Financial Performance - For the first half of 2024, the company's revenue was approximately RMB 316.3 million, a decrease of 9.4% compared to RMB 350.3 million in the first half of 2023[2] - Net profit for the first half of 2024 was approximately RMB 30.2 million, down from RMB 41.0 million in the same period of 2023[2] - For the six months ended June 30, 2024, total revenue was RMB 316.4 million, a decrease of 9.7% from RMB 350.3 million in the same period of 2023[6] - Gross profit decreased by 1.6% from RMB 105.1 million in the first half of 2023 to RMB 103.4 million in the first half of 2024, while the overall gross profit margin increased from 30.0% to 32.7%[14] - The net profit for the period was RMB 30,153 thousand, representing a decline of 26.5% from RMB 41,026 thousand in the previous year[29] - Basic earnings per share decreased to RMB 3.70 from RMB 5.11, reflecting a 27.5% drop year-over-year[28] - The company reported a pre-tax profit of RMB 42,087 thousand for the six months ended June 30, 2024, compared to RMB 53,665 thousand for the same period in 2023, showing a decrease of approximately 21.6%[37] Revenue Breakdown - The revenue breakdown by region shows that mainland China contributed RMB 288.5 million (91.2%), while Hong Kong and Singapore contributed RMB 27.8 million (8.8%) in 2024[6] - The experience marketing segment generated revenue of approximately RMB 257.5 million, down 8.1% from RMB 280.2 million in 2023, accounting for 81.4% of total revenue[9] - Digital marketing and promotion services revenue was approximately RMB 48.9 million, a decrease of 20.6% from RMB 61.6 million in 2023, representing 15.5% of total revenue[11] - The revenue from experience marketing services in mainland China was RMB 230,729,000 for the six months ended June 30, 2024, down from RMB 243,939,000 in the same period of 2023, indicating a decrease of about 5.4%[43] Market Position and Strategy - The company maintains a market share of 12.7% in the Greater China region for mid-to-high-end fashion brand experiential marketing services as of 2023[2] - The company is optimistic about future growth opportunities in the luxury brand marketing sector in China, which is expected to continue to expand[4] - The company is actively pursuing marketing service projects for both international and local clients in mainland China and Hong Kong[4] - The company aims to deepen relationships with existing clients while attracting new clients through innovative marketing strategies[5] - The luxury marketing strategies employed by the company are effectively applicable to high-end brands in China, demonstrating significant ROI for clients[9] Cost and Expenses - The group's sales cost decreased from RMB 245.2 million in the first half of 2023 to RMB 213.0 million in the first half of 2024, consistent with the decrease in revenue[13] - General and administrative expenses increased from RMB 24.1 million in the first half of 2023 to RMB 29.4 million in the first half of 2024, mainly due to an increase in share-based payment expenses[17] - The cost of services provided for the six months ended June 30, 2024, was RMB 212,970,000, down from RMB 245,185,000 in the same period of 2023, showing a reduction of about 13.1%[46] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 596,449 thousand, down from RMB 795,626 thousand as of December 31, 2023[30] - The company's total equity decreased to RMB 322,295 thousand from RMB 359,975 thousand, indicating a decline of 10.5%[31] - The total liabilities as of June 30, 2024, were RMB 274,154 thousand, down from RMB 435,426 thousand as of December 31, 2023, reflecting a reduction of about 37%[39] - Trade receivables decreased from approximately RMB 397.6 million as of December 31, 2023, to approximately RMB 204.7 million as of June 30, 2024[26] - Trade payables decreased from approximately RMB 339.4 million to approximately RMB 200.8 million in the same period[26] Future Outlook - The company is exploring opportunities in Southeast Asia to expand its influence and expertise in the growing market[5] - The company is optimistic about the growth potential of its digital marketing and promotion segment, focusing on enhancing digital capabilities[11] - The company is actively pursuing opportunities in e-commerce live streaming and metaverse marketing services to adapt to rapid changes in the digital landscape[11] Corporate Governance - The company has fully complied with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[55] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim results for 2024 and confirmed compliance with applicable accounting principles[57] Miscellaneous - The company reported no significant contingent liabilities or major acquisitions during the first half of 2024[27] - The company has no plans for significant investments or capital assets for the year ending December 31, 2024[27] - The company continues to monitor foreign exchange risks closely, as most of its income and expenses are denominated in RMB[27] - The company recorded a foreign exchange loss of RMB 7,457 thousand related to the translation of overseas operations[29] - The interim results announcement for 2024 will be published on the Hong Kong Stock Exchange website and the company's website in September 2024[58]

