Financial Performance - Revenue for the year ended December 31, 2024, was RMB 10,160,000, a significant decrease from RMB 67,621,000 in 2023[17]. - Online interactive entertainment service revenue dropped to RMB 5,641,000 from RMB 66,394,000, indicating a decline in this segment[17]. - Gross profit for 2024 was RMB 8,103,000, down from RMB 58,848,000 in 2023, resulting in a gross profit margin of 79.8% compared to 87.0%[17]. - The company reported a net profit of RMB 19,916,000 in 2024, a turnaround from a net loss of RMB 135,052,000 in 2023, achieving a net profit margin of 196.0%[17]. - Adjusted net profit for 2024 was RMB 20,215,000, compared to an adjusted net loss of RMB 132,844,000 in 2023, with an adjusted net profit margin of 199.0%[17]. - For the year ended December 31, 2024, the Group recorded total revenue of RMB10.2 million, a decrease of 85.0% from RMB67.6 million in the same period of 2023[22]. - Revenue from online interactive entertainment services decreased by 91.5% to RMB5.6 million for the Reporting Period, compared to RMB66.4 million for the same period in 2023[22]. - The profit attributable to owners of the Company was RMB20.0 million, with an adjusted net profit of RMB20.2 million and adjusted EBITDA of RMB25.8 million[23]. - The Group's gross profit margin for the reporting period was 79.8%, down from 87.0% in the previous year[52]. - The Group's profit attributable to owners of the Company was RMB20.0 million, a significant recovery from a loss of RMB134.7 million in the same period of 2023[70][74]. - The adjusted net profit for the Group was RMB20.2 million, compared to a loss of RMB132.8 million in the previous year[82]. - The Group's adjusted EBITDA improved to RMB25.8 million from a loss of RMB120.6 million in the previous year[79]. Market Expansion and Strategy - The company has expanded into overseas markets, including Indonesia and the Middle East, which are becoming key growth engines for its live social video business[7]. - The company launched a series of live streaming mobile applications to capture the growing demand for mobile entertainment[7]. - Future outlook includes continued focus on overseas market expansion and enhancing product offerings in live streaming services[7]. - The company aims to leverage its strong domestic performance to drive growth in international markets[7]. - The Group is focusing on expanding its overseas live streaming business by integrating successful domestic business models with advanced technologies[24]. - The localized live streaming platform "KiWi Live" has gained popularity in Indonesia, contributing to the Group's market expansion efforts[28]. - The Group launched its self-developed social interaction platform "iMee Live" at the end of 2024, targeting Gen Z users in Southeast Asia[29]. - A joint investment in "Sila Chat" has resulted in significant revenue growth in 2024, with expectations for strong synergies in 2025[30]. Financial Position and Assets - Total assets increased to RMB 2,619,747,000 in 2024 from RMB 2,560,083,000 in 2023, while total liabilities rose to RMB 385,250,000 from RMB 307,099,000[17]. - Financial assets at fair value through profit or loss (FVTPL) increased by 12.6% to RMB1,757.2 million compared to RMB1,560.4 million as of December 31, 2023[86]. - The Group's cash and cash equivalents amounted to RMB467.0 million as of December 31, 2024, up from RMB364.1 million in the previous year[83][84]. - The fair value of financial assets measured at fair value through profit or loss increased by 12.6% to RMB1,757.2 million as of December 31, 2024, compared to RMB1,560.4 million as of December 31, 2023[87]. - Other financial instruments saw a significant increase in fair value from RMB825.9 million at the end of 2023 to RMB982.8 million at the end of 2024, representing a year-on-year increase of 19.0%[88]. - The fair value gain of other financial instruments rose from RMB24.7 million in 2023 to RMB58.4 million in 2024, reflecting the positive impact of the accommodative interest rate environment and strong market performance[91]. - Fund investments decreased by 10.6% to RMB479.6 million as of December 31, 2024, with a recognized fair value loss of RMB24.6 million during the reporting period[97]. - Private investments increased significantly, with the fair value rising from RMB98.7 million in 2023 to RMB163.2 million in 2024, marking a 65.3% increase[88]. - The fair value of listed equity securities increased by 36.8% to RMB60.7 million as of December 31, 2024, compared to RMB44.4 million as of December 31, 2023[105]. - Investments in wealth management products rose by 44.3% to RMB52.1 million as of December 31, 2024, from RMB36.1 million as of December 31, 2023[106]. Cost Management and Expenses - Selling and marketing expenses decreased by 76.1% year-on-year to RMB8.3 million, primarily due to lower domestic marketing expenses[53]. - Administrative expenses decreased by 24.3% year-on-year to RMB58.1 million, attributed to a reduction in employee-related expenses and operational costs[54]. - Research and development expenses decreased by 49.3% year-on-year to RMB8.9 million due to strategic restructuring of the R&D team[55]. - Staff costs decreased to RMB 43.4 million for the reporting period, down from RMB 68.4 million for the year ended December 31, 2023[127]. - Share-based compensation expenses for the reporting period were RMB 0.3 million, compared to nil for the year ended December 31, 2023[135]. Regulatory Compliance and Governance - The Group strictly complies with PRC laws and regulations, requiring all users to agree to terms of service upon account registration[179]. - The Company has developed a robust content monitoring system to filter inappropriate content on its platforms[179]. - The Group is monitoring compliance with local laws and regulations for its overseas live streaming platforms[180]. - The Interim Provisions on the Administration of Internet Culture require entities to obtain a Network Cultural Business Permit for providing online cultural products and services for profit[187]. - The online cultural business (except online music) is categorized as "prohibited" for foreign investment according to the current effective Guidance Catalogue[190]. - Foreign enterprises are prohibited from investing in the Internet publications business, including online games, as per the New Internet Publication Regulations[194]. - The Ministry of Culture (MOC) requires entities engaging in online performance activities to obtain a Network Cultural Business Permit, effective from January 1, 2017[191]. - The Virtual Currency Notice mandates that online game operators issuing virtual currency must apply for approval from the MOC and prohibits trading of such virtual currency[197]. - The storage period for online game players' purchase records must not be shorter than 180 days from the last service received, as per the Online Game Measures[200]. - The MOC and the Ministry of Commerce jointly issued regulations to strengthen the administration of online game virtual currency, effective June 3, 2010[200]. - Foreign investment in audio/visual program