Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 23,121 thousand, a decrease of 92.4% compared to RMB 304,958 thousand in 2021[37]. - The gross loss for 2022 was RMB (189,223) thousand, representing a 280.0% increase from RMB (49,791) thousand in 2021[37]. - The loss attributable to equity shareholders for 2022 was RMB (295,658) thousand, a 293.6% increase from RMB (75,123) thousand in 2021[37]. - The basic and diluted loss per share for 2022 was RMB (0.99), compared to RMB (0.25) in 2021, marking a 296.0% increase[37]. - The company's revenue for the year ended December 31, 2022, was RMB 23.1 million, a decrease of 92.4% compared to RMB 305.0 million for the year ended December 31, 2021[49]. - The loss attributable to equity shareholders for the year was RMB 189.2 million, an increase of 293.6% year-on-year[49]. - Revenue from self-produced TV drama distribution and broadcasting rights increased by approximately RMB 4.8 million, but this was insufficient to offset the significant decrease in revenue from bought-out TV drama distribution and broadcasting rights, which fell by approximately RMB 275.1 million[49][57]. - The return on equity decreased from approximately -14.5% for the year ended December 31, 2021, to approximately -89.0% for the current year[61]. - The total asset return rate declined from approximately -6.9% for the year ended December 31, 2021, to approximately -32.2% for the current year[62]. - The total revenue from self-produced and bought-out TV drama distribution and broadcasting rights recorded a significant decline for the year ended December 31, 2022[49][57]. Business Strategy and Development - The company aims to expand its self-produced drama broadcasting rights business and diversify its drama products by investing in various types and themes of television dramas[40]. - In 2023, the company plans to collaborate closely with third-party copyright holders to acquire more broadcasting rights for different genres of dramas[45]. - The company remains confident in its future business development despite the adverse effects of COVID-19 on the industry and the overall competitive environment[55]. - The company will continue to implement the business strategies outlined in its prospectus[55]. - The company is focused on business development strategies that include market expansion and new product development[50]. - The company acknowledges the impact of COVID-19 on operations but remains focused on expanding its broadcasting rights for purchased and self-produced dramas[44]. Production and Content - The company successfully licensed the first round of broadcasting rights for the drama "Blue Flame Assault" during the year[39]. - The company has issued a total of 29 and 16 television dramas in 2021 and 2022, respectively, primarily consisting of self-produced dramas and those purchased from third-party copyright holders[25]. - The company has invested in and produced several successful television dramas, including "The Heroic Legend of the Dragon" and "Guerilla Heroes," achieving good distribution results in major domestic TV markets such as Shanghai and Beijing[163]. - In 2022, the company completed filming the self-produced drama "She Has Secrets," while the self-produced drama "Tiger Team" was sold multiple times across various channels from 2020 to 2022[163]. - The company has successfully released popular purchased dramas such as "Dreams on This Side of the Sea" and "Undercover Returns," contributing to its market presence[163]. Intellectual Property and Compliance - The company emphasizes the importance of intellectual property protection and has established a management system to encourage innovation and technology development[140]. - The company has established a clear process for the submission and review of intellectual property, promoting a culture of innovation within its departments[140]. - The company has implemented a strict review process for television dramas to ensure compliance with national regulations, enhancing the integrity of its production[138]. - The independent non-executive directors have reviewed compliance with non-competition commitments under the contractual arrangements[117]. - The company guarantees the accuracy and completeness of the report's content, ensuring no false statements or significant omissions[127]. Employee Management and Social Responsibility - The total number of employees in 2022 was 47, a decrease from 70 in 2021, representing a reduction of approximately 32.86% in total employee count[171]. - The employee turnover rate increased