欢喜传媒(01003) - 2024 - 中期财报

Financial Performance - Revenue and film investment (loss)/income for the period was HK$115,209,000, compared to HK$1,393,279,000 in the same period last year, with a net loss of HK$89,049,000 compared to a net profit of HK$400,769,000 in the previous year[9] - The Group faced fierce competition and lower-than-expected box office receipts for films released during the period, contributing to the net loss[10] - The Group's revenue and film investment (loss)/income for the six months ended 30 June 2024 was HK$115,209,000, a significant decrease from HK$1,393,279,000 in the same period last year, with a net loss of HK$89,049,000 compared to a net profit of HK$400,769,000 in 2023[12] - Loss per share for the six months ended 30 June 2024 was HK$0.02, compared to a profit per share of HK$0.11 in the same period last year, and net asset value per share was HK$0.36, down from HK$0.40 at the end of 2023[11][12] - Revenue and film investment income, net for the six months ended 30 June 2024 was HK$115.209 million, a significant decrease from HK$1,393.279 million in the same period in 2023[62] - Gross loss for the six months ended 30 June 2024 was HK$70.346 million, compared to a gross profit of HK$1,113.160 million in the same period in 2023[62] - Operating loss for the six months ended 30 June 2024 was HK$90.282 million, compared to an operating profit of HK$460.568 million in the same period in 2023[62] - Loss before tax for the six months ended 30 June 2024 was HK$89.104 million, compared to a profit before tax of HK$457.442 million in the same period in 2023[62] - Loss for the period attributable to owners of the company was HK$89.049 million, compared to a profit of HK$400.769 million in the same period in 2023[62] - Total comprehensive loss for the period was HK$122,209 thousand, compared to a total comprehensive income of HK$331,029 thousand in the same period last year[63] - Loss per share for the period was HK$0.02, compared to a profit per share of HK$0.11 in the same period last year[63] - The company reported a loss attributable to owners of HK$89,049,000 for the six months ended 30 June 2024, compared to a profit of HK$400,769,000 in the same period in 2023[102] - Basic loss per share was HK$0.02, compared to a profit of HK$0.11 per share in the previous year[103] - The company's total comprehensive loss for the six months ended 30 June 2024 was HK$122,209,000, primarily due to a loss for the period of HK$89,049,000 and other comprehensive loss of HK$33,160,000[132] Film Releases and Investments - The Group released two films during the period: *The Movie Emperor* and *Strangers When We Meet*, and completed post-production on several others, including *She's Got No Name*, *Li Na*, *The Stage*, *Unspoken*, and *The Mountain*[6] - The Group invested in films such as *Deep In The Mountains*, *Caught by the Tides*, and *Intercross*, aiming to cater to diverse audience preferences[6] - Blockbusters like *She's Got No Name*, *Li Na*, and *The Stage* are expected to debut later, potentially improving future revenue and results[10] - The Group plans to release several major films, including "The Murderer" directed by Chen Kaige, "The Last Race" directed by Peter Chan, and "The Stage" directed by Chen Peisi, expected to contribute to future revenue and improve performance[12] - The Group released two films during the summer holiday: "Evacuate from the 21st Century" and "The Hedgehog," with several more films planned for release in the second half of 2024 and the first half of 2025[28] - The Group plans to collaborate with top Chinese directors, including Zhang Yimou, following the success of "Full River Red," to create more films with high artistic and commercial value[29] - The total production costs for the film "The Movie Emperor" (formerly "Red Carpet") amounted to RMB 260,789,360 (approximately HK$ 281,012,000), with director Mr. Ning receiving a fee of HK$30,000,000 included in these costs[139][140] - The Group invested RMB 12,000,000 for 10$ 1,065,000 from Shanghai Dirty Monkey was fully received during the reporting period[142] Online Video Platform - The online video platform "huanxi.com" featured