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告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或倚賴該等內容而引致之任何損失承擔任何責任。 （ 於 百 慕 達 註 冊 成 立 之 有 限 公 司 ） （股份代號：00343） 截至二零二五年三月三十一日止年度之 末期業績公告 業績 文化傳信集團有限公司（「本公司」）董事（「董事」）會欣然宣佈，本公司及其附屬公司（統稱 「本集團」）截至二零二五年三月三十一日止年度之經審核綜合業績，連同二零二四年同期 之比較數字如下： 綜合損益及其他全面收益表 截至二零二五年三月三十一日止年度 | | | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | 附註 | 千港元 | 千港元 | | 收入 | 3 | 17,328 | 20,158 | | 銷售成本 | | (9,701) | (10,307) | | 毛利 | | 7,627 | 9,851 | | 其他收入 | 5 | 565 | 4,638 | | 其他收益或虧損 | 6 | (1,743) | 4,039 ...

Revenue Performance - Total revenue decreased by 16.7% from HK$9,355,000 in 2023 to HK$7,792,000 in 2024[7] - Revenue from the publishing and IP licensing business was HK$7,680,000 in 2024, slightly up from HK$7,574,000 in 2023[8] - Revenue from the digital marketing segment plummeted by 93.7%, from HK$1,781,000 in 2023 to HK$112,000 in 2024[11] - Revenue for the six months ended September 30, 2024, was HK$7,792,000, a decrease of 16.7% compared to HK$9,355,000 in the same period of 2023[47] - Revenue from Publishing and IPs licensing was HK$7,680,000, while Digital marketing generated HK$112,000, indicating a significant reliance on the publishing segment[102] Financial Results - Gross profit for the period was HK$3,527,000, down 39.2% from HK$5,806,000 year-over-year[47] - Loss for the period was HK$11,620,000, an improvement from a loss of HK$19,310,000 in the previous year, representing a 39.5% reduction in losses[51] - Other income decreased significantly to HK$277,000 from HK$1,073,000, reflecting a decline of 74.1%[47] - Total comprehensive expense for the period was HK$10,409,000, compared to HK$25,064,000 in the same period last year, indicating a 58.5% reduction[51] - The company reported a basic and diluted loss per share of HK$0.7, compared to HK$0.8 in the previous year[51] Operational Changes - The total number of employees in the digital marketing segment reduced from 4 to 1[11] - The Group is planning to expand its business in the last quarter of the fiscal year, including publishing and distribution of certain comic titles[8] - The restructuring efforts are aimed at conserving resources and controlling costs amid a challenging operating environment[7] - The Group's net operating expenses for the six months ended 30 September 2024 amounted to approximately HK$1,151,000, primarily due to personnel and business promotion costs[24] - As of 30 September 2024, the total headcount of the Group is 50, a decrease from 55 on 30 September 2023[28] AI and Technology Development - The Group has invested in the development of software and chipset with natural language processing technology, focusing on Chinese language voice recognition[19] - A strategic alliance was formed with iFlytek and Imitation Brain Technology to develop AI speech technology for real-time human interaction[20] - The Group is focusing on the development and improvement of AI speech technology, particularly for real-time human-computer interaction[24] - The strategic partnership with iFlytek and IBT aims to develop AI speech recognition technology, with products like the Feilong Master mobile phone and IoT applications expected to be launched gradually[29] - The Group's focus on AI speech recognition chips is expected to position them as core components in IoT interactions, applicable in various devices[23] Cash Flow and Assets - Cash and cash equivalents decreased to HK$24,741,000 from HK$38,228,000, reflecting a decline of 35.3%[53] - Net current assets as of September 30, 2024, were HK$91,772,000, down from HK$101,411,000 as of March 31, 2024[53] - The company reported a net cash outflow from investment activities of HK$518,000, a significant decrease from a net inflow of HK$98,000 in the previous year[72] - The total cash and cash equivalents at the end of the period were HK$24,741,000, down from HK$50,309,000 at the end of the same period last year, representing a decrease of 50.9%[72] - The company made an advance of HK$600,000 to an associate, which was not present in the previous year's financials, indicating new financial engagements[72] Shareholder and Equity Information - The