# 30 Impact of the COVID-19 pandemic

The Covid-19 pandemic since early 2020 has brought about additional uncertainties in the Group’s operating environment and has impacted the Group’s operation and financial position.

The Group has been closely monitoring the impact of the developments on the Group’s business and has put in place contingency measures. These contingency measures include: reassessing changes to the customers’ preferences on the types of drama series to be broadcasted, assessing the readiness of the production units and revisiting the progress of self-produced drama series, negotiating with customers on possible delay in delivery timetables, increase monitoring of the business environment of the Group’s customers, and improving the Group’s cash management by expediting debtor settlements and negotiating with suppliers on payment extensions.

The Covid-19 pandemic did have a significant impact on the Group’s operation and capital position, but did not change the fundamentals of the Group’s ability to continue as a going concern. The Group now has strengthened the recovery of receivables, increased the issuance of drama series and films, and adjusted the drama and films reserves. The Group will keep the contingency measures under review as the situation evolves.

# 31 Non-adjusting events after the reporting period

On 5 January 2021, the Company and Jinbi Market (Hong Kong) Limited (the “Subscriber”) entered into a subscription agreement (the “Subscription Agreement”), pursuant to which the Company has conditionally agreed to allot and issue, and the Subscriber has conditionally agreed to subscribe, for an aggregate of 101,137,134 new shares at the Subscription price of HKD0.156 per subscription share, which in aggregate amount to a total of approximately HKD15,777,000. All the conditions have been fulfilled and the completion took place on 19 January 2021 in accordance with the terms and conditions of the Subscription Agreement. The net proceeds of the Subscription are approximately HKD15,730,000. Further to completion of the Subscription, the adjusted conversion price of the outstanding convertible bonds was further adjusted to HKD0.156 per conversion share.

On 26 February 2021, convertible bonds with entire principal amount of HKD20,000,000 held by BeiTai were converted into 128,205,128 shares at the adjusted conversion price of HKD0.156 per conversion share.

On 26 February 2021, the Company announced to redeem the convertible bonds in the aggregate principal amount of HKD50,000,000 held by the Original Bondholder, leaving the convertible bonds in the aggregate principal amount of HKD50,000,000 remain outstanding after the partial redemption. On 24 March 2021, the Company further announced that the Company received a notice from Original Bondholder confirming potential extension and potential transfer of the outstanding convertible bonds, with terms subject to the entering into of a legally binding agreement between the relevant parties.

# 32 Comparative Figures

Certain comparative figures have been adjusted to conform with the current year’s presentation.

# 33 Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended 31 December 2020

Up to the date of issue of these financial statements, the IASB has issued a number of amendments, and a new standard, IFRS 17, Insurance contracts, which are not yet effective for the year ended 31 December 2020 and which have not been adopted in these financial statements. These developments include the following which may be relevant to the Group.

<table><tr><td></td><td>Effective for 
accounting 
periods beginning 
on or after</td></tr><tr><td>Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16, 
Interest Rate Benchmark Reform-Phase 2</td><td>1 January 2021</td></tr><tr><td>Amendments to IFRS 3, Reference to the Conceptual Framework</td><td>1 January 2022</td></tr><tr><td>Amendments to IAS 16, Property, Plant and Equipment: Proceeds before Intended Use</td><td>1 January 2022</td></tr><tr><td>Amendments to IAS 37, Onerous Contracts – Cost of Fulfilling a Contract</td><td>1 January 2022</td></tr><tr><td>Annual Improvements to IFRSs 2018-2020 Cycle</td><td>1 January 2022</td></tr><tr><td>Amendments to IAS 1, Classification of Liabilities as Current or Non-current</td><td>1 January 2023</td></tr><tr><td>IFRS 17, Insurance contracts</td><td>1 January 2023</td></tr><tr><td>Amendments to IFRS 10 and IAS 28, Sale or contribution of assets between 
an investor and its associate or joint venture</td><td>To be determined</td></tr></table>

The Group is in the process of making an assessment of what the impact of these developments is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the consolidated financial statements.