international films and TV shows, including Mandibules, Between Two Worlds, Contra, and All Creatures Great And Small – Season 3[7] - The Group continues to focus on global content acquisition for its online platform, enhancing its competitive edge[7] - The Group will continue to optimize its online video platform "huanxi.com" by adding more outstanding films and internet dramas, including international award-winning productions[31] Content Strategy and Industry Recovery - The Group maintained a strong content reserve to prepare for the recovery of the film and TV industry[5] - The Group's strategy includes adjusting film release timing and investing in diverse productions to meet market demands[5] - The Group aims to strengthen its core competitiveness by deploying its "Content is King" strategy, collaborating with outstanding directors and professional production teams to create diverse, high-quality film and television productions[32] Financial Position and Assets - The Group's net current assets as of 30 June 2024 were HK$628,465,000, down from HK$735,495,000 at the end of 2023, with cash and cash equivalents decreasing to HK$102,223,000 from HK$310,146,000[13] - The Group's current ratio as of 30 June 2024 was approximately 1.85, slightly lower than 1.95 at the end of 2023, with total equity of HK$1,331,359,000, down from HK$1,453,568,000 at the end of 2023[13] - The Group had no borrowings as of 30 June 2024, with a gearing ratio of Nil, unchanged from the end of 2023[13] - Total assets decreased to HK$2,066,791 thousand as of 30 June 2024, down from HK$2,234,243 thousand as of 31 December 2023[65] - Total equity decreased to HK$1,331,359 thousand as of 30 June 2024, down from HK$1,453,568 thousand as of 31 December 2023[66] - Film and TV programmes rights decreased to HK$1,025,765 thousand as of 30 June 2024, down from HK$1,039,970 thousand as of 31 December 2023[65] - Cash and cash equivalents decreased to HK$102,223 thousand as of 30 June 2024, down from HK$310,146 thousand as of 31 December 2023[65] - Reserves decreased to HK$1,294,794 thousand as of 30 June 2024, down from HK$1,417,003 thousand as of 31 December 2023[66] - Film investment funds from investors decreased to HK$523,714 thousand as of 30 June 2024, down from HK$535,195 thousand as of 31 December 2023[66] - Film rights investments fair value at 30 June 2024 was HK$138,913 thousand, a decrease from HK$193,673 thousand at 31 December 2023[79] - Level 3 financial instruments closing balance at 30 June 2024 was HK$137,993 thousand, down from HK$192,731 thousand at 31 December 2023[85] - Additions to Level 3 financial instruments for the six months ended 30 June 2024 were HK$24,451 thousand, compared to HK$77,220 thousand in 2023[85] - Changes in fair values of Level 3 financial instruments for the six months ended 30 June 2024 were a loss of HK$4,544 thousand, compared to a loss of HK$79,343 thousand in 2023[85] - Derecognition or settlement of Level 3 financial instruments for the six months ended 30 June 2024 was HK$70,551 thousand, compared to HK$42,240 thousand in 2023[85] - Prepayments for film and TV programmes rights under development decreased to HK$378,433,000 from HK$387,152,000[114] - Completed film and TV programmes rights increased to HK$822,355,000 from HK$566,362,000[116] - Film and TV programmes rights under production decreased to HK$296,528,000 from HK$495,008,000[116] - Film rights investments (financial assets at FVTPL) decreased to HK$138,913,000 from HK$193,673,000[116] - Licensed film and TV programmes rights decreased to HK$66,590,000 from HK$79,908,000[116] - Trade receivables increased significantly to HK$148,763,000 from HK$24,554,000[119] - Other receivables decreased to HK$73,871,000 from HK$86,168,000[119] - Trade payables decreased to HK$107,666,000 from HK$110,002,000[125] - Other payables decreased to HK$47,260,000 from HK$50,988,000[125] - Accruals decreased significantly to HK$1,608,000 from HK$13,787,000[125] - Commitments for the acquisition and production of film and TV program rights as of 30 June 2024 were HK$172,720,000, a decrease from HK$284,915,000 as of 31 December 2023[136] - The company's share capital remained