Industry Growth - In 2023, the total scale of China's sports industry reached 3.67 trillion RMB, expected to grow to 5 trillion RMB by 2025[12] - The sports consumption market in 2023 was valued at 1.5 trillion RMB, projected to increase to 2.8 trillion RMB by 2025[12] User Engagement and Platform Performance - The total user base of the company’s platform increased by 21.4% year-on-year to 105.9 million, with average monthly active users growing by 17.4%[17] - Revenue from the sports knowledge payment platform increased by HKD 31.1 million or 13.7% compared to the previous year[18] - The total sales of the sports knowledge paid platform reached HKD 258.8 million in 2024, representing a year-on-year growth of 13.7% compared to 2023[22] - The sports knowledge paid platform has successfully improved user activity and satisfaction through the introduction of multiple innovative products[22] Financial Performance - The company recorded a revenue decline of 16.1% to HKD 411.4 million in 2024, primarily due to adjustments in the business model and decreased consumer spending[19] - Total revenue for 2024 was approximately HKD 411.4 million, a decrease of 16.1% compared to 2023's HKD 490.2 million[40] - Revenue from sports and leisure games decreased by 41.6% to approximately HKD 132.3 million, primarily due to changes in consumer habits in the domestic gaming market[43] - Gross profit for 2024 was approximately HKD 145.3 million, a decrease of 19.0%, with a gross margin of 35.3%, down from 36.6% in 2023[44] - The company recorded a net loss of HKD 14.7 million for 2024, an improvement from a loss of HKD 21.7 million in 2023[53] Strategic Initiatives - The company plans to deepen the application of AI technology in the sports industry to enhance user experience and operational efficiency[12] - The company is focusing on optimizing its business model and strategy in the sports and leisure gaming sector, reducing investment in lower-return gaming businesses[18] - The company aims to leverage policy support to enhance brand influence and market competitiveness in the evolving sports industry landscape[14] - The company is focusing on user-centered innovation, investing heavily in R&D to launch targeted products that meet specific user needs[24] Event Hosting and Marketing - The company successfully hosted major events, including the WBC Professional Boxing Championship in Foshan, which garnered over 300 million views[19] - The company successfully hosted the WBC Professional Boxing Championship in June 2024, attracting over 300 million viewers, marking a significant event in Chinese sports history[33] International Expansion - The company successfully launched international versions of its sports knowledge paid products in Southeast Asia, enhancing its competitiveness in the international market[24] - The internationalization strategy for game distribution has begun, with the Southeast Asia version of "Football Player" launched in 2024, aiming to increase market penetration and brand influence[34] - The company aims to expand its international business, focusing on Southeast Asia, the Middle East, and Europe, to enhance its global presence in the sports gaming market[36] Sustainability and ESG Initiatives - The group has established a governance structure with a dedicated Environmental, Social, and Governance (ESG) Committee, which includes the CEO and three independent non-executive directors, to oversee sustainability strategies[107] - The group conducted a materiality assessment identifying five key sustainability issues: greenhouse gas emissions, climate change, resource usage, water and wastewater management, and land use and pollution[104] - The group emphasizes stakeholder engagement, including annual general meetings, investor meetings, and supplier conferences, to gather feedback on sustainability efforts[101] - The company is committed to environmental sustainability and will invest in relevant facilities to enhance its performance in sustainable development[127] Employee Welfare and Development - The group employs a total of 107 employees as of December 31, 2024[77] - The company provided a total of 4,055 training hours for its 107 employees in 2024, averaging 37.9 hours per employee[142] - The company has implemented various measures to ensure a safe and healthy work environment, including health checks and safety training for employees[139] - The company emphasizes the importance of talent development and has implemented a comprehensive training program to support employee career growth[141] Compliance and Governance - The company has implemented a strict privacy protection system, limiting access to user data to essential personnel only, and requires them to sign confidentiality agreements[156] - The company has upgraded all gaming products to comply with national regulations, including age-appropriate warnings and restrictions on gaming service hours[153] - The company has established a comprehensive customer complaint handling process to improve product experience based on user feedback[160] - The company adheres to all corporate governance codes during the fiscal year ending December 31, 2024[182] Community Engagement - The company actively participated in community building, including hosting events for special education schools to promote sports among children with disabilities[164] - In August 2024, the company invited over 100 special children to participate in a charity run event, enhancing their engagement in sports activities[164] - The company made a charitable donation to support the education of 13 students at Hainan University of Applied Sciences in December 2024[165]