Summary of Conference Call Company/Industry Involved - The conference call pertains to Huazhang Securities and its research department Core Points and Arguments - The call is intended exclusively for the whitelist clients of Huazhang Securities Research Institute [1] - It is emphasized that the meeting does not constitute investment advice under any circumstances [1] - Participants are reminded to make their own investment decisions and bear the associated risks [1] Other Important but Possibly Overlooked Content - The call outlines the importance of investor suitability management in futures trading [1]

Summary of Conference Call Company/Industry Involved - The conference call pertains to Huazhang Securities and its research department [1] Core Points and Arguments - The call is intended exclusively for clients on the whitelist of Huazhang Securities Research Institute [1] - It is emphasized that the meeting does not constitute investment advice under any circumstances [1] - Participants are reminded to make their own investment decisions and bear the associated risks [1] Other Important but Possibly Overlooked Content - The call highlights the importance of investor suitability management in futures trading [1]

Revenue and Financial Performance - In the fiscal year 2023, the revenue from the experience marketing services segment was RMB 762.0 million, an increase of 48.3% compared to RMB 513.9 million in fiscal year 2022, accounting for 78.8% of the total revenue[12]. - The digital marketing and promotion services segment generated revenue of RMB 188.2 million, representing a 21.9% increase from RMB 154.4 million in fiscal year 2022, contributing 19.5% to the total revenue[7]. - The IP expansion segment's revenue was approximately RMB 17.0 million, a decrease of 35.8% from RMB 26.5 million in fiscal year 2022, accounting for 1.8% of the total revenue[5]. - The overall revenue for the company in fiscal year 2023 was RMB 967.2 million, up from RMB 694.8 million in fiscal year 2022[3]. - In the fiscal year 2023, the total revenue reached RMB 967.231 million, a significant increase from RMB 694.807 million in 2022, representing a growth of approximately 39.2%[20]. - Revenue from mainland China accounted for 89.7% of total revenue at RMB 867.277 million, while Hong Kong and Singapore contributed 10.3% at RMB 99.954 million, indicating a shift in market focus[20]. - The company's revenue for the fiscal year 2023 was approximately RMB 967.2 million, representing a growth of 39.2% compared to RMB 694.8 million in 2022[84]. - The net profit for fiscal year 2023 was approximately RMB 118.4 million, a significant increase of 319.9% from RMB 28.2 million in 2022, with a net profit margin of 12.2%, up 8.1 percentage points from 4.1% in 2022[84]. - Profit before tax for fiscal year 2023 was RMB 164.8 million, compared to RMB 55.7 million in fiscal year 2022, reflecting an increase of approximately 195.4%[143]. - Net profit attributable to equity holders of the parent company for fiscal year 2023 was RMB 118.4 million, a significant rise from RMB 28.2 million in fiscal year 2022, representing an increase of approximately 319.5%[143]. Market Trends and Strategies - The increase in demand for marketing services is attributed to the recovery of the Chinese economy and the growing consumption of high-end luxury goods[12]. - The company is exploring new strategies for market expansion and product development, particularly in digital marketing and data analytics services[18]. - The strategic importance of the Chinese market has attracted numerous global luxury brand owners and management teams to visit mainland China, highlighting the market's significance and providing valuable business development opportunities for the company[64]. - The luxury goods market in mainland China has seen significant changes in consumer recognition of brand value and the pursuit of high-quality living, which are key drivers for future market growth[67]. - The company anticipates that luxury brands will continue to actively participate in large-scale marketing and promotional