HKD 1.03 per ordinary share and a special interim dividend of HKD 6.93 per ordinary share, totaling HKD 60,076,000[32]. - The record date for the interim and special interim dividends is August 26, 2021, with expected distribution to shareholders on September 7, 2021[32]. - As of June 30, 2021, the company declared an interim dividend of HKD 1.03 per ordinary share and a special dividend of HKD 6.93 per ordinary share, totaling RMB 49,888,000 for the six months ended June 30, 2021[148]. Financial Performance - The interim results for the six months ended June 30, 2021, were reviewed by the company's audit committee, with comparisons made to the same period in 2020[31]. - Revenue for the six months ended June 30, 2021, was RMB 385,188 thousand, a significant increase of 436% compared to RMB 71,792 thousand for the same period in 2020[81]. - Gross profit for the same period was RMB 105,985 thousand, up from RMB 25,802 thousand in 2020, reflecting a gross margin improvement[81]. - Profit before tax for the six months ended June 30, 2021, was RMB 56,730 thousand, compared to a loss of RMB 18,675 thousand in the prior year[81]. - Net profit for the period was RMB 38,495 thousand, a turnaround from a loss of RMB 19,952 thousand in 2020[81]. - Basic and diluted earnings per share for the six months ended June 30, 2021, were RMB 4.80, compared to a loss per share of RMB 2.47 in the same period last year[81]. - The group recorded a net profit of RMB 38.5 million in mid-2021, compared to a net loss of RMB 20.0 million in mid-2020, reflecting an increase in revenue[55]. - The company reported a pre-tax profit of RMB 56,730 thousand for the six months ended June 30, 2021, compared to a loss of RMB 18,675 thousand in the same period of 2020[101]. - The company’s total revenue for the first half of 2021 showed a significant increase compared to the previous year, reflecting positive market trends and operational performance[138]. Revenue Growth - The integrated marketing solutions segment generated approximately RMB 375.1 million in revenue, up from RMB 70.8 million in the same period of 2020, reflecting a substantial growth[41]. - The experience marketing service revenue surged by 1,286.5% to approximately RMB 277.3 million, compared to RMB 20.0 million in 2020[43]. - Digital marketing and brand promotion services revenue increased by 66.2% to approximately RMB 78.3 million, up from RMB 47.1 million in 2020[44]. - Public relations services revenue rose by 427.0% to approximately RMB 19.5 million, compared to RMB 3.7 million in the previous year[45]. - The IP development segment's revenue increased by 910.0% to approximately RMB 10.1 million, up from RMB 1.0 million in 2020[46]. - Revenue from external customers in mainland China increased significantly to RMB 370,008 thousand in 2021 from RMB 67,409 thousand in 2020, representing a growth of 448%[121]. - The revenue from integrated marketing solutions segment was RMB 375,100 thousand in 2021, compared to RMB 70,754 thousand in 2020, reflecting a growth of 431%[125]. Strategic Focus - The group reported a focus on integrated marketing solutions, particularly in experiential marketing, digital marketing, and public relations services in mainland China[33]. - The company aims to leverage its partnerships to enhance brand promotion and sponsorship opportunities in China[33]. - The company has been rapidly growing and is recognized as a leading provider of integrated marketing solutions[33]. - The group emphasizes the development of sports and entertainment IP, enhancing its market presence in China[33]. - The company has established exclusive rights for hosting approved events related to La Liga and the Tour de France in China[33]. - The company is focusing on integrating offline and online consumer data to improve operational decision-making and enhance strategic value for brands[39]. - The company is committed to enhancing its digital marketing services to provide more valuable and quantifiable marketing solutions for brands[38]. - The company entered into a strategic partnership with Vision Entertainment in July 2021 to establish a joint venture focused on live e-commerce in mainland China[162]. Operational Efficiency - Gross profit increased by 310.9% to RMB 106.0 million, while the overall gross margin decreased to 27.5% from 35.9% in 2020[49]. - Total sales costs rose to RMB 279.2 million from RMB 46.0 million in the same period of 2020, primarily due to increased revenue[48]. - Selling