significantly to 32.86% in 2022 from 14.29% in 2021, with male turnover rising to 40% and female turnover to 60%[171]. - The number of employees aged 30 and below decreased from 31 in 2021 to 19 in 2022, indicating a shift in the age demographics of the workforce[171]. - The company has implemented a recruitment management system to ensure the hiring of qualified personnel and strengthen talent development[169]. - The company provides various training programs for employees, including new employee training and skills training, to enhance workforce capabilities[175]. - The company emphasizes employee rights protection as a core social responsibility, providing reasonable compensation and a discrimination-free work environment[195]. - The company has a focus on health and safety, aiming to reduce workplace accidents and promote employee well-being[178]. - During the pandemic, the company adopted flexible working arrangements, including remote work and regular disinfection of public areas to ensure employee safety[200]. Governance and ESG Commitment - The board of directors is responsible for assessing and determining the risks related to environmental, social, and governance matters[127]. - The company is committed to ESG (Environmental, Social, and Governance) management and has identified key issues for stakeholder engagement[162]. - Quantitative data regarding environmental and social aspects will be presented in the ESG report with comparative data in the future[124].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Litian Pictures Holdings Limited 力 天 影 業 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：9958） 截 至2022年12月31日 止 年 度 年 度 業 績 公 告、建 議 修 訂 組 織 章 程 細 則 及 建 議 採 納 經 修 訂 及 重 述 之 組 織 章 程 細 則 財務摘要 • 截至2022年12月31日止年度的收益由截至2021年12月31日止年度的約人 民幣305.0百萬元減少約92.4%至約人民幣23.1百萬元。 • 截至2022年12月31日止年度的毛損由截至2021年12月31日止年度的虧損 約人民幣49.8百萬元增加約280.0%至約人民幣189.2百萬元。 • 截至2022年12月31日止年度，本公司權益股東應佔虧損由截至2021年12 月31日止年度的虧損約人民幣75.1百萬元增加約293.6%至約人民幣295.7 ...

Financial Performance - The company reported a revenue of RMB 304.96 million for the year ended December 31, 2021, a decrease of 33.0% compared to RMB 455.27 million in 2020[8]. - The gross loss for the year was RMB 49.79 million, compared to a gross profit of RMB 125.88 million in the previous year, representing a decline of 139.6%[8]. - The loss attributable to equity shareholders was RMB 75.12 million, a significant drop of 207.2% from a profit of RMB 70.08 million in 2020[8]. - The adjusted loss attributable to equity shareholders, excluding listing expenses, was also RMB 75.12 million, down 187.5% from RMB 85.84 million in 2020[8]. - The basic and diluted loss per share was RMB 0.25, compared to earnings of RMB 0.26 per share in the previous year, reflecting a decrease of 196.2%[8]. - Total revenue decreased by approximately 33.0% from RMB 455.3 million in 2020 to RMB 305.0 million in 2021, primarily due to a reduction of RMB 152.2 million in revenue from acquired drama rights[24]. - Revenue from self-produced drama rights decreased by approximately 71.4% from RMB 10.2 million in 2020 to RMB 2.9 million in 2021, with no self-produced dramas licensed for first-round broadcasting on satellite TV in 2021[25]. - Revenue from acquired drama rights was RMB 290.1 million in 2021, down from RMB 442.3 million in 2020[24]. - Other income decreased by approximately 78.9% from about RMB 10.7 million for the year ended December 31, 2020, to approximately RMB 2.3 million for the year ended December 31, 2021, mainly due to a reduction in government subsidies[43]. Costs and Expenses - Total sales costs increased by approximately 7.7% from RMB 329.4 million in 2020 to RMB 354.7 million in 2021, mainly due to increased costs in self-produced drama rights[32]. - Costs for self-produced drama rights increased by approximately 293.8% from RMB 16.8 million in 2020 to RMB 66.3 million in 2021[33]. - Costs for acquired drama rights decreased by approximately 10.0% from RMB 310.8 million in 2020 to RMB 279.6 million in 2021[34]. - Sales and marketing expenses increased by approximately 119.8% from about RMB 1.2 million for the year ended December 31, 2020, to approximately RMB 2.6 million for the year ended December 31, 2021[46]. - Administrative expenses increased by approximately 7.3% from about RMB 24.6 million for the year ended December 31, 2020, to approximately RMB 26.4 million for the year ended December 31, 2021[50]. Assets and Liabilities - As of December 31, 2021, the company's bank deposits and cash on hand were approximately RMB 856 million, down from approximately RMB 