activities in the Chinese market over the coming years[67]. - Online sales accounted for 42% of total sales in the luxury market in 2023, with expectations to exceed 60% in the next 3 to 5 years, indicating significant growth opportunities in digital marketing[71]. Operational Developments - The company has actively engaged in e-commerce live streaming services and launched additional value-added services in the metaverse marketing space to adapt to rapid digital changes[14]. - The company has established joint ventures to enhance its e-commerce capabilities, indicating a proactive approach to market opportunities[14]. - The company has successfully secured multiple marketing service projects for international and local clients in mainland China and Hong Kong, gradually implementing these projects[68]. - The company is committed to providing comprehensive marketing services to its clients, ensuring they remain competitive in the evolving digital landscape[14]. - The company aims to provide innovative, diverse, and high-quality marketing services, which helps in understanding and meeting client needs while maintaining a leading position in a competitive market[65]. Corporate Governance - The company has implemented a robust corporate governance framework, including risk management and internal control systems, to support sustainable growth and value creation[169]. - The board consists of three independent non-executive directors, with at least one possessing appropriate professional qualifications or accounting expertise, ensuring compliance with listing rules[154]. - The company has provided training for all directors and senior management to ensure they understand their responsibilities under relevant regulations and laws[158]. - The company emphasizes the importance of employee engagement and training as part of its corporate culture and operational practices[169]. - The board has established a culture of innovation and collaboration, aiming to achieve competitive advantages through proactive and agile practices[169]. Employee and Talent Management - The group recognizes talent as a cornerstone of success and is committed to investing in employee skills and capabilities for long-term development[93]. - As of December 31, 2023, the total number of employees in the group was approximately 243, a decrease from 261 employees as of December 31, 2022[116]. - Employee benefits expenses for the fiscal year 2023 amounted to RMB 114.2 million, compared to RMB 110.7 million in fiscal year 2022, reflecting an increase of approximately 4.8%[116]. Financial Position and Commitments - Total assets as of December 31, 2023, were RMB 795.4 million, compared to RMB 758.0 million as of December 31, 2022, showing an increase of approximately 4.8%[143]. - The group's capital commitments as of December 31, 2023, were RMB 8.1 million, up from RMB 5.1 million as of December 31, 2022, indicating a rise of approximately 58.8%[139]. - Trade receivables increased from RMB 308.9 million as of December 31, 2022, to RMB 397.6 million as of December 31, 2023, representing a growth of approximately 28.7%[136]. - Trade payables rose from RMB 289.6 million as of December 31, 2022, to RMB 339.4 million as of December 31, 2023, indicating an increase of about 17.2%[136]. Dividends and Shareholder Engagement - The board proposed a final dividend of HKD 0.0616 per share and a special dividend of HKD 0.0442 per share, totaling HKD 78.8 million, pending shareholder approval[82]. - The company emphasizes open communication and engagement with shareholders and stakeholders to enhance governance effectiveness[173].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][11][36] Core Insights - The company achieved a record high net profit attributable to shareholders in 2023, with a significant year-on-year growth of 357% [2][9][26] - The company's revenue for 2023 was 967 million HKD, representing a year-on-year increase of 39.2% [3][26] - The company has expanded its market share in experiential marketing to 12.7%, with a total of 590 brand clients, and 80% of clients being international [26] - The company is actively expanding its business in other Asia-Pacific regions and has successfully hosted high-profile marketing events [21][34] Financial Summary and Valuation Metrics - Revenue and net profit projections for 2024-2026 are as follows: - 2024E Revenue: 1,204 million HKD, Net Profit: 141 million HKD - 2025E Revenue: 1,456 million HKD, Net Profit: 172 million HKD - 2026E Revenue: 1,720 million HKD, Net Profit: 206 million HKD - Corresponding EPS for 2024-2026 are projected at 0.21, 0.25, and 0.30 HKD respectively [3][26] - The current P/E ratios for 2024-2026 