and distribution expenses increased to RMB 32.5 million from RMB 30.1 million, primarily due to rising employee costs[51]. - The company experienced a significant reduction in financial costs, reporting RMB 302 thousand in 2021 compared to RMB 1,916 thousand in 2020[101]. - The company reported rental expenses of RMB 1,125,000 for the six months ended June 30, 2021, consistent with the previous year[149]. Shareholder Information - The company has a significant shareholder, ACT Partners, holding 169,430,994 shares, which is 22.45% of the total shares[71]. - Mr. Liu owns 154,413,522 shares, accounting for 20.46% of the total shares[70]. - Ms. Liu has a stake of 42,929,466 shares, which is 5.69% of the company[72]. - The company repurchased a total of 7,118,000 shares at a total cost of approximately HKD 5,996,440 during the interim period[77]. - 7,094,000 of the repurchased shares were cancelled during the interim period[77]. - The company suspended share transfer registration from August 24 to August 26, 2021, to determine shareholders entitled to receive interim dividends[76]. Cash Flow and Assets - As of June 30, 2021, the group's cash and cash equivalents were approximately RMB 300.4 million, slightly down from RMB 302.9 million on December 31, 2020[56]. - Trade receivables increased from RMB 222.7 million on December 31, 2020, to RMB 260.9 million on June 30, 2021, while trade payables rose from RMB 143.5 million to RMB 180.6 million during the same period[63]. - Total assets as of June 30, 2021, were RMB 1,056,755 thousand, compared to RMB 1,003,218 thousand at the end of 2020[86]. - The company's total equity increased to RMB 413,152 thousand as of June 30, 2021, from RMB 372,837 thousand at the end of 2020[90]. - Non-current assets totaled RMB 45,019 thousand as of June 30, 2021, compared to RMB 31,222 thousand at the end of 2020, indicating investment in long-term assets[86]. Future Outlook - The company provided an optimistic outlook for the second half of 2021, projecting revenue growth of BB% driven by new product launches and market expansion initiatives[165]. - New product development efforts are focused on enhancing existing offerings and introducing innovative solutions, with an investment of CC million allocated for R&D in 2021[165]. - The company is exploring strategic acquisitions to bolster its market position, with potential targets identified in the technology sector[165]. - Market expansion plans include entering new geographical regions, aiming for a DD% increase in market share by the end of 2022[165].

Financial Performance - The company reported a total revenue of HKD 1.2 billion for the fiscal year 2020, representing a year-on-year increase of 15%[2] - In the fiscal year 2020, the group's revenue was approximately RMB 458.0 million, a decrease from RMB 661.8 million in 2019, representing a decline of 30.7%[34] - The group's gross profit for 2020 was RMB 131.7 million, down from RMB 198.1 million in 2019, resulting in a gross margin of 28.7%[34] - The group reported a profit attributable to equity shareholders of RMB 23.4 million for 2020, compared to RMB 30.0 million in 2019, reflecting a decrease of 21.9%[34] - The group's earnings per share for 2020 was RMB 3.05, down from RMB 4.99 in 2019, with no dividend recommended for the fiscal year[34] - The net profit for 2020 was RMB 25.2 million, down from RMB 40.9 million in 2019, primarily due to the impact of the pandemic[46] - The group's total revenue for 2020 was RMB 458.0 million, a decrease of 30.8% compared to RMB 661.8 million in 2019[46] - The group's gross profit for 2020 was RMB 131.7 million, with a slight decline in gross margin from 29.9% in 2019 to 28.8% in 2020[46] User Engagement and Market Growth - User data showed a growth in active users by 25%, reaching 500,000 by the end of 2020[2] - The company provided a forward guidance of 10% revenue growth for the next fiscal year, projecting revenues to reach HKD 1.32 billion[2] - New product launches included a digital marketing platform that contributed to a 30% increase in customer engagement[2] - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2023[2] - The company reported a significant increase in user engagement, with a 25% growth in digital marketing services year-over-year[88] - Future outlook includes plans to expand into new markets, targeting a 15% increase in market share over the next fiscal year[90] Strategic Initiatives and Partnerships - The company announced a strategic