Hony Media GroupHKEX: 419

Corporate Presentation – FY2024 Interim Results

· Issued by Hony Media Group

Hony Media Group

(Stock Code: 00419.HK)

Interim Results Presentation

For the 6 months ended 30 June 2024

23 August 2024

Content Page

Results Highlights

4

"Echartnow", provision of digitized operation service in

the healthcare industry

6

"Meerkat Health", a Smart Healthcare Services Platform

11

Entertainment and Media

14

Financial Summary

16

3

Results

Highlights

4

2024 Interim Results Highlights

  • The Group has changed its name from "Huayi Tencent Entertainment Company Limited" to "Hony Media Group" during the period. On one hand, it continued to optimize its existing internet healthcare business, while on the other hand, it completed the issuance of convertible bonds to an entity under Hony Capital. Mr. Zhao John Huan, Chairman of Hony Capital, was appointed as the Chairman of the Board of Directors of the Company, and Mr. Cheng Wu was appointed as the Chief Executive Officer, focusing on the strategic development of international culture, media and entertainment businesses
  • Benefiting from continuous cost control and the business restructuring of the smart healthcare services platform "Meerkat Health", the loss from continuing operations during the period significantly narrowed by 31% to approximately HK$46.18 million from approximately HK$67.21 million during the same period last year
  • "Echartnow", the digitized operation service in the healthcare industry, was the main source of revenue for the Group, recording revenue of HK$373 million (same period in 2023: HK$482 million) during the period, representing a decrease of 23% compared to the same period last year, mainly due to changes in business structure and customer structure under the healthcare reform policy. The number of contracted pharmaceutical companies continued to grow, increasing by 24.5% compared to the end of 2023. The platform covers registered doctors in key departments such as pediatrics, oncology, and cardiovascular, with the number of registered doctors increasing by 32.6% compared to the end of 2023
  • During the Period, "Meerkat Health" has further terminated the private e-commerce business with unclear development prospects and fully reduced related personnel, focusing on operating the healthcare consumption business and recorded HK$116 million (same period in 2023: HK$148 million), representing a decrease of 21% compared to the same period last year. It is due to the revenue from the same period last year included approximately HK$11.57 million from divested businesses such as vaccines and health examinations; and the proportion of lower-margin business was reduced, concentrating resources on expanding high-margin,high-potential businesses. The segment loss during the period significantly narrowed by 86% to HK$4.58 million (same period in 2023: HK$32.76 million)

5

"Echartnow", provision of digitized operation service in the healthcare industry

6

''Echartnow'' continuously developing in multiple dimensions

  • Echartnow is strategically positioned as a frontrunner in digitized operations for the healthcare industry, providing enterprises with full development cycle digitized operation solutions through online and offline integration. During the period, Echartnow continued to develop in multiple dimensions, on one hand deepening its core competitive advantages in business development and building business moats, and on the other hand collaborating with large healthcare enterprises to establish the first standard innovation consortium, further expanding its industry influence.

Driving forward with both core competitiveness and industry influence

  • In January 2024, under the guidance of Shanghai Municipal Administration for Market Regulation and Pudong New Area Administration for Market Regulation, Echartnow, together with several large domestic pharmaceutical companies, officially established the first standard innovation consortium in the pharmaceutical industry in Shanghai, the "Shanghai Biopharmaceutical Digital Operation Standard Innovation Consortium" (the "Consortium"), to support the digital transformation of the biopharmaceutical industry through standardization, thereby accelerating the commercialization process of innovative drugs. This project was also included as one of the four important achievements in national standardization system innovation, showcasing Echartnow's strength as an industry leader.
  • In March 2024, Echartnow's Shanghai headquarters was officially launched, leveraging regional policies and integrated resource advantages to further promote business development in the Yangtze River Delta region.
  • Echartnow officially opened the "Cistanche Digitized Operation and Management Platform" to provide digital transformation services for enterprises. The "Cistanche Digitized Operation and Management Platform" creates standardized and systematic digital marketing strategies for enterprises through standardized operation systems, AIGC capabilities, and industry application small models. During the period, Echartnow adjusted the business model of the Cistanche ecosystem, shifting from the traditional SaaS system sales model to charging service fees based on platform turnover, deepening the implementation of inclusive industrial digital transformation concepts while further promoting the digital transformation process of the healthcare industry