company’s total equity as of September 30, 2024, was HK$98,270,000, down from HK$108,679,000 as of March 31, 2024[57] - The authorized share capital remains at 200,000,000 shares, with issued and fully paid shares at 1,668,657,000 as of both September 30, 2024, and March 31, 2024[190] - No dividend was paid, declared, or proposed during both interim periods, as determined by the directors of the Company[141] - The company adopted a new share option scheme (2023 Scheme) effective for 10 years from August 29, 2023, replacing the expired 2013 Scheme[194] Impairment and Losses - The total impairment loss on right-of-use assets was HK$2,412,000, indicating a significant financial impact for the company[129] - The impairment loss recognized in respect of right-of-use assets was HK$2,412,000 for the six months ended September 30, 2024[119] - The company reported a loss before tax for the period, with significant costs attributed to impairment losses and staff expenses[128] - The loss for the period was HK$19,310,000, compared to a loss of HK$13,931,000 in the previous period[60] Market and Product Development - The Group continues to enhance its comic business by activating its intellectual properties and expanding its scope, in line with the ongoing cultural sentiment in Hong Kong[30] - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[60] - The Group's digital marketing services focus on the PRC market, indicating potential for future growth in that region[99] - The Group's efforts in AI technology development are expected to support future profitability and market competitiveness[28]

Financial Performance - For the six months ended September 30, 2024, the company reported a revenue of HKD 7,792,000, a decrease of 16.7% compared to HKD 9,355,000 for the same period in 2023[2]. - The gross profit for the same period was HKD 3,527,000, down from HKD 5,806,000, indicating a decline of 39.2%[2]. - The company recorded a loss attributable to owners of the company of HKD 11,384,000, compared to a loss of HKD 13,931,000 in the previous year, showing an improvement of 18.2%[11]. - Total comprehensive expenses for the period amounted to HKD 10,409,000, significantly lower than HKD 25,064,000 in the prior year, reflecting a reduction of 58.5%[10]. - The basic and diluted loss per share for the period was HKD 0.7, slightly improved from HKD 0.8 in the previous year[14]. - The company reported a total of HKD 3,510,000 in cost of inventories recognized as an expense for the six months ended September 30, 2024, compared to HKD 2,836,000 in 2023, indicating an increase of approximately 23.7%[59]. - The company recorded a net reversal of impairment losses of approximately HKD 362,000 for trade receivables and other receivables during the interim period[75]. - The group recorded an operating loss of approximately HKD 11,620,000 for the period, compared to a loss of HKD 19,310,000 in 2023[94]. Assets and Liabilities - The company's cash and cash equivalents decreased to HKD 24,741,000 from HKD 38,228,000, a decline of 35.3%[16]. - Non-current assets totaled HKD 7,857,000 as of September 30, 2024, compared to HKD 7,268,000 as of March 31, 2024, representing an increase of 8.1%[16]. - The company's total equity decreased to HKD 98,270,000 from HKD 108,679,000, a decline of 9.6%[18]. - The company reported a significant decrease in total liabilities, with current liabilities at HKD 15,651,000, down from HKD 17,603,000, a reduction of 11.1%[16]. - The total liabilities as of September 30, 2024, were approximately HKD 17,010,000, with a debt-to-equity ratio of approximately 16.4%[96]. Revenue Breakdown - The total revenue for the six months ending September 30, 2024, was HKD 9,355 million, with external sales from publishing and intellectual property licensing contributing HKD 7,574 million and digital marketing contributing HKD 1,781 million[28][50]. - The revenue from comic book sales was HKD 6,275 million, while revenue from intellectual property licensing was HKD 1,299 million for the six months ending September 30, 2023[32][33]. - The group’s digital marketing revenue in China was HKD 1,781 million for the six months