provision via the information network is prohibited according to the Several Opinions on Canvassing Foreign Investment into the Cultural Sector[195]. - The New Internet Publication Regulations require online game operators to obtain an Internet Publishing Services License to offer games directly to the public in China[192]. - The MOC has implemented measures to rectify operations to comply with the Online Performance Measures[191]. - The People's Bank of China is tasked with regulating virtual currency to prevent its impact on the real currency system[199]. Management and Leadership - Mr. Mak Shih On has extensive experience in financial management and operations, having served as CFO and COO of the group, contributing to strategic planning and execution[147]. - Ms. Cao Fei has been the Vice President of Finance at Weibo Corporation since September 2017, bringing significant corporate finance expertise[149]. - Mr. Tse Ming Lun Alan has nearly 23 years of experience in accounting and finance, previously working with KPMG and Techtronic Industries, focusing on financial analysis and M&A support[151]. - Mr. Wang Mingchun, appointed as an independent non-executive director in March 2023, has a background in media crisis management and government relations from his tenure at IDG Capital[155]. - Mr. Zhao Weiwen has over 28 years of experience in the Internet industry, previously managing key client departments at China Telecom, focusing on Internet network infrastructure[162].

Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 10.16 million, a decrease of 85.0% compared to RMB 67.62 million in 2023[3]. - The company achieved a net profit of RMB 19.9 million, with a net profit margin of 196.0%, compared to a net loss of RMB 135.05 million in 2023[3]. - Adjusted EBITDA for the year was RMB 25.83 million, with an adjusted EBITDA margin of 254.2%, compared to a loss of RMB 120.56 million in the previous year[3]. - The operating profit for the year ended December 31, 2024, was RMB 17,850 thousand, compared to an operating loss of RMB 137,910 thousand in 2023[54]. - The net profit for the year ended December 31, 2024, was RMB 19,916 thousand, a significant recovery from a net loss of RMB 135,052 thousand in 2023[55]. - The adjusted net profit for the year ended December 31, 2024, was RMB 20.215 million, compared to an adjusted net loss of RMB 132.844 million for the same period in 2023, reflecting a significant turnaround in performance[29]. - The company reported a pre-tax profit of RMB 26,177,000 for the year ended December 31, 2024, compared to a pre-tax loss of RMB 123,778,000 for the year ended December 31, 2023[74]. - The company recorded a profit of RMB 19,996,000 for the year, a significant recovery from a loss of RMB 134,670,000 in the previous year[58]. Revenue Breakdown - Online interactive entertainment service revenue fell by 91.5% to RMB 5.64 million from RMB 66.39 million in the previous year[7]. - Revenue from online interactive entertainment services for the reporting period was RMB 5.6 million, a decrease of 91.5% compared to RMB 66.4 million in the same period of 2023[14]. - The revenue from the online interactive entertainment services segment for the year ended December 31, 2024, was RMB 5,641,000, compared to RMB 66,394,000 in 2023, indicating a decline of approximately 91%[74]. - For the year ending December 31, 2024, total revenue is projected to be RMB 10,160,000, with RMB 5,516,000 from real-time social video platforms and RMB 3,691,000 from software development[80]. User Metrics - For the three months ended December 31, 2024, the total monthly active users decreased to approximately 55,000, a decline of 66.9% year-over-year and 8.3% quarter-over-quarter[12]. - The quarterly paying users for online interactive entertainment services were approximately 4,000, down 33.3% year-over-year, primarily due to the suspension of domestic live streaming services at the end of 2023[12]. - The average revenue per user for the quarter was RMB 342, representing a 42.5% increase quarter-over-quarter but a 12.3% decrease year-over-year[12]. Cost and Expenses - The cost of revenue decreased by 76.6% year-over-year to RMB 2.1 million, mainly due to the suspension of domestic live streaming services[15]. - Selling and marketing expenses decreased by 76.1% year-over-year to RMB 8.3 million, attributed to reduced domestic marketing expenditures and labor costs[17]. - Administrative expenses decreased by 24.3% year-over-year to RMB 58.1 million, due to strategic reductions in domestic business scale and workforce[18]. - The total revenue cost, sales and marketing expenses, administrative expenses, and research and development expenses amounted to RMB 77,402,000 in 2024, down from RMB 138,007,000 in 2023[86]. Investments and Financial Assets - The company has made strategic investments in emerging industries, leading to significant valuation increases and operational performance in 2024[10]. - Cash and cash equivalents increased to RMB 467.0 million as of December 31, 2024, up from RMB 364.1 million as of December 31, 2023, indicating improved liquidity[30]. - Financial assets measured at fair value through profit or loss rose by 12.6% to RMB 1,757.2 million as of December 31, 2024, compared to RMB 1,560.4 million in 2023, driven by increases in other financial instruments and private investments[31]. - The fair value of other financial instruments increased by 19.0% to RMB 982.8 million as of December 31, 2024, with fair value gains rising from RMB 24.7 million in 2023 to RMB 58.4 million in 2024[32]. - The fair value of structured notes surged to RMB 16.1 million as of December 31, 2024, from RMB 1.4 million in 2023, indicating a strategic shift towards stable income-generating assets[41]. - Non-listed equity investments increased to RMB 163,158,000 in 2024 from RMB 98,687,000 in 2023, marking a growth of 65.4%[119]. Shareholder Returns and Equity - The company repurchased shares worth RMB 54,549,000 during the year, contributing to a total repurchase of RMB 58,170,000 by year-end[58]. - The company declared dividends of 22.1 million RMB for 2024, an increase from 10.8 million RMB in 2023, with a dividend per share of 0.01 HKD[131]. - The total equity as of December 31, 2024, was 784.9 million RMB, up from 754.2 million RMB as of December 31, 2023[132]. - The total equity attributable to owners decreased to RMB 2,234,448,000 in 2024 from RMB 2,253,366,000 in 2023, a decrease of 0.8%[58]. Compliance and Governance - The auditor issued a qualified opinion on the consolidated financial statements for the year ended December 31, 2024, due to issues related to the fair value assessment of certain equity securities[162]. - The company has adopted the corporate governance code as per the listing rules and has complied with most of the best practices during the reporting period[154]. - The board chairman and non-executive directors did not attend the annual general meeting held on June 28, 2024, due to other commitments[154]. - The company confirmed compliance with the standards for securities trading by directors during the reporting period[155].