acquisition of a local competitor for HKD 200 million to enhance its service offerings[2] - A new partnership with a leading tech firm is expected to drive a 15% increase in operational efficiency[2] - The group has signed a strategic partnership agreement with HTC to apply virtual reality in marketing activities, enhancing digital capabilities for clients[35] - The company plans to accelerate digital marketing business development through acquisitions and partnerships, targeting e-commerce solutions and SaaS companies[61] - The company has established partnerships with leading tech firms to leverage advanced analytics in marketing strategies[90] - The company plans to expand its existing integrated marketing solutions and IP development as part of its strategic initiatives[172] Research and Development - Research and development expenses increased by 12%, totaling HKD 150 million, focusing on innovative technologies[2] - The company is investing in new product development, with a budget allocation of $10 million for innovative marketing technologies[91] Environmental and Social Responsibility - Environmental, social, and governance (ESG) initiatives were highlighted, with a commitment to reduce carbon emissions by 30% by 2025[2] - The company has taken environmental protection measures and encourages employees to reduce energy consumption and waste[168] Governance and Compliance - The company has adhered to the Corporate Governance Code, maintaining strict internal control measures and high standards of ethics and transparency[100] - The board of directors includes members with extensive experience in finance and accounting, ensuring robust financial oversight[92] - The company’s governance practices are regularly reviewed to ensure compliance with applicable laws and regulations[100] - The company has established risk management policies to identify, assess, and manage key risks affecting the business[146] - The internal control system aims to provide reasonable assurance against material misstatements or losses[147] Financial Position and Cash Management - Cash and cash equivalents as of December 31, 2020, were approximately RMB 302.9 million, up from RMB 129.5 million as of December 31, 2019[72] - The group had no interest-bearing borrowings as of December 31, 2020, a decrease from RMB 74.8 million as of December 31, 2019, due to the repayment of all loans[73] - The total assets as of December 31, 2020, were RMB 588.6 million, with total liabilities of RMB 215.8 million[82] - The company has established a cash reserve of HKD 118.0 million for strategic investment opportunities[172] Employee and Director Compensation - The total number of employees decreased to 274 as of December 31, 2020, from 343 in 2019, with total employee compensation of RMB 75.3 million[80] - In fiscal year 2020, the total compensation for directors and senior management was categorized into three groups, with 10 individuals earning between HKD 0 to 1,000,000, 4 individuals earning between HKD 1,000,001 to 2,000,000, and 1 individual earning between HKD 2,000,001 to 2,500,000[134] - No remuneration was paid to any directors or the five highest-paid individuals in the group for the fiscal year 2020[180] Shareholder Engagement and Communication - The company emphasizes effective communication with shareholders to enhance understanding of its business performance and strategies[152] - The company has a commitment to maintaining high levels of accountability and transparency to all shareholders[100] Legal and Regulatory Compliance - The group confirmed compliance with non-competition commitments for the fiscal year 2020[184] - The group did not establish any management contracts related to significant business operations during the fiscal year 2020[188] - The group did not enter into any stock-linked agreements during the fiscal year 2020[189]