ending September 30, 2023[34]. - The group’s total revenue for the six months ending September 30, 2024, included HKD 7,680 million from Hong Kong and HKD 112 million from China[28]. - The digital marketing segment's revenue plummeted by 93.7% to HKD 112,000 in 2024, down from HKD 1,781,000 in 2023, following a significant reduction in operations[108]. - The group plans to expand its publishing and licensing business, with revenues from this segment reported at HKD 7,680,000 in 2024 compared to HKD 7,574,000 in 2023[107]. Operational Changes and Strategies - The company has not disclosed any new product developments or market expansion strategies during this reporting period[2]. - The group is in the process of voluntary liquidation for two non-wholly owned subsidiaries, which is expected to reduce losses and reallocate resources[102]. - The group has proposed to acquire 100% equity of a company for a total consideration of HKD 63,000,000, to be settled through the issuance of approximately 191,000,000 new shares[100]. - The group has invested in the development and production of natural language processing software and chipsets, focusing on Chinese voice recognition, and has obtained several invention patents[111]. - The group aims to quickly bring the natural language processing division to market to generate profits, with total employees at 50 as of September 30, 2024, down from 55 a year earlier[114]. - Strategic partnerships with iFlytek and Brain Technology have led to the development of AI voice interaction technology, with products like the Flying Dragon Master mobile phone and IoT applications set to launch[114]. - The group is expanding its comic business in response to the ongoing cultural trend in Hong Kong, while maintaining traditional comic publishing and licensing operations[114]. Employee and Cost Management - Employee costs, including directors' remuneration, decreased to HKD 8,369,000 for the six months ended September 30, 2024, from HKD 10,231,000 in 2023, representing a reduction of approximately 18.2%[59]. - The group employed a total of 50 employees as of September 30, 2024, with employee costs from operations amounting to approximately HKD 8,835,000 for the six months ended September 30, 2024[98]. - Administrative expenses totaled approximately HKD 11,935,000, a decrease from HKD 15,535,000 in the previous year, primarily due to ongoing efforts to streamline operations and control costs[90][91]. Tax and Other Income - The estimated tax expense for Hong Kong profits tax for the six months ended September 30, 2024, was HKD (21,000), compared to HKD (142,000) in 2023[64]. - Other income for the six months ended September 30, 2024, includes estimated interest income from receivables of HKD 140,000, compared to zero for the same period in 2023[52]. - The fair value change gains (losses) on financial assets recognized in profit or loss for the six months ended September 30, 2024, were HKD 638,000, compared to a loss of HKD 5,503,000 in 2023[54]. - The net foreign exchange gain for the six months ended September 30, 2024, was HKD 241,000, compared to a loss of HKD 147,000 in 2023[54].

2023/2024 Annual Report 年報 Culturecom Holdings Limited 文化傳信集團有限公司 2023-2024 Annual Report 年報 CONTENTS 目錄 | CORPORATE INFORMATION | 2 | | --- | --- | | 公司資料 | | | CHAIRMAN'S STATEMENT | 5 | | 主席報告書 | | | MANAGEMENT DISCUSSION AND ANALYSIS | 12 | | 管理層討論及分析 | | | DIRECTORS' REPORT | 25 | | 董事會報告書 | | | CORPORATE GOVERNANCE REPORT | 52 | | 公司管治報告 | | | INDEPENDENT AUDITOR'S REPORT | 73 | | 獨立核數師報告 | | | CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 82 | | 綜合損益及其他全面收益表 | | | CONSOLID ...

於本年度，本集團首次應用香港會計師公會所頒佈於二零二三年四月一日或之後開始的年度期間強 制生效之下列新訂及經修訂香港財務報告準則，以編製綜合財務報表： 3. 收入 | --- | --- | --- | --- | --- | --- | |-------------------------------|------------|-------------------------------------------|--------|----------|--------| | | 出版及知識 | 截至二零二三年三月三十一日止年度 \n數碼化 | 零售與 | 自然語言 | | | | 產權授權 | 市場推廣 | 批發 | 處理 | 總額 | | | 千港元 | 千港元 | 千港元 | 千港元 | 千港元 | | | | | | | | | 確認收入之時間： | | | | | | | 於某時點： | | | | | | | – 漫畫書籍銷售 | 8,336 | – | – | – | 8,336 | | – 來自知識產權授權之版權收入 | 3,647 | – | – | – | 3,647 | | – 新媒體 ...

