中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 財務摘要及主要經營數據 | 4 | | 2024年度主席報告 | 6 | | 管理層討論與分析 | 8 | | 董事及高級管理層履歷 | 16 | | 董事會報告 | 19 | | 企業管治報告 | 43 | | 環境、社會及管治報告 | 56 | | 獨立核數師報告 | 75 | | 合併綜合收入表 | 79 | | 合併資產負債表 | 81 | | 合併權益變動表 | 83 | | 合併現金流量表 | 85 | | 合併財務報表附註 | 87 | 董事會 執行董事 奉佑生先生 （董事長兼首席執行官） 侯廣凌先生 獨立非執行董事 崔大偉先生 陳勇先生 鄭叢楠女士 審核委員會 崔大偉先生 （主席） 陳勇先生 鄭叢楠女士 提名委員會 奉佑生先生 （主席） 陳勇先生 鄭叢楠女士 薪酬委員會 鄭叢楠女士 （主席） 陳勇先生 崔大偉先生 聯席公司秘書 肖力銘先生 區詠詩女士 授權代表 奉佑生先生 區詠詩女士 核數師 羅兵咸永道會計師事務所 執業會計師及註冊公眾利益實體核數師 香港 中環 太子大廈22 樓 法律顧問 亞司特律師事務所 香港 中環 ...

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 6,850,721 thousand, a slight increase of 0.1% compared to RMB 6,844,788 thousand in 2023[3] - Gross profit increased by 18.0% to RMB 3,342,697 thousand from RMB 2,833,099 thousand year-on-year[3] - Operating profit decreased by 48.1% to RMB 220,291 thousand from RMB 424,160 thousand in the previous year[3] - The group's net profit for the reporting period was approximately RMB 216.6 million, a decrease of 45.9% compared to RMB 400.6 million in 2023[28] - The company's basic and diluted earnings per share was RMB 0.10 for 2024, compared to RMB 0.21 in 2023, reflecting a decline of approximately 52.4%[47] - The total income tax expense for the year was RMB 71,201,000 in 2024, compared to RMB 68,867,000 in 2023, indicating an increase of about 2%[66] User Engagement and Market Strategy - The number of monthly active users decreased by 8.6% to 20,836 thousand from 22,808 thousand[4] - Average revenue per user (ARPU) increased by 9.6% to RMB 27.4 from RMB 25.0[4] - The company plans to expand into emerging markets, focusing on Southeast Asia and exploring opportunities in AI and Web3.0[6] - The company aims to enhance user experience and engagement through innovative interactive methods and flexible incentive policies[7] - The group aims to strengthen its core business and optimize product lines to enhance production capacity while focusing on emerging business areas[10] Expenses and Cost Management - The cost of sales decreased by 12.6% from RMB 4,011.7 million in 2023 to approximately RMB 3,508.0 million during the reporting period[16] - Selling and promotional expenses rose by 22.3% to approximately RMB 2,535.6 million, accounting for 37.0% of total revenue, up from 30.3% in 2023[18] - Administrative expenses increased by 15.9% to approximately RMB 263.4 million, primarily due to optimization of employee structure[19] - Research and development expenses decreased by 25.6% to approximately RMB 202.2 million, attributed to operational strategy adjustments and reduced employee costs[20] - The total expenses related to share-based compensation decreased to RMB 17,751,000 in 2024 from RMB 25,416,000 in 2023, a reduction of approximately 30%[76] Assets and Liabilities - Total assets grew by 8.3% to RMB 5,572,333 thousand from RMB 5,145,709 thousand[3] - Current assets totaled RMB 3,964,919 thousand in 2024, slightly down from RMB 3,978,967 thousand in 2023, a decrease of about 0.4%[50] - Non-current assets increased to RMB 1,607,414 thousand in 2024 from RMB 1,166,742 thousand in 2023, an increase of about 37.7%[50] - The total equity attributable to shareholders was RMB 4,398,008 thousand in 2024, compared to RMB 4,266,133 thousand in 2023, representing an increase of approximately 3.1%[51] - The group has approximately RMB 28.4 million in bank deposits frozen due to an ongoing investigation by local regulatory authorities[38] Investment and Financial Strategy - The company has begun to position itself in the blockchain industry by holding cryptocurrency as part of its strategy for future growth[9] - The company believes that its investment strategy in financial products will continue to generate stable income, considering the manageable risk levels and favorable terms[36] - The group ensures that its operational cash flow is sufficient to meet business needs and capital expenditures after investing in financial products[35] Corporate Governance and Compliance - The company is led by Chairman and CEO Feng Yousheng, who has been crucial for growth and business expansion since its establishment in 2015[81] - The annual financial statements have been audited by PwC, confirming the accuracy of the consolidated financial data[84] - The Audit Committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[85] - The company maintains a high standard of corporate governance and will continue to review its practices[81] - The company is committed to ensuring a balance of power and authority within its management structure[81]