Core Viewpoint - Tianji Interactive (01980) anticipates a significant turnaround in financial performance for the fiscal year 2024, projecting a net income of approximately RMB 19.9 million compared to a net loss of RMB 135.1 million in fiscal year 2023 [1][2] Financial Performance - The company expects total comprehensive income of about RMB 53.1 million for the fiscal year 2024, a recovery from a comprehensive loss of RMB 106.6 million for the year ending December 31, 2023 [1] - The turnaround from a net loss in 2023 to net profit in 2024 is attributed to two main factors: 1. Growth in fair value of financial assets due to changes in the interest rate environment, with the Federal Reserve halting interest rate hikes and beginning cuts, leading to an increase in the prices of fixed-income assets [1] 2. A surge in technology stock prices, particularly in AI and cloud computing, positively impacting the fair value of the company's holdings in technology stocks and funds [1] Investment Valuation - The valuation of non-listed equity investments has significantly increased, as the company invested in several non-listed firms in sectors such as social reasoning games, e-commerce, and short video platforms [2] - The strong operational performance of these non-listed companies is expected to enhance the valuation of the company's non-listed equity investments in 2024 [2] - The relatedness of these companies to the company's core business is anticipated to create synergistic benefits, further driving the increase in fair value of financial assets [2]

Revenue Performance - Revenue for the six months ended June 30, 2024, was RMB 5,333,000, a decrease of 87% compared to RMB 40,906,000 in the same period of 2023[10]. - Online interactive entertainment service revenue dropped to RMB 3,291,000 from RMB 39,483,000, reflecting a significant decline[10]. - The Group recorded total revenue of RMB5.3 million from online interactive entertainment services, a decrease of 87.0% from RMB40.9 million in the same period of 2023[17]. - Revenue from online interactive entertainment services decreased by 91.7% to RMB3.3 million compared to RMB39.5 million in the corresponding period in 2023, primarily due to the suspension of domestic live streaming business[17]. - For the six months ended June 30, 2024, the revenue from the "Online interactive entertainment service" segment was RMB 3,291,000, while the "Others" segment generated RMB 2,042,000, totaling RMB 5,333,000[160]. - In comparison, for the six months ended June 30, 2023, the revenue from the "Online interactive entertainment service" segment was RMB 39,483,000, and the "Others" segment was RMB 1,423,000, totaling RMB 40,906,000, indicating a significant decrease in total revenue of approximately 87% year-over-year[160]. Profitability - Gross profit for the reporting period was RMB 4,146,000, down from RMB 35,691,000, resulting in a gross profit margin of 77.7%, down from 87.3%[10]. - Net profit surged to RMB 43,987,000, compared to RMB 7,580,000 in the previous year, indicating a net profit margin of 824.8%[10]. - Adjusted net profit reached RMB 44,127,000, significantly up from RMB 7,580,000, with an adjusted net profit margin of 827.4%[10]. - The profit attributable to owners of the Company was RMB44.1 million, with a net profit of RMB44.0 million and an adjusted net profit of RMB44.1 million during the reporting period[17]. - Operating profit surged to RMB 41,861,000, compared to RMB 1,575,000 in the prior year, indicating a substantial improvement in operational efficiency[122]. - Profit for the period reached RMB 43,987,000, a significant increase from RMB 7,580,000 in the previous year[123]. - For the six months ended June 30, 2024, profit attributable to owners of the Company was RMB 44,079,000, a significant increase from RMB 7,782,000 in the same period of 2023, representing a growth of 466%[168]. Cost Management - The Group achieved significant labor cost savings of RMB18.1 million in the first half of the year, representing a 41.6% reduction in the number of staff year on year[19]. - The Group's cost of revenue decreased by 77.2% year-on-year to RMB1.2 million, primarily due to a decline in revenue, particularly in internet bandwidth and server custody fees[37]. - Selling and marketing expenses decreased by 79.6% year-on-year to RMB4.3 million, significantly impacted by the suspension of domestic operations[37]. - Administrative expenses decreased by 19.6% year-on-year to RMB28.0 million, driven by efforts to streamline management costs[37]. - Research and development expenses decreased by 68.1% year-on-year to RMB3.8 million, due to strategic adjustments in personnel structure following the suspension of domestic operations[37]. Strategic Focus and Market Expansion - The company is focusing on globalization, transitioning its business strategy from domestic live streaming to international markets[15]. - Tian Ge has successfully entered overseas markets, including Indonesia and the Middle East, which are becoming key growth engines for the business[3]. - The Group is focusing on expanding its live streaming business in overseas markets, integrating successful domestic business models with advanced technologies[18]. - The localized live streaming platform "KiWi Live," developed for the Indonesian market, has seen increasing popularity, with its ranking on Indonesia's social platform bestseller lists rising[18]. - The Group plans to establish a professional operations team for its overseas business, tailoring live streaming strategies to enhance product appeal and improve user experience[24]. - The Group will continue to focus on the development of overseas online live streaming services and establish a professional operational team for its overseas business[26]. Financial Position and Assets - As of June 30, 2024, cash and cash equivalents amounted to RMB269.0 million, down from RMB364.1 million as of December 31, 2023[42]. - Total assets increased to RMB 2,593,059,000 as of June 30, 2024, compared to RMB 2,560,083,000 at the end of 2023[124]. - The company's net assets increased to RMB 2,288,664,000 as of June 30, 2024, compared to RMB 2,252,984,000 at the end of 2023, reflecting a growth of about 1.58%[125]. - The total financial assets at fair value through profit or loss as of June 30, 2024, were RMB 1,658,696,000, slightly up from RMB 1,560,403,000 as of December 31, 2023, indicating an increase of 6.3%[188]. - The Group's investments in exchange-traded funds (ETFs) amounted to RMB 92,353,000 as of June 30, 2024, an increase from RMB 75,048,000 at the end of 2023, reflecting a growth of