Revenue Performance - Total revenue decreased by 44.9% from HK$16,982,000 in 2022 to HK$9,355,000 in 2023[17] - Revenue from the publishing and IPs licensing business was HK$7,574,000 in 2023, up from HK$5,415,000 in 2022[9] - External sales revenue for the publishing and IPs licensing segment was HK$7,574,000, while digital marketing generated HK$1,781,000, contributing to a total revenue of HK$9,355,000 for the period[81] - For the six months ended September 30, 2023, total revenue was HK$9,355,000, with external sales from publishing and IP licensing contributing HK$7,574,000 and digital marketing contributing HK$1,781,000[148] - The geographical breakdown of revenue shows HK$7,574,000 generated from Hong Kong and HK$1,781,000 from the PRC[148] Digital Marketing Segment - The digital marketing segment has downsized significantly, reducing the number of employees from 22 to 4, resulting in substantial cost savings[8] - The remaining operation of the digital marketing segment in Beijing and Guangzhou has been significantly downsized, with an uncertain prospect for recovery[8] - The Group's focus on digital marketing has shifted to streamline operations, consolidating with Beijing Skyvior Technology Co. Ltd.[19] - Digital marketing segment generated HK$9,555,000 in revenue, indicating a significant contribution to overall performance[149] - The digital marketing segment includes services such as IPs digitalization and agency services in the PRC, reflecting strategic market positioning[153] Financial Performance - The loss for the period attributable to owners of the Company was HK$13,931,000, a reduction from HK$20,851,000 in the prior year, indicating a year-over-year improvement of approximately 33.5%[72] - For the six months ended September 30, 2023, the total comprehensive expense attributable to owners of the Company was HK$19,719,000, compared to HK$26,758,000 for the same period in 2022, representing a decrease of approximately 26.1%[72] - The loss before tax for the Company was HK$19,168,000, reflecting the overall financial performance for the interim period[81] - The Group reported a loss before tax of HK$23,922,000 for the six months ended September 30, 2023, compared to a segment loss of HK$8,713,000[131] - The company reported a basic and diluted loss per share of HK$0.8, an improvement from HK$1.2 in the previous year[72] Cost Management and Restructuring - The Group's restructuring efforts are aimed at conserving resources and controlling costs in a challenging economic environment[17] - The Group is focusing on selling premium wine in large lots to generate positive cash flow and move inventory as the economy recovers[1] - Approximately HK$19,700,000 from the convertible bond placement will be used for working capital to revitalize and promote the Group's intellectual properties[29] - The Group's focus on natural language processing aims to broaden its revenue and profit base, especially in the context of recovering from the adverse effects of the Covid-19 pandemic[31] - The Group's strategic initiatives include enhancing AI speech technology and maintaining sustainable levels in other business segments[43] Assets and Liabilities - As of September 30, 2023, the total assets less current liabilities amounted to HK$122,374,000, a decrease from HK$147,757,000 as of March 31, 2023, representing a decline of approximately 17%[95] - The net current assets were reported at HK$114,845,000, down from HK$133,475,000, indicating a decrease of about 14%[95] - The total equity attributable to owners of the company was HK$122,374,000, down from HK$147,400,000, reflecting a decline of approximately 17%[95] - The company recorded a decrease in trade receivables by HK$1,617,000, improving from a decrease of HK$2,802,000 in the previous year[103] - The company reported a net foreign exchange loss of HK$3,823, which may affect overall financial performance[161] Strategic Initiatives and Future Outlook - The Group plans to expand its publishing