1,857 million as of December 31, 2020[61]. - The company's net current assets as of December 31, 2021, were approximately RMB 4,253 million, compared to approximately RMB 5,310 million as of December 31, 2020[61]. - The total amount of bank and other loans as of December 31, 2021, was approximately RMB 1,282 million, an increase from approximately RMB 792 million as of December 31, 2020[61]. - The current ratio decreased from approximately 1.9 times as of December 31, 2020, to approximately 1.8 times as of December 31, 2021[65]. - The debt-to-equity ratio increased from approximately 14.3% as of December 31, 2020, to approximately 26.8% as of December 31, 2021[68]. Corporate Governance - The company emphasizes the importance of independent directors in governance and strategic oversight[117]. - The board includes members with experience in various industries, enhancing the company's strategic decision-making capabilities[115]. - The company is committed to maintaining high standards of corporate governance through its independent board members[114]. - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors, with no changes in composition during the year[145]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring a balanced board structure[147]. - The company has established a nomination committee to review the board's structure and assess the independence of non-executive directors[169]. - The audit committee is responsible for overseeing financial reporting procedures and risk management systems[163]. - The remuneration committee's main responsibility is to propose overall compensation policies for all directors and senior management[164]. - The company has a policy to seek independent professional advice for directors when necessary, with costs borne by the company[158]. Future Plans and Strategies - The company aims to enhance its television production and distribution performance by expanding its self-produced drama licensing business and diversifying its drama offerings[13]. - The company plans to strengthen market research and insights into industry trends to increase its script and intellectual property reserves in response to enhanced copyright protection in China[13]. - The company plans to collaborate closely with third-party rights holders to acquire more diverse drama rights to meet customer preferences[21]. - The management remains confident in the future development of the business despite uncertainties caused by the COVID-19 pandemic[21]. - The company aims to continue implementing its business strategies as outlined in its prospectus[21]. Use of Proceeds - The net proceeds from the global offering in 2020 amounted to approximately HKD 152 million after deducting underwriting commissions and related expenses[78]. - The company has utilized approximately HKD 76.4 million, accounting for about 50.3% of the net proceeds from the global offering as of December 31, 2021[79]. - The planned use of net proceeds includes 50% for producing self-made TV dramas, with HKD 76.0 million allocated, of which HKD 38.6 million has been used[79]. - 37.5% of the proceeds, amounting to HKD 57.0 million, is designated for acquiring rights from third-party copyright holders, with HKD 31.5 million already utilized[79]. - The company plans to hire more experienced professionals and provide employee training, allocating 7.5% of the proceeds (HKD 11.4 million), with HKD 2.9 million already spent[79]. - 5% of the proceeds (HKD 7.6 million) is earmarked for working capital and general corporate purposes, with HKD 3.4 million already used[79]. - The total net proceeds amount to HKD 152.0 million, with HKD 75.6 million remaining unutilized as of December 31, 2021[79]. - The company expects to complete the planned uses of proceeds by December 2023[79]. Board Composition and Attendance - The board consists of 2 female directors and 7 male directors, demonstrating a balanced knowledge and skill set[172]. - The age range of the board members is between 39 and 58 years[172]. - The board will review the composition of the board annually to ensure diversity in skills, experience, and perspectives[172]. - The board has established three committees to oversee specific areas, including audit, remuneration, and nomination, to enhance operational efficiency[142]. - The board has the discretion to propose any dividends based on the company's financial performance and other relevant factors[181]. - The board's attendance record shows full participation in meetings, with all executive directors attending 100% of board meetings[153].