approximately 23.0%[196]. Shareholder Information and Corporate Governance - The Company declared an interim dividend of HK$0.01 per share for the Reporting Period, consistent with the previous year[70]. - The Group maintains high standards of corporate governance and has complied with all applicable code provisions set out in the Corporate Governance Code during the Reporting Period[70]. - The audit committee reviewed the interim results for the six months ended June 30, 2024, focusing on financial reporting and internal controls[72]. - The Company adopted the Share Options and Awards Scheme 2024 to replace previous schemes, aimed at rewarding and incentivizing participants for their contributions[69]. - The Group has not experienced any significant labor disputes or difficulties in recruiting staff during the Reporting Period[68]. Financial Instruments and Fair Value - The Group recognized a fair value gain of RMB 31,154,000 on other financial instruments for the six months ended June 30, 2024, up from RMB 27,804,000 in the same period of 2023, representing an increase of approximately 8.9%[195]. - The total financial liabilities at fair value through profit or loss included derivatives held for trading, amounting to RMB (34,301,000)[150]. - The net unrealized gain attributable to balances held at the period end for Level 3 financial assets was RMB 19,614,000 as of June 30, 2024[150]. - The Group's venture capital and private equity funds had a fair value of RMB 536,356,000 as of June 30, 2024[150]. Employee and Shareholder Engagement - As of June 30, 2024, the Group had 111 full-time employees, with staff costs amounting to RMB 18.5 million, a decrease of 49.4% compared to RMB 36.6 million for the same period in 2023[68]. - The total number of shares underlying the Pre-IPO RSU Scheme and Post-IPO RSU Scheme represented approximately 0.78% of the total ordinary shares of the Company as of June 30, 2024[69]. - The Company appointed The Core Trust Company Limited as the trustee for the Pre-IPO Share Options Scheme[102]. - The total number of options and awards available for grant under the Share Options and Awards Scheme 2024 increased from 0 to 123,323,716 during the reporting period[112].

Revenue Performance - The company reported total revenue of RMB 5.3 million for the six months ended June 30, 2024, a decrease of 87.0% compared to RMB 40.9 million in the same period of 2023[3]. - Revenue from online interactive entertainment services dropped 91.7% to RMB 3.3 million, down from RMB 39.5 million year-on-year, primarily due to the suspension of domestic live streaming operations[3]. - For the six months ended June 30, 2024, total revenue was RMB 5,333 million, a significant decrease of 87% compared to RMB 40,906 million for the same period in 2023[48]. - The revenue from the real-time social video platform was RMB 3,228 million, down from RMB 37,308 million in the previous year, representing a decline of approximately 91%[49]. Profitability - The net profit attributable to the company's owners was RMB 44.1 million, with a net profit margin of 824.8%, compared to RMB 7.6 million and a margin of 18.5% in the previous year[1]. - The company achieved adjusted net profit of RMB 44.1 million, significantly up from RMB 7.6 million in the same period last year, resulting in an adjusted net profit margin of 827.4%[1]. - The net profit for the period was RMB 43,987 thousand, a substantial increase of 480.5% from RMB 7,580 thousand in the prior year[39]. - The total comprehensive income for the period was RMB 60,042 thousand, compared to RMB 72,084 thousand in the same period last year, indicating a decrease of 16.5%[39]. Cost Management - Cost of revenue decreased by 77.2% year-over-year to RMB 1.2 million, with a gross margin of 77.7% compared to 87.3% in the same period last year[13]. - Selling and marketing expenses decreased by 79.6% year-over-year to RMB 4.3 million due to challenges from the suspension of domestic operations[14]. - Administrative expenses decreased by 19.6% year-over-year to RMB 28.0 million, reflecting efforts to streamline management costs[15]. - Research and development expenses decreased by 68.1% year-over-year to RMB 3.8 million, primarily due to strategic adjustments following the suspension of domestic operations[16]. Strategic Adjustments - The company implemented a strategic adjustment to suspend domestic live streaming operations in response to regulatory challenges, leading to a labor cost saving of RMB 18.1 million and a 41.6% reduction in employee numbers[6]. - The company is focusing on expanding its overseas live streaming services and has successfully launched a localized platform "KiWi Live" in Indonesia, which is gaining popularity and increasing market share[4]. - The company plans to establish a professional operational team for its overseas business and tailor live streaming strategies to meet cultural and consumer preferences in target markets[8]. - The company aims to optimize its financial asset portfolio to support strategic expansion and improve capital utilization efficiency while managing investment risks[8]. Financial Assets and Investments - The fair value of the company's venture capital and private equity funds reached RMB 553.1 million, with fair value gains of RMB 21.9 million during the reporting period, compared to RMB 4.6 million in the same period of 2023[7]. - As of June 30, 2024, the financial assets measured at fair value through profit or loss amounted to RMB 1,658.7 million, an increase of 6.3% from RMB 1,560.4 million as of December 31, 2023[23]. - The fair value of other financial instruments increased by 7.4% to RMB 887.0 million, with a fair value gain of RMB 31.2 million reported during the period[24]. - The fair value of fund investments rose by 3.1% to RMB 553.1 million, with a fair value gain of RMB 21.9 million recognized during the reporting period[25]. User Metrics - As of June 30, 2024, the total monthly active users decreased to approximately 106,000, representing a decline of 88.5% year-over-year and a decrease of 15.2% quarter-over-quarter[10]. - The number of quarterly paying users was approximately 4,000, down 95.9% year-over-year and down 20.0% quarter-over-quarter[10]. - The average revenue per user for the quarter was RMB 314, an increase of 68.8% year-over-year but a decrease of 9.2% quarter-over-quarter[10]. Employee and Operational Metrics - The company had 111 full-time employees as of June 30, 2024, with employee costs amounting to RMB 18.5 million, down from RMB 36.6 million for the six months ended June 30, 2023[36]. - The company completed the sale