超媒体控股(00072) - 2024 - 中期业绩

Financial Summary and Performance Announcement Financial Summary For the six months ended June 30, 2024, the company reported revenue of approximately RMB 160.6 million and a loss of RMB 14.0 million, a significant reduction from the RMB 21.6 million loss in the prior period, with no interim dividend recommended Key Financial Data for 2024 Interim Results | Metric | 2024 H1 (Unaudited) (RMB'000) | 2023 H1 (Unaudited) (RMB'000) | | :--- | :--- | :--- | | Revenue | 160,616 | 158,321 | | Loss for the period | (13,985) | (21,554) | | Basic and diluted loss per share | (0.0346) (RMB) | (0.0465) (RMB) | - The Board does not recommend an interim dividend for the six months ended June 30, 2024[1] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, the Group's revenue slightly increased by 1.5% year-on-year to RMB 161 million, with operating loss significantly narrowing from RMB 14.44 million to RMB 7.28 million due to effective administrative expense control and increased net other income, resulting in a 35.1% reduction in loss for the period to RMB 13.99 million Consolidated Statement of Profit or Loss for 2024 H1 | Item (RMB'000) | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 160,616 | 158,321 | | Gross Profit | 59,608 | 60,944 | | Operating Loss | (7,276) | (14,442) | | Loss before income tax | (13,383) | (20,503) | | Loss for the period | (13,985) | (21,554) | | Loss attributable to owners of the Company | (14,933) | (20,098) | - Net other income recorded RMB 7.20 million, primarily from RMB 8.19 million in termination of lease income, significantly improving the operating loss position[2][23] Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets decreased to RMB 603.1 million from RMB 677.5 million at the end of 2023, primarily due to a reduction in right-of-use assets, with total liabilities at approximately RMB 330.3 million and net assets at RMB 272.8 million, resulting in net current assets of RMB 17.4 million Summary of Statement of Financial Position | Item (RMB'000) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 282,746 | 330,161 | | Current Assets | 320,325 | 347,307 | | Total Assets | 603,071 | 677,468 | | Current Liabilities | 302,929 | 322,241 | | Non-current Liabilities | 27,325 | 70,888 | | Total Liabilities | 330,254 | 393,129 | | Net Assets | 272,817 | 284,339 | | Equity attributable to owners of the Company | 207,569 | 220,148 | Notes to the Condensed Consolidated Financial Statements General Information and Basis of Preparation The Company is incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with the Group primarily engaged in multimedia advertising, magazine printing and distribution, art trading, and restaurant operations, and the interim financial statements are prepared in accordance with International Accounting Standard 34 - The Group's principal activities include multimedia advertising services, magazine printing and distribution, advertising-related services, art trading and related services, and restaurant operations[7] - These condensed consolidated financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure provisions of the Listing Rules of the Stock Exchange[8] Revenue and Segment Reporting The Group's operations are divided into two reportable segments, 'Art Platform' and 'Digital Platform', with total revenue for the period at RMB 161 million, contributed by RMB 97.5 million from Art Platform and RMB 64.0 million from Digital Platform, where Digital Platform achieved profitability and adjusted EBITDA growth, while Art Platform's loss narrowed - The Group has two reportable segments: Art Platform, engaged in magazine distribution, advertising agency, art trading, art exhibitions, and restaurant operations; and Digital Platform, engaged in digital publishing, advertising agency, and customized content production for brand clients[10][11] Segment Revenue and Adjusted EBITDA (RMB'000) | Item | Art Platform | Digital Platform | Total | | :--- | :--- | :--- | :--- | | 2024 H1 Revenue | 97,497 | 63,969 | 161,466 | | 2023 H1 Revenue | 96,238 | 62,603 | 158,841 | | 2024 H1 Adjusted EBITDA | (7,249) | 15,744 | 8,495 | | 2023 H1 Adjusted EBITDA | (9,953) | 13,203 | 3,250 | Revenue by Service Type (RMB'000) | Service Type | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Advertising Revenue | 93,008 | 82,923 | | Production, Program, and Service Revenue | 59,806 | 70,282 | | Distribution and Subscription Revenue | 7,297 | 4,088 | | Restaurant Operation Revenue | 505 | 1,028 | Analysis of Key Profit or Loss Items During the period, other income decreased year-on-year to RMB 0.56 million due to reduced government grants and bank interest, while net other income was RMB 7.20 million, primarily from RMB 8.19 million in termination of lease income, with finance costs slightly increasing to RMB 5.97 million and income tax expense at RMB 0.60 million - Net other income was RMB 7.20 million, primarily attributable to RMB 8.19 million in termination of lease income, compared to a net loss of RMB 0.71 million in the prior period[23] - Finance costs increased from RMB 5.55 million in the prior period to RMB 5.97 million, mainly comprising interest on borrowings and finance costs on lease liabilities[24] - Income tax expense for the period was RMB 0.60 million, primarily withholding income tax on service income received from PRC subsidiaries[26][27] Analysis of Key Balance Sheet Items At the end of the reporting period, net trade receivables decreased to RMB 127 million from the beginning of the year, with trade payables at RMB 67.55 million, and secured bank borrowings of RMB 172 million collateralized by certain Group properties and bank deposits, while the Group breached a covenant of an interest-bearing borrowing during the period - Net trade receivables decreased from RMB 152 million at the beginning of the year to RMB 127 million, and the provision for expected credit losses decreased from RMB 4.22 million to RMB 3.03 million[32][34] - Secured bank borrowings amounted to RMB 172 million, collateralized by properties with a carrying value of approximately RMB 178 million and pledged bank deposits of RMB 30 million[38] - As of June 30, 2024, the Group had breached a covenant of an interest-bearing borrowing, allowing the bank to demand immediate repayment[38] Management Discussion and Analysis Performance Review In the first half of 2024, the Group's performance significantly improved, with adjusted EBITDA increasing by 161% year-on-year to RMB 8.5 million, reportable segment revenue growing by 2% to RMB 161 million, and loss narrowing