and distribution of certain comic titles in the last quarter of the fiscal year[9] - A strategic alliance was formed with iFlytek and Imitation Brain Technology to develop AI speech technology for real-time human interaction, focusing on offline Chinese language voice recognition chips[28] - The Group anticipates that the commercialization of AI speech technology will significantly contribute to revenues in the second half of the fiscal year[44] - The company continues to explore opportunities for market expansion and new product development as part of its strategic initiatives[84] - The company is committed to hiring professionals to build a technical and business development team for the natural language processing segment[33] Expenses and Costs - The company reported staff costs of HK$10,231,000, a decrease of 19.4% compared to HK$12,693,000 for the same period in 2022[188] - The amortization of intangible assets for the six months ended September 30, 2023, was HK$244,000, down from HK$501,000 in the previous year, representing a decline of 51.3%[188] - Research costs included in other expenses amounted to HK$500,000 for the six months ended September 30, 2023, significantly lower than HK$3,972,000 for the same period in 2022, indicating a reduction of 87.4%[188] - The company incurred legal, consultancy, and other professional fees of HK$3,054,000 for the six months ended September 30, 2023, slightly down from HK$3,103,000 in the previous year[188] - Depreciation of property and equipment was HK$34,000 for the six months ended September 30, 2023, a decrease of 59.5% from HK$84,000 in the same period of 2022[188] Taxation and Dividends - The Hong Kong profits tax is calculated at a rate of 16.5% on estimated assessable profits, with a lower rate of 8.25% applicable to the first HK$2 million of profits for qualifying group entities[190][192] - The tax rate for the company's subsidiaries in China was 25% for both interim periods, as per the Corporate Income Tax Law of the People's Republic of China[193] - No dividends were declared or proposed for the interim periods, as the board decided against any interim dividend payments[194]

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告之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00343） 截至二零二三年九月三十日止六個月之 中期業績公告 中期業績 文化傳信集團有限公司（「本公司」）董事（「董事」）會欣然宣佈本公司及其附屬公司（統稱「本 集團」）截至二零二三年九月三十日止六個月之未經審核簡明綜合中期業績，連同二零 二二年同期之比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年九月三十日止六個月 截至九月三十日止六個月 二零二三年 二零二二年 千港元 千港元 附註 （未經審核） （未經審核） 收入 3 9,355 16,982 ...

Financial Performance - The consolidated turnover for the year ended 31 March 2023 was HK$30,600,000, a decrease of 50.9% from HK$62,365,000 in 2022[37]. - Revenue from digital marketing dropped 69.5% from HK$50,313,000 in 2022 to HK$15,328,000 in 2023[40]. - The loss for the year attributable to equity holders was HK$37,223,000, compared to HK$28,943,000 in 2022, with a loss per share of HK2.2 cents[37]. - The publishing and IPs licensing business generated revenue of HK$11,983,000 in 2023, slightly down from HK$12,052,000 in 2022[52]. - Retailing and wholesales business generated revenue of HK$3,289,000 in 2023, compared to HK$nil in the previous year[52]. - The Group's overall revenue decreased by approximately 50.9% from HK$62,365,000 in 2022 to HK$30,600,000 in 2023[73]. - The consolidated net loss attributable to the owners of the Company increased by approximately 28.6% to HK$37,223,000, or HK2.2 cents per share, compared to a loss of HK$28,943,000, or HK1.8 cents per share in 2022[73]. Corporate Actions - The Company entered into a Placing Agreement to issue Convertible Bonds with an aggregate principal amount of up to HK$100,000,000 at an initial Conversion Price of HK$0.50 per Share, potentially resulting in the allotment of up to 200,000,000 Conversion Shares[1]. - The net proceeds from the Placing are expected to be approximately HK$98,500,000 after deducting commissions and other costs[1]. - The Group disposed of its entire equity