华美乐乐(08429) - 2024 - 中期财报

Company Information This section provides fundamental corporate details, including registration, board composition, and key administrative information Company Overview This chapter provides key company information including registration details, board members, committee compositions, auditor, registered office, and principal place of business - The company is an exempted limited company incorporated in the Cayman Islands, listed on GEM of HKEX, with stock code 8429[1][10] - Chairperson and CEO is Ms. Hu Chen Dezi; Audit, Remuneration, and Nomination Committees are established, with the Audit Committee fully composed of independent non-executive directors[3] Unaudited Interim Results This section presents the group's financial performance, position, cash flows, and equity changes for the interim period, along with detailed notes on revenue, other income, and dividends Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2024, group revenue surged 162% to HK$61.62 million, but a sharp rise in outsourced project costs led to a slight increase in loss for the period to HK$6.77 million, with loss per share at 1.39 HK cents 2024 H1 Key Profit or Loss Data | Indicator | For the six months ended June 30 (HK$ thousands) | | | :--- | :--- | :--- | | | 2024 (Unaudited) | 2023 (Unaudited) | | Revenue | 61,620 | 23,520 | | Outsourced project costs | (83,428) | (8,701) | | Loss before income tax | (6,715) | (6,222) | | Loss for the period | (6,770) | (6,296) | | Loss per share attributable to owners (HK cents) | (1.39) | (1.31) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, total group assets decreased to HK$62.77 million from HK$80.74 million at year-end 2023, with net assets falling to HK$46.77 million, reflecting the period's loss, and cash balances reduced to HK$13.57 million Key Balance Sheet Data | Indicator | As of June 30, 2024 (HK$ thousands) | As of December 31, 2023 (HK$ thousands) | | :--- | :--- | :--- | | Non-current assets | 40,309 | 37,567 | | Current assets | 22,465 | 43,177 | | Total assets | 62,774 | 80,744 | | Current liabilities | 14,510 | 27,154 | | Non-current liabilities | 1,497 | 146 | | Total liabilities | 15,007 | 27,300 | | Net assets | 46,767 | 53,444 | | Cash and bank balances | 13,570 | 20,514 | Condensed Consolidated Statement of Cash Flows In H1 2024, the group reported a net cash outflow from operating activities of HK$5.53 million, a significant increase from HK$0.17 million in the prior year, with total cash and cash equivalents decreasing by HK$7.05 million to an ending balance of HK$13.57 million Cash Flow Overview | Indicator | For the six months ended June 30 (HK$ thousands) | | | :--- | :--- | :--- | | | 2024 | 2023 | | Net cash used in operating activities | (5,525) | (165) | | Net cash used in investing activities | (166) | (6,476) | | Net cash used in financing activities | (1,361) | (1,539) | | Decrease in cash and cash equivalents | (7,052) | (8,180) | | Cash and cash equivalents at end of period | 13,570 | 8,560 | Condensed Consolidated Statement of Changes in Equity Total group equity decreased by approximately HK$6.68 million from HK$53.44 million at the beginning of the period to HK$46.77 million at the end, primarily due to the total comprehensive loss recorded during the period - As of June 30, 2024, total equity attributable to owners of the Company was HK$49.43 million, a decrease from HK$56.02 million at the beginning of the year, mainly due to a loss of HK$6.69 million recorded during the period[9] Notes to the Condensed Consolidated Financial Statements The notes detail the basis of preparation, accounting policies, and specific components of financial statement items, highlighting a surge in content media and experiential services revenue and a significant government grant of HK$30 million Revenue and Segment Information The group operates as a single operating segment with two service categories; "Content Media and Experiential Services" revenue soared 9.4 times year-on-year to HK$44.22 million, becoming the primary revenue source; while "Marketing Production" revenue declined 9.7% to HK$17.40 million, with Hong Kong contributing most revenue Revenue by Service Category | Service Category | For the six months ended June 30 (HK$ thousands) | | | :--- | :--- | :--- | | | 2024 | 2023 | | Marketing Production | 17,397 | 19,263 | | Content Media and Experiential Services | 44,223 | 4,257 | | Total | 61,620 | 23,520 | - Revenue from Hong Kong customers significantly increased to HK$60.95 million from HK$19.87 million in the prior year[15] Other Income and Gains Total other income and gains reached HK$34.93 million, significantly higher than HK$0.22 million in the prior year, primarily driven by a HK$30 million government grant and subsidies, along with HK$4.82 million in consulting fee income Other Income and Gains Details | Item | For the six months ended June 30 (HK$ thousands) | | | :--- | :--- | :--- | | | 2024 | 2023 | | Government grants and subsidies | 30,000 | — | | Consulting fee income | 4,822 | — | | Interest income | 41 | 131 | | Miscellaneous income | 63 | 86 | | Total | 34,926 | 217 | Dividends The Board does not recommend the payment of any dividend for the six months ended June 30, 2024 - Consistent with the prior year, the Board does not recommend an interim dividend[24] Management Discussion and Analysis This section reviews the group's operational performance, financial results, liquidity, and human resources for the interim period, outlining key achievements, challenges, and future strategies Business Review and Outlook In H1 2024, the group successfully hosted ComplexCon Hong Kong, significantly boosting content media and experiential business revenue, but the high costs led to a financial loss, while traditional marketing production faced challenges due to client budget constraints and a weak Hong Kong retail sector - Successful hosting of ComplexCon Hong Kong attracted over 30,000 participants, driving a 938.8% revenue growth in content media and experiential business, but high costs resulted in a group loss[35] - Marketing production services revenue decreased by 9.7% year-on-year due to factors like declining retail sales in Hong Kong and changing consumer preferences[36][40] - Future strategic focus includes enhancing immersive experiential services, exploring new growth opportunities in the Asia Pacific region, and targeting young affluent customers seeking content and experiential services[37][38][39] Financial Review Total group revenue grew 162% to HK$61.6 million, primarily driven by ComplexCon Hong Kong, which also caused outsourced project costs to surge 858.8% to HK$83.4 million, leading to an increased loss for the period of HK$6.8 million - Total revenue increased by 162.0% year-on-year to approximately HK$61.6 million, driven by a 938.8% growth in content media and experiential services revenue from ComplexCon Hong Kong[40] - Outsourced project costs dramatically increased by 858.8% year-on-year to approximately HK$83.4 million, primarily due to the ComplexCon Hong Kong event[41] - Loss for the period increased to approximately HK$6.8 million (H1 2023: HK$6.3 million), mainly due to costs incurred from content media and experiential business[48] Liquidity and Capital Structure The group's liquidity weakened, with net current assets decreasing to HK$8 million and cash and bank balances falling to HK$13.6 million, while the gearing ratio increased from 1.4% at year-end 2023 to 8.9% Liquidity and Capital Structure Indicators | Indicator | As of June 30, 2024 | As of December 31, 2023 | | :--- | :--- | :--- | | Net current assets | Approx. HK$8 million | HK$16 million | | Cash and bank balances | Approx. HK$13.6 million | HK$20.5 million | | Gearing ratio | Approx. 8.9% | 1.4% | Employees and Remuneration As of June 30, 2024, the group employed 34 full-time staff, a decrease from 38 at year-end 2023, with the company offering share option schemes, MPF, and discretionary bonuses to attract and retain talent - The total number of full-time employees decreased from 38 at year-end 2023 to 34 as of June 30, 2024[53] Disclosure of Interests and Other Information This section details the interests of directors and substantial shareholders, the share option scheme, and the company's corporate governance practices Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures of the Company and its Associated Corporations This chapter discloses the shareholdings of directors and substantial shareholders, with Chairperson and CEO Ms. Hu Chen Dezi holding 59.15% of the company's shares through her wholly-owned corporation, Explorer Vantage Limited, making her the controlling shareholder - As of June 30, 2024, Chairperson Ms. Hu Chen Dezi held 283,920,000 shares, representing 59.15% of the company's issued share capital, through her controlled corporation, Explorer Vantage Limited[58][59] Share Option Scheme The company adopted a share option scheme in November 2017, under which no share options have been granted since adoption, with a total of 48,000,000 shares, representing 10% of the issued share capital, available for grant - Since the adoption of the share option scheme in 2017, the company has not granted any share options[65] Corporate Governance Practices The company is committed to high corporate governance standards and complies with the GEM Listing Rules' Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO held by Ms. Hu Chen Dezi, which the Board believes provides strong and consistent leadership - The company deviates from the Corporate Governance Code's provision requiring separation of Chairman and Chief Executive roles, with Ms. Hu Chen Dezi holding both positions, which the Board believes provides strong and consistent leadership for the group[70] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements and is satisfied with their compliance and adequacy of disclosure[71]