of Hangzhou Hantang Cultural Communication Co., Ltd. for RMB 20.0 million, receiving RMB 17.0 million during the reporting period[34]. - The company adopted a new share option and restricted share unit plan, which is expected to incentivize employee contributions and align interests with shareholders[37]. Debt and Liabilities - The asset-liability ratio improved to 5.6% as of June 30, 2024, down from 6.0% as of December 31, 2023, due to a reduction in borrowings[32]. - Total borrowings decreased from RMB 135.1 million as of December 31, 2023, to RMB 128.3 million as of June 30, 2024[32]. - The company has no significant contingent liabilities or asset pledges as of June 30, 2024[35]. Shareholder Information - The board approved an interim dividend of HKD 0.01 per share for the reporting period, consistent with the dividend declared in 2023[72]. - The company will suspend share transfer registration from September 26 to September 27, 2024, to determine shareholders eligible for the interim dividend[73].

Financial Performance - For the year ended December 31, 2023, the Group recorded total revenue of RMB67.6 million, a decrease of 52.4% from RMB142.1 million for the same period in 2022[20]. - Revenue from online interactive entertainment services decreased by 51.6% to RMB66.4 million for the year ended December 31, 2023, compared to RMB137.2 million for the same period in 2022[20]. - The loss attributable to owners of the Company was RMB134.7 million, with a net loss of RMB135.1 million and an adjusted net loss of RMB132.8 million for the year ended December 31, 2023[20]. - Revenue for the year ended December 31, 2023, was RMB 67,621,000, a decrease of approximately 52.5% from RMB 142,073,000 in 2022[36]. - The net loss for 2023 was RMB (135,052,000), significantly improved from a net loss of RMB (533,440,000) in 2022[36]. - The adjusted LBITDA for the year ended December 31, 2023, was RMB120.6 million[20]. - For the year ended December 31, 2023, the Group recorded net other losses totaling RMB62.1 million, a significant decrease from RMB405.8 million in 2022, primarily due to fair value losses on various investments[122][124]. - The Group's finance income, net was RMB3.0 million for the year ended December 31, 2023, compared to finance costs of RMB7.5 million in 2022, attributed to increased interest income on cash and cash equivalents[124][126]. Operational Changes - The strategic adjustment to suspend domestic online live streaming business reflects the Company's commitment to long-term development strategy[22]. - The Group plans to adjust the proportion of its domestic and overseas live streaming business to mitigate operational risks and maintain competitiveness[29]. - The Group will continue to explore new social networking tools and investment opportunities to diversify income sources and expand into the global market[31]. - The latest live streaming platform "KiWi live" in Indonesia commenced operations in 2023, marking a key step in the Group's international expansion strategy[47]. - The total number of suspended live streaming platforms was 0 as of December 31, 2023, compared to 1,255 in the same period of 2022, indicating a complete halt in domestic operations[83]. User Metrics - Monthly active users (MAUs) as of December 31, 2023, totaled approximately 166,000, representing a decrease of about 86.8% year-over-year due to the suspension of the domestic live streaming business[57]. - The number of quarterly paying users (QPUs) for the same period was approximately 6,000, reflecting a decrease of approximately 93.1% from the previous quarter and a decrease of approximately 93.8% year-on-year, primarily due to the suspension of domestic live streaming platforms[87]. - Mobile monthly active users accounted for 100.0% of total monthly active users as of December 31, 2023, up from 92.0% and 90.4% in the previous quarters[85]. Cost Management - For the year ended December 31, 2023, the Group's selling and marketing expenses decreased by 46.5% year-on-year to RMB 34.9 million, attributed to a decline in domestic marketing fees and labor costs[68]. - Administrative expenses for the same year decreased by 38.3% year-on-year to RMB 76.8 million, mainly due to an impairment provision of RMB 27.7 million in the previous year and a strategic reduction in domestic operations[69]. - Research and development expenses decreased by 57.5% year-on-year to RMB 17.6 million, resulting from a strategic restructuring of the domestic R&D workforce and plans to utilize overseas R&D outsourcing[70]. - The Group's cost of revenue decreased by 71.2% year-on-year to RMB 8.8 million for the year ended December 31, 2023, attributed to reduced internet bandwidth and server custody fees, as well as the suspension of the domestic live streaming business[92]. Investment and Assets - The Company held venture capital and private equity funds with a total value of RMB536.4 million as of December 31, 2023, with a fair value loss of RMB42.0 million during the year[26]. - The investment return from venture capital and private equity funds reached RMB49.0 million in 2023, significantly up from RMB2.6 million in the previous year[29]. - Total assets as of December 31, 2023, were RMB 2,560,083,000, down from RMB 2,905,059,000 in 2022[36]. - Total liabilities decreased to RMB 307,099,000 in 2023 from RMB 532,958,000 in 2022[36]. Risk Management - The board is committed to annually reviewing the effectiveness of risk management and internal control systems, which are designed to manage risks rather than eliminate them[196]. - The company emphasizes the importance of risk management for investment projects, implementing various procedures to track and mitigate potential risks[199]. - The monitoring architecture for risk management is divided into three levels, covering risk identification, assessment, and management measures[199]. - The board takes overall responsibility for assessing the nature and extent of risks the company is willing to take in achieving its strategic objectives[196]. Compliance and Governance - The company has established a track record of compliance with the qualification requirements despite a lack of clear guidance[163]. - The company confirmed that there were no related party transactions that required disclosure under the listing rules during the reporting period[160]. - Shareholders of the PRC Operating Entities may have conflicts of interest, and they have undertaken not to engage in competing businesses without prior written consent[178]. - The company has not entered into any contracts that have been terminated as of the reporting date[166].

