Revenue Performance - The sports knowledge subscription platform recorded revenue of HKD 125.0 million in the first half of 2024, an increase of 8.9% compared to the same period in 2023[4]. - Revenue for the group decreased by 23.7% to HKD 208.3 million compared to the same period in 2023, primarily due to adjustments in the business model and industry uncertainties[2]. - Total revenue for the first half of 2024 was HKD 208.3 million, a decrease of 23.7% compared to HKD 272.9 million in the same period of 2023[12]. - Revenue from sports and leisure games decreased by 42.9% to HKD 76.7 million, down from HKD 134.4 million in 2023, due to market instability and reduced consumer spending[10][13]. - Revenue for the six months ended June 30, 2024, was HKD 208,311,000, a decrease of 23.7% compared to HKD 272,890,000 for the same period in 2023[47]. User Engagement - The total user base increased by 10.1% to 96.06 million compared to the end of 2023[2]. - The sports knowledge subscription platform's average monthly active users grew by 4.0% compared to the same period in 2023[1]. - Active users grew by approximately 4.0% on average per month, with a significant increase of 89.0% in June 2024 compared to the same month in 2023[7][12]. - User engagement metrics showed a 40% increase in active users, reaching 5 million by the end of the reporting period[72]. - Customer retention rates improved to 85%, reflecting successful engagement initiatives and loyalty programs[72]. Financial Performance - The group narrowed its loss to HKD 5.7 million, a 40.1% reduction from the HKD 9.5 million loss in the same period of 2023, attributed to improved gross margins and reduced marketing expenses[2]. - Gross profit for the first half of 2024 was HKD 80.6 million, a decrease of 14.6% from HKD 94.3 million in 2023, with a gross margin increase from 34.6% to 38.7%[14]. - The company reported a net loss of HKD 5.7 million for the six months ended June 30, 2024, an improvement from a loss of HKD 9.5 million in the prior year[33]. - The total comprehensive income for the period amounted to a loss of HKD 37,248,000, which includes a loss of HKD 9,462,000 from the period[37]. - The company reported a net loss before tax of HKD 5,662,000 for the six months ended June 30, 2024, compared to a loss of HKD 9,462,000 in the same period of 2023[53]. Cost Management - Sales and marketing expenses decreased by 26.5% from HKD 83.7 million in the same period of 2023 to HKD 61.5 million, aligning with the decline in revenue from sports and leisure games[17]. - Administrative expenses slightly decreased by 1.6% from HKD 21.8 million in 2023 to HKD 21.5 million, reflecting the company's focus on cost efficiency[18]. - The company incurred expected credit losses of HKD 3,330,000 for accounts receivable, which was not present in the previous year[50]. - Total financial expenses decreased to HKD 298,000 from HKD 763,000 year-on-year, reflecting a reduction in bank borrowing interest[49]. Strategic Initiatives - The launch of the AI assistant "Ruyi" aims to enhance product competitiveness and user retention through a large model AI assistant in the "sports + lottery" vertical[2]. - The group plans to deepen its engagement in short video platforms and live streaming to enhance user participation and conversion rates[4]. - The collaboration with major broadcasting platforms for the 2024 European Cup aims to enhance market influence and revenue through complementary services[6]. - The company is focusing on product innovation and global market distribution in the sports gaming sector to enhance user engagement[10][13]. - The company is exploring additional revenue streams through partnerships with major sports leagues, aiming for a 5% contribution to overall revenue by 2025[72]. Investment and Assets - As of June 30, 2024, the group's investment portfolio was valued at HKD 250.4 million, down from HKD 275.5 million as of December 31, 2023[20]. - The group invested HKD 249.1 million in private equity funds, representing 24.6% of total assets, with significant investments in the China Prosperity Capital Mobile Internet Fund and New Rock Capital Fund[21]. - The fair value of the investment in the China Prosperity Capital Fund decreased to HKD 146.0 million from HKD 157.0 million, with a recognized loss of HKD 11.0 million during the period[21]. - Total assets as of June 30, 2024, amounted to HKD 1,012.2 million, a decrease from HKD 1,077.0 million as of December 31, 2023[29]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 15% to 20% based on current market trends and user acquisition strategies[72]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[72]. - The launch of a new AI-driven sports analytics tool is scheduled for Q1 2025, anticipated to attract new partnerships and revenue streams[72]. - Investment in R&D has increased by 30%, focusing on the development of AI technologies and new gaming platforms[72]. - A strategic acquisition of a smaller gaming company was completed, expected to enhance the company's product offerings and user base by 1 million users[72].

