Box Office Performance - Huanxi Media Group's film "Full River Red" achieved total box office receipts of over RMB 4.5 billion, making it the highest-grossing Chinese film of 2023[13]. - The total box office receipts for films in the PRC exceeded RMB 53 billion in 2023, reflecting an increase of over 80% compared to the previous year[14]. - The film "Full River Red," produced by the Group, achieved total box office receipts of RMB 4.54 billion, becoming the highest-grossing suspense film in Chinese film history and topping the 2023 box office charts[33]. - The film "Dying to Survive," co-produced by Mr. Ning, earned RMB 3.1 billion in box office receipts[46]. - The film "Breakup Buddies," directed by Mr. Ning, grossed RMB 1.17 billion in box office receipts, making it the highest-grossing domestic Chinese movie of the year in 2014[46]. - The film "The Island," directed and starred by Huang Bo, earned over RMB 1.35 billion in box office receipts in 2018[79]. - The film "Dying to Survive" co-produced by Xu Zheng earned RMB 3.1 billion in box office receipts in 2018, winning multiple awards including Best Leading Actor and Best New Director at the 55th Taiwan Golden Horse Awards[71]. - The film "Crazy Alien," directed by Mr. Ning, generated revenue of RMB 700 million for the Group in 2019, with a guaranteed minimum distribution amount of RMB 2.8 billion[46]. Film Production and Strategy - The Group has completed post-production for several major films, including "Papa" and "Anita," which are expected to attract significant audience interest[20]. - The Group is actively preparing and completing post-productions of several popular films, including "Li Na" and "Call Me Crazy," which are expected to appeal to diverse audience preferences[36]. - The Group plans to invest in and produce films with various themes and styles, including "The Hedgehog" and "Evacuate From The 21st Century," to meet audience demands[41]. - The Group's strategy emphasizes "Content is King," focusing on collaboration with top directors to produce high-quality original content, ensuring reliable box office returns[40]. - The Group aims to further expand its film portfolio by collaborating with renowned directors, ensuring a steady stream of engaging content for audiences[40]. - The Group will continue to implement the "content is king" strategy, focusing on collaborations with top Chinese directors to accelerate the release of high-quality content[42]. - The Group is actively developing and producing multiple high-quality films with top directors in China, including projects by Chen Kaige and Chen Peisi[84]. - The Group plans to release multiple films in 2024 and Q1 2025, including "The Murderer" and "Li Na," which are expected to attract considerable audience interest[62]. Financial Performance - For the year ended 31 December 2023, the Group recorded a revenue increase to HK1,332,794,000,asharpincreaseofapproximately97timescomparedtoHK13,630,000 in 2022[83]. - The Group achieved a turnaround from a loss to a profit, reporting a profit before tax of HK212,085,000,comparedtoalossbeforetaxofHK223,272,000 in 2022[88]. - The net profit for the year was HK159,135,000,recoveringfromanetlossofHK221,812,000 in 2022[88]. - The Group expects a decrease in revenue from film and TV programme rights in Q1 2024, with an impairment loss of HK106,196,000recognizedfor2023[88].−TheprofitpersharefortheGroupamountedtoHK0.04, compared to a loss per share of HK0.06in2022[110].−ThenetassetvaluepershareattributabletoownersoftheCompanywasHK0.40, up from HK0.36in2022[110].OnlineVideoPlatformDevelopment−Theonlinevideoplatform"huanxi.com"hasbeenoptimizedtoprovidediversefilmandTVexperiences,withplansforcontinuedhigh−profileproductions[21].−TheGroupcontinuestooptimizeitsonlinevideoplatform"huanxi.com,"enhancingthecontentecosystemandattractingawideruserbasethroughcollaborationswithmajorInternetandentertainmentcompanies[25].−Theonlinevideoplatform"HuanxiPremier"continuestodevelopbyoptimizingcontentecologyandattractingabroaderuserbasethroughcollaborationswithmajorinternetandentertainmentcompanies[66].−Thecontentadvantageof"huanxi.com"isexpectedtoattractawideruserbaseandexpandrevenuestreamsthroughallianceswithmajorchannels[86].MarketTrendsandRecovery−Thefilmmarketisexperiencingastrongrecoveryfollowingtheliftingofanti−epidemicpolicies,withacontinuousreleaseofqualityfilms[14].−TheCentralGovernmenthasdeclared2024asthe"YearofConsumptionPromotion,"aimingtoboostconsumerdemandpost−epidemic,withafocusonculturalandentertainmentconsumption[23].−Duringthe2024ChineseNewYearholiday,thenumberofmoviegoersreached160million,andboxofficereceiptstotaledRMB8billion,markingincreasesof26.4735,495,000, an increase from HK654,367,000in2022,withcashandcashequivalentsrisingtoHK310,146,000 from HK53,634,000[91].−Thecurrentratioimprovedtoapproximately1.95in2023,comparedto1.77in2022,indicatingbettershort−termfinancialhealth[91].−TotalequityincreasedtoHK1,453,568,000 in 2023 from HK1,328,436,000in2022,withnoborrowingsreportedin2023,downfromHK108,267,000 in 2022[91]. - The Group's gearing ratio was Nil as of December 31, 2023, compared to 0.08 in 2022, reflecting a stronger capital structure[91].