Financial Performance - For the six months ended June 30, 2021, the company's revenue was RMB 155.3 million, a decrease of 39.5% compared to RMB 256.7 million in the same period of 2020[11]. - Gross profit for the same period was RMB 37.7 million, down 56.9% from RMB 87.6 million year-on-year[11]. - Profit attributable to equity shareholders was RMB 12.5 million, reflecting a 77.0% decrease from RMB 54.3 million in the previous year[11]. - Adjusted profit attributable to equity shareholders, excluding listing expenses, was also RMB 12.5 million, a decline of 80.5% compared to RMB 64.2 million in 2020[11]. - Basic and diluted earnings per share were RMB 0.04, down 83.3% from RMB 0.24 in the same period last year[11]. - Total comprehensive income for the period was RMB 11,477 thousand, compared to RMB 54,156 thousand in the same period last year, reflecting a decrease of 78.8%[125]. - Operating profit decreased to RMB 13,880 thousand, a decline of 77.6% from RMB 61,980 thousand in the previous year[125]. - The company reported a basic earnings per share of RMB 0.0417 for the six months ended June 30, 2021, compared to RMB 0.2370 for the same period in 2020, reflecting a significant decrease[179]. Revenue Sources - Revenue from purchased television drama broadcasting rights decreased by approximately 42.0% from RMB 253.7 million to RMB 147.2 million, primarily due to a reduction in the number of purchased dramas[36]. - Revenue from self-produced television drama broadcasting rights decreased by approximately 94.1% from RMB 3.0 million to RMB 0.2 million, due to scheduling and pricing issues[32]. - The company generated approximately RMB 121.0 million from the only purchased drama "The Ideal Life of Love" during the reporting period[36]. - Revenue from self-produced TV series was RMB 178,000, while revenue from purchased TV series was RMB 147,155,000 for the six months ended June 30, 2021, resulting in total revenue of RMB 155,258,000, a decrease of 39.5% from RMB 256,744,000 in the same period of 2020[158][167]. Cost and Expenses - Other income decreased by 71.0% from RMB 5.0 million to RMB 1.5 million, mainly due to a reduction in government subsidies[51]. - The cost of sales decreased by approximately 30.5% from RMB 169.2 million to RMB 117.5 million, primarily due to a reduction in costs associated with purchased television drama broadcasting rights[40]. - Sales and marketing expenses increased approximately 340.0% from RMB 0.5 million for the six months ended June 30, 2020, to RMB 2.0 million for the six months ended June 30, 2021, primarily due to an increase in marketing and promotional expenses of RMB 1.2 million[52]. - Administrative expenses rose approximately 53.1% from RMB 7.6 million for the six months ended June 30, 2020, to RMB 11.7 million for the six months ended June 30, 2021, mainly driven by an increase in employee costs and remuneration expenses of RMB 2.3 million[55]. Assets and Liabilities - As of June 30, 2021, the company's cash and bank deposits were approximately RMB 101.0 million, down from RMB 185.7 million as of December 31, 2020[71]. - The company's net current assets increased to approximately RMB 540.0 million as of June 30, 2021, compared to RMB 531.0 million as of December 31, 2020[71]. - Total liabilities decreased to RMB 534,041 thousand from RMB 612,995 thousand as of December 31, 2020[130]. - The company's equity attributable to shareholders increased to RMB 566,381 thousand from RMB 554,904 thousand at the end of 2020[130]. - Trade receivables as of June 30, 2021, amounted to RMB 420,235, down 20% from RMB 525,367 as of December 31, 2020, with an increase in loss provisions to RMB 69,862 from RMB 58,213[189]. - Cash and cash equivalents as of June 30, 2021, totaled RMB 49,385, a decrease of 63.0% from RMB 133,504 as of December 31, 2020[196]. Strategic Initiatives - Future business strategies will focus on expanding self-produced drama licensing and diversifying drama types and themes[17]. - The company plans to enhance market research and expand its script and intellectual property reserves in response to strengthened copyright protection in China[18]. - Management remains confident in the future development of the business despite the competitive environment[25]. - The company plans to allocate 50.0% of the net proceeds (approximately RMB 76.0 million) for producing self-made television dramas[89]. Shareholder Information - The board of directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2021, consistent with 2020[97]. - Mr. Yuan Li holds a controlled corporation interest of 68,282,350 shares, representing approximately 22.76% of the company[103]. - Ms. Tian Tian holds a controlled corporation interest of 64,380,501 shares, representing approximately 21.46% of the company[103]. - Joint Fortune Huayi holds 19,806,339 shares, representing approximately 6.60% of the company[111]. Compliance and Governance - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director, with the chairman being Mr. Liu Hanlin[95]. - The audit committee reviewed the interim results for the six months ended June 30, 2021, and confirmed compliance with applicable accounting standards[95]. - There were no changes in the information of directors or senior management that require disclosure under the listing rules[98].

