Financial Performance - For the twelve months ended December 31, 2024, the company's revenue decreased by 86.9% to RMB 15.1 million from RMB 113.4 million in the same period of 2023[9]. - The gross profit for the same period was RMB 4.7 million, compared to a gross loss of RMB 67.7 million in 2023[10]. - The loss attributable to equity shareholders decreased by 72.3% to RMB 43.1 million from RMB 155.5 million in the previous year[10]. - Basic and diluted loss per share decreased by 73.1% to RMB 0.14 from RMB 0.52 in the same period of 2023[11]. - Total revenue decreased by approximately 86.7% from RMB 113.4 million in 2023 to RMB 15.1 million in 2024[20]. - The company reported a pre-tax loss of RMB 43,121,000 for the twelve months ending December 31, 2024, compared to a loss of RMB 155,458,000 for the same period in 2023, indicating a significant improvement[124]. - The total comprehensive loss attributable to equity shareholders for the year was RMB 43,272,000, compared to RMB 154,004,000 in 2023, reflecting a 71.9% decrease[89]. Revenue Breakdown - Revenue from self-produced drama licensing dropped by about 90.7% from RMB 69.1 million in 2023 to RMB 6.4 million in 2024, attributed to only 5 dramas being licensed in 2024[21]. - Revenue from purchased drama licensing fell by approximately 85.2% from RMB 36.1 million in 2023 to RMB 5.4 million in 2024, due to challenging market conditions[24]. - Revenue from joint financing arrangements decreased by about 59.1% from RMB 8.2 million in 2023 to RMB 3.4 million in 2024[26]. - The group reported revenue from self-produced TV drama distribution and broadcasting rights of RMB 6,409,000 for 2024, a significant decrease of 90.7% compared to RMB 69,133,000 in 2023[111]. - Revenue from purchased TV drama distribution and broadcasting rights was RMB 5,355,000 in 2024, down 85.2% from RMB 36,100,000 in 2023[111]. Cost and Expenses - Total cost of sales decreased by approximately 94.2% from RMB 181.1 million in 2023 to RMB 10.5 million in 2024[27]. - Sales and marketing expenses decreased by approximately 33.6% from RMB 23.79 million in 2023 to RMB 15.79 million in 2024, primarily due to reductions in promotional and other expenses[34]. - Administrative expenses decreased by approximately 5.8% from RMB 22.83 million in 2023 to RMB 21.52 million in 2024[37]. - Financing costs decreased by approximately 45.2% from RMB 18.68 million in 2023 to RMB 10.23 million in 2024, mainly due to a reduction in interest expenses on bank and other loans[38]. - The total cost of television drama rights was RMB 10,471,000 in 2024, down from RMB 107,256,000 in 2023, representing a decrease of approximately 90.2%[123]. Liquidity and Financial Position - Cash and cash equivalents increased from approximately RMB 4.5 million in 2023 to RMB 8.3 million in 2024[47]. - The company's current liabilities exceeded current assets by RMB 15,718,000 as of December 31, 2024, highlighting liquidity challenges[99]. - The company generated operating cash flow of RMB 11,133,000 in 2024, a significant decrease from RMB 64,062,000 in 2023[96]. - The company anticipates difficulties in meeting operational and financial needs in the next twelve months without sufficient cash flow from operations or other sources[99]. - The company has maintained a prudent treasury policy to ensure a healthy level of liquidity for the twelve months ending December 31, 2024[57]. Operational Developments - The company plans to continue enhancing its television drama production and distribution performance, expanding self-produced dramas and acquiring broadcasting rights[16]. - The company aims to increase its script and intellectual property reserves in response to strengthened IP protection management in China[16]. - The company issued a total of 12 television dramas during the twelve months ended December 31, 2024, compared to 9 dramas in the previous year[18]. - The company successfully licensed the first broadcasting rights for dramas such as "Shanghai Bund: Life and Death Duel" and "Tianjin Long Eagle" during the reporting period[19]. - The management has implemented measures to alleviate liquidity pressure, including accelerating the sale of TV dramas to broadcasting platforms[102]. Shareholder and Governance Matters - The board resolved not to declare an interim dividend for the twelve months ended December 31, 2024[12]. - The company has adopted and complied with all applicable corporate governance codes during the twelve months ending December 31, 2024[66]. - The company has not made any significant investments or major acquisitions or disposals of subsidiaries, associates, or joint ventures during the twelve months ending December 31, 2024[63]. - The company has not purchased, sold, or redeemed any of its listed securities from January 1, 2024, to the report date[70]. - The company currently has no foreign currency hedging policy and will continue to monitor foreign exchange risks[60]. Employee and Operational Metrics - As of December 31, 2024, the company has 38 employees, down from 48 employees as of December 31, 2023[62]. - The company reported other income of RMB 529,000, a recovery from a loss of RMB 81,000 in the previous year[89]. - The company reported a net loss of RMB 43,121,000 for the twelve months ending December 31, 2024, compared to a loss of RMB 155,458,000 in the previous year[95]. - The company's total equity attributable to shareholders was reported at RMB (10,396,000) as of December 31, 2024, down from RMB 32,876,000 in 2023[92]. - The company has not engaged in any major legal disputes or arbitrations since January 1, 2024[72].
力天影业(09958) - 2024 - 中期财报