Core Viewpoint - The company has issued a profit warning, projecting a slight increase in total revenue for 2024 but a significant decline in net profit compared to the previous year [1] Group 1: Financial Performance - For the fiscal year ending December 31, 2024, the company expects total revenue to be approximately RMB 6.84 billion to RMB 6.87 billion, a slight increase from RMB 6.84 billion in 2023 [1] - The projected net profit for 2024 is not expected to exceed RMB 240 million, representing a significant decline compared to the previous year [1] - The decline in profit is primarily attributed to losses from investment activities, including equity investments and investment property valuations, estimated between RMB 90 million to RMB 130 million [1] Group 2: Business Operations - The company's main business continues to show stable development, contributing consistent cash flow [2] - The micro-short drama segment remains a leader in the industry, recognized for its quality content and refined operational model [2] Group 3: Strategic Outlook - The company plans to adjust its development strategy flexibly based on market changes, with a focus on expanding overseas markets and user bases [4] - The company aims to maintain a prudent operational philosophy, optimizing its business structure to ensure compliance and high industry standards for existing products [4] - Future resource allocation will focus on new development strategies to enhance long-term operational capabilities [1][4]

Company and Industry Summary Company Overview - The company has a strong focus on capturing new user demands and leveraging an efficient middle platform to continuously develop new products that meet changing user preferences, particularly in the social and live streaming sectors, which provide a solid foundation for sustainable long-term growth [1][2][9] Industry Insights - The short drama segment has experienced rapid growth over the past two years, with the company identifying this opportunity earlier than the market, leading to a strong first-mover advantage [1][3] - The competition in the short drama space has intensified, pushing the industry towards higher quality content and production standards [3][4] Financial Performance - For the first half of 2024, the company reported a total revenue of 3.5 billion, a year-on-year increase of 13%, with the core business remaining stable [10] - Short dramas generated 640 million in revenue, reflecting a growth of over 30% year-on-year, positioning the company as a leader in this segment [11] - The gross margin improved significantly to 46.8%, up from 42.6% in the previous year, driven by the higher margin short drama business [11] Strategic Initiatives - The company has adjusted its short drama business model in response to increased competition, adopting a dual approach that includes both paid short dramas and an advertising-based model [4][5] - There is a strategic focus on expanding into overseas markets, particularly Southeast Asia and the Middle East, where there is a large user base and cultural alignment [6][7] - The company is also exploring the production of local dramas and has begun filming one to two projects as a test for future investments [9] Market Trends - The rise of new platforms like Hongguo Short Drama has garnered significant attention, with the potential for the advertising model to capture a substantial market share [13][14] - The company is supportive of the IA model, which is gaining traction in the short drama market, and has begun integrating this model into its own business strategy [15][16] Technological Integration - AI is being integrated across various aspects of the company's operations, including content production and marketing, enhancing efficiency and effectiveness [17][18] - The company is also exploring the potential of AI in social applications, although the full realization of AI's capabilities in consumer-facing products is still developing [18] Future Outlook - The company remains optimistic about the growth of the short drama market and the potential of new advertising models, while also maintaining a focus on profitability and market stability [12][13] - There is a commitment to exploring further collaborations and innovations, particularly in the realm of AI and overseas expansion [21]

Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately RMB 3,533.2 million, representing a year-on-year increase of 13.0% compared to RMB 3,126.1 million for the same period in 2023[6]. - The average revenue per user increased by 32.1% to RMB 24.5 from RMB 18.5 in the previous year[8]. - The operating profit for the first half of 2024 was RMB 136.7 million, a decrease of 32.3% compared to RMB 202.0 million in the same period of 2023[6]. - The net profit for the period was RMB 135.1 million, down 29.8% from RMB 192.6 million year-on-year[6]. - The company reported a non-IFRS adjusted net profit of RMB 146.5 million, down 28.8% from RMB 205.7 million in the previous year[6]. - The gross profit increased by 24.8% to approximately RMB 1,660.0 million, with a gross margin rising from 42.6% in 2023 to 47.0% in the reporting period[20]. - The total expenses for the six months ended June 30, 2024, amounted to RMB 3,392,063 thousand, compared to RMB 3,004,713 thousand for the same period in 2023, indicating an increase of approximately 12.9%[81]. - The company reported a profit attributable to shareholders of RMB 120,599,000 for the six months ended June 30, 2024, down from RMB 190,349,000 in the same period of 2023, representing a decrease of approximately 36.6%[85]. User Metrics - The average monthly active users decreased to 24,045 thousand, down 14.4% from 28,094 thousand in the same period last year[8]. Strategic Initiatives - The company aims to continue its sustainable development strategy and expand its core product matrix while exploring overseas growth opportunities[10]. - The company plans to enhance the value of its core business and expand its scale advantages through robust cash flow reserves and an active user ecosystem[10]. - The company plans to deepen localization in overseas markets and explore new growth opportunities in regions like Southeast Asia and the Middle East[16]. - The company aims to leverage emerging technologies, including Web3.0 and AI, to enhance its product offerings and user experience[17]. Expenses and Cost Management - Sales and marketing expenses rose by 34.1% to approximately RMB 1,289.7 million, accounting for 36.5% of total revenue, up from 30.8% in the previous year[21]. - Administrative expenses increased by 31.4% to approximately RMB 131.5 million, primarily due to adjustments in employee structure and increased employee benefits[22]. - Research and development expenses decreased by 30.4% to approximately RMB 99.1 million, attributed to operational strategy adjustments and reduced employee costs[23]. Cash Flow and Financial Position - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 2,009.2 million, a decrease from RMB 2,362.3 million as of December 31, 2023[34]. - The net cash inflow from operating activities for the six months ended June 30, 2024, was RMB 132,996 thousand, compared to RMB 162,305 thousand for the same period in 2023, indicating a decrease of about 18.0%[52]. - The company reported a net cash outflow from investing activities of RMB 466,346 thousand for the six months ended June 30, 2024, compared to RMB 93,324 thousand in the same period of 2023, indicating a significant increase in cash outflow[52]. - The company’s financing activities resulted in a net cash outflow of RMB 16,766 thousand for the six months ended June 30, 2024, compared to RMB 3,222 thousand in the previous year, indicating increased financing costs[54]. Assets and Liabilities - Total assets increased to RMB 5,304,779 thousand as of June 30, 2024, compared to RMB 5,145,709 thousand at the end of 2023[49]. - The total liabilities increased to RMB 947,150 thousand from RMB 863,866 thousand at the end of 2023[50]. - The company has approximately RMB 159.4 million in restricted cash as of June 30, 2024, up from RMB 58.4 million as of December 31, 2023[34]. - The company has no pledged or mortgaged assets as of June 30, 2024[40]. Investments and Financial Instruments - The group holds cryptocurrencies as intangible assets recorded under the cost model, with an indefinite useful life, requiring annual impairment testing[62]. - The fair value of financial instruments is determined using valuation techniques, including discounted cash flow analysis for wealth management products[71]. - The group’s financial assets primarily consist of investments in wealth management products issued by banks and financial institutions in China[70]. Shareholder Information - The founder, Mr. Feng You Sheng, holds 358,798,000 shares, representing 18.51% of the company's equity[113]. - Mr. Liu Xiao Song holds 250,000,000 shares through a controlled corporation, representing 12.90% of the company's equity[113]. - Mr. Hou Guang Ling holds 80,409,000 shares through a controlled corporation, representing 4.15% of the company's equity[113]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the reporting period[136]. - The audit committee has been established in accordance with the listing rules and corporate governance code, consisting of two independent non-executive directors and one non-executive director[139]. - The interim financial information for the reporting period has not been audited but has been reviewed by the company's auditor according to international standards[139].