are 6.3, 5.2, and 4.4 times respectively, indicating a favorable long-term growth outlook [3][26]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 40%, reaching 967 million RMB, which exceeds 1.1 billion HKD, compared to the previous year [3][6] - Gross profit margin improved to 30.8%, up from 29.1% in 2022, with total gross profit reaching approximately 298 million RMB, marking a 47.5% increase [7][8] - Net profit increased significantly by approximately 320%, reaching 118 million RMB, with net profit margin rising from 4.1% to 12.2% [8][9] Business Line Data and Key Metrics Changes - Experience marketing revenue grew by 48.3%, while data marketing saw a 21.9% increase [6] - The IP segment, particularly cultural and sports IP, experienced a 115% growth when included in the overall revenue [6][7] Market Data and Key Metrics Changes - The company's market share in experience marketing increased from 6.3% in 2019 to 12.7% in 2023, nearly doubling its position [3][11] - Revenue from the Asia-Pacific region, excluding mainland China, surged by 296%, reaching 100 million RMB [7] Company Strategy and Development Direction - The company aims to expand its cultural and sports IP initiatives, enhancing collaboration and synergy [12][13] - There is a focus on increasing market penetration in the beauty and liquor sectors, which currently represent only 5.3% of the client base [11][12] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the growth potential of the marketing sector in Greater China, anticipating significant growth in experience marketing, data marketing, and public relations services [11] - The company plans to leverage its strong market position and expand its geographic coverage, particularly in the Asia-Pacific region [12] Other Important Information - The company declared a total dividend of 10.58 HKD per share, with a dividend payout ratio targeted at 50% [9][10] - The company maintains a net cash position with no bank loans, indicating strong financial health [10] Q&A Session Summary Question: What are the growth prospects for the marketing sector in Greater China? - The management highlighted that the marketing sector is expected to see triple-digit growth in experience marketing, data marketing, and public relations services, while traditional advertising is experiencing negative growth [11] Question: How does the company plan to expand its market share in the beauty and liquor sectors? - The company identified these sectors as significant opportunities, noting that they currently represent a small portion of its client base, and plans to focus on expanding its presence in these areas [11][12]

恢复提效，全年业绩高增 | --- | --- | |---------------------------------|------------| | | | | 买入（维持） | | | 股票信息 | | | 行业 | 广告及宣传 | | 前次评级 | 买入 | | 3 月 11 日收盘价 ( 港元 ) | 1.24 | | 总市值 ( 百万港元 ) | 923.48 | | 总股本 ( 百万股 ) | 744.74 | | 其中自由流通股 (%) | 100.00 | | 30 日日均成交量 ( 百万股 ) | 0.30 | | 股价走势 | | 风险提示：行业竞争严重加剧；消费大幅不及预期。 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------|-------|--------------------------|-------|-------|-------|-----------------------------|-------|------------ ...

Financial Performance - The group's net profit for the fiscal year 2023 was RMB 118.4 million, an increase of 319.9% compared to RMB 28.2 million in fiscal year 2022, with a net profit margin rising from 4.1% to 12.2%[4] - Total revenue for the fiscal year 2023 reached RMB 967.231 million, a significant increase from RMB 694.807 million in 2022, representing a growth of approximately 39.2%[38] - Adjusted profit before tax for the group was RMB 164.785 million, compared to RMB 55.698 million in the previous year, showing a substantial increase[30] - The group's pre-tax profit for 2023 was RMB 669,009 thousand, an increase from RMB 492,566 thousand in 2022, representing a growth of approximately 35.8%[43] - Gross profit for fiscal year 2023 increased by approximately 47.5% to about RMB 298.2 million, with a gross profit margin rising from 29.1% in fiscal year 2022 to 30.8% in fiscal year 2023[75] - The net profit for fiscal year 2023 was approximately RMB 118.4 million, a significant increase of 319.9% from RMB 28.2 million in fiscal year 2022, with a net profit margin of 12.2%, up 8.1 percentage points from 4.1% in the previous year[80] - Basic earnings per share for fiscal year 2023 was RMB 14.80, compared to RMB 3.21 in fiscal year 2022[75] Revenue Breakdown - The experience marketing services segment generated revenue of RMB 761.972 million, up from RMB 513.877 million in the previous year, reflecting a growth of about 48.3%[38] - Digital marketing and promotion services revenue increased to RMB 188.237 million from RMB 154.399 million, marking