7

Medical Enterprises
Clinical Research Services
1. Real World Research (RWR/RCT...)
2. Drugs Clinical Trial
3. Drugs Economics Assessment
4. Drug Clinical Pathway
5. Case Collection
6. Questionnaire Survey
Source of Revenue for Digitized Operation Services
The main sources of revenue of Echartnow were information service fees, technical service fees, and promotion service fees received for providing scenario-baseddigitized operation solutions to pharmaceutical companies, which specifically include:
1. Digitized management system
2. Marketing service
3. Clinical Research Service
4. Cistanche Open Platform
Construction of Digitized Operating Scenario for

Marketing Services

1. Medical Conferences

  • Conferences Types
  • Service Category

2. Pan-media operating service

  • Doctors IP
  • Echartnow Advertising

O2O Digitized Operating Services

  1. O2O Data Flow
  2. Terminal Scenario
  3. Dedicated Platform Tool
  4. Dedicated Operating Team
  5. Tailored Brand Promotion for Doctors

''Echartnow'' Platform Key Data(30/6/2024)

305

(+24.5%)

Contracted

Pharmaceutical

Companies

HK$373M

2024 Interim

Sales Revenue

27

100+

(-23%)

Provinces

Cistanche

Covered

Customers

  • As of 30 June 2024, the number of pharmaceutical companies that have signed up with the Echartnow platform has increased to 305, increasing by 24.5% compared to the end of 2023, including well-known companies such as Qilu Pharmaceutical and CSPC Pharmaceutical Group
  • Echartnow platform has now covered 53,150 doctors, increasing by 32.6% compared to the end of 2023 . All doctors have completed real-name registration, uploaded qualification documents, and passed authentication.

9

''Echartnow'' Outlook

  • Echartnow will continue to closely follow national policy directions, actively respond to the comprehensive and normalized requirements of anti-corruption in healthcare, deepen the construction of compliance systems, and assist in the legal and compliant digital transformation of the industry. Through open cooperation, Echartnow will share the results of digital transformation with the industry, promoting the deepening of industry digital transformation. At the same time, it will seize policy signals supporting innovation, assist in the research and development and marketing processes of biopharmaceuticals, meet clinical needs, and promote high-quality development of the healthcare industry.
  • Echartnow will actively participate in and promote the formulation and implementation of compliance standards for digital operations in the biopharmaceutical industry. Leveraging the platform resource advantages of the Consortium, it will formulate digital operation compliance standards that meet the actual needs of the industry. Through the implementation of the "Biopharmaceutical Digital Operation Compliance Guidelines", it will standardize service processes, improve service efficiency, ensure data security, and promote the industry's advancement towards standardization and intellectualization. At the same time, Echartnow will strengthen ESG (Environmental, Social, and Governance) innovation practices to achieve green and sustainable development, improve public health standards, and promote social employment and economic development.
  • Echartnow will also actively engage in in-depth exploration with government departments in areas such as public data authorization, assetization, and circulation transactions. By integrating medical insurance and industry data, it will provide precise market insights and R&D support for biopharmaceutical enterprises, accelerating enterprise growth. At the same time, it will promote the deep integration of pharmaceutical digital marketing and R&D innovation, using big data and AI technologies to optimize marketing strategies and feed back into new drug R&D, jointly promoting the digital transformation and high-quality development of the industry. It will also advance the first domestic customer data asset entry into financial statements and data asset financing, realizing the circulation and transaction of data elements, and enhancing the leading role of the biopharmaceutical industry in data asset applications.

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