Financial Performance - In 2023, the total revenue decreased by 30.3% to approximately HKD 490.2 million, primarily due to reduced income from sports and leisure gaming businesses [18]. - The company recorded a loss of HKD 23.3 million in 2023, compared to a profit of HKD 17.7 million in 2022, due to decreased income from the sale of a subsidiary and foreign exchange gains [18]. - Total revenue for 2023 was approximately HKD 490.2 million, a decrease of 30.3% compared to HKD 703.5 million in 2022 [41]. - Gross profit for 2023 was approximately HKD 179.4 million, a decrease of 28.9%, with a slight increase in gross margin from 35.9% in 2022 to 36.6% in 2023 [43]. - Other income and losses recorded HKD 6.0 million in 2023, a significant decrease from HKD 84.6 million in 2022, primarily due to the sale of a subsidiary in the previous year [44]. - Selling and marketing expenses decreased by 23.7% to HKD 146.1 million in 2023, mainly due to reduced marketing and advertising costs [45]. - Administrative expenses decreased by 21.6% to HKD 45.9 million in 2023, due to cost reallocation and restructuring measures [46]. User Growth and Engagement - The focus product "Crazy Red Single" generated revenue exceeding HKD 227.6 million in 2023, with average monthly active users increasing by 16.1% compared to 2022 [17]. - The total user base increased by 22.8% compared to 2022, indicating a growing interest among younger lottery users and urban white-collar workers [17]. - The user base of China Sports Lottery Network has exceeded 200 million, positioning it among the top platforms in the Chinese football lottery sector [24]. - As of December 31, 2023, the platform accumulated 87 million registered users, an increase of 22.8% from the end of 2022 [38]. Strategic Initiatives and Future Outlook - The upcoming 2024 Paris Olympics is expected to significantly boost revenue, profit, and traffic for the company, as it is the first fully open Olympic event post-pandemic [14]. - The company aims to leverage AI technology and big data resources to enhance the quality of its digital sports entertainment offerings [17]. - The company plans to leverage major sporting events in 2024, including the UEFA European Championship and the Summer Olympics, to drive revenue growth in the sports lottery market [36]. - The company is positioned to capitalize on the rapid growth of the sports industry in China, with a target of reaching a market size of RMB 5 trillion by 2024 [14]. - The company plans to focus on its core business of digital sports entertainment, utilizing a precise market positioning strategy combining sports lottery new retail and "Crazy Red Single" offerings [14]. Sustainability and Environmental Impact - In 2023, the total greenhouse gas emissions amounted to 139.26 tons of CO2 equivalent, with direct emissions at 3.46 tons, indirect emissions at 87.65 tons, and other indirect emissions at 48.15 tons [105]. - The company generated 12,125 kg of non-hazardous waste from daily office operations, equating to 24.7 kg per million HKD in revenue [108]. - The total electricity consumption for 2023 was 91,725 kWh, representing 187.1 kWh per million HKD in revenue [111]. - Water usage in 2023 was recorded at 26,905 cubic meters, which translates to 54.9 cubic meters per million HKD in revenue [111]. - The company has implemented energy-saving measures, including the use of LED lighting and regular checks on electrical appliances to reduce energy consumption [112]. - The company has adopted a paperless office approach, encouraging the use of electronic documents to minimize paper usage [116]. - The company has initiated a waste classification and recycling program to manage solid waste effectively [107]. - The company emphasizes the importance of water conservation and has implemented measures to reduce water usage in daily operations [115]. - The company achieved its 2023 sustainability goals, maintaining greenhouse gas emissions density and waste production density at 2022 levels [120]. Corporate Governance and Management - The company is committed to high standards of corporate governance, ensuring compliance with ethical standards to maximize long-term shareholder value [175]. - The company has adhered to all provisions of the corporate governance code during the fiscal year ending December 31, 2023 [176]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse range of business, financial, technical, management, and leadership experience [180]. - Continuous professional development is encouraged, with all directors participating in training or seminars during 2023 to enhance their knowledge and skills [192]. - The company ensures ongoing communication with shareholders and key stakeholders to align with its purpose and values [183]. Employee Development and Training - The group employs a total of 97 employees as of December 31, 2023 [75]. - A total of 4,612 training hours were provided to employees in 2023, averaging 47.5 hours per employee [134]. - The company has established a comprehensive talent management system to attract and retain skilled employees, ensuring equal opportunities regardless of gender, race, or other factors [122]. - The company has developed a talent cultivation plan in collaboration with educational institutions to ensure a steady supply of skilled personnel for its ongoing development [133]. Compliance and Risk Management - The group faces regulatory risks primarily due to its core business being based on China's internet infrastructure [74]. - The group has taken measures to comply with new laws and regulations to mitigate risks related to product liability [74]. - The company has implemented a comprehensive user data protection strategy, including strict access controls and encryption measures to safeguard user information [148]. - The company has established a "Responsible Lottery" framework to promote responsible gambling practices and ensure compliance with regulatory standards [144]. - The group emphasizes integrity in operations and adheres to anti-corruption laws in China and Hong Kong [155].