interest in Hyperchannel Info Tech., Ltd for a total cash consideration of RMB50,000[2]. - A resolution was passed to set up a liquidation group for Beijing Eqmen Technology Limited and Beijing Star Engine Information Technology Co., Ltd, aiming to reduce losses and reallocate resources[6]. - The voluntary liquidation of Eqmen and Beijing Star Engine is deemed appropriate to minimize losses and explore potential business opportunities[9]. - The Group plans to invest approximately HK$68,950,000 from the placement of convertible bonds into the development and production of natural language processing technology and related software and chipsets[65]. - The Group agreed to acquire the entire equity interests in Imitation Brain Technology (Shenzhen) Co., Ltd. for a total consideration of HK$63,000,000, to be settled by issuing 191,000,000 new shares[167]. Governance and Management - The Company maintains a strong governance structure with various committees overseeing operations and compliance[29]. - The company has a strong focus on corporate governance, with the Managing Director serving as the Chairman of the Corporate Governance Committee[184]. - The company has independent directors with experience in various international markets, including the American and Singapore stock exchanges, enhancing its governance and strategic oversight[195][197]. - The company is focused on expanding its market presence and enhancing corporate governance through experienced board members[196]. - The board's composition reflects a diverse range of skills and experiences, which is crucial for effective oversight and strategic direction[196]. - The company continues to prioritize strong governance practices to enhance shareholder value and operational efficiency[200]. Operational Efficiency and Cost Management - The Group plans to change the use of unutilized proceeds to cover general working capital needs, expected to be fully utilized by March 31, 2024[163]. - The Group is taking actions to reduce costs and improve profitability going forward[132]. - Selling expenses decreased from approximately HK$13,051,000 for the year ended 31 March 2022 to approximately HK$4,891,000 for the year ended 31 March 2023, a reduction of about 62.5%[95]. - Administrative expenses from operations totaled approximately HK$31,078,000 for the year ended 31 March 2023, down from HK$33,164,000 in 2022[95]. - The major expense components included staff costs of approximately HK$14,138,000, down from HK$17,337,000 in 2022, and directors' emoluments of approximately HK$6,211,000, up from HK$3,349,000 in 2022[80]. Future Outlook - The Group anticipates economic recovery in the second half of 2023 and aims to improve operational efficiency while fostering new business development[55]. - The Group expects the first application of AI speech recognition technology to yield significant results after years of research and development[60]. - The Group anticipates a recovery in the economy in the second half of 2023, which will support its business expansion efforts[56]. Employee and Workforce Changes - The total number of employees reduced from 84 in 2022 to 52 in 2023[54]. - The Group has decided to liquidate Beijing Eqmen Technology Limited and has downsized its digital marketing operations significantly, reducing employees from 54 to 9[52]. - The Group's employee count decreased from 84 in 2022 to 52 in 2023 due to the impact of the COVID-19 pandemic[56]. - Total staff costs for the year ended March 31, 2023, amounted to approximately HK$22,369,000, a decrease from HK$33,483,000 in the previous year[147].

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告之內容概不負責，對其 準確性及完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或倚賴該等內容而引致之任何損失承擔任何責任。 （於百慕達註冊成立之有限公司） （股份代號：00343） 截至二零二三年三月三十一日止年度之 末期業績公告 業績 文化傳信集團有限公司（「本公司」）董事（「董事」）會欣然宣佈本公司及其附屬公司（統稱「本 集團」）截至二零二三年三月三十一日止年度之經審核綜合業績，連同二零二二年同期之 比較數字如下： 綜合損益及其他全面收益表 截至二零二三年三月三十一日止年度 二零二三年 二零二二年 附註 千港元 千港元 收入 3 30,600 62,365 銷售成本 (16,084) (40,607) ...