Financial Performance - The company's revenue for the year ended December 31, 2020, was RMB 455.3 million, representing a year-on-year increase of 16.4%[12] - The profit attributable to equity shareholders for the same period was RMB 70.1 million, a decrease of 9.0% compared to the previous year[12] - Adjusted profit attributable to equity shareholders, excluding listing expenses, was RMB 85.8 million, down 3.2% year-on-year[12] - The gross profit for the year was RMB 125.9 million, reflecting a decrease of 10.8% from RMB 141.1 million in the previous year[12] - Revenue from self-produced TV drama licensing decreased by approximately 88.6% to RMB 10.2 million in 2020, compared to RMB 89.0 million in 2019[35] - Revenue from acquired TV drama licensing increased by approximately 58.8% to RMB 442.3 million in 2020, compared to RMB 278.6 million in 2019[39] - Total revenue increased by approximately 16.4% to RMB 455.3 million in 2020 from RMB 391.0 million in 2019[32] - The gross margin declined from approximately 36.1% in 2019 to 27.7% in 2020, attributed to the absence of revenue from self-issued agency services and lower margins from purchased dramas[52] - Other income increased by approximately 161.8% from RMB 4.1 million in 2019 to RMB 10.7 million in 2020, mainly due to an increase in government subsidies[55] Business Strategy and Operations - Future business strategies will focus on enhancing television drama production and distribution performance, and diversifying the types and themes of self-produced dramas[18] - The company aims to strengthen market research and expand its script and intellectual property reserves in response to enhanced copyright protection in China[18] - The company plans to shoot multiple new self-produced dramas in 2021, including "Don't Worry, We Grow Up Together"[27] - The company will closely collaborate with third-party rights holders to acquire more diverse drama licenses to meet customer preferences[30] - The management remains confident in the future development of the business despite uncertainties caused by COVID-19[30] - The company anticipates challenges in 2021 due to COVID-19, affecting both acquired and self-produced drama businesses[27] Cost and Expenses - The total cost of sales increased by approximately 31.8% from RMB 249.9 million in 2019 to RMB 329.4 million in 2020, primarily due to the increase in the cost of purchased television drama broadcasting rights[42] - The cost of purchased television drama broadcasting rights rose by approximately 77.4% from RMB 175.2 million in 2019 to RMB 310.8 million in 2020, driven by the acquisition of rights for several popular dramas[45] - Selling and marketing expenses rose by approximately 140.0% from RMB 0.5 million in 2019 to RMB 1.2 million in 2020, primarily due to an increase in employee costs[57] - Administrative expenses increased by approximately 19.4% from RMB 20.6 million in 2019 to RMB 24.6 million in 2020, mainly due to higher employee costs and consulting fees[62] Corporate Governance - The board consists of nine directors, including three executive directors, three non-executive directors, and three independent non-executive directors, with no changes in composition since the listing date until December 31, 2020[160] - All directors confirmed compliance with the standards set forth in the code of conduct for securities trading from the listing date until December 31, 2020[155] - The board has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific areas of the company's affairs[156] - The company has maintained a high level of corporate governance standards and has adopted most of the recommended best practices since its listing[158] - The board collectively oversees the company's business, strategic decisions, and performance, ensuring alignment with shareholder interests[157] Employee and Labor Relations - The company had 51 employees as of December 31, 2020, an increase from 47 employees in the previous year[90] - The company has not experienced any significant labor disputes during the year[90] - The company is committed to regular reviews of its compensation policies based on current market levels and individual employee performance[90] - The company provides various employee benefits, including year-end bonuses and stock options, to enhance employee relations[90] Future Outlook and Guidance - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $600 million[114] - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology solutions[114] - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of the next fiscal year[114] - A strategic acquisition of a smaller competitor is anticipated to enhance the company's product offerings and increase market competitiveness[114] - The management team emphasized a commitment to sustainability, aiming for a 25% reduction in carbon footprint by 2025[114] Financial Position and Ratios - As of December 31, 2020, the company's bank deposits and cash amounted to approximately RMB 185.7 million, an increase from approximately RMB 89.7 million as of December 31, 2019[76] - The current ratio increased from approximately 1.6 times as of December 31, 2019, to approximately 1.9 times as of December 31, 2020[80] - The return on equity decreased from approximately 26.1% for the year ended December 31, 2019, to approximately 15.8% for the year ended December 31, 2020[78] - The total asset return decreased from approximately 10.5% for the year ended December 31, 2019, to approximately 6.9% for the year ended December 31, 2020[79] - The company's debt-to-equity ratio decreased from approximately 17.0% as of December 31, 2019, to approximately 14.3% as of December 31, 2020[83] Audit and Compliance - The financial statements for the year ending December 31, 2020, were audited by KPMG with no reservations noted in the auditor's report[200] - The audit services provided by KPMG amounted to RMB 1.6 million, with total fees payable to KPMG for the year ending December 31, 2020, being RMB 3.1 million[198][199] - The board of directors is responsible for ensuring that the financial statements fairly reflect the company's affairs and comply with relevant statutory and regulatory requirements[200]

Financial Performance - For the six months ended June 30, 2020, the company's revenue was RMB 256.7 million, representing a year-on-year increase of 29.7%[26] - The gross profit for the same period was RMB 87.6 million, reflecting a growth of 27.7% compared to the previous year[26] - The profit attributable to equity shareholders was RMB 54.3 million, an increase of 18.9% year-on-year[26] - Adjusted profit attributable to equity shareholders, excluding listing expenses, was RMB 64.2 million, up 30.1% from the prior year[26] - Basic and diluted earnings per share were RMB 0.24, representing a 20.0% increase compared to RMB 0.20 in the previous year[26] - The revenue for the six months ended June 30, 2020, increased by 29.7% to RMB 256.7 million from RMB 198.0 million for the same period in 2019[41] - The gross profit increased by 27.7% from RMB 68.6 million for the six months ended June 30, 2019, to RMB 87.6 million for the six months ended June 30, 2020[65] - Operating profit increased to RMB 61,980,000, compared to RMB 54,666,000 in the previous year, reflecting a growth of 13.4%[138] - Profit attributable to equity shareholders for the period was RMB 54,323,000, an increase of 19.0% from RMB 45,671,000 in the prior year[138] - The company reported total revenue of RMB 256,744,000 for the six months ended June 30, 2020, compared to RMB 197,963,000 for the same period in 2019, representing a year-over-year increase of approximately 29.5%[179] Revenue Sources - The revenue from the buyout television rights increased by RMB 126.0 million, while the revenue from self-produced television rights decreased by RMB 57.8 million[41] - The revenue from self-produced television rights licensing dropped by 95.0% to RMB 3.0 million for the six months ended June 30, 2020, compared to RMB 60.8 million for the same period in 2019[50] - The revenue from the buyout of television drama broadcasting rights increased by 98.7% from RMB 127.7 million for the six months ended June 30, 2019, to RMB 253.7 million for the six months ended June 30, 2020[57] - The revenue from satellite television first-run broadcasts accounted for approximately 75.0% of self-produced television rights revenue in 2019, but none in 2020 due to a strategic shift[47] - Revenue from the sale and licensing of self-produced TV dramas was RMB 3,024,000 for the six months ended June 30, 2020, a significant decrease from RMB 60,832,000 in the same period of 2019[179] - Revenue from the sale and licensing of purchased TV dramas increased to RMB 253,720,000 in the first half of 2020, up from RMB 127,673,000 in the same period of 2019, marking an increase of approximately 98.5%[179] Business Strategy and Development - The company successfully launched several