欢喜传媒(01003) - 2025 - 中期业绩

Interim Results Announcement Unaudited Condensed Consolidated Interim Financial Information The Group released its unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, reporting a net loss of HK$102.232 million and deteriorating liquidity Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group's revenue and film investment income increased, but gross loss and net loss expanded, leading to a basic and diluted loss per share of HK$0.03 | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue and film investment income/(loss), net | 179,940 | 115,209 | | Cost of revenue | (197,507) | (185,555) | | Gross loss | (17,567) | (70,346) | | Operating loss | (100,664) | (90,282) | | Loss for the period | (102,232) | (89,049) | | Total comprehensive loss attributable to owners of the Company | (70,037) | (122,209) | | Basic and diluted loss per share (HK$) | (0.03) | (0.02) | Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets and equity decreased, primarily due to reductions in current film and TV copyrights and cash equivalents, with non-current borrowings reclassified as current liabilities | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Total assets | 1,846,116 | 1,948,156 | | Total equity | 1,084,378 | 1,154,415 | | Total liabilities | 761,738 | 793,741 | | Current assets | 1,089,298 | 1,201,323 | | Current liabilities | 725,079 | 727,361 | | Cash and cash equivalents | 35,741 | 144,987 | | Film and television series copyrights (current) | 783,955 | 928,241 | | Borrowings (current) | 29,544 | – | | Borrowings (non-current) | – | 42,440 | Notes to the Unaudited Condensed Consolidated Interim Financial Information This section details the basis of preparation, accounting policies, critical judgments, and estimates, along with specific notes on revenue, expenses, tax, loss per share, copyrights, receivables, payables, and borrowings Basis of Preparation Interim financial information is prepared in accordance with HKAS 34 and Listing Rules Appendix D2, consistent with prior year accounting policies, primarily based on historical cost - Interim financial information is prepared in accordance with HKAS 34 and Listing Rules Appendix D2, and should be read in conjunction with the annual report[8] - Accounting policies are consistent with prior years, except for the adoption of new and revised standards, and are primarily prepared on a historical cost basis[8] Accounting Policies The Group adopted new or revised HKFRSs effective January 1, 2025, with no significant impact on interim financial information or accounting policies - The Group adopted new or revised Hong Kong Financial Reporting Standards effective January 1, 2025[9] - The adoption of new standards has no significant impact on the interim financial information and accounting policies, and management expects no significant impact from other future adoptions[9] Critical Judgements and Estimates Significant judgments and sources of estimation uncertainty in preparing interim financial information are consistent with those applied in the 2024 annual consolidated financial statements - Significant judgments and sources of estimation uncertainty in preparing interim financial information are consistent with those applied in the 2024 annual consolidated financial statements[10] Revenue and Film Investment Income/(Loss), Net For the six months ended June 30, 2025, the Group's net revenue and film investment income significantly increased to HK$179.94 million, driven by a substantial rise in shared box office revenue | Revenue Category | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Shared box office revenue | 144,518 | 63,374 | | Sub-licensing of film and television series copyrights | 30,926 | 52,489 | | Other media-related revenue | 1,219 | 3,890 | | Film investment income/(loss), net | 3,277 | (4,544) | | Total | 179,940 | 115,209 | - Shared box office revenue increased significantly year-on-year from HK$63,374,000 to HK$144,518,000[11] - Film investment income turned from a loss in the prior period to a net profit of HK$3,277,000[11] Segment Information The Group's operating business is classified under a single reportable segment: film and television series copyright investment, with revenue and non-current assets primarily from China - The Group's operating business is classified under a single reportable segment: film and television series copyright investment[12] - The Group's revenue and film investment income/(loss), net, primarily derive from customers in China, and non-current assets are mainly located in China[12] Other (Losses)/Gains, Net For the six months ended June 30, 2025, the Group recorded a net exchange loss of HK$0.8 million, a reversal from a net exchange gain of HK$1.922 million in the prior period | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net exchange (losses)/gains | (800) | 1,922 | Expenses by Nature For the six months ended June 30, 2025, total expenses significantly decreased to HK$304.619 million, primarily due to a substantial reduction in advertising and marketing expenses | Expense Category | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Employee benefit expenses (excluding