Investment Rating - The report assigns a "Buy" rating with a target price of HKD 0.90, representing a potential upside of 12.5% from the recent closing price of HKD 0.80 [2][3]. Core Insights - The company recorded a revenue of RMB 3.53 billion in the first half of 2024, marking a year-on-year increase of 13.0%, driven by the development of its product matrix and innovative short drama business. However, the net profit attributable to shareholders declined by 36.6% year-on-year to RMB 121 million, primarily due to increased marketing expenses [1][2]. - The live streaming business showed stable operations, with monthly active users (MAU) decreasing by 14.4% to 24.05 million, but average revenue per user (ARPU) increased by 32.1% to RMB 24.5, indicating strong consumer spending among core paying users [1]. - The short drama business is expanding steadily but faces limited profit margins due to intensified competition and rising market entry barriers. The company is exploring deeper integration of short dramas with cultural tourism and testing overseas opportunities [1]. - The company successfully expanded its overseas business in 2023, achieving significant revenue growth and targeting Southeast Asia, the Middle East, and North America for further market penetration [1]. Summary by Sections Financial Performance - In the first half of 2024, the company achieved a gross margin of 47.0%, up 4.4 percentage points year-on-year, while sales expenses increased by 5.7 percentage points to 36.5% due to the rapid expansion of the short drama business [1][7]. - The adjusted net profit for the first half of 2024 decreased by 29.8% year-on-year to RMB 135 million, reflecting the impact of increased operational costs [1]. Business Segments - The live streaming segment remains a cornerstone of the business, leveraging scale advantages and operational experience to maintain a healthy user environment and brand strength [1]. - The short drama segment has seen rapid growth since April 2022, but the competitive landscape is becoming increasingly challenging, prompting the company to innovate and explore new commercial paths [1]. Market Outlook - The report anticipates that while the social business faces competition and strategic adjustments, the short drama business is expected to become a new growth driver for the company [1]. - The company’s net cash position, excluding investment management, is approximately RMB 2.01 billion, significantly higher than its current market capitalization, suggesting potential for valuation upside [1].

Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately RMB 3,533.2 million, representing a year-on-year increase of 13.0%[1] - Gross profit for the six months was RMB 1,659.96 million, a year-on-year increase of 24.8%[1] - Operating profit decreased to RMB 136.69 million, down 32.3% compared to RMB 201.97 million in the same period last year[1] - Adjusted net profit for the period was RMB 146.49 million, a decrease of 28.8% from RMB 205.73 million in the same period last year[1] - The group's profit for the reporting period was approximately RMB 135.1 million, a decrease of 29.8% compared to RMB 192.6 million in the same period of 2023[21] - The company reported a net profit attributable to shareholders of RMB 120,599 thousand for the six months ended June 30, 2024, a decrease of 36.6% compared to RMB 190,349 thousand in the same period of 2023[57][59] - Basic earnings per share for the period were RMB 0.06, compared to RMB 0.10 in the previous period[39] - Total expenses for the six months ended June 30, 2024, amounted to RMB 3,392,063 thousand, an increase from RMB 3,004,713 thousand in the same period of 2023[54] User Metrics - Monthly average active users decreased to 24,045 thousand, down 14.4% from 28,094 thousand in the same period last year[3] - Monthly average revenue per user increased to RMB 24.5, up 32.1% from RMB 18.5 in the same period last year[3] Expenses and Costs - Sales and marketing expenses rose by 34.1% to approximately RMB 1,289.7 million, accounting for 36.5% of total revenue, up from 30.8% in 2023[14] - Administrative expenses increased by 31.4% to approximately RMB 131.5 million, primarily due to adjustments in employee structure and increased employee welfare costs[15] - Research and development expenses decreased by 30.4% to approximately RMB 99.1 million, attributed to operational strategy adjustments and reduced employee costs[16] Cash and Assets - The group had cash and cash equivalents of approximately RMB 2,009.2 million as of June 30, 2024, a decrease from RMB 2,362.3 million as of December 31, 2023[25] - Total assets as of June 30, 2024, amounted to RMB 5,304,779 thousand, an increase from RMB 5,145,709 thousand as of December 31, 2023, representing a growth of approximately 2.9%[40] - Current assets increased significantly to RMB 4,158,306 thousand, up from RMB 3,978,967 thousand, reflecting a growth of approximately 4.5%[40] - Trade receivables surged to RMB 135,362 thousand from RMB 56,945 thousand, reflecting an increase of approximately 137.5%[40] Strategic Initiatives - The company aims to expand overseas markets, focusing on regions with large populations and developed mobile payment infrastructures[7] - The company plans to enhance its core product matrix and explore new applications of technology to drive growth[4] - The short video business is being developed with a focus on high-quality content and potential overseas opportunities[6] - The group plans to enhance its overseas operations strategy, focusing on localizing operations and exploring new markets in Southeast Asia and the Middle East[9] Corporate Governance - The audit committee confirmed compliance with applicable accounting principles and standards during the reporting period[68] - The company has adopted the corporate governance code and has complied with all applicable provisions during the reporting period[66] - The company has maintained a high level of corporate governance to protect shareholder interests and enhance company value[66] Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of 20% to $1.8 billion[70] - New product launches are expected to contribute an additional $200 million in revenue over the next year[70] - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[70] - Market expansion plans include entering three new countries by the end of the fiscal year, targeting a potential market of 5 million users[70] - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for this purpose[70]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 1.12, representing a potential upside of 27.3% from the recent closing price of HKD 0.88 [7][9]. Core Insights - The company recorded revenue of RMB 6.84 billion in 2023, an increase of 8.3% year-on-year, with a gross margin improvement of 1.1% to 41.4%. Net profit surged by 337.8% to RMB 400 million, while adjusted net profit grew by 9.9% to RMB 430 million [7]. - The core business showed steady growth, with strategic adjustments made in the second half of 2022 to address industry competition and regulatory changes. The company's live streaming and social business segments have rebounded, providing solid cash flow support for diversified development [7]. - The short drama business has emerged as a significant growth driver, contributing RMB 960 million in revenue, accounting for 14% of total revenue. The market for micro-short dramas has expanded rapidly, with a reported growth of 268% year-on-year [7]. - The company successfully expanded its overseas operations, achieving substantial revenue growth and enhancing its brand presence through localized strategies in various global markets [7]. Financial Summary - The company’s cash position is robust, with net cash (excluding investment management) estimated at RMB 2.36 billion, significantly exceeding its current market capitalization [7]. - The projected earnings for 2024 are valued at a price-to-earnings ratio of 5x, supporting the target price of HKD 1.12 [7]. - The company has optimized resource allocation to strengthen its user base and commercial monetization capabilities, particularly in the social and matchmaking sectors [7].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a potential upside of over 15% relative to the CSI 300 index [7]. Core Insights - The company has shown strong growth in its short drama business, achieving significant revenue increases and successfully turning a profit in 2023. The revenue for 2023 reached 6.84 billion yuan, a year-on-year increase of 8.3%, with net profit soaring to 400 million yuan, a remarkable growth of 337.8% [9]. - The company is expected to continue its revenue growth trajectory, with projected revenues of 7.09 billion yuan, 7.61 billion yuan, and 8.30 billion yuan for 2023, 2024, and 2025 respectively, reflecting year-on-year growth rates of 3.7%, 7.3%, and 9.1% [2][17]. - The company is focusing on optimizing its social product matrix and expanding its overseas market presence, particularly with its product "Waha" gaining traction in Vietnam [1]. Summary by Sections Financial Performance - The company achieved a gross margin of 41.4% in 2023, slightly higher than the previous year, with a sales expense ratio of 30.3% [23]. - The company’s content service revenue from short dramas reached 959 million yuan in 2023, showing substantial growth [9]. - The projected net profits for 2023, 2024, and 2025 are 420 million yuan, 490 million yuan, and 560 million yuan respectively, with growth rates of 8.0%, 16.6%, and 14.4% [2][17]. Business Segments - The short drama business is positioned as a key growth driver, with the company producing hundreds of micro-dramas and achieving over 10 billion total views [9]. - The live social business has shown signs of recovery, with a 25.5% quarter-on-quarter increase in revenue, despite a year-on-year decline of 10% [16]. Market Position - The company is recognized as a leader in the short drama sector, ranking third in the industry heat list for Q1 2024, following major competitors [9]. - The company’s strong promotional capabilities and comprehensive industry chain are expected to sustain its competitive edge and revenue generation [9].