Financial Performance - The group recorded a loss attributable to owners of the company of HKD (23,222) thousand for the year ended December 31, 2023, compared to a profit of HKD 17,758 thousand in 2022[9]. - The company reported a total revenue of HKD 490,184,000 for 2023, a decrease of 30.3% from HKD 703,455,000 in 2022[50]. - The gross profit for 2023 was approximately HKD 179.4 million, down 28.9% from 2022, with a slight increase in gross margin from 35.9% in 2022 to 36.6% in 2023[188]. - The company’s basic and diluted loss per share for 2023 was HKD (0.51), compared to a profit of HKD 0.39 in 2022[56]. - The group recorded a loss of HKD 23.3 million in 2023 compared to a profit of HKD 17.7 million in 2022, primarily due to a significant decrease in other income and total revenue[195]. Cash Flow and Liquidity - Net cash used in operating activities was HKD (987) thousand for the year ended December 31, 2023, a significant improvement from HKD (4,438) thousand in 2022[2]. - The group reported a net cash outflow from financing activities of HKD (17,260) thousand in 2023, compared to a cash inflow of HKD 19,293 thousand in 2022[2]. - The total cash and cash equivalents decreased to HKD 60,589 thousand at the end of 2023 from HKD 77,905 thousand at the beginning of the year[2]. - The group’s net current liabilities improved to HKD (21,740) thousand in 2023 from HKD (36,097) thousand in 2022[11]. - The capital-to-debt ratio as of December 31, 2023, was approximately 2.6%, down from 4.2% in 2022[180]. Revenue Streams - The digital sports entertainment segment generated revenue of HKD 227,617,000 from the sports knowledge paid platform, up 12.2% from HKD 202,817,000 in 2022[50]. - The total revenue from sports and leisure games in 2023 was HKD 226.6 million, a decrease of 37.0% from 2022, attributed to the lack of major sports events and industry instability[118]. - The sports knowledge paid business generated revenue of HKD 227.6 million in 2023, representing a year-on-year growth of 12.2%[136]. - The new retail lottery business achieved profitability across all regions in 2023, with a significant increase in sales from instant lottery tickets, reaching RMB 119.02 billion, a 100.2% increase year-on-year[142]. Impairment and Asset Valuation - The group recognized an impairment loss of HKD 176.9 million for its equity in Asia Bank as of December 31, 2023, compared to HKD 171.9 million in 2022, due to a decrease in estimated fair value[1]. - The fair value loss on financial assets measured at fair value through profit or loss was HKD (1,618) thousand in 2023, compared to HKD (1,238) thousand in 2022[27]. - The company’s net assets attributable to shareholders (excluding goodwill) decreased to HKD 3,147,000 in 2023 from HKD 12,810,000 in 2022[57]. - The total assets decreased to HKD 1,076,999 thousand in 2023 from HKD 1,199,626 thousand in 2022[11]. Strategic Initiatives and Future Outlook - The company plans to leverage AI technology to enhance market performance and focus on the core business of sports lottery new retail and Crazy Red Ticket[91]. - The company expects strong growth trends in 2024, positioning itself as a significant force in the industry[91]. - The upcoming 2024 Paris Olympics and European Championship are expected to significantly boost the company's revenue, profit, and traffic, as historical data shows increases during major competition years[106]. - The company is actively exploring new market opportunities in the lottery new retail business, including live streaming and new retail channels[117]. Operational Efficiency - Sales and marketing expenses decreased by 23.7% to HKD 146.1 million in 2023, down from HKD 191.5 million in 2022, due to reduced resource allocation for major updates and new game launches[161]. - Administrative expenses were reduced by 21.6% to HKD 45.9 million in 2023, compared to HKD 58.6 million in 2022, as a result of cost reallocation and restructuring measures[162]. - The company is focusing on optimizing its game publishing strategy to maintain business return rates amid declining consumer spending[120]. User Engagement and Market Presence - The number of registered users reached 87 million by December 31, 2023, representing a growth of 22.8% compared to the end of 2022[184]. - The sports knowledge platform, Crazy Red Single APP, has established a user base exceeding 200 million, positioning it as a leading platform in China's football lottery information sector[111]. - The company is expanding its offline retail presence, covering over 20 provinces and cities in China, to enhance brand influence and attract younger consumers[141].

Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 272,890,000, compared to HKD 286,483,000 for the same period in 2022, representing a decrease of approximately 4%[144]. - Gross profit for the first half of 2023 was HKD 94,292,000, down from HKD 129,886,000 in the first half of 2022, indicating a decline of about 27%[144]. - The company reported a loss of HKD 9,499,000 for the six months ended June 30, 2023, compared to a profit of HKD 49,202,000 in the same period of 2022[145]. - Basic and diluted loss per share for the first half of 2023 was HKD 0.21, compared to earnings of HKD 1.09 per share in the first half of 2022[145]. - The group recorded a loss of HKD 9.5 million for the period, a significant decrease from a profit of HKD 49.2 million in the same period of 2022[54]. Revenue Generation - The sports knowledge subscription platform generated revenue of HKD 114.7 million, an increase of 18.6% compared to the same period in 2022[29]. - The revenue from major client marketing increased by 21.0% compared to the same period in 2022[38]. - The sports social interaction platform's revenue decreased by 46.6% to HKD 16.6 million, as it is undergoing a product restructuring phase[30]. User Engagement and Retention - The company achieved a 37.5% increase in the retention rate of new users in the month following their registration on the Crazy Red Single app, with a core user retention rate of 53.6% in the first half of the year[14]. - The company reported a significant increase in user engagement, with approximately 15.35 million views and 3.61 million live viewers on the Kuaishou platform in the first half of the year[33]. Investment and Financial Position - The investment portfolio of the group was HKD 277.5 million as of June 30, 2023, compared to HKD 270.6 million on December 31, 2022[49]. - The investment in private equity funds amounted to HKD 275.4 million as of June 30, 2023, compared to HKD 267.7 million on December 31, 2022, representing 24.6% of total assets[55]. - The fair value of the investment in CPC Fund was HKD 159.9 million as of June 30, 2023, up from HKD 155.4 million on December 31, 2022, with a fair value gain of HKD 4.5 million recognized as other comprehensive income[51]. - The group generated a net cash outflow of HKD 23.0 million from operating activities for the six months ended June 30, 2023, compared to HKD 29.8 million for the same period in 2022[59]. - The cash and cash equivalents decreased to HKD 70.3 million as of June 30, 2023, from HKD 80.4 million at the end of 2022[59]. Corporate Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code during the six months ending June 30, 2023[110]. - The company continues to monitor and review its corporate governance practices to ensure compliance[139]. - The company has adopted a standard code of conduct applicable to all relevant personnel, ensuring compliance during the reporting period[200]. Strategic Initiatives - The company is leveraging advanced technologies such as Web 3.0, blockchain, and AIGC to enhance product innovation and user service levels in the digital sports sector[14]. - The company has actively promoted its sports knowledge subscription platform to new customers, capitalizing on the market trends following the World Cup and the pandemic[29]. - The company has introduced a metaverse game and digital collectibles platform, aligning with national policies on sports and copyright innovation[35]. - The group is actively seeking new market opportunities while ensuring the steady development of existing lottery retail business[43]. - The group aims to enhance its brand influence and reach more users through multi-platform operations and product upgrades[39]. Employee and Operational Insights - As of June 30, 2023, the group employed a total of 88 employees[186]. - Administrative expenses decreased by 43.1% to HKD 21.8 million from HKD 38.4 million in the same period of 2022, due to cost reallocation and restructuring measures[188]. - The company has provided regular training for directors and employees to enhance their skills and knowledge[111].

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 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。 CRAZY SPORTS GROUP LIMITED 瘋 狂 體 育 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：82） 截至 年 月 日止六個月中期業績 2023 6 30 瘋狂體育集團有限公司董事會欣然公佈本集團截至2023年6月30日止六個月之未 經審核簡明綜合中期業績。該等中期業績乃根據香港會計準則第34號「中期財務報 告」編製並經審核委員會審閱。 於本公佈中，「我們」指本集團。 年中期業績回顧及展望 2023 2023年上半年全球經濟形勢依然復蘇嚴峻，國內經濟呈現出經濟恢復偏慢的運行態 勢，面臨眾多壓力和挑戰。在此環境下，我們致力於保持產品競爭力及用戶留存， ...

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示不會就本公佈全部或任何部分 內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 CRAZY SPORTS GROUP LIMITED 瘋 狂 體 育 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：82） 年全年業績公佈及 2022 建議採納新組織章程大網及 細則 董事會欣然公佈本集團截至2022年12月31日止年度的經審核綜合業績。該等業績 已由本集團核數師香港立信德豪會計師事務所有限公司根據香港審計準則審核，並 經審核委員會審閱。 於本公佈中，「我們」指本集團。 截至12月31日止年度 2022 2021 變動 港幣千元 港幣千元 （%） ...