directors' emoluments) | 24,090 | 21,854 | | Advertising and marketing expenses | 54,298 | 153,391 | | Amortisation of film and television series copyrights | 197,507 | 185,555 | | Total | 304,619 | 393,018 | - Advertising and marketing expenses decreased significantly from HK$153,391,000 to HK$54,298,000[13] Income Tax Expense/(Credit) For the six months ended June 30, 2025, the Group recorded an income tax expense of HK$1.203 million, compared to a credit of HK$0.055 million in the prior period, mainly due to increased current tax - PRC subsidiaries are subject to a 25% corporate income tax rate, while foreign entities are subject to a 7% withholding tax on PRC-sourced income (compared to 10% in the prior period)[14] | Tax Category | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax | 1,129 | – | | Deferred income tax | 74 | (55) | | Income tax expense/(credit) | 1,203 | (55) | Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[15] Loss Per Share For the six months ended June 30, 2025, basic loss per share attributable to owners expanded to HK$0.03, with diluted loss per share remaining the same due to no potential dilutive ordinary shares | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss attributable to owners of the Company (HK$ thousand) | (102,232) | (89,049) | | Weighted average number of ordinary shares (thousand shares) | 3,656,472 | 3,656,472 | | Basic loss per share (HK$) | (0.03) | (0.02) | - For the six months ended June 30, 2025, basic loss per share expanded to HK$0.03[17] - Diluted loss per share is the same as basic loss per share due to no potential dilutive ordinary shares in issue[17] Film and Television Series Copyright Prepayments As of June 30, 2025, non-current film and TV copyright prepayments slightly increased to HK$360.529 million, primarily for uncompleted projects | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Prepayments for film and television series copyrights under development | 360,529 | 359,588 | - Prepayments primarily relate to advances made by the Group to various parties for uncompleted film and television series copyright projects, which will form part of the Group's investment in proposed projects[18] Film and Television Series Copyrights As of June 30, 2025, total film and TV copyrights decreased to HK$1,141.864 million, mainly due to a reduction in completed copyrights, despite an increase in copyrights under production | Copyright Category | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Completed film and television series copyrights | 760,910 | 930,087 | | Film and television series copyrights under production | 201,167 | 154,053 | | Film copyright investments (financial assets at fair value through profit or loss) | 147,662 | 143,181 | | Licensed film and television series copyrights | 32,125 | 48,334 | | Total | 1,141,864 | 1,275,655 | - Completed film and television series copyrights decreased, while copyrights under production increased[19] - Film copyright investments represent the Group's investments in film productions, entitling it to a pre-determined percentage of future film revenues[19] Trade and Other Receivables, Deposits and Prepayments As of June 30, 2025, total trade and other receivables, deposits, and prepayments increased to HK$137.861 million, primarily due to higher other receivables, with trade receivables typically having a 30-day credit term | Category | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 43,967 | 42,403 | | Deposits | 4,485 | 5,169 | | Prepayments | 18,456 | 14,646 | | Other receivables (net of loss allowance) | 93,894 | 78,138 | | Total | 137,861 | 120,541 | - The aging analysis of trade receivables shows a high proportion of amounts over 365 days, totaling HK$39,780,000[21] - Other receivables include a loan receivable of approximately HK$13,161,000, bearing interest at an annual rate of 6%[23] Trade and Other Payables As of June 30, 2025, total trade and other payables decreased to HK$113.966 million, primarily driven by a significant reduction in other payables | Category | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 89,200 | 96,183 | | Other payables | 23,211 | 61,899 | | Accrued expenses | 1,555 | 1,592 | | Total | 113,966 | 159,674 | - The aging analysis of trade payables indicates that amounts over 365 days constitute the vast majority, at HK$87,613,000[25] Film Investment Funds from Investors For the six months ended June 30, 2025, the Group recognized film investment income from investors of HK$23.528 million, a significant decrease from the prior period, reflecting reduced investor-borne losses - Film investment income from investors was HK$23,528,000, a significant decrease from HK$185,554,000 in the prior period[26] - The decrease in income is due to the net proceeds investors are entitled to under relevant investment agreements being less than the film investment funds contributed by investors[26] Borrowings As of June 30, 2025, the Group's total unsecured borrowings decreased to HK$29.544 million, reclassified entirely as current liabilities due March 27, 2026 | Category | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Unsecured borrowings | 29,544 | 42,440 | | Presented as: Non-current