Financial Performance - In 2024, the revenue of Imperium Technology Group Limited decreased to HK$51,510,000, a decline of 29% compared to HK$72,557,000 in 2023[6]. - The loss attributable to owners of the Company for 2024 was HK$43,195,000, significantly reduced from HK$127,733,000 in 2023, representing a 66% improvement[6]. - Total assets decreased to HK$87,159,000 in 2024, down 14% from HK$100,929,000 in 2023[6]. - The total liabilities of the Company decreased to HK$266,409,000 in 2024, a reduction of 25% compared to HK$353,744,000 in 2023[6]. - The Group's total revenue for 2024 decreased by approximately 29.0% to approximately HK$51,510,000 compared to HK$72,557,000 in 2023, primarily due to a decrease in sales from the household products segment and lack of contribution from Metasens projects[28][31]. - Loss attributable to shareholders for the Year was approximately HK$43,195,000, a decrease from HK$127,733,000 in 2023, mainly due to expenses related to the Holosens project and reduced research and development costs[28][31]. - Revenue from the online game business decreased by approximately 27.5% to HK$15,080,000, with a significant contribution drop of approximately HK$10,490,000 from Metasens projects[34][37]. - The revenue from cloud computing and data storage business decreased by approximately 46.6% to HK$2,823,000, driven by a reduction in unit output of Filecoin[39]. - The household products business revenue fell to approximately HK$1,913,000, down from HK$18,292,000 in 2023, leading to a segment loss of approximately HK$382,000[45]. - The property investment business generated revenue of approximately HK$1,257,000, down from HK$1,642,000 in 2023, but achieved a segment profit of approximately HK$1,361,000[46]. - The money lending business revenue decreased to approximately HK$700,000 from HK$1,673,000 in 2023, with a segment gain of approximately HK$684,000[47]. - Gross profit margin increased from 14.7% in 2023 to 39.4% in 2024 due to improved margins in the esports and online game businesses[54]. - Other income rose from approximately HK$1,405,000 in 2023 to approximately HK$1,870,000 in 2024, mainly due to a one-time sponsorship from business partners[57]. - Administrative expenses decreased from approximately HK$90,056,000 in 2023 to approximately HK$47,665,000 in 2024, driven by reductions in share-based payments, employee costs, R&D expenses, and amortization of intangible assets[57]. - The Group experienced a net loss of approximately HK$41,725,000 and an operating cash outflow of approximately HK$19,730,000 for the year ended December 31, 2024[72]. Business Strategy and Development - The Company plans to invest resources in technology-related businesses, particularly in blockchain games, to enhance competitiveness in the online gaming and esports sectors[17]. - The Group recognizes the long-term development prospects of emerging technologies and aims to seize corresponding market opportunities[23]. - The Group is actively developing the Holosens project, a social-focused metaverse platform utilizing virtual reality technology and generative AI for enhanced user experiences[33][36]. - The Group plans to explore IT consulting services leveraging blockchain technology to assist clients in transforming their business operations[40]. - The Group will continue to invest resources in exploring business opportunities related to blockchain technology, AI, and Web3, while exercising caution due to rapidly changing market conditions[48]. - The Group's ongoing commitment to innovation and technology development remains a core strategy for future growth, particularly in the realms of online gaming and cloud services[27][30]. Market Outlook - The GDP of the People's Republic of China grew at an annual rate of 5.0% in 2024, outperforming market expectations[16]. - The global economy is predicted to grow at 3.2% in 2024 amid geopolitical and macroeconomic uncertainties[22]. - The digital economy is expected to account for approximately 17.0% of global GDP by 2028, with a CAGR of approximately 7.0% through 2028[22]. - The gaming market is projected to grow with a CAGR of 3.1% from 2022 to 2027, indicating a more stable growth aligned with the overall economy[22]. Financial Position and Liabilities - The Group's net current liabilities increased to approximately HK$216,800,000 in 2024 from HK$208,024,000 in 2023, primarily due to the reclassification of loans from related parties[60]. - The gearing ratio decreased from 298.0% in 2023 to 246.3% in 2024, reflecting a reduction in loans from related parties[70]. - As of December 31, 2024, the Group had no bank borrowings and loans from related parties amounted to approximately HK$214,684,000, down from HK$300,767,000 in 2023[66]. - The Group entered into revolving loan facilities with an independent third party for up to HK$25,000,000 at an interest rate of 12% per annum, with a repayment date 12 months from the drawdown[63]. Shareholder Information - The Group's reserves available for cash distribution amounted to approximately HK$42,967,000 as of December 31, 2024[120]. - The Board does not recommend any final dividend for the year ended December 31, 2024, consistent with the previous year[118][125]. - The largest customer accounted for 30.7% of the Group's total sales, while the five largest customers collectively represented 62.0%[135]. - The largest supplier contributed to 63.1% of the Group's total purchases, with the five largest suppliers together making up 96.1%[135]. - As of December 31, 2024, Mr. Cheng