Financial Performance - For the first half of 2022, Crazy Sports Group reported a revenue increase of 25.1% year-on-year, reaching HKD 286.5 million, with a profit attributable to shareholders of HKD 49.2 million[13]. - Total revenue for the first half of 2022 reached HKD 286.5 million, a 25.1% increase compared to HKD 229.0 million in the same period of 2021[54]. - The gross profit for the first half of 2022 was HKD 129.9 million, compared to HKD 103.7 million in the same period of 2021[54]. - The group recorded a profit of HKD 49.2 million for the period, down from HKD 62.0 million in the previous year, attributed to increased marketing expenses[70]. - The net profit for the period was HKD 49,202 thousand, down from HKD 61,967 thousand in the previous year, reflecting a decline of 20.7%[143]. - Basic earnings per share decreased to HKD 1.09 from HKD 1.37, indicating a decline of 20.4% year-over-year[143]. - The company’s total comprehensive income for the period was HKD (105,371) thousand, a significant decrease from HKD 159,087 thousand in the previous year[143]. User Growth and Engagement - The total user base grew by 48.8% year-on-year to 57.9 million, with monthly active users reaching 3.37 million, an increase of 28.6%[13]. - The number of large customer users has grown by 500% due to tailored service offerings, enhancing user retention and engagement[24]. - Crazy Red Single aims to capitalize on the World Cup opportunity, having already initiated strategic preparations for product upgrades and user promotions[26]. - The Dream Sports APP successfully attracted a large number of users during the 2022 Beijing Winter Olympics, enhancing user engagement through interactive guessing games[30]. Business Expansion and Strategy - The company is expanding its digital sports entertainment business, focusing on the trillion-dollar market in China, and has established a comprehensive online and offline sports community ecosystem[13]. - Crazy Sports Group launched China's first sports metaverse game "Crazy Soccer" and a digital collectibles platform "Qian Kun Digital Collection" in early 2022[13]. - The company is diversifying its business to enhance operational efficiency and optimize cost-effectiveness across various segments[15]. - Crazy Sports Group is developing original IP with traditional Chinese cultural characteristics, launching a new mythological-themed card game "Tai Chu Xing" to cater to the preferences of younger audiences[15]. - The company aims to create a synergistic development platform combining content, ecology, and technology to attract the "Z generation" audience[13]. Revenue Streams - The revenue of the sports knowledge payment platform, Crazy Red Single APP, increased by 42.0% year-on-year to HKD 96.7 million in 2022[20]. - The revenue from the sports social interaction platform, Crazy Sports APP, decreased by 5.6% year-on-year to HKD 31.1 million[28]. - The sports lottery retail service revenue grew by 26.7% year-on-year to HKD 6.4 million, despite challenges from the pandemic[33]. - The sports and leisure gaming business revenue increased by 7.6% year-on-year to HKD 132.3 million, driven by multiple game updates and new releases[37]. - The newly launched digital collectibles platform, QianKun Digital Collection, generated revenue of HKD 20.0 million within three months of operation, significantly contributing to revenue growth[57]. Cost Control and Financial Management - Administrative expenses as a percentage of sales decreased by 4.75 percentage points year-on-year to 13.4% as of June 30, 2022, indicating improved cost control[15]. - The company has implemented cost control measures on underperforming products while reallocating resources to higher revenue-generating businesses[56]. - Sales and marketing expenses increased by 93.1% to HKD 81.9 million, mainly due to the launch of the digital collectibles platform and marketing costs for the 2022 World Cup strategy[65]. Investments and Financial Position - As of June 30, 2022, the group's investment portfolio was valued at HKD 340.8 million, down from HKD 406.6 million at the end of 2021[71]. - The group invested HKD 336.7 million in private equity funds, accounting for 27.1% of total assets[73]. - The company holds a 45.49% stake in Asia Bank, which aims to provide online digital banking services[77]. - Asia Bank recorded a loss of HKD 52 million for the period, compared to a loss of HKD 46 million in the same period of 2021[77]. - The company’s liabilities included current liabilities of HKD 286,853 thousand, slightly down from HKD 297,682 thousand in the previous year[147]. Market Opportunities - The company is leveraging the upcoming Qatar World Cup to enhance user engagement and drive sales, with a focus on creating World Cup-specific products and activities[17]. - Crazy Red Single is collaborating with over 40 existing partners to create a content matrix for the World Cup, enhancing its market presence[26]. - The company plans to release multiple football games in conjunction with the 2022 FIFA World Cup, covering various game genres and themes[45]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance codes as per the listing rules during the reporting period[125]. - The establishment of the executive committee was approved on July 5, 2022, to enhance daily operations management[127].