a growth of approximately 21.9%[38] - The IP expansion segment reported revenue of RMB 17.022 million, down from RMB 26.531 million, indicating a decline of about 35.8%[38] - Revenue from mainland China reached RMB 867.277 million, up from RMB 669.619 million, while revenue from Hong Kong/Singapore increased to RMB 99.954 million from RMB 25.188 million[34] - The experience marketing services segment generated revenue of RMB 762.0 million in fiscal year 2023, representing a 48.3% increase from RMB 513.9 million in fiscal year 2022, accounting for 78.8% of total revenue[104] - The digital marketing and promotion services segment reported revenue of RMB 188.2 million, up 21.9% from RMB 154.4 million in fiscal year 2022, contributing 19.5% to total revenue[107] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 795.401 million, an increase from RMB 711.246 million in 2022[30] - The group’s total liabilities were RMB 435.426 million, up from RMB 357.656 million in the previous year[30] - Trade receivables increased from RMB 308.9 million on December 31, 2022, to RMB 397.6 million on December 31, 2023, while trade payables rose from RMB 289.6 million to RMB 339.4 million in the same period[15] - The group's total assets less current liabilities were RMB 366.6 million as of December 31, 2023, compared to RMB 363.5 million in FY2022[136] Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2023, were approximately RMB 307.1 million, up from RMB 300.3 million on December 31, 2022[5] - The group had no interest-bearing borrowings as of December 31, 2023, maintaining a capital-to-debt ratio of zero[12][13] - The group's financial costs for fiscal year 2023 were approximately RMB 0.4 million, a decrease from RMB 0.5 million in fiscal year 2022[3] - Other expenses decreased from RMB 10.5 million in fiscal year 2022 to RMB 6.0 million in fiscal year 2023, primarily due to a reduction in trade receivables impairment[1] - The group continues to maintain a strong liquidity position, with sufficient financial resources to meet current operational needs and future expansions[13] Dividends - The company declared an interim dividend of HKD 0.02 per share in 2023, compared to no interim dividend in 2022[48] - The proposed final dividend for 2023 is HKD 0.0616 per share, significantly higher than HKD 0.0132 per share in 2022, marking an increase of approximately 367.7%[48] - The total dividend for fiscal year 2023 is expected to be HKD 0.1258 per share, compared to HKD 0.2270 per share in fiscal year 2022[76] Market Position and Strategy - The group maintains a market share of 12.7% in the Greater China region as the largest provider of mid-to-high-end fashion brand experiential marketing services[78] - The company aims to deepen relationships with existing clients while attracting new ones through innovative marketing strategies and high-quality service experiences[84] - The focus on young consumers, particularly those born after 1985, is crucial for shaping future consumption trends, with a strategy to maximize engagement with this key demographic[91] - The company's integrated online and offline marketing strategy has proven effective, significantly expanding brand influence and consumer base in 2023[88] Employee Engagement - The group emphasizes employee engagement and development through comprehensive compensation packages and training programs[14] - The group employed approximately 243 employees as of December 31, 2023, down from 261 employees as of December 31, 2022[94] Compliance and Governance - The audit committee confirmed compliance with applicable accounting principles and standards for the fiscal year 2023[62] - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[140] Future Outlook - The company anticipates that the luxury brand market will continue to actively engage in large-scale marketing and promotional activities in China over the coming years[83] - The online luxury goods market in China saw significant growth in 2023, with online sales accounting for 42% of total sales, expected to exceed 60% in the next 3 to 5 years[91] - The group is actively expanding its customer base and enhancing its marketing services to strengthen its position in the luxury goods industry[92] - The group is set to host multiple cycling events in major Chinese tourist cities in 2024, enhancing brand visibility and market influence[93]

智通财经APP讯，艾德韦宣集团(09919)发布公告，集团预计于2023财年取得收入超过人民币9.6亿元，较截至2022年12月31日止年度(2022财年)的收入人民币6.95亿元增加约38.2%;而2023财年的纯利预计超过人民币1.1亿元，较2022财年的纯利人民币2820万元大幅增加约290.0%。 董事会认为，预期收入及纯利增长乃主要由于在2023财年集团体验营销业务受惠于中国经济逐渐复苏而出现显著增长;集团的线上线下一站式整合营销服务提升了客户的品牌价值，正向对该等营销策略的需求增加;及作为行业市场龙头，集团成功紧握高端品牌在中国内地及中国香港市场的营销需求，进一步推动集团整体业务。 ...