Group 1 - The core viewpoint of the article highlights the resilience of China's sports economy amidst the global restructuring of the sports industry in 2024, driven by policy benefits and technological revolutions, transitioning from "scale expansion" to "value reshaping" [1] - The report indicates that Crazy Sports achieved a revenue of 4.114 billion HKD in 2024, with a significant reduction in losses to 14.7 million HKD, a 32.2% decrease compared to the previous year's loss of 21.7 million HKD [1][2] - The sports knowledge payment platform of Crazy Sports generated revenue of 2.59 billion HKD, marking a 13.7% year-on-year growth and increasing its share of total revenue from 46.4% to 62.9% [1] Group 2 - Crazy Sports has integrated AI technology into its vertical scenarios, launching the AI assistant "Ruyi" to enhance user engagement and decision-making efficiency in sports betting [2] - The company has also focused on building a content ecosystem and expanding internationally, launching its knowledge payment products in Southeast Asia, which has received positive feedback from overseas users [3] - The increase in R&D investment, with intangible asset amortization rising by 12.1% to approximately 34.7 million HKD, has contributed to Crazy Sports' technological barriers and digital capabilities [3] Group 3 - Crazy Sports is leveraging the synergy of "digital + sports" and "digital + entertainment" to create a multi-dimensional operational chain that integrates event IP, digital tools, and cultural tourism resources [4] - The company has successfully turned offline events into brand assets and revenue streams, with significant viewership for events like the WBC Professional Boxing Championship [5] - Local government support for "event economy" has reduced fixed costs for event execution, allowing Crazy Sports to focus on content innovation and user experience [6] Group 4 - The macro trend indicates that Crazy Sports is positioned at a convergence of multiple favorable factors, including government policies promoting new sports service consumption and the expansion of the sports industry [7] - The company’s knowledge payment products have reached over 100 million users, aligning well with the demand for sports services in lower-tier markets [7] - Crazy Sports plans to introduce a multi-modal data analysis system by 2025, aiming to enhance event recommendation accuracy and compete with international giants [8] Group 5 - The upcoming FIFA Club World Cup is expected to attract 5 billion viewers, presenting a significant commercial opportunity for Crazy Sports to leverage its content and prediction tools [8] - The company’s "content + tools" dual-driven model differentiates it from competitors, aiming to maximize user value through a "flow-conversion-retention" funnel [8] - Crazy Sports' three-dimensional layout of "technology + content + scenarios" positions it advantageously in the digital transformation wave of the sports industry [9] Group 6 - Crazy Sports exemplifies the paradigm shift in traditional industries through technological empowerment, showcasing how AI and event IP can reshape industry value [10] - The company’s approach reflects a deeper transition in China's sports economy from resource-dependent growth to innovation-driven development [10] - The development path of Crazy Sports, based on technological innovation and ecological construction, may provide a model for global sports economic transformation [10]

Core Insights - The company reported a revenue of HKD 4.114 billion for the fiscal year 2024, with the sports knowledge subscription platform generating HKD 2.59 billion, a year-on-year increase of 13.68%, accounting for 62.9% of total revenue [1] - The company's loss narrowed to HKD 14.7 million, a 32.2% reduction compared to the HKD 21.7 million loss in 2023, primarily due to increased other income and reduced selling expenses [1] Revenue and Growth - The sports knowledge subscription platform's revenue increased by 13.7% compared to the previous year [2] - The total user base of the platform rose by 21.4% to 106 million, with average monthly active users growing by 17.4% year-on-year [1] Strategic Initiatives - The company aims to diversify its digital sports entertainment business while addressing the competitive landscape and evolving consumer demands [1] - Significant resources have been allocated to R&D, leading to the launch of targeted products in the sports knowledge subscription sector, enhancing competitiveness and user retention [2] Market Expansion - The company is focusing on optimizing its business model in the sports and leisure gaming sector, reducing investment in lower-yield games, and leveraging existing IP for sports game distribution [2] - International expansion efforts have progressed, with successful localized testing in Southeast Asia receiving positive feedback from users [2] Brand and Community Engagement - The company has successfully hosted major events, including the WBC Professional Boxing Championship in Foshan, which garnered over 300 million views, significantly enhancing brand influence [3] - The company is committed to social responsibility by promoting fitness through various sports events, contributing to the development of a strong sports culture in China [1]