popular TV dramas, including "I Am Waiting for You in Beijing" and "Ice Sugar Melts in Snow Pear," contributing to its revenue growth despite the COVID-19 pandemic[30] - Future business strategies include expanding self-produced TV drama rights and increasing the diversity of drama types and themes[31] - The company aims to enhance its market research and expand its script and intellectual property reserves in response to strengthened copyright protection in China[31] - The management expressed confidence in the future development of the business despite uncertainties caused by the COVID-19 pandemic[39] - The company aims to expand its buyout television rights licensing business to offset the impact of COVID-19 on its self-produced television business[36] - The company will collaborate closely with third-party copyright holders to acquire more buyout television rights to cater to diverse customer preferences[39] Costs and Expenses - The cost of sales increased by 30.8% from RMB 129.4 million for the six months ended June 30, 2019, to RMB 169.2 million for the six months ended June 30, 2020, mainly due to increased costs associated with purchasing broadcasting rights for dramas[62] - The gross margin slightly decreased from 34.6% for the six months ended June 30, 2019, to 34.1% for the six months ended June 30, 2020, primarily due to the absence of revenue from self-produced dramas[66] - The total sales cost for the six months ended June 30, 2020, was RMB 169.2 million, with costs for purchasing broadcasting rights accounting for approximately 67.8% of total sales costs[62] - Administrative expenses increased by 95.2% from RMB 15.5 million for the six months ended June 30, 2019, to RMB 30.2 million for the six months ended June 30, 2020, primarily due to an increase in impairment losses of RMB 14.6 million[72] - Sales and marketing expenses rose by 46.6% from RMB 0.3 million for the six months ended June 30, 2019, to RMB 0.5 million for the six months ended June 30, 2020, mainly due to an increase in the number of employees in the issuance department[70] Cash Flow and Assets - As of June 30, 2020, the company's cash and bank deposits amounted to RMB 196.5 million, an increase from RMB 89.7 million as of December 31, 2019[85] - The net current assets increased to RMB 531.8 million as of June 30, 2020, compared to RMB 319.1 million as of December 31, 2019, primarily due to an increase in prepayments and trade receivables[86] - The current ratio improved to approximately 1.9 as of June 30, 2020, up from approximately 1.6 as of December 31, 2019[87] - The cash and cash equivalents at the end of the period increased to RMB 183,782 thousand from RMB 21,918 thousand, indicating a substantial rise of approximately 736.5%[166] - The company's total assets amounted to RMB 1,139,707 thousand, an increase from RMB 835,346 thousand as of December 31, 2019, representing a growth of approximately 36.5%[141] - The company's total liabilities increased from RMB 516,210 thousand to RMB 607,951 thousand, an increase of about 17.7%[141] Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance as a key factor for sustainable development[106] - The audit committee has reviewed the interim results for the six months ended June 30, 2020, and confirmed compliance with applicable accounting standards[108] - The company maintained a public float of at least 25% of its total issued shares since its listing date, in compliance with listing rules[136] - The company has not purchased, sold, or redeemed any of its listed securities from the listing date to June 30, 2020[109] Future Plans and Utilization of Proceeds - The company plans to allocate 50.0% of the net proceeds (HKD 76.0 million) for producing self-made TV dramas, with a completion target by December 2023[115] - 37.5% of the net proceeds (HKD 57.0 million) is designated for acquiring third-party copyrights or broadcasting rights, also expected to be completed by December 2023[115] - The company has allocated 7.5% of the net proceeds (HKD 11.4 million) for hiring experienced professionals and providing employee training, with the same completion target[115] Impact of COVID-19 - The company continues to monitor the impact of the COVID-19 pandemic and adjust its business contingency plans accordingly[99] - The company has implemented emergency plans to adapt to potential disruptions in production due to COVID-19, including reassessing customer preferences and supplier readiness[36]