Financial Performance - Revenue for the six months ended June 30, 2023, reached RMB 350,262 thousand, a significant increase of 102.3% compared to RMB 172,772 thousand for the same period in 2022[35] - Gross profit for the same period was RMB 105,077 thousand, representing a gross margin of approximately 30%[35] - The net profit for the six months ended June 30, 2023, was RMB 41,026 thousand, compared to a net loss of RMB 8,502 thousand in the prior year, indicating a turnaround in profitability[36] - Basic and diluted earnings per share for the period were RMB 5.11, compared to a loss per share of RMB 1.16 in the previous year[35] - The company reported a total comprehensive income of RMB 35,552 million for the six months ended June 30, 2023, compared to RMB 38,496 million for the same period in 2022, indicating a decrease of approximately 6.4%[41] - The company’s reserves increased to RMB 303,384 million as of June 30, 2023, from RMB 335,650 million at the end of 2022, representing a decline of about 9.6%[41] - The company recorded a net cash flow from operating activities of RMB 57,255 million for the six months ended June 30, 2023, compared to a negative cash flow of RMB (105,241) million for the same period in 2022[51] - The pre-tax profit for the six months ended June 30, 2023, was RMB 53,665 million, a significant recovery from a loss of RMB (4,200) million in the previous year[51] - The total tax expense for the period was RMB 12,639,000, significantly higher than RMB 4,302,000 for the same period in 2022, reflecting an increase of 194.5%[78] Share Capital and Dividends - As of June 30, 2023, the total number of shares held by directors and senior management amounted to approximately 171,926,810 shares, representing about 23.09% of the issued share capital[13] - As of June 30, 2023, the company had a total of 744,742,000 shares issued, with major shareholders holding significant stakes, including 15.80% by Ait Investment and 20.73% by Aurora Power[15][16] - The company declared an interim dividend of RMB 13,235,000 for the six months ended June 30, 2023, with a dividend of 2 HK cents per ordinary share, compared to no dividend in the same period of 2022[87] - The record date for the interim dividend is set for August 30, 2023, with the expected payment date around September 14, 2023[147] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 573,833 thousand, a decrease from RMB 625,372 thousand as of December 31, 2022[37] - The company’s net asset value was RMB 324,268 thousand, a decline from RMB 353,590 thousand as of December 31, 2022[37] - As of June 30, 2023, total equity amounted to RMB 324,268 million, a decrease from RMB 353,590 million as of December 31, 2022, reflecting a decline of approximately 8.3%[41] - The total liabilities as of June 30, 2023, were RMB 333,611 thousand, down from RMB 357,656 thousand at the end of 2022[64] Cash Flow and Financial Position - The net cash flow from financing activities for the first half of 2023 was RMB (41,019) thousand, compared to RMB (16,511) thousand in the same period of 2022, indicating a significant increase in cash outflow[52] - The cash and cash equivalents increased by RMB 15,435 thousand in the first half of 2023, contrasting with a decrease of RMB (143,012) thousand in the same period of 2022[52] - The ending cash and cash equivalents as of June 30, 2023, stood at RMB 313,172 thousand, up from RMB 266,321 thousand at the end of 2022, reflecting a positive cash position[52] - The company maintains a strong liquidity position with sufficient financial resources to meet current operational needs and future expansions[181] Operational Highlights - The company operates three main business segments: experience marketing services, digital marketing and promotion services, and IP expansion, which are monitored separately for performance evaluation[59] - The company experienced significant growth in the first half of 2023, capitalizing on the recovery of the luxury marketing industry driven by stable growth in the high-end consumer market[149] - The company focuses on three main areas: experiential marketing, digital marketing and promotion, and intellectual property (IP) expansion services[148] - The company is recognized as the largest provider of high-end fashion brand experiential marketing services in Greater China[148] Share Option and Incentive Schemes - The company has terminated the 2019 Share Option Scheme and adopted a new 2023 Share Option Scheme to align with the latest listing rules effective from January 1, 2023[19][25] - The company awarded a total of 11,070,000 incentive shares to eligible participants under the Share Award Scheme during the interim period[28] - The Share Award Scheme aims to reward contributions from eligible participants and attract suitable talent for the company's sustainable development[27] Market and Economic Context - Economic activities in China began to normalize in early 2023 following the easing of strict pandemic measures, leading to a noticeable recovery in the service sector and consumer demand for experiential marketing[149] - The global luxury goods market sales reached €345 billion in 2022, with a projected growth of 5% to 12% in 2023, reaching €360-380 billion[150] - The luxury consumer demographic is becoming younger, with the post-95 generation emerging as the main market force[153] Compliance and Governance - The company fully complied with the Corporate Governance Code during the interim period of 2023, except for a deviation regarding the roles of the chairman and CEO[9] - The audit committee has reviewed the unaudited interim results and confirmed compliance with applicable accounting principles and standards[32] Employee and Management Information - The total number of employees as of June 30, 2023, was approximately 241, a decrease from 262 employees in the same period of 2022[182] - Employee benefit expenses, including director remuneration, were approximately RMB 46.4 million for the mid-2023 period, down from RMB 52.4 million in mid-2022[182]