User Growth and Engagement - The total user base of the platform increased by 21.4% year-on-year to 1.059 million, with average monthly active users growing by 17.4% compared to the previous year[5]. - The group successfully hosted several major events, including the WBC Professional Boxing Championship in Foshan, which attracted over 300 million viewers[8]. - The company has successfully launched multiple targeted products to improve user engagement and satisfaction, driven by technological innovation[16]. - The introduction of the "Ruyi" intelligent dialogue assistant, utilizing AI technology, aims to provide personalized interaction and enhance user experience in the sports knowledge paid sector[16]. - The group aims to deepen cooperation with leading platforms during the European Cup period to enhance channel collaboration and sales capabilities, effectively promoting user conversion to paid models[22]. Financial Performance - The group's revenue decreased by 16.1% to HKD 411.4 million compared to 2023, primarily due to adjustments in the business model and a decline in consumer spending[9]. - The net loss narrowed to HKD 14.7 million, a reduction of 32.2% from the HKD 21.7 million loss recorded in 2023[9]. - Total revenue for 2024 was approximately HKD 411.4 million, a decrease of 16.1% compared to 2023[36]. - The gross profit for 2024 was approximately HKD 145.3 million, a decrease of 19.0%, with a gross margin of 35.3%[39]. - The company reported a loss attributable to shareholders of HKD 14,718,000 for 2024, compared to a loss of HKD 21,665,000 in 2023, representing a 32.5% improvement[69]. Revenue Streams - Revenue from the sports knowledge subscription platform rose by HKD 31.1 million or 13.7% year-on-year[6]. - The total sales of the sports knowledge paid platform reached HKD 258.8 million in 2024, representing a 13.7% increase compared to 2023[16]. - Revenue from sports and leisure games decreased by 41.6% to approximately HKD 132.3 million in 2024[38]. - The sports knowledge subscription platform generated revenue of HKD 258,764,000 in 2024, up 14% from HKD 227,617,000 in 2023[92]. Market Trends and Projections - The Chinese sports industry reached a total market size of CNY 3.67 trillion in 2023, projected to grow to CNY 5 trillion by 2025[12]. - The sports consumption market in China reached CNY 1.5 trillion in 2023, expected to increase to CNY 2.8 trillion by 2025[12]. - The company plans to deepen the application of artificial intelligence technology in the sports industry to enhance user experience and operational efficiency by 2025[14]. - Advanced technologies like AI will be integrated into the sports industry by 2025, improving event analysis and user experience through personalized recommendations[32]. Business Strategy and Innovation - The group is focusing on optimizing its business model and strategy, reducing investment in lower-return gaming businesses[7]. - The company is committed to expanding its business boundaries and optimizing service content to meet the growing demand for high-quality sports products and services[14]. - The group is exploring new business models such as joint marketing and membership systems to optimize user experience and create new growth opportunities for its sports knowledge subscription business[23]. - The company aims to create greater value for shareholders and contribute more to the development of the sports industry through innovation and teamwork[14]. Cost Management and Expenses - Sales and marketing expenses decreased by 20.7% to HKD 115.8 million in 2024[42]. - Administrative expenses decreased slightly by 1.3% to HKD 45.4 million in 2024[43]. - The group recorded a net loss of HKD 14.7 million in 2024, a decrease from a loss of HKD 21.7 million in 2023, primarily due to an increase in other income and a reduction in sales and marketing expenses[47]. Investment and Assets - The group's investment portfolio as of December 31, 2024, amounted to approximately HKD 234.3 million, down from HKD 275.5 million in 2023[48]. - The group's investment in private equity funds totaled HKD 232.0 million as of December 31, 2024, representing 24.0% of total assets, compared to HKD 274.3 million in 2023[49]. - The fair value of the investment in the China Prosperity Capital Mobile Internet Fund was HKD 159.2 million as of December 31, 2024, with a fair value gain of HKD 2.2 million recognized as other income and loss[50]. Corporate Governance and Compliance - The company is committed to maintaining good corporate governance standards, adhering to all relevant regulations and guidelines throughout the fiscal year ending December 31, 2024[120]. - The audit committee consists of independent non-executive directors, including Ms. Liu Haoming, Mr. Zang Dongli, and Mr. Zhou Jingping, who reviewed the accounting principles and discussed matters related to audit, risk management, internal control, and financial reporting for the year ending December 31, 2024[122]. Future Outlook - The company plans to expand its international business by increasing language coverage for overseas versions and enhancing its global sports event information and analysis services[33]. - The company aims to drive international expansion with a focus on the Southeast Asia, Europe, and Americas markets, increasing the international market penetration and brand influence of its gaming products[28]. - The 2025 FIFA Club World Cup will take place in Miami, USA, from June 15 to July 13, 2025, expected to generate significant commercial value and boost overall revenue for the company[34].