Financial Performance - The group's revenue for the year was approximately RMB 6,844.8 million, an increase of 8.3% compared to RMB 6,319.3 million in 2022, driven by the development of an innovative product matrix[3]. - Gross profit increased by 11.3% from approximately RMB 2,546.5 million in 2022 to approximately RMB 2,833.1 million, with the gross profit margin rising from 40.3% to 41.4%[4]. - Operating profit turned positive, increasing by 1,002.7% from an operating loss of approximately RMB 47.0 million in 2022 to approximately RMB 424.2 million[8]. - The net other income increased from a loss of approximately RMB 46.7 million in 2022 to a net income of approximately RMB 138.5 million, mainly due to the appreciation of certain financial assets measured at fair value[7]. - The group's share of profits from investments accounted for using the equity method was approximately RMB 20.9 million, compared to a loss of approximately RMB 51.2 million in 2022[9]. Expenses and Losses - Administrative expenses decreased by 70.6% from approximately RMB 774.3 million in 2022 to approximately RMB 227.3 million, primarily due to the absence of goodwill impairment provisions during the reporting period[5]. - Financial asset impairment losses decreased from approximately RMB 50.2 million in 2022 to approximately RMB 13.1 million, attributed to a reduction in expected credit losses on other receivables and trade receivables[6]. Cash and Financial Assets - As of December 31, 2023, the total restricted cash balance was approximately RMB 58.4 million, slightly down from RMB 60.4 million as of December 31, 2022[13]. - Total financial assets decreased from approximately RMB 1,477.8 million in 2022 to approximately RMB 924.1 million in 2023[14]. Investment and Strategy - The company expects that its investment strategies will continue to generate stable income, given the manageable risk levels associated with financial products[16]. - The board has approved a budget of $100 million for cryptocurrency purchases[25]. - The company has no significant investment or capital asset plans as of the report date[25]. Business Operations - The group focuses on mobile live streaming platform business in China, providing value-added telecom services, internet cultural services, and network audiovisual program services[31]. - The company aims to maximize shareholder returns and will focus on its core business for sustainable growth[35]. - The company has no significant adverse impacts from competitive market conditions, despite operating in a vibrant and competitive industry[63]. Compliance and Governance - The company has complied with all relevant laws and regulations affecting its business and operations during the reporting period[33]. - The company’s independent non-executive directors confirmed their independence in relation to significant transactions and arrangements[104]. - The company has established a mechanism for evaluating the independence of its independent non-executive directors annually[139]. - The company has confirmed that all independent non-executive directors are independent as of the fiscal year ending December 31, 2023[125]. Shareholder and Dividend Information - The board has proposed a final dividend of HKD 0.0412 per ordinary share for the year ending December 31, 2023, totaling approximately HKD 799 million, pending shareholder approval at the upcoming annual general meeting[53]. - The company has a policy to declare interim dividends based on its financial condition and profits[39]. - The company’s available reserves for distribution, calculated under Cayman Islands company law, amount to approximately RMB 3,219.8 million[167]. Employee Incentives and Compensation - The company has adopted stock option plans and restricted share unit plans to incentivize employees[162]. - The company has implemented a competitive compensation policy for employees, including salary, bonuses, and other cash benefits[162]. - The company aims to attract and retain skilled personnel through the implementation of the restricted share unit plan adopted on May 12, 2022[96]. Share Options and Restricted Share Units - The total number of stock options available for issuance under the stock option plan is 201,556,400 shares, accounting for approximately 10.40% of the company's issued share capital as of the report date[84]. - The total number of shares available for the Restricted Share Unit Plan is 100,778,200 shares, representing about 5.2% of the company's issued share capital as of the report date[76]. - The company has not granted any share options or restricted share units during the reporting period[121]. Board and Management - The company’s board of directors is collectively responsible for guiding and supervising the company’s affairs, including monitoring operational and financial performance[138]. - The board is committed to ensuring at least three independent non-executive directors, with one possessing appropriate professional qualifications[154]. - The company held six board meetings during the reporting period, exceeding the requirement of four meetings per year as per corporate governance code C.5.1[146]. Miscellaneous - The company has established Hunan Canchen Yingchao Network Technology Co., Ltd. and Hunan Lingxiao Lansheng Network Technology Co., Ltd. to engage in value-added telecommunications and internet cultural activities, which are restricted for foreign investors under Chinese law[176]. - The company has not made any payments to directors or on behalf of directors during the reporting period, except as disclosed[191]. - The company has not entered into any arrangements allowing directors or executives to acquire securities of the company or its affiliates during the year[170].