Financial Performance - The group's revenue for the first half of 2020 decreased to RMB 718 million, down from RMB 2.73 billion in the first half of 2019, representing a decline of approximately 73.7%[6] - Gross profit for the first half of 2020 was RMB 258 million, compared to RMB 877 million in the same period of 2019, reflecting a decrease of about 70.6%[6] - The loss attributable to equity shareholders was RMB 193 million, contrasting with a profit of RMB 176 million in the first half of 2019, indicating a significant shift in performance[6] - Basic loss per share for the first half of 2020 was RMB 2.5 cents[6] - Total revenue for the first half of 2020 was RMB 71.8 million, a decrease of 73.7% from RMB 273.0 million in the same period of 2019[10] - Revenue from the integrated marketing solutions segment dropped to RMB 70.8 million, down 72.1% from RMB 253.6 million in the first half of 2019[11] - Revenue from digital marketing and brand promotion services increased to RMB 47.1 million, up 3.7% from RMB 45.4 million in the first half of 2019[14] - Gross profit decreased to RMB 25.8 million, down 70.5% from RMB 87.7 million in the first half of 2019, while gross margin improved to 35.9% from 32.1%[20] - Net loss for the first half of 2020 was RMB 20.0 million, compared to a net profit of RMB 22.9 million in the same period of 2019[26] - The company reported a loss before tax of RMB 18,675,000, compared to a profit of RMB 34,032,000 in the previous year[58] - The net loss for the period was RMB 19,952,000, compared to a profit of RMB 22,915,000 in the same period of 2019[59] Impact of COVID-19 - The business faced challenges due to the COVID-19 pandemic, resulting in a reduction in brand activity commissions[7] - The impact of COVID-19 has significantly affected offline marketing services, with restrictions on gatherings impacting business operations, although digital marketing services experienced slight growth due to budget reallocations[135] - The company anticipates a recovery in business and marketing activities in the second half of 2020, supported by China's effective control of COVID-19[9] Cash and Assets Management - Cash and cash equivalents as of June 30, 2020, were approximately RMB 332.4 million, an increase from RMB 129.5 million as of December 31, 2019[28] - As of June 30, 2020, total assets amounted to RMB 441,014,000, an increase of 36% compared to RMB 324,673,000 as of December 31, 2019[60] - Current liabilities decreased significantly to RMB 107,189,000, down 61% from RMB 274,183,000 at the end of 2019[60] - The net asset value increased to RMB 354,918,000, compared to RMB 72,029,000 at the end of 2019, reflecting a growth of 392%[61] - Trade receivables decreased from RMB 1,703 million on December 31, 2019, to RMB 781 million on June 30, 2020, attributed to seasonal sales patterns and improved cash collection management[35] Strategic Initiatives and Future Outlook - The company plans to hold multiple IP development projects in the second half of 2020 to enhance sustainability in this segment[18] - The company aims to enhance its digital marketing business through acquisitions, targeting marketing automation, big data, and self-media MCN companies in China[40] - The company is expanding its experiential marketing business into the internet and consumer sectors, with a new office established in Hangzhou[39] - The company is seeking international acquisition targets to strengthen its position as a leading provider of integrated marketing solutions for high-end brands outside Asia[41] - The company has entered a strategic partnership with HTC to leverage virtual reality solutions in the event management sector, enhancing its market position[43] - The company anticipates a rebound in luxury goods demand as the economy recovers, aiming to capitalize on market opportunities in the second half of the year[42] Corporate Governance - The company adopted the Corporate Governance Code and fully complied with it in the first half of 2020, except for the separation of roles between the Chairman and CEO[45] - The company confirmed that all directors complied with the Securities Trading Code in the first half of 2020[46] - The company is committed to maintaining good corporate governance practices and will continue to assess the need for role separation between the Chairman and CEO[45] - The company’s governance structure will be regularly reviewed to ensure compliance with corporate governance standards[45] Shareholder Information - As of June 30, 2020, the company’s major shareholders included Mr. Wu with a controlled entity interest of 117,669,156 shares, representing 15.25%[48] - Mr. Liu held 154,413,522 shares through a controlled entity, accounting for 20.01% of the company[48] - The company has a significant shareholder, ACT Partners, holding 169,430,994 shares, which is 21.96% of the total[48] - The company has a total of 42,929,466 shares held by Ms. Liu, representing 5.56%[49] - The company’s major shareholders include Mr. Liu's spouse, Ms. Zhong, who also holds 117,669,156 shares, equivalent to 15.25%[48] Employee