liabilities | – | 42,440 | | Presented as: Current liabilities | 29,544 | – | - All borrowings have been reclassified as current liabilities, bear interest at an annual rate of 4.35%, and are repayable by March 27, 2026[27] Events After the Reporting Period_Note Subsequent to the reporting period, Mr. Dong Ping resigned as Executive Director and Chairman, and Ms. Hu Hui was appointed Executive Director, both effective July 27, 2025 - Mr. Dong Ping resigned as an Executive Director and Chairman of the Company, effective July 27, 2025[28] - Ms. Hu Hui was appointed as an Executive Director, effective July 27, 2025[28] Business and Operations Review The Group reviewed H1 2025, noting a persistent sluggish Chinese film market with weaker-than-expected recovery, yet it strategically adjusted film releases, maintained content reserves, and launched notable films like 'Caught in the Web' and 'The Stage' - The Chinese film market remains in an adjustment period, characterized by persistent sluggishness, high vacancy rates during off-peak hours, and weaker-than-expected market recovery[29] - The Group launched the drama film "Caught in the Web" (directed by Peter Chan, starring Zhang Ziyi and Lei Jiayin) during the period, which became a hot topic for the summer box office[29] - The Group actively prepared and completed post-production or obtained public release permits for several films, including "Alone on Stage" and "In the Name of the Father"[30] - The online video platform "Huanxi Premiere" continued to enrich its content, introducing several international films such as "Cotton Tail," "The Little Gang," and "Eiffel"[31] Financial Review The Group reported increased revenue but expanded net loss due to a weak film market and underperforming box office, with reduced sales and distribution costs, and deteriorating liquidity metrics Performance Review During the period, the Group's net revenue and film investment income grew to HK$179.94 million, but net loss expanded to HK$102.232 million, primarily due to a weak film market and lower-than-expected box office performance | Indicator | Six Months Ended June 30, 2025 (HK$ thousand) | Six Months Ended June 30, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue and film investment income/(loss), net | 179,940 | 115,209 | | Net loss | (102,232) | (89,049) | | Sales and distribution costs | 54,298 | 153,391 | | Loss per share (HK$) | 0.03 | 0.02 | | Net asset value per share (HK$) | 0.30 (2025.06.30) | 0.32 (2024.12.31) | - The box office performance of films released during the period fell short of expectations, leading to the Group recording a loss[32] - The decrease in sales and distribution costs was primarily due to reduced film distribution activities[33] Liquidity and Financial Resources As of June 30, 2025, the Group's net current assets, cash and cash equivalents decreased, and the current ratio declined from 1.65 to 1.50, indicating tighter liquidity, while total borrowings decreased | Indicator | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | Net current assets | 364,219 | 473,962 | | Cash and cash equivalents | 35,741 | 144,987 | | Current ratio | 1.50 | 1.65 | | Total equity | 1,084,378 | 1,154,415 | | Borrowings | 29,544 | 42,440 | | Capital to debt ratio | 0.03 | 0.04 | - Net current assets and cash and cash equivalents both decreased significantly[34] - The current ratio decreased from 1.65 to 1.50, and the capital to debt ratio decreased from 0.04 to 0.03[34] Capital Structure As of June 30, 2025, the company's shareholder capital was HK$36.565 million, comprising 3,656,472,362 issued ordinary shares of HK$0.01 each, with no fundraising activities during the period - As of June 30, 2025, shareholder capital was HK$36,565,000, comprising 3,656,472,362 issued ordinary shares with a par value of HK$0.01 each[35] - The Company did not undertake any fundraising activities through the issuance of new shares during the review period[35] Pledged Assets As of June 30, 2025, the Group had no pledged assets, consistent with the prior year-end - As of June 30, 2025, the Group had no pledged assets[36] Exchange Rate Risk The Group's cash flows, cash, and assets are primarily denominated in HKD and RMB, but foreign currencies are used for some investments, with ongoing monitoring to mitigate exchange rate risks - The Group's cash flows, cash, and assets are primarily denominated in Hong Kong Dollars and Renminbi[37] - Some investment opportunities and cooperation plans with mainland China and overseas film producers still require the use of foreign currencies, and the Group will monitor and strive to mitigate exchange rate fluctuation risks[37] Risk Management During the period, the Group regularly reviewed risk and credit control systems to enhance overall monitoring and reduce credit risk, with no significant changes to risk management policies since the last year-end - The Group regularly reviews the risk and credit control systems of its profit centers to improve overall control and reduce credit risk[38] - There have been no significant changes to the Group's risk management policies since the last year-end[38] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities, consistent