Company Performance - In 2021, the company achieved a revenue of HKD 511.2 million and a gross profit of HKD 229.2 million, representing year-on-year growth of 70.0% and 75.3% respectively[31]. - The company's total revenue for 2021 was HKD 511.2 million, representing a 70.0% increase compared to HKD 300.8 million in 2020[74]. - The gross profit for 2021 was HKD 229.2 million, up 75.3% from HKD 130.7 million in 2020, with a gross margin of 44.8%[81]. - The revenue of Crazy Sports APP increased by 89.8% year-on-year to HKD 85.4 million, significantly enhancing user conversion and monetization across business lines[37]. - The sports lottery retail service revenue increased by 1160% year-on-year, with over 7,000 retail outlets established across 17 provinces and cities in China[50]. - The online sports knowledge payment platform, Crazy Red Single APP, recorded a revenue of HKD 131.3 million, with an annual growth rate exceeding 140%[32]. - The sports and leisure gaming business revenue grew by 32.0% year-on-year to HKD 263.6 million, supported by the successful launch of multiple new games[43]. User Engagement and Growth - The total user base increased by 50% year-on-year to 48.06 million, with monthly active users growing by 134% to 2.56 million[31]. - The number of downloads for Crazy Sports APP in 2021 was 300% higher than the same period last year, driven by the excitement surrounding the European Cup[39]. - The user base for Crazy Sports expanded significantly, covering nearly 70% of Chinese sports users through partnerships with over 40 platforms[36]. - The European Cup and Tokyo Olympics activities attracted nearly one million users to participate in themed betting games on the Dream Match APP[40]. Technological Innovation - The company is focusing on technological innovation, increasing investment in R&D to enhance user experience and product offerings[34]. - The integration of technologies such as AI, big data, and cloud computing is key to the company's rapid business growth and competitive advantage[34]. - The introduction of exclusive football index analysis and basketball big data services aims to optimize event interpretation and pre-match analysis[34]. - The company aims to lead the digital transformation of the sports industry, positioning itself as the first digital sports entertainment stock in Hong Kong[28]. Strategic Partnerships and Events - The company plans to leverage upcoming major sports events in 2022, such as the Beijing Winter Olympics and the Qatar World Cup, to significantly boost revenue and user engagement[28]. - Crazy Sports signed contracts for numerous sports events, including the International Professional Boxing Union and the Chinese Men's Handball Super League, enhancing its live broadcast and interactive entertainment offerings[41]. - The company aims to capitalize on major sporting events in 2022, including the Asian Games and the FIFA World Cup, to boost user acquisition and revenue growth[59]. Sustainability and Corporate Responsibility - The group emphasizes the importance of responsible procurement and supplier management as part of its sustainability strategy[145]. - The company is committed to protecting customer data and privacy, as well as preventing bribery, fraud, and money laundering[145]. - The company has established an Environmental, Social, and Governance (ESG) Committee in November 2021 to oversee sustainability strategies and performance reporting to the board[146]. - The company has engaged independent sustainability consultants to enhance data collection and provide recommendations for future sustainability efforts[146]. - The company emphasizes fair employment practices, ensuring equal opportunities regardless of gender, race, or other factors[175]. Financial Investments - The group invested a total of HKD 402.5 million in private equity funds, representing 29.6% of total assets[64]. - The group reported a dividend income of HKD 10.0 million from the New Rock Capital Fund in 2021, compared to zero in 2020[66]. - The group received dividend income of HKD 16.7 million from the CPC Fund in 2021, down from HKD 26.5 million in 2020[64]. - The group plans to launch new football games and esports leagues in conjunction with the World Cup strategy[60]. Employee Development and Training - The group regularly provides training for directors and employees to enhance their skills and knowledge[115]. - In 2021, the company provided a total of 8,355 training hours for 115 employees, averaging 72.7 hours per employee[184]. - The training hours breakdown shows that senior management received an average of 10.8 hours, middle management 25.0 hours, and general staff 94.8 hours[186]. - The company implemented a comprehensive training program for new employees, ensuring they understand the corporate culture and operational processes[183]. Regulatory Compliance and Risk Management - The company has implemented controls to comply with new laws and regulations to mitigate regulatory risks associated with its core business in China's internet infrastructure[113]. - The company has established a product self-inspection task force to ensure compliance with regulations regarding online gaming, particularly for underage users[192]. - The company strictly prohibits the sale of lottery tickets to individuals under 18 years old, with clear signage placed in retail locations[196]. - The company has not violated any laws regarding child labor or forced labor in 2021[188].