unchanged at HK$500,000,000 authorized and HK$36,565,000 issued and fully paid as of 30 June 2024[131] Cash Flow and Liquidity - Net cash used in operating activities for the six months ended 30 June 2024 was HK$197,296 thousand, compared to HK$164,873 thousand generated in the same period in 2023[68] - Cash and cash equivalents decreased by HK$203,199 thousand to HK$102,223 thousand at the end of the period, down from HK$310,146 thousand at the beginning[68] - The company's cash flow, cash on hand, and assets are mainly denominated in Hong Kong dollars and Renminbi, with foreign currencies needed for investments and cooperation with Mainland China and overseas film companies[14][17] Shareholding and Directors - Mr. Dong Ping holds 1,474,334,354 shares, representing 40.32$ 7,636,000, a decrease from HK$15,914,000 in the same period of 2023[144] - Employee benefit expenses (excluding Directors' remuneration) decreased to HK$21,854,000 from HK$23,690,000 year-over-year[95] Investments and Expansion - The Group is seeking investment opportunities in media and entertainment-related businesses to expand income sources and prospects[21] - The Group is actively seeking investment opportunities, particularly in media and entertainment-related businesses, to diversify revenue streams and enhance future prospects[25] Financial Instruments and Risks - The company adopted a new share option scheme on 25 June 2024, with 365,647,236 options available for grant and a service provider sublimit of 36,564,723 options as of 30 June 2024[52] - No options were granted, exercised, or cancelled under the 2014 Share Option Scheme during the period ended 30 June 2024, and the scheme expired on 17 June 2024[52] - The company had no outstanding share options as of 30 June 2024, with all previously granted options under the 2014 Share Option Scheme having lapsed[52] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended 30 June 2024[54] - There were no material events after the reporting period[55] - The company has adopted new or revised HKFRS standards effective from 1 January 2024, with no material impact on the financial information[71] - Management's significant judgements and estimates in preparing the interim financial information were consistent with those applied in the 2023 annual financial statements[74] - The company is exposed to financial risks including market risk (foreign exchange and interest rate), credit risk, and liquidity risk, with no changes in risk management policies since 31 December 2023[75] Box Office and Licensing Revenue - The Group's box office performance in the previous year, including the success of *Full River Red*, contributed to a net profit of HK$400,769,000[10] - Share of box office income for the six months ended 30 June 2024 was HK$63,374 thousand, a significant decrease from HK$1,317,186 thousand in the same period in 2023[87] - Sub-licensing of film and TV programmes rights revenue for the six months ended 30 June 2024 was HK$52,489 thousand, down from HK$66,521 thousand in 2023[87] - Other media related revenue for the six months ended 30 June 2024 was HK$3,890 thousand, compared to HK$9,295 thousand in 2023[87] - Film investment loss for the six months ended 30 June 2024 was HK$4,544 thousand, compared to a profit of HK$277 thousand in 2023[87] - Total revenue for the six months ended 30 June 2024 was HK$119,753 thousand, a significant decrease from HK$1,393,002 thousand in 2023[87] Expenses and Costs - Advertising and marketing expenses significantly reduced to HK$153,391,000 from HK$325,270,000 in the previous year[95] - Amortisation of film and TV programmes rights decreased to HK$185,555,000 from HK$280,119,000 year-over-year[95] - Total cost of revenue, selling and distribution costs, and administrative expenses decreased to HK$393,018,000 from HK$668,712,000[95] - Additions to property, plant and equipment were HK$19,000, down from HK$37,000 in the same period in 2023[108] - Depreciation of right-of-use assets was HK$6,666,000, slightly up from HK$6,484,000 in the previous year[109] Other Financial Information - The company recognized a gain on film investment funds from investors of approximately HK$185,554