Ting Kong holds 214,428,488 shares, representing 57.45% of the total shares issued[152]. - The total number of shares in issue as of December 31, 2024, is 373,243,200 shares[153]. Corporate Governance - The Company has a policy of retirement by rotation for directors, with eligible directors offering themselves for re-election[140]. - The Company received written confirmation of independence from all independent non-executive directors, affirming their independence[144]. - All independent non-executive directors have entered into a service contract with the Company for a term of 3 years[140]. - The Company has not been notified of any interests or short positions in shares that require disclosure under the provisions of the SFO as of December 31, 2024[155]. - The Board believes that all major corporate actions are fully deliberated and determined by the Board, ensuring that no director competes with the Company or its business[168]. - The Group operates independently from competing businesses, with an executive committee established to assess business opportunities and performance independently[171]. Employee and Remuneration - The Group's employee remuneration decreased from approximately HK$52,595,000 in 2023 to approximately HK$34,256,000 in 2024, mainly due to a decrease in amortization of share options granted in 2022[82]. - As of December 31, 2024, the Group employed approximately 137 staff[82]. Share Option Scheme - A share option scheme was adopted on June 29, 2018, to incentivize and retain high-caliber employees[175]. - The purpose of the Share Option Scheme is to reward eligible persons for their contributions to the Group and attract valuable human resources[177]. - As of December 31, 2024, the total number of share options available for grant under the Share Option Scheme was 37,324,320[186]. - The total number of shares available for issue is 42,056,752, representing approximately 11.27% of the issued shares of the Company[190]. - The scheme will remain valid and effective until June 28, 2028, after which no further options will be granted[196].

Financial Performance - The company's revenue for the year ended December 31, 2024, was approximately HKD 51,510,000, a decrease of about 29.0% compared to the previous year[3] - Gross profit for the year was approximately HKD 20,293,000, an increase of about 90.7% year-on-year[3] - Loss attributable to owners of the company was approximately HKD 43,195,000, a reduction of about 66.2% compared to the previous year[3] - Basic and diluted loss per share was HKD 0.13, compared to HKD 0.41 in the previous year[4] - The net loss for the year was approximately HKD 41,725,000, significantly lower than HKD 123,449,000 in the previous year[5] - Total revenue from external customers for the year ended December 31, 2024, was HKD 51,510,000, a decrease of 29% from HKD 72,557,000 in 2023[20] - The total segment loss for the year ended December 31, 2024, was HKD 18,027,000, significantly improved from a loss of HKD 84,479,000 in 2023[22] - The company reported a net loss of HKD 41,725,000 for the year ended December 31, 2024, a significant reduction from a loss of HKD 123,449,000 in 2023[22] - Shareholders' loss for the year 2024 was approximately HKD 43,195,000, a decrease from HKD 127,733,000 in 2023, mainly due to expenses related to the development of the Holosens project, depreciation, and financial costs[43] Assets and Liabilities - The company's total assets less current liabilities amounted to HKD (173,382,000) as of December 31, 2024, compared to HKD (157,826,000) in the previous year[7] - Current liabilities net amounted to HKD (216,800,000) as of December 31, 2024, compared to HKD (208,024,000) in the previous year[7] - The group has a total principal amount of approximately HKD 214,684,000 in loans from related parties and accrued interest of about HKD 13,000,000, with HKD 225,721,000 due in 2025[10] - The net current liabilities increased to approximately HKD 216,800,000 from HKD 208,024,000 in 2023, primarily due to reclassification of loans from related parties[55] - The group's debt-to-asset ratio decreased from 298.0% in 2023 to 246.3% in 2024, attributed to a reduction in loans from related parties[58] Cash Flow and Liquidity - The company’s cash and bank balances were HKD 8,491,000 as of December 31, 2024, down from HKD 10,189,000 in the previous year[6] - As of December 31, 2024, the group recorded cash and bank balances of approximately HKD 8,491,000, indicating a cautious approach to short-term liquidity[10] - The group emphasizes the importance of cash flow management to meet its financial obligations over the next twelve months[10] - The group plans to manage liquidity needs and improve financial conditions through measures such as monitoring trade receivables, cost control, and negotiating debt repayment extensions[10] - The group recorded a net loss of approximately HKD 41,725,000 and an operating cash outflow of about HKD 19,730,000 for the year ended December 31, 2024[71] Segment Performance - Revenue from the cloud computing segment was HKD 15,080,000 in 2024, down 27% from HKD 20,796,000 in 2023[20] - The online gaming segment reported a loss of HKD 71,649,000 in 2023, while the segment showed a recovery with a loss of only HKD 16,371,000 in 2024[22] - Revenue from the eSports segment was HKD 29,737,000 in 2024, compared to HKD 24,860,000 in 2023, indicating a growth of 19%[20] - Online gaming revenue decreased by approximately 27.5% to HKD 15,080,000, down from HKD 20,796,000 in 2023, primarily due