Financial Performance - For the six months ended June 30, 2021, the group reported a profit of HKD 62.0 million, with a net profit margin of 27.1%, compared to a loss of HKD 16.4 million in the same period last year [26]. - Revenue from continuing operations grew by 58.0% year-on-year to HKD 229.0 million [27]. - Gross profit from continuing operations increased by 67.9% year-on-year to HKD 103.7 million, with a gross profit margin rising by 2.7% to 45.3% [28]. - Total revenue for the six months ended June 30, 2021, was approximately HKD 229.0 million, representing a 58.0% increase compared to the same period in 2020 [75]. - The gross profit for the same period was HKD 103.7 million, up from HKD 61.7 million in 2020 [75]. - Profit before tax increased to HKD 54,907,000, compared to HKD 26,649,000 in the previous year, marking a 106.5% growth [178]. - Net profit for the period was HKD 61,967,000, a significant recovery from a loss of HKD 16,363,000 in the same period of 2020 [179]. - Total comprehensive income for the period was HKD 159,087,000, compared to HKD 71,256,000 in 2020, reflecting a 123.5% increase [182]. User Growth and Engagement - The total user base of the sports entertainment platform grew by 63.4% year-on-year to 38.9 million, with monthly active users reaching 2.62 million, a year-on-year increase of 275.2% [29]. - The average revenue per paying user (ARPPU) for new users reached RMB 150 within half a month, with more than 3 payments made on the first day [44]. - The total user base recorded a growth of 63.4% year-on-year, driven by the introduction of products with renowned sports IPs and an upgraded sports knowledge payment platform [78]. - The Crazy Sports Group's online community activities attracted over 30,000 participants during promotional events [57]. Revenue Streams - Revenue from the Crazy Red Single APP increased over 5 times year-on-year to HKD 68.1 million, surpassing the total revenue for 2020 [44]. - The Crazy Sports APP's revenue grew by 57.1% year-on-year to HKD 33.0 million, facilitating business conversion and monetization [54]. - Revenue from the sports knowledge subscription platform and sports social interaction platform generated a total of HKD 101.1 million, with growth rates of 505.6% and 57.1% respectively compared to 2020 [82]. - Revenue from sports and leisure mobile games rose to approximately HKD 122.9 million, reflecting a growth of 9.6% [82]. - The sports lottery retail service generated approximately HKD 5.0 million in commission income, a nearly ninefold increase from HKD 0.5 million in the same period of 2020 [56]. - The sports and leisure gaming business revenue increased by 9.6% year-on-year to HKD 123.0 million, maintaining steady growth [58]. Strategic Initiatives - The group has launched the "Dream Event Platform" and "Duo Duo Points System," which received approval from the Hainan provincial government and completed the filing process, with the platform undergoing testing in June [38]. - The company has launched the "Dream Event Platform," which integrates event information, services, predictions, live broadcasts, and betting, aiming to enhance user engagement in sports entertainment [66]. - The "DuoDuo Points System" has been launched, providing users with a platform for redeeming various Hainan specialty products, contributing to the development of Hainan's international tourism consumption center [74]. - The company has entered into a strategic partnership with Huobi Group to leverage blockchain technology for creating a transparent betting ecosystem [74]. - The introduction of the "Dream Event Platform" is expected to attract international and influential events to Hainan, with plans to host hundreds of international boxing events over the next three years [67]. - The group aims to leverage technologies such as AI and blockchain to enhance traditional sports events, focusing on a business model driven by "events + betting" and "IP + sports games" [41]. Investment and Assets - As of June 30, 2021, the group's investment portfolio amounted to approximately HKD 496.4 million, up from HKD 412.3 million at the end of 2020 [96]. - The group invested HKD 463.5 million in private equity funds, representing 34.9% of total assets [96]. - The total assets of the group as of June 30, 2021, were approximately HKD 1,328.0 million, an increase from HKD 1,187.2 million at the end of 2020 [112]. - The total equity attributable to the owners of the company increased to HKD 1,032,055 from HKD 864,333, reflecting a growth of around 19.43% [198]. Cash Flow and Liabilities - Net cash inflow from operating activities was approximately HKD 3.4 million, down from HKD 18.7 million in the same period last year, primarily due to a significant increase in accounts receivable [106]. - Net cash outflow from investing activities was approximately HKD 31.4 million, compared to HKD 21.7 million in the previous year, mainly due to the purchase of intangible assets totaling HKD 28.8 million [109]. - The company’s total liabilities decreased to HKD 269,248 from HKD 289,717, a decrease of approximately 7.06% [195]. Share Options and Corporate Governance - The company granted 10,000,000 stock options under the 2012 plan during the reporting period [144]. - The exercise price for stock options granted is set at HKD 0.229, with an exercise period from January 25, 2018, to March 18, 2026 [146]. - The share options plan aims to align the interests of employees and directors with the company's long-term performance [151]. - The company has a total of 73,500,000 share options available, with various exercise prices and expiration dates, indicating a strategic approach to incentivizing employees and directors [157]. - The company appointed new independent non-executive directors on January 1, 2021, leading to a reclassification of certain share options [158].