Revenue Performance - Revenue from the real-time social video platform for the year ended December 31, 2023, was RMB 63,249,000, a decrease from RMB 125,282,000 in 2022, representing a decline of approximately 49.6%[2] - Total revenue for the year ended December 31, 2023, was RMB 67,621,000, down from RMB 142,073,000 in 2022, indicating a decrease of about 52.4%[2] - Revenue from online interactive entertainment services decreased by 51.6% to RMB 66.4 million from RMB 137.2 million in the previous year[189] - The company's revenue from online interactive entertainment services was RMB 66.4 million for the year ended December 31, 2023, down 51.6% from RMB 137.2 million in the previous year[189] Financial Performance - The net loss from financial assets at fair value through profit or loss was RMB 62,113,000 for the year ended December 31, 2023, compared to a loss of RMB 405,801,000 in 2022, showing an improvement[14] - The net loss for the year was RMB 135.1 million, an improvement from a net loss of RMB 533.4 million in the previous year[162] - Adjusted net loss amounted to RMB 132.8 million, compared to RMB 501.1 million in 2022[162] - Other net losses totaled RMB 62.1 million, significantly reduced from RMB 405.8 million in the previous year, with major losses from various investments offset by gains from other financial instruments[198] Asset Management - Non-current assets in mainland China (excluding Hong Kong) decreased to RMB 184,037,000 in 2023 from RMB 222,424,000 in 2022, reflecting a decline of approximately 17.3%[9] - The company's total non-current assets decreased to RMB 259,085,000 in 2023 from RMB 301,611,000 in 2022, reflecting a decline of about 14.1%[9] - The total assets of the company as of December 31, 2023, were RMB 2,560.1 million, down from RMB 2,905.1 million in 2022[162] Expenses and Cost Management - Employee benefits expenses, including share-based payment expenses, were RMB 68,445,000 for the year ended December 31, 2023, down from RMB 91,285,000 in 2022, a reduction of about 25.0%[10] - Advertising and promotional expenses decreased significantly to RMB 15,512,000 in 2023 from RMB 34,145,000 in 2022, a decline of approximately 54.6%[10] - Total expenses for revenue costs, sales and marketing, administrative, and R&D for the year ended December 31, 2023, were RMB 138,007,000, down from RMB 261,396,000 in 2022, a decrease of approximately 47.3%[10] - Sales and marketing expenses decreased by 46.5% year-on-year to RMB 34.9 million, primarily due to reduced domestic marketing costs and labor costs, while increasing investment in overseas markets[193] - Administrative expenses decreased by 38.3% year-on-year to RMB 76.8 million, mainly due to a reduction in employee costs and office rental expenses following a strategic contraction in domestic operations[194] - Research and development expenses decreased by 57.5% year-on-year to RMB 17.6 million, attributed to a strategic restructuring of domestic R&D personnel and plans to utilize overseas outsourcing for R&D services[195] Taxation and Government Grants - The effective corporate income tax rate for Hangzhou Tiange and Zhejiang Tiange is 15% for the year 2023, down from the standard rate of 25%[20] - The company reported a tax expense of RMB 11.3 million for the year ended December 31, 2023, compared to RMB 6.2 million in 2022[23] - The company received government grants totaling RMB 6,227,000 in 2023, a substantial increase from RMB 240,000 in 2022, indicating a growth of over 2,500%[14] Investment and Financial Instruments - The total fair value of financial assets decreased to RMB 1,560,403,000 from RMB 1,926,253,000, a decline of 18.9%[68] - Other financial instruments reported a fair value gain of RMB 24,661,000 compared to a loss of RMB 178,362,000 in the previous year[76] - The company reported a fair value gain of RMB 3,834,000 from ETF investments in 2023, compared to a fair value loss of RMB 176,582,000 in 2022[78] - The company confirmed a fair value loss of RMB 27.2 million on its equity securities investment for the year ended December 31, 2023[155] Shareholder Information - The total number of shares repurchased in the year ended December 31, 2023, was 4,722,000, with a total cash consideration of approximately RMB 1,648,000[96] - The company declared a dividend of RMB 10,824,000 for 2023, with a per share payment of HKD 0.01[97] - The company proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2023, compared to no dividend in 2022[145] Strategic Initiatives - The new live streaming platform "KiWi live" was launched in Indonesia in 2023, marking a significant step in the company's international expansion strategy[30] - The company is focusing on developing new live streaming products and enhancing user experience through market research and technology development[28] - The company aims to replicate successful domestic business models in overseas markets as part of its growth strategy[28] - The company is expanding into the international social networking market and repositioning its core business to mitigate operational risks in the domestic market[166] User Engagement - Monthly active users decreased by 86.8% year-over-year to approximately 166,000 for the three months ended December 31, 2023, primarily due to the suspension of the domestic live streaming platform[185] - The average revenue per user for the online interactive entertainment service increased by 52.3% year-over-year to RMB 390 for the three months ended December 31, 2023[186]

