Financial Performance - During the six months ended June 30, 2022, the Group recorded revenue and film investment income of HK$14,573,000, a decrease from HK$151,726,000 in the same period of 2021[8]. - The net loss for the period was HK$93,579,000, slightly improved from a net loss of HK$97,206,000 in the previous year[8]. - The decrease in revenue was primarily due to the postponement of blockbuster films' releases as cinema operations in Mainland China were adversely affected by the COVID-19 pandemic[8]. - The gross loss for the period was HK$35,672,000, compared to a gross loss of HK$14,727,000 in the previous year, indicating a significant decline in profitability[81]. - The total comprehensive loss for the period was HK$150,653,000, which is an increase from HK$85,826,000 in the same period last year, reflecting worsening financial performance[82]. - The company reported a loss for the period of HK$93,579,000 for the six months ended June 30, 2022[87]. - Total expenses for the six months ended June 30, 2022, amounted to HK$110,879,000, a significant decrease from HK$241,996,000 in the same period of 2021[121]. Revenue Sources - For the six months ended June 30, 2022, the Group's revenue from sub-licensing of film and TV programmes rights was HK$2,557, a decrease of 96% compared to HK$62,990 in 2021[115]. - The share of box office income was nil for the six months ended June 30, 2022, compared to HK$1,678 in 2021[115]. - Other media related revenue decreased to HK$8,372 from HK$71,856, representing a decline of approximately 88%[115]. - Film investment income, net, was HK$10,929, down 92% from HK$136,524 in the same period of 2021[115]. - The total revenue and film investment income, net, for the period was HK$14,573, a decrease of 90% compared to HK$151,726 in 2021[115]. Asset and Liability Management - As of June 30, 2022, the Group's net current assets were HK$692,137,000, a decrease from HK$760,108,000 as of December 31, 2021[13]. - The Group's cash and cash equivalents dropped to HK$46,728,000 as of June 30, 2022, compared to HK$115,369,000 as of December 31, 2021[13]. - Total liabilities increased from HK$606,427,000 as of December 31, 2021, to HK$720,516,000 as of June 30, 2022, reflecting an increase of about 18.8%[86]. - The total current liabilities related to film and TV programmes rights were HK$958,932,000 as of June 30, 2022, compared to HK$639,406,000 at the end of 2021, indicating an increase of 49.9%[141]. - The Group's trade receivables totaled HK$111,523,000 as of June 30, 2022, down from HK$136,088,000 at the end of 2021, reflecting a decline of 18.1%[142]. Shareholder Information - As of June 30, 2022, Mr. Dong Ping, Mr. Ning Hao, and Mr. Xu Zheng each hold approximately 40.24% of the issued shares, totaling 1,471,434,354 shares[50]. - Major shareholders include Dong Ping and Newwood Investments Limited, each holding approximately 40.24% of ordinary shares, totaling 1,468,734,354 shares[58]. - Bilibili Inc. is a significant shareholder with 346,626,954 ordinary shares, representing 9.48% of the total shareholding[59]. - The total number of ordinary shares held by the top shareholders indicates a concentration of ownership, with the top four shareholders controlling over 60% of the company[58]. - The Company has been notified of substantial shareholders holding 5% or more of the issued share capital, as disclosed in the Directors' Interests section[57]. Corporate Governance - The Group has complied with the Corporate Governance Code throughout the reporting period[40]. - The Board currently comprises two executive directors, three non-executive directors, and three independent non-executive directors[42]. - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[52]. Future Outlook - The Group is expected to release several completed films in the second half of 2022 or 2023, which are anticipated to improve revenue[11]. - Economic activities in China have shown signs of recovery post-pandemic, with increased operating rates of cinemas[31]. - The Group is seeking investment opportunities in media and entertainment-related businesses to expand income sources and prospects[27]. - Future plans include delivering original premium productions and enhancing cooperation with internet and entertainment entities[38]. Employee and Management Information - As of June 30, 2022, the Group employed 100 full-time employees, a slight decrease from 101 as of December 31, 2021[29]. - The total remuneration for key management personnel was HK$7,284,000 for the six months ended June 30, 2022, slightly up from HK$7,124,000 in 2021[196]. - The remuneration committee determines the compensation for directors and key executives based on individual performance and market trends[197]. Financial Risk Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, which remain unchanged since December 31, 2021[97]. - The Group's financial risk management policy has remained unchanged since December 31, 2021[100].
欢喜传媒(01003) - 2022 - 中期财报