Revenue Performance - In the first half of 2024, the group's revenue 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 [6]. - 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 [18]. - Revenue from the sports and leisure gaming segment was HKD 76.7 million, down 42.9% or HKD 57.7 million from HKD 134.4 million in 2023 [19]. - The sports knowledge subscription platform generated revenue of HKD 125.0 million, an increase of HKD 10.3 million or 8.9% from HKD 114.7 million in 2023, accounting for 60.0% of total revenue [18]. - Revenue for the digital sports entertainment business reached HKD 208,311,000 for the six months ended June 30, 2024, a decrease of 23.7% from HKD 272,890,000 in the same period of 2023 [92]. User Engagement and Growth - The sports knowledge paid platform recorded an increase in revenue of HKD 10.3 million or 8.9% compared to the same period in 2023, with average monthly active users growing by 4.0% [5]. - The total user base of the platform increased by 10.1% to 96.06 million compared to the end of 2023 [5]. - The average monthly active users increased by approximately 4.0% in the first half of 2024, with a significant 89.0% growth in June during the UEFA Euro 2024 compared to the same month in 2023 [11]. Financial Performance and Losses - The group narrowed its loss to HKD 5.7 million, a reduction of 40.1% compared to a loss of HKD 9.5 million in the same period of 2023, attributed to improved gross margins and reduced marketing expenses [6]. - The net loss for the period was HKD 5.7 million, an improvement from a loss of HKD 9.5 million in 2023, attributed to increased gross margin and reduced sales and marketing expenses [25]. - The company reported a loss before tax of HKD 10,810,000 for the six months ended June 30, 2024, compared to HKD 9,541,000 in the same period of 2023 [95]. - The company reported a loss attributable to owners of approximately HKD 5,662,000 for the six months ended June 30, 2024, compared to a loss of HKD 9,462,000 for the same period in 2023, representing a 40% improvement in loss [99]. Cost Management and Efficiency - Sales and marketing expenses decreased by 26.5% to HKD 61.5 million from HKD 83.7 million in 2023, aligning with the decline in sports and leisure gaming revenue [22]. - Administrative expenses slightly decreased by 1.6% to HKD 21.5 million from HKD 21.8 million in 2023, reflecting the company's focus on cost efficiency [23]. - The company is focusing on product innovation by integrating AI technology with user data to provide personalized betting suggestions and event predictions [8]. Strategic Initiatives and Investments - The group continues to invest in artificial intelligence technology to create and distribute content for its sports knowledge paid services [5]. - The adjustment of the business model focuses on optimizing the sports and leisure gaming business while reducing investment in lower-return gaming operations [5]. - The company is actively exploring diversified cooperation models in the "Sports Lottery +" sector, including partnerships with coffee, IP, and esports [12]. - The company plans to continue developing its core products while exploring new opportunities in the sports entertainment sector [5]. Market Presence and Brand Development - The group successfully hosted the WBC Professional Boxing Championship in Foshan, China, attracting over 300 million views, significantly enhancing brand awareness and influence [5]. - The company achieved a strategic partnership with major broadcasting platforms for the UEFA Euro 2024, enhancing market influence and revenue through complementary services [10]. - The company aims to create a vibrant digital sports entertainment community, aligning its strategy with national policies on sports and health consumption [7]. Asset Management and Financial Position - As of June 30, 2024, the group's investment portfolio amounted to HKD 250.4 million, a decrease from HKD 275.5 million as of December 31, 2023 [26]. - The total assets of the group as of June 30, 2024, were HKD 1,012.2 million, down from HKD 1,077.0 million as of December 31, 2023 [35]. - The company reported a total bank borrowing of HKD 10,744,000 as of June 30, 2024, down from HKD 19,853,000 as of December 31, 2023 [128]. - The company’s total liabilities decreased from HKD 294,651 thousand to HKD 280,607 thousand, indicating a reduction of about 5% [76]. Shareholder Information and Equity - The board decided not to declare any interim dividends for the period [40]. - As of June 30, 2024, Dr. Zhang Lijun held 1,034,563,113 shares, representing approximately 22.86% of the issued share capital [44]. - The company has a total of 55,000,000 unexercised share options granted under the 2012 plan as of June 30, 2024 [48]. Research and Development Focus - The company continues to focus on research and development, particularly in artificial intelligence and related technologies [151].

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， ...