with the prior year-end - As of June 30, 2025, the Group had no significant contingent liabilities[39] Employees and Remuneration Policy As of June 30, 2025, the Group employed 85 full-time and 2 part-time staff, with remuneration based on job value, performance, and industry trends, providing MPF for HK employees and state-managed retirement plans for PRC employees - As of June 30, 2025, the Group employed 85 full-time and 2 part-time employees, with the number remaining consistent with the prior year-end[40] - Employee remuneration is determined based on job value, work performance, and industry trends, with MPF schemes provided for Hong Kong employees and state-managed retirement benefit schemes for PRC subsidiary employees[40][41] Events After the Reporting Period_Main Subsequent to the reporting period, Mr. Dong Ping resigned as Executive Director and Chairman, and Ms. Hu Hui was appointed Executive Director, both effective July 27, 2025 - Mr. Dong Ping resigned as an Executive Director and Chairman of the Company, effective July 27, 2025[42] - Ms. Hu Hui was appointed as an Executive Director, effective July 27, 2025[42] Outlook The Chinese film industry faces both opportunities and challenges but is expected to stabilize and improve with government support, as the Group plans diverse film projects, including collaborations with Zhang Yimou, and will enhance its online video platform with a 'content is king' strategy - The Chinese film industry is expected to stabilize and improve overall, with new government policies from the National Film Administration and Ministry of Finance encouraging innovative film and television production technologies and promoting cinema upgrades[43] - The Group's film "The Stage" released during the summer achieved critical acclaim and box office success, with its revenue to be recognized in the second half of this year[43] - The Group will continue to develop a diversified portfolio of film projects, including "Alone on Stage," "In the Name of the Father," "The Mermaid," and "Ruyi Hotel," and plans to collaborate with Zhang Yimou again[44] - The "Huanxi Premiere" platform will continue to optimize content, introduce diverse film genres such as "The Rental" and "The Woman Who Ran," and strengthen content creation, copyright cooperation, and platform service innovation with industry partners[45] - The Group will continue to advance its "content is king" strategy, focusing on high-quality and diversified film and television works to consolidate its leading position in the Chinese film and television industry[46] Corporate Governance The Company consistently applied and complied with the Corporate Governance Code and adopted a securities dealing code, with a diverse Board comprising executive, non-executive, and independent non-executive directors, and no changes to directors' information since the 2024 annual report Corporate Governance Practices For the six months ended June 30, 2025, the Company consistently applied and complied with the principles and provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules - The Company consistently applied and complied with the principles and provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period[47] Securities Dealing Code The Company adopted the Model Code in Appendix C3 of the Listing Rules, and all directors confirmed full compliance throughout the reporting period - The Company adopted the Model Code as set out in Appendix C3 of the Listing Rules, and all directors confirmed full compliance throughout the reporting period[48] Board Composition The Company's Board comprises two executive, three non-executive, and three independent non-executive directors, bringing diverse industry expertise - The Board of Directors comprises two executive directors, three non-executive directors, and three independent non-executive directors[49] - All directors are highly capable executives with diverse industry expertise[49] Changes in Directors' Information There have been no changes to directors' information requiring disclosure under Listing Rule 13.51B(1) since the date of the 2024 annual report - There have been no changes to directors' information requiring disclosure under Listing Rule 13.51B(1) since the date of the 2024 annual report[50] Other Information The Board resolved not to declare an interim dividend, no listed securities were purchased, sold, or redeemed during the period, and the Audit Committee reviewed and was satisfied with the interim results Interim Dividend_OtherInfo The Board resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior corresponding period - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[51] Purchase, Sale or Redemption of Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025 - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period[52] Review of Interim Results The Audit Committee, in conjunction with management, reviewed the Group's unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, and expressed satisfaction with the review - The Audit Committee, in conjunction with management, reviewed the Group's interim financial information and expressed satisfaction with the review[53]