Restructuring and Business Focus - In 2020, the company underwent a significant restructuring, focusing on its core business of sports and lottery-related operations, which has become the main profit driver [19]. - The company announced the termination of its telecommunications media business by the first quarter of 2021 due to low profit margins and lack of market opportunities [19]. - The restructuring aims to streamline financial, personnel, and other resources to concentrate on the most profitable and promising business segment—Crazy Sports [20]. - The decision to focus on sports and lottery operations aligns with the overall interests of the company and its shareholders [21]. - The company has terminated its telecommunications media and e-commerce operations to focus on its more profitable sports business [31]. - The company aims to focus resources on the development of its sports business and other high-return investments following the restructuring of its telecommunications media segment [76]. Financial Performance - The company achieved a cumulative profit of RMB 180 million over three years, demonstrating strong profitability capabilities [26]. - The group completed a restructuring on December 7, 2020, and agreed to subscribe to the China-Arab Satellite Fund for a total amount of $11,080,000 [85]. - The group's revenue for the year ended December 31, 2020, was HKD 300,805,000, an increase from HKD 185,975,000 in 2019, representing a growth of 61.6% [94]. - The gross profit for the same period was HKD 130,701,000, compared to HKD 124,096,000 in 2019, showing a slight increase of 5.3% [94]. - The net loss for the year was HKD 131,336,000, a reduction from a loss of HKD 190,536,000 in 2019, indicating an improvement of 30.9% [94]. - The group recorded a loss of HKD 131.3 million in 2020, an improvement from a loss of HKD 190.5 million in 2019 [118]. Market Position and Strategy - The company is positioning itself as the largest sports lottery and entertainment community operator in China, combining online information services and offline lottery retail terminals [17]. - The sports industry is viewed as a vast economic resource, and the company plans to build an ecosystem around sports lottery retail, sports entertainment, and information services [21]. - The company plans to expand its sports entertainment business in Hainan, leveraging blockchain technology for a new betting platform and points exchange system [24]. - The company is committed to becoming the largest digital sports entertainment group in China [15]. - The company plans to introduce both domestic and international events to its betting platform, creating a comprehensive sports and esports service platform [24]. User Engagement and Growth - The user base exceeded 200 million, supported by the operation of China's largest mobile lottery platforms, "Lottery 365" and "China Sports Lottery Network" [35]. - Crazy Sports established a points system for user engagement, allowing users to earn points through activities and redeem them for rewards, fostering user habits [55]. - The user base of Crazy Sports app grew despite the pandemic, driven by the introduction of third-party event broadcast rights and engaging short video content [54]. - The company has established partnerships with 27 high-traffic sports media platforms, enhancing user and brand coverage for monetization [47]. - The management team has over 10 years of experience in the sports lottery and entertainment industry, positioning the company for effective competition and long-term goals [43]. Sustainability and Corporate Responsibility - The group has committed to sustainable development, as reflected in its Environmental, Social, and Governance (ESG) report [159]. - The company emphasizes responsible lottery operations, focusing on safety, health, and sustainable development in its sports lottery business [171]. - The company aims to enhance its corporate social responsibility by integrating sustainability into its business operations and addressing key sustainability issues [170]. - The company established a Corporate Social Responsibility Committee in January 2021 to assist the board in implementing sustainability policies and regularly report on performance [170]. - The company has engaged independent third-party consultants to facilitate data collection and provide recommendations for future sustainability efforts [170]. Employee Management and Workforce - The company employed a total of 90 employees as of December 31, 2020, and has implemented a stock option plan to incentivize staff [134]. - The company conducted annual performance evaluations to assess employee performance and adjust compensation accordingly [196]. - The workforce composition includes 29% female and 71% male employees [199]. - The majority of employees (86%) are full-time, while 14% are part-time [199]. - The company emphasizes equal promotion opportunities for female employees [195].