Financial Performance - For the six months ended June 30, 2023, the Group recorded total revenue of RMB40.9 million, a decrease of 51.8% from RMB84.8 million in the same period of 2022[8]. - Revenue from online interactive entertainment services decreased by 51.9% to RMB39.5 million, compared to RMB82.0 million in the corresponding period in 2022[8]. - The Group achieved a gross profit of RMB35.7 million, with a gross profit margin of 87.3%, up from 79.7% in the previous year[12]. - The net profit for the period was RMB7.6 million, a significant recovery from a net loss of RMB313.2 million in the same period of 2022[12]. - Adjusted net profit for the period was also RMB7.6 million, compared to an adjusted net loss of RMB289.9 million in the previous year[12]. - Adjusted EBITDA for the period was RMB9.3 million, compared to an adjusted LBITDA of RMB279.4 million in the same period of 2022[12]. - The Company reported a profit attributable to owners of RMB7.8 million and a net profit of RMB7.6 million, with adjusted net profit also at RMB7.6 million[52]. - Total comprehensive income for the period was RMB72,084, contrasting with a comprehensive loss of RMB213,517 in the previous year[101]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were RMB0.007, recovering from a loss of RMB0.258 per share in 2022[115]. - Profit before income tax for the first half of 2023 was RMB8,230, a recovery from a loss of RMB307,781 in the same period last year[195]. Revenue Streams - Revenue for the six months ended June 30, 2023, was RMB40,906, a decrease of 51.8% compared to RMB84,808 in the same period of 2022[101]. - Revenue from live social video platforms was RMB37,308, a decrease of 49.7% compared to RMB74,186 in the same period of 2022[181]. - Game operation revenue for the same period was RMB2,175,000, down 72.3% from RMB7,852,000 in 2022[181]. - The software research and development segment generated revenue of RMB1,423,000, slightly down from RMB1,536,000 in the previous year[181]. - The Group's major revenue streams are derived from online interactive entertainment services, primarily through its live social video platform and online games[189]. Operational Adjustments - The decline in revenue was primarily due to structural adjustments in domestic and overseas business ratios, affecting the number of paying users and average revenue per user[8]. - The Company is focusing on diversifying its core business and expanding into overseas social network markets to mitigate operational risks[7]. - The Company is actively pursuing changes to enhance operational efficiency and risk management awareness in response to regulatory challenges in China[7]. - The company plans to adjust the proportion of domestic versus overseas live streaming businesses to mitigate operational risks in response to enhanced regulatory scrutiny[70]. - The management team believes that optimizing business lines and operational structures will enhance the long-term competitiveness and sustainability of the live streaming business[71]. - The company is committed to optimizing operational efficiency and reducing costs to improve profitability in the upcoming quarters[196]. Market Expansion and Technological Advancements - The Group is enhancing its live streaming platforms to improve user experience and engagement, including new features like "host PK" and "dating party"[14]. - The overseas live social video businesses are expected to become a core revenue driver for the Group going forward[48]. - The Group is actively exploring technological advancements and new social networking tools to enhance global market expansion and diversify revenue sources[59]. - The overseas version of the flagship live streaming platform "Miao Broadcasting," named "Mlive," received positive user feedback in the Southeast Asian market[65]. - The Group provided technical support services to "Boomlive," a local live-streaming platform in Indonesia, generating stable income during the reporting period[65]. - The overseas live streaming platform Mlive has gained significant recognition in the Southeast Asian market, contributing to stable revenue for the company[68]. - The company has been strategically investing in overseas markets since 2016, expecting its overseas social video live streaming business to become a core revenue driver in the future[68]. - The company is exploring new market expansion strategies to enhance revenue streams and improve overall financial performance[196]. - Future outlook includes potential new product launches and technology developments aimed at increasing user engagement and market share[196]. Financial Stability and Assets - As of June 30, 2023, the Company held ETFs valued at RMB88.2 million, with a fair value gain of RMB15.6 million during the reporting period[55]. - The Group's venture capital and private equity funds had a total value of RMB590.0 million, realizing a fair value gain of RMB4.6 million during the reporting period[58]. - As of June 30, 2023, the total value of the company's venture capital and private equity funds was RMB590.0 million, with a fair value gain of RMB4.6 million during the reporting period[73]. - The company received cash returns of RMB42.5 million from certain venture capital and private equity funds, compared to RMB1.9 million in the same period of 2022[73]. - Total liabilities decreased to RMB299,862,000 as of June 30, 2023, down from RMB532,958,000 as of December 31, 2022, indicating improved financial stability[118]. - Net assets increased to RMB2,444,185,000 as of June 30, 2023, compared to RMB2,372,101,000 at the end of 2022, reflecting a positive growth trend[118]. - The Group's borrowings significantly reduced to RMB116,983,000 from RMB318,613,000, indicating a decrease in leverage[118]. Risk Management and Compliance - The Company has not adopted any new standards that are expected to have a significant effect on its financial information for the current reporting period[115]. - There have been no changes in the risk management department or policies since December 31, 2022, maintaining consistency in risk oversight[128]. - The Audit Committee reviewed the interim results for the six months ended June 30, 2023, ensuring compliance with accounting principles and practices[114]. - The audit committee, consisting of three independent non-executive directors, oversees the financial reporting process and internal controls of the Company[168].

