Online Video Platform Performance - The Group's online video platform "huanxi.com" has been downloaded over 35 million times and has accumulated over 10 million fee-paying subscribers[8]. - The Group's box office income was affected by the pandemic, but there was a shift in audience preference towards streaming movies online, benefiting the online video platform[3]. - The Group has strengthened cooperation with major channel partners, enhancing its influence in online video media through various applets on platforms like Kuaishou and Douyin[8]. - The Group is actively developing the "huanxi.com" online video platform to capitalize on the growing online viewing trend[47]. - The Group plans to collaborate with leading internet and entertainment companies to expand distribution channels for "huanxi.com" content[47]. Financial Performance - The Group recorded revenue and film investment income of HK$151,726,000, a decrease from HK$492,065,000 in the same period last year, resulting in a net loss of HK$97,206,000 compared to a profit of HK$20,331,000 in the previous year[15][18]. - The total revenue for the Group for the six months ended June 30, 2021, was HK$151,726,000, down from HK$492,065,000 in 2020, reflecting a decline of 69.1%[115]. - The Group's loss per share for the six months ended June 30, 2021, was HK$0.03, compared to earnings per share of HK$0.01 in the same period last year[16][18]. - The total comprehensive loss for the period was HK$85,826,000, compared to a loss of HK$3,873,000 in the same period last year, indicating a significant decline in performance[89]. - The segment loss before tax for continuing operations was HK$97,206,000, compared to a profit of HK$38,787,000 in the previous year[121]. Revenue Sources - During the Period, the Group recorded other media-related revenue of HK$71,856,000, which increased over four times compared to HK$14,297,000 in the corresponding period of last year[8]. - For the six months ended June 30, 2021, the Group's revenue from sub-licensing of film and TV programmes rights was HK$62,990,000, a decrease of 86.8% from HK$477,693,000 in 2020[115]. - The share of box office income increased significantly to HK$1,678,000 from HK$75,000 in the previous year[115]. - Other media-related revenue was HK$71,856,000, compared to HK$14,297,000 in 2020, marking a growth of 403.5%[115]. - The net film investment income for the period was HK$15,202,000, a recovery from a loss of HK$492,065,000 in the same period last year[115]. Strategic Initiatives - The Group entered a three-year cooperation agreement with Shanghai Hanna Pictures for joint investment in quality film and TV productions, with the first project being the film "Papa" starring Huang Bo[5]. - The Group plans to gradually release blockbusters such as "Li Na," "Papa," "The Mountain," and "Leaping Over The Dragon Gate," which are expected to contribute to revenue improvement[15][18]. - The Group is focusing on producing high-quality original films and TV works to secure a stable supply of remarkable content[47]. - The Group emphasizes the importance of content and aims to cultivate high-quality and diversified film content through collaborations with outstanding directors[43]. - The Group is currently working on several films in production, including "Evacuate from the 21st Century" and "Unspoken," expected to be released next year[48]. Financial Position - As of June 30, 2021, the Group had net current assets of HK$1,042,107,000, an increase from HK$730,619,000 at the end of 2020[17][19]. - Cash and cash equivalents rose to HK$252,372,000 from HK$142,140,000 at the end of 2020[17][19]. - The total equity of the Company increased to HK$1,780,056,000 from HK$1,446,433,000 at the end of 2020[17][19]. - Total borrowings increased to HK$116,489,000 from HK$50,036,000 at the end of 2020, resulting in a gearing ratio of 0.06 compared to 0.03 previously[17][19]. - The total assets increased to HK$2,232,986,000 as of June 30, 2021, up from HK$1,745,611,000 at the end of 2020, reflecting a growth of approximately 27.9%[91]. Shareholder Information - As of June 30, 2021, the total number of ordinary shares issued was 3,676,812,362, an increase from 3,472,732,362 shares as of December 31, 2020[20]. - The Company has pledged contract assets and other receivables totaling approximately HK$78,240,000 to secure borrowings of approximately HK$66,050,000 as of June 30, 2021[27]. - The Group's cash flow and assets are mainly denominated in Hong Kong dollars and Renminbi, with a focus on minimizing foreign exchange risks[24]. - The Group has no significant contingent liabilities as of June 30, 2021[30]. - The Group's financial risk management policies have remained unchanged since December 31, 2020, addressing market risk, credit risk, and liquidity risk[109]. Employee and Management Information - The Group employed 96 employees as of June 30, 2021, down from 101 employees as of December 31, 2020[40]. - Employee benefit expenses increased to HK$25,248,000 for the six months ended June 30, 2021, from HK$21,366,000 in 2020, reflecting a rise of approximately 18.0%[130]. - The remuneration for key management personnel increased from HK$6,864,000 in 2020 to HK$7,115,000 in 2021, reflecting a growth of approximately 3.7%[197]. - Short-term benefits for directors and key executives rose to HK$7,124,000 in 2021 from HK$6,873,000 in 2020, indicating an increase of about 3.6%[197]. - The remuneration committee determines the compensation of directors based on individual performance and market trends[199]. Share Options and Capital Structure - The total number of share options outstanding as of June 30, 2021, was 130,700,000, representing approximately 3.55% of the total issued shares[81]. - The share option scheme was adopted and approved by shareholders at the annual general meeting held on June 17, 2014[77]. - The maximum number of shares that can be granted under the share option scheme is limited to 10% of the issued share capital at the time of approval[182]. - The exercise price for options granted was HK$2.08, with a risk-free interest rate of 1.91%[184]. - The Group's share premium increased to HK$3,541,960,000 as of June 30, 2021, compared to HK$3,102,745,000 at the beginning of the year[170].
欢喜传媒(01003) - 2021 - 中期财报