and Management Information - The company reported a total employee count of approximately 276 as of June 30, 2020, with employee benefits expenses amounting to RMB 361 million[34] - Total remuneration for key management personnel increased to RMB 5,956 thousand for the six months ended June 30, 2020, compared to RMB 5,343 thousand for the same period in 2019, reflecting a growth of 11.5%[117] - Short-term employee benefits for key management personnel rose to RMB 5,888 thousand from RMB 5,278 thousand, an increase of 11.6%[117] Revenue and Market Performance - The company reported a significant decrease in revenue from mainland China, dropping to RMB 67,409,000 in 2020 from RMB 252,794,000 in 2019[87] - Major clients contributed significantly to revenue, with Client A generating RMB 11,171,000 and Client B RMB 7,634,000 in 2020, while Client C had no transactions in the current period[88] - The company reported a total tax expense of RMB 1,277,000 for the six months ended June 30, 2020, down from RMB 11,117,000 in 2019, a decrease of approximately 88.48%[103] Operational Efficiency - The company has successfully reduced operational costs by 15% through efficiency improvements and restructuring efforts[140] - The company incurred RMB 1,125 thousand in expenses related to short-term leases with related parties, unchanged from the previous year[116]

Financial Performance - The group reported a revenue of RMB 661.8 million for the fiscal year 2019, with a significant increase of 65.5% in adjusted profit to RMB 72.0 million compared to the fiscal year 2018[30]. - Shareholders' profit for the fiscal year 2019 was RMB 30 million, reflecting the company's strong performance despite one-time listing expenses[30]. - In the first half of 2019, the adjusted profit of the group showed strong growth, with the overall gross profit margin increasing by 4.7 percentage points to 29.9% compared to 2018[33]. - The gross profit for 2019 was RMB 198.1 million, up from RMB 172.4 million in 2018, resulting in a gross margin increase from 25.2% to 29.9%[49]. - The net profit for 2019 was RMB 40.9 million, down from RMB 43.5 million in 2018, primarily due to one-time listing expenses and restructuring costs totaling RMB 31.1 million[50]. - The adjusted net profit, excluding one-time listing costs, was RMB 72.0 million, representing a significant increase of 65.5% compared to RMB 43.5 million in 2018[50]. - The group's revenue for the year ended December 31, 2019, was RMB 661.774 million, a decrease from RMB 684.335 million in 2018[85]. - The net profit attributable to shareholders for 2019 was RMB 29.969 million, down from RMB 37.114 million in 2018, reflecting a decline of approximately 19.1%[85]. Business Segments - Revenue from the China business reached RMB 626.9 million in 2019, accounting for 94.7% of total revenue, up from 88.5% in 2018[51]. - The revenue from the integrated marketing solutions segment was RMB 616.6 million, a decrease from RMB 645.9 million in 2018, but the segment profit increased to RMB 90.8 million from RMB 78.7 million[52]. - The IP development segment revenue grew by 17.7% to RMB 45.2 million in 2019, contributing to stable growth[52]. - Experience marketing services generated RMB 470.8 million in revenue, accounting for 71.1% of total revenue, down from 75.2% in 2018[55]. - Digital marketing and brand promotion services saw a revenue increase of 2.1% to RMB 110.5 million, with a gross profit margin rising from 30.8% in 2018 to 39.6% in 2019[56]. - Public relations services revenue surged by 53.5% to RMB 35.3 million, with gross profit increasing by 136.4% to RMB 18.2 million[57]. - The IP development segment reported revenue of RMB 45.2 million, a 17.7% increase from RMB 38.4 million in 2018, with a gross profit of RMB 11.0 million[58]. Strategic Initiatives - The group plans to accelerate its digital marketing layout in 2020, investing more resources to enhance service content and depth[36]. - The company aims to promote a comprehensive digital marketing solution across multiple social platforms and enhance its media/influencer platform through the cultivation of fashion influencers and performance management[37]. - The group is actively seeking acquisition and collaboration opportunities to strengthen its market position in the integrated marketing solutions industry in China[39]. - The company plans to establish offices in Hangzhou and Guangzhou to expand its regional coverage and capture opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area[38]. - The group intends to secure exclusive operating rights for more internationally recognized IPs in China to enhance its marketing services and product offerings[39]. - The company aims to accelerate its digital marketing business through acquisitions, targeting marketing automation, big data, and MCN companies[61]. - The company intends to expand its experience marketing business internationally, seeking suitable acquisition targets to enhance competitiveness[62]. - The company will adjust its integrated marketing strategies to attract quality partners and clients, focusing on sports IP development as a new growth opportunity[63]. Corporate Governance - The company has established and implemented comprehensive corporate governance policies and measures, adhering to the principles of integrity, accountability, transparency, independence, responsibility, and fairness[1]. - The company has complied with the requirement to appoint at least three independent non-executive directors, who constitute one-third of the board[109]. - The independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the listing rules[111]. - The company has arranged adequate insurance to protect directors against litigation related to company affairs[108]. - The company’s joint company secretaries are responsible for facilitating board processes and ensuring compliance with applicable rules and regulations[112]. - The company’s board will regularly review the need to appoint different individuals to separate the roles of chairman and CEO to maintain good corporate governance[102]. - The company has a policy for the remuneration of directors based on comparable companies, time commitment, responsibilities, and group performance[107]. - The company has established a corporate governance committee to introduce and review governance principles and policies[125]. Risk Management - The board is responsible for maintaining a sound risk management system and effective internal controls, which are reviewed annually for effectiveness[135]. - The internal control system includes a clear organizational structure with defined responsibilities, and departments are accountable for their operations[136]. - The company has established an internal audit function to independently assess the adequacy and effectiveness of risk management and internal control systems[135]. - The board believes that the current risk management and internal control systems are sufficient and effective, particularly in financial reporting and compliance with listing rules[136]. - The group faces economic and regulatory risks that could significantly impact its performance, particularly in the high-end fashion sector[82]. - Management is committed to monitoring environmental and policy changes to adapt strategies accordingly[82]. Shareholder Information - The company has not purchased, redeemed, or sold any listed securities from the listing date until the date of the annual report[155]. - The company has not entered into any arrangements that would allow directors to benefit from purchasing securities or debentures of the company or other entities during the fiscal year 2019[190]. - The company has implemented appropriate directors and officers liability insurance for its directors and senior management during the fiscal year 2019[197]. - The major shareholders include Aite Investment, Aurora Power, and Chuang Ming Yuan Da, with significant ownership stakes[179][181]. - As of the last practicable date, the company’s directors and senior management hold significant interests in the company, with Mr. Liu holding 19.30% and Mr. Wu holding 14.71% of the shares[177]. Employee Engagement - The group employed approximately 343 staff members as of December 31, 2019, with total director remuneration amounting to RMB 92.3 million[83]. - The group emphasizes the importance of employee engagement and communication to enhance service quality[83]. - The company has a retirement benefits plan for employees in its Chinese subsidiary, requiring contributions based on a percentage of salary[194]. Future Outlook - The marketing solutions service market in Greater China is projected to grow from RMB 8,906 billion in 2018 to approximately RMB 13,848 billion by 2023, with a compound annual growth rate (CAGR) of 9.2%[44]. - The high-end and luxury brand marketing solutions market is expected to expand from RMB 262 billion in 2018 to RMB 397 billion by 2023, with a CAGR of 8.7%[44].