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任 何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Tian Ge Interactive Holdings Limited 天 ...

Financial Performance - The net loss from continuing operations for the year ended December 31, 2022, was RMB 533.4 million, compared to a profit of RMB 78.97 million in 2021, indicating a significant decline[21]. - The adjusted net loss for the same period was RMB 501.1 million, a decrease from a profit of RMB 96.5 million in 2021[21]. - The company's total revenue for the year ended December 31, 2022, was RMB 142.1 million, a decline from RMB 210.5 million in 2021[66]. - Revenue for the year ended December 31, 2022, was RMB 142.1 million, a decrease of 32.5% from RMB 210.5 million in 2021[166]. - Gross profit for the same period was RMB 111.6 million, with a gross margin of 78.6%, up from 76.3% in the previous year[166]. - The net loss attributable to owners of the company was RMB 533.4 million, compared to a profit of RMB 79.0 million in 2021, resulting in a net loss margin of (375.5%) [166]. - Adjusted net loss for the year was RMB 501.1 million, with an adjusted net loss margin of (352.7%) [166]. - The company recorded a loss of RMB 24.6 million from venture capital and private equity fund investments for the year ended December 31, 2022, compared to a gain of RMB 144.6 million in 2021[174]. Assets and Liabilities - Total current assets increased to 2,372,878 million, up from 1,583,997 million, representing a growth of approximately 49.9%[1]. - Total assets reached 3,545,968 million, a rise from 3,156,540 million, indicating an increase of about 12.3%[1]. - Total equity attributable to shareholders was 2,831,408 million, compared to 2,372,126 million, reflecting a growth of approximately 19.3%[3]. - Total liabilities decreased to 312,370 million from 638,021 million, showing a reduction of about 51.0%[3]. - Non-current liabilities were reported at 112,599 million, a slight increase from 26,234 million, indicating a growth of approximately 328.5%[3]. - Current liabilities decreased significantly to 199,771 million from 519,354 million, a reduction of approximately 61.6%[3]. - The overall total of equity and liabilities was 3,156,540 million, compared to 2,905,059 million, indicating an increase of about 8.6%[3]. Investments and Financial Instruments - The fair value of financial assets measured at fair value through profit or loss decreased by 20.1% to RMB 1,926.3 million as of December 31, 2022, from RMB 2,409.5 million in 2021[24]. - The fair value of other financial instruments increased by 56.5% to RMB 990.3 million as of December 31, 2022, compared to RMB 632.7 million in 2021[25]. - Fund investments increased by 5.6% to RMB 611.9 million as of December 31, 2022, from RMB 579.4 million in 2021, primarily due to new subscriptions during the year[26]. - Private investments saw a significant decrease of 53.3%, dropping to RMB 139.7 million from RMB 298.7 million in 2021[24]. - The fair value of convertible promissory notes held by the group decreased by 45.5% to RMB 12.0 million from RMB 22.0 million as of December 31, 2021[40]. - The fair value of structured notes held by the group plummeted by 98.9% to RMB 6.5 million from RMB 617.9 million as of December 31, 2021, due to significant losses exceeding the predetermined safety buffer[41]. Operational Highlights - The company focused on diversifying its core business and expanding into overseas social networking markets during the reporting period[169]. - The flagship product "Mlive," an overseas version of "喵播," continued to receive high recognition from users in Southeast Asia[172]. - The company upgraded features on its live streaming platform to enhance user experience and interaction, including "主播對壘" and "交友派對" functionalities[171]. - The company provided technical support services for "Boomlive," a local live streaming platform in the Indian market[172]. - The company plans to develop comprehensive financial services over the next three to five years to support its core business and enhance shareholder returns[175]. User Metrics - The number of monthly active users decreased by approximately 23.5% year-on-year to 1,255,000 as of December 31, 2022, compared to 1,641,000 in 2021[193]. - The number of quarterly paying users dropped by 39.8% year-on-year to 97,000 from 161,000 in the same period of 2021[193]. - The number of monthly active users decreased by 62.6% year-over-year to 1,552,000 as of December 31, 2022[195]. - The number of quarterly paying users decreased by 28.3% year-over-year to 145,000[195]. - The percentage of mobile quarterly paying users accounted for 73.3% of total quarterly paying users as of December 31, 2022, down from 77.2% and 81.3% in the previous two years[194]. Regulatory and Compliance Issues - The group is subject to various regulations from multiple government departments in China, which restrict its business operations[72]. - The group must maintain sufficient cash reserves to meet operational funding needs and future business growth[86]. - The group is required to obtain a network culture business operating license from the Ministry of Culture for any internet cultural products offered for profit[74]. - The group faces potential penalties for non-compliance with regulations regarding virtual currency in online gaming[78]. - The group’s business operations are heavily regulated, with foreign investment in certain sectors being prohibited[76]. Corporate Governance - The board of directors has the authority to declare and distribute dividends to shareholders based on applicable laws and regulations[114]. - The board of directors confirmed the independence of all independent non-executive directors as per the listing rules[142]. - The board of directors has received annual independence confirmations from all independent non-executive directors[142]. - The company has not established any stock-linked agreements during the reporting period, except for the disclosed share incentive plan[124]. - There were no significant contracts involving the controlling shareholder or its subsidiaries during the year ended December 31, 2022[135]. Social Responsibility and Sustainability - The company is committed to corporate social responsibility and sustainable development, focusing on energy conservation and waste reduction initiatives[112]. - The company did not make any charitable donations or other contributions during the year ended December 31, 2022, consistent with 2021[129].