by 39% to RMB 11.29 million, primarily due to innovative business model expansion and cost control measures Segment Performance Summary (RMB'000) | Item | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Reportable Segment Revenue | 161,466 | 158,841 | | Reportable Segment Loss | (11,286) | (18,510) | | Segment EBITDA | 8,495 | 3,250 | - Key drivers for performance improvement include continuous innovation and expansion of business models, and the implementation of a series of cost control measures[41] Business Review The Group is transforming from 'Modern Media' to 'Hypermedia Holdings' with a new strategy to 'reconstruct the future of business with art and technology', focusing on AI and AIGC, having launched the 'Meta Eye Festival' and established MC2, a research institution for art and technology integration, while Digital Platform's core business 'NOWNESS' saw 14% revenue growth, and Art Platform enhanced brand influence through diverse art events and exhibitions Overall Review and Strategy The Group officially rebranded as 'Hypermedia Holdings', marking a new development phase with a core strategy to 'reconstruct the future of business with art and technology', building an innovative content platform integrating PGC, UGC, and AIGC to seize AI opportunities, and successfully launched the inaugural 'Meta Eye Festival' and established MC2, a research institution focused on AI and future image production - The Group introduced a new strategy to 'reconstruct the future of business with art and technology', and began building an innovative content platform integrating Professional Generated Content (PGC), User Generated Content (UGC), and Artificial Intelligence Generated Content (AIGC)[44] - The Group launched the inaugural 'Meta Eye Festival' and established MC2, a research institution under its media arm, focusing on the integration of art and technology, particularly in artificial intelligence[45] Digital Platform Digital Platform revenue primarily derives from mature applications like 'iWeekly', 'InStyle iLady', 'Bloomberg Businessweek Chinese Edition', and 'NOWNESS', with 'NOWNESS' being the top performer, favored by global luxury brands for its creativity and quality, achieving a 14% year-on-year revenue increase and over 13 million cumulative downloads during the period - The core digital media platform 'NOWNESS' demonstrated strong performance, with revenue increasing by 14% year-on-year during the interim period[47] - The 'NOWNESS' application has accumulated over 13 million downloads and has successfully hosted five editions of the 'NOWNESS Talent Program', discovering emerging Chinese visual creators[47] Art Platform Art Platform enhances brand value through art marketing, integrating brands with art, having hosted various events during the period, including Dr. He Jianping's solo exhibition 'Thousands and Thousands' and the InStyle Women of TIMES Annual Gala, while continuously publishing the authoritative 'Art Review Power 100' list - Art Platform enhances brand influence by organizing diverse art events, such as Dr. He Jianping's solo exhibition, 'Modern Weekly's 'Sit A While Longer' urban exploration event, and the third InStyle Women of TIMES Annual Gala[49] - The Group continues to publish the 'Art Review Power 100' list from London-based Art Review magazine, an authoritative ranking of the most influential figures in the international contemporary art world[50] Business Outlook The Group's vision is to 'reconstruct the future of business with art and technology', aiming to become a leading global content empowerment company by transitioning to an 'ecosystem content provider' in the second half, with strategic plans including collaborations with the V&A Museum and Montgomery Group for art festivals and photo fairs, and the appointment of Dr. Lo Wing Yan as COO to drive international business - The Group's new vision is 'Beyond The Future', aiming to build a trans-boundary and trans-cultural media group and transition from a 'media platform' to an 'ecosystem content provider'[51] - Plans include strategic cooperation with the V&A Museum in London and hosting the second Hypermedia Art Festival (MMAF) in autumn 2024[51][52] - The Group will collaborate with Montgomery Group to host PHOTOFAIRS Shanghai and the inaugural PHOTOFAIRS Hong Kong in 2025[53][54] - Dr. Lo Wing Yan has been appointed Chief Operating Officer of the Group, responsible for international business, including managing the UK NOWNESS and Art Review platforms and developing collaborations with Montgomery Group in Japan, Singapore, and other regions[55] Liquidity and Financial Resources As of June 30, 2024, the Group's gearing ratio improved from 36% at the end of 2023 to 31%, with net cash inflow from operating activities of RMB 5.86 million and net cash outflow from investing activities of RMB 2.33 million during the period, and the Group's bank borrowings are secured by properties and pledged bank deposits - The gearing ratio improved from 36% at the end of 2023 to 31% as of June 30, 2024[59] Net Cash Flows (RMB'000) | Item | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | 5,864 | 13,678 | | Net Cash (Outflow)/Inflow from Investing Activities | (2,327) | 167 | - As of June 30, 2024, bank borrowings were secured by properties with a total carrying value of approximately RMB 178 million and pledged bank deposits of RMB 30 million[62] Other Significant Matters Dividend Policy To conserve financial resources for market challenges, the Board does not recommend any interim dividend for the 2024 interim period - The Board does not recommend an interim dividend to conserve financial resources for market challenges[58] Corporate Governance The Company is committed to maintaining high corporate governance standards and has complied with the Listing Rules' Corporate Governance Code, with the only deviation being the combined roles of Chairman and Chief Executive Officer held by founder Mr. Shao Zhong, which the Board believes facilitates business strategy execution and operational efficiency, balanced by independent board members - The Company complies with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are both held by Mr. Shao Zhong[66] - The Board believes that combining the roles of Chairman and Chief Executive Officer facilitates business strategy execution and operational efficiency, with the presence of three independent non-executive directors ensuring a balance of power[66] - The Audit Committee has reviewed these interim results and has no disagreement with the accounting treatments adopted by the Company[67]