Financial Performance - Revenue for the six months ended June 30, 2022, was approximately RMB 31.2 million, a decrease of about 58.1% compared to RMB 74.4 million in the same period last year[6]. - Gross profit was approximately RMB 0.9 million, down about 85.2% from RMB 5.2 million in the previous year, resulting in a gross margin of approximately 3.0%, a decrease of 5.2 percentage points from 8.2%[6]. - Loss attributable to equity shareholders was approximately RMB 16.2 million, slightly increasing by RMB 0.2 million compared to a loss of RMB 16.0 million in the same period last year[6]. - The company reported a pre-tax loss of approximately RMB 16.9 million for the six months ended June 30, 2022, an increase of about RMB 3.1 million from a pre-tax loss of RMB 13.8 million in the previous year[11]. - Operating loss for the six months ended June 30, 2022, was RMB 14,530 thousand, compared to a loss of RMB 6,555 thousand in the prior year, reflecting worsening operational performance[90]. - Net loss before tax for the period was RMB 16,857 thousand, compared to RMB 13,764 thousand in the previous year, showing an increase in losses[90]. - Basic and diluted loss per share for the six months ended June 30, 2022, was RMB 0.75, compared to RMB 1.00 and RMB 1.04 respectively for the same period in 2021[90]. - The total comprehensive loss for the six months ended June 30, 2022, was RMB (16,630,000), compared to RMB (16,736,000) for the same period in 2021[96]. Market Environment - The Chinese film market's box office for the first half of 2022 was RMB 17.19 billion, a decline of 37.7% compared to the same period last year, indicating a challenging environment for the industry[10]. - The number of cinema-goers in China during the first half of 2022 was approximately 400 million, a decline of 41.7% compared to the same period in 2021, with first-tier cities being the most affected[37]. - The total retail sales of consumer goods in China for the first half of 2022 were approximately RMB 2.1 trillion, a year-on-year decrease of 0.7%, but showed a recovery with a 3.1% increase in June[37]. Business Strategy and Development - The company changed its English name from "Starrise Media Holdings Limited" to "A Metaverse Company" to reflect its business strategy and future development direction[11]. - The company is in the process of developing multiple new projects, including the historical drama "Blood Alliance Millennium" and the animated film "Snowy Youth," with various other films and series at different stages of production[12]. - The company aims to explore further cost reduction and efficiency improvement strategies in response to the industry's challenges, focusing on strict content control rather than blind pursuit of traffic and IP[10]. - The company is actively preparing for the release of several films and series, with ongoing projects such as "Heartbeat Rescue" and "Sniper King" currently in production[12]. - The group is optimistic about the long-term development of the Chinese film and television industry and plans to adjust investment strategies and product structures based on market preferences and regulatory policies[38]. - The group is actively seeking opportunities in the film and television market and aims to produce high-quality dramas to better reward shareholders[38]. Financial Position - Cash and cash equivalents decreased by approximately 64.2% to about RMB 12.7 million as of June 30, 2022, from RMB 35.5 million as of December 31, 2021[23]. - The average accounts receivable turnover period increased significantly to approximately 1,190 days, compared to 432 days in the previous year, due to the adverse impact of the pandemic on revenue and accounts receivable settlements[24]. - The debt-to-asset ratio as of June 30, 2022, was approximately 30.3%, up from 25.5% as of December 31, 2021[26]. - The company reported a total of RMB 292,617,000 in film and television production costs as of June 30, 2022, down from RMB 373,499,000 as of December 31, 2021[123]. - The accumulated impairment loss for film and television production decreased from RMB 227,360,000 as of December 31, 2021, to RMB 172,364,000 as of June 30, 2022[123]. Shareholder Information - As of June 30, 2022, the total number of issued shares of the company was 2,151,577,026[44]. - Mr. Liu Dong holds 307,809,902 shares, representing approximately 14.31% of the company's equity[43]. - Cinedigm Corp. is a beneficial owner of 366,590,397 shares, accounting for 17.04% of the company's equity[46]. - Aim Right Ventures Limited holds 320,512,820 shares, which is about 14.90% of the company's equity[46]. - The company has a significant concentration of ownership, with the top five shareholders holding over 70% of the total shares[46]. - The company has a diverse shareholder base, including both individual and corporate entities[46]. Corporate Governance - The company has adopted corporate governance principles in line with recognized standards, ensuring compliance with the Listing Rules and enhancing efficiency and effectiveness[49]. - The audit committee reviewed the group's accounting principles and practices, confirming that the interim results comply with applicable accounting standards and regulations[51]. - No interim dividend was recommended for the six-month period ending June 30, 2022, consistent with the previous year[52]. Stock Option Plan - The stock option plan approved in 2012 allows the company to grant options to eligible participants, with a maximum of 30% of the total issued shares available for issuance upon exercise of options[54]. - The new stock option plan adopted on January 20, 2022, aims to incentivize selected participants for their contributions to the group[58]. - The total number of shares that may be issued upon exercise of options under the new plan is capped at 80,000,000 shares, representing 4.07% of the total issued shares as of the report date[55]. - The company has not granted, exercised, canceled, or let lapse any options under the stock option plan since its adoption[56]. - The exercise price of options granted under the stock option plan is determined by the board, with a minimum price of HKD 1[55]. Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2022, was RMB (88,948,000), compared to RMB 62,695,000 generated in the same period of 2021[98]. - The net cash generated from investing activities for the six months ended June 30, 2022, was RMB 81,323,000, down from RMB 120,429,000 in the prior year[98]. - The net cash used in financing activities for the six months ended June 30, 2022, was RMB (14,978,000), compared to RMB (29,291,000) in the same period of 2021[98]. Taxation and Compliance - The company's subsidiaries in China are subject to a corporate income tax rate of 25%, except for Hainan Ying Sheng Cultural Media Co., Ltd., which enjoys a preferential tax rate of 15% from 2021 to 2024[117]. - The company did not incur any current tax expenses for the period, compared to RMB 689,000 in the previous year[112].
一元宇宙(01616) - 2023 - 中期财报