Revenue Performance - Revenue decreased from approximately HK$45.0 million to approximately HK$17.0 million, a decrease of 62.0% compared to the same period last year[7] - Revenue for the six months ended 30 September 2022 was HK$16,982,000, a decrease of 62.3% compared to HK$44,974,000 for the same period in 2021[25] - Total revenue for the six months ended September 30, 2022, was HK$16,982,000, a decrease from HK$44,974,000 for the same period in 2021, representing a decline of approximately 62.2%[86] - Revenue from publishing and IP licensing decreased from HK$7.2 million to HK$5.4 million during the corresponding interim periods[9] - For the six months ended 30 September 2022, total revenue was HK$16,982,000, with contributions from publishing and intellectual properties licensing (HK$5,415,000), digital marketing (HK$9,555,000), and retailing and wholesales (HK$2,012,000) [73] Expenses and Losses - Selling, administrative, and other expenses decreased by 29.8% from HK$37.9 million to HK$26.6 million during the six months ended 30 September 2022[9] - Gross profit for the period was HK$7,490,000, down 40.5% from HK$12,655,000 in the previous year[25] - Loss for the period was HK$23,922,000, compared to a loss of HK$25,657,000 in the same period of 2021, indicating a slight improvement[25] - Total comprehensive expense for the period was HK$30,237,000, an increase from HK$24,116,000 in the previous year[29] - The company recorded a loss for the period amounting to HK$20,851,000, contributing to a total comprehensive expense of HK$30,237,000 for the six months ended September 30, 2022[39] Cash Flow and Assets - Operating cash flows before movements in working capital were negative at HK$15,379,000 for the six months ended September 30, 2022, compared to negative HK$17,774,000 for the same period in 2021[47] - The total cash used in operating activities was HK$15,413,000 for the six months ended September 30, 2022, compared to cash generated of HK$16,311,000 in the same period of the previous year[47] - Cash and cash equivalents at the end of the period were HK$103,879,000, down from HK$121,578,000 at the end of the previous period [50] - The net decrease in cash and cash equivalents was HK$21,083,000, compared to an increase of HK$44,861,000 in the previous period [50] - Current assets totaled HK$169,300,000, down from HK$194,654,000 as of 31 March 2022[33] Workforce and Operational Changes - The workforce in Digital Marketing was significantly reduced from 84 employees at the beginning of the period to 22 employees as of 30 September 2022[9] - The Group has held back on its plan to expand the Digital Marketing business to conserve cash and working capital[7] - Business activities related to core Intellectual Properties and Digital Marketing have been significantly impacted by the Covid-19 pandemic[7] Strategic Initiatives - A cooperative arrangement or joint venture is being forged with an international advertising and marketing group to apply big data analysis in digital marketing[7] - The Group is focusing on broadening the scope of its licensing business and encouraging customers to use digital images[9] - A strategic alliance was formed with iFlytek and Imitation Brain Technology to develop an offline Chinese language voice recognition chip, expected to yield significant results from years of AI research[17] Share Capital and Equity - The company issued 278,000,000 new shares at HK$0.15 per share on May 6, 2021, with the excess over par value recognized in share premium[40] - The Group's issued and fully paid share capital remained at HK$16,687,000 as of September 30, 2022, unchanged from the previous period[168] - The company granted a total of 14,000,000 share options to Mr. Wong and a consultant, representing approximately 0.84% of the total issued shares post-exercise[172] Government Support and Subsidies - The company received government subsidies amounting to HK$565,000 during the period [50] - Other income included government grants of approximately HK$565,000 related to Covid-19 subsidies, a new addition compared to no such income in the previous year[95] Financial Ratios and Performance Metrics - Basic and diluted loss per share remained at HK$1.2 for both periods[29] - The weighted average number of ordinary shares for the purpose of basic loss per share increased to 1,668,657,000 shares in 2022 from 1,614,580,000 shares in 2021, reflecting an increase of about 3.3%[128] - The digital marketing segment reported a significant loss of HK$9,137,000, highlighting challenges in this area[86] Impairment and Valuation - The company recognized no impairment loss for goodwill related to its subsidiaries Eqmen Technology Limited and Hyperchannel Info Tech., Ltd during the six months ended 30 September 2022, compared to an impairment of HK$1,396,000 for Hyperchannel Info in the same period of 2021[105][108] - The fair value of listed equity securities classified as financial assets at fair value through profit or loss was HK$8,554,000 as of 30 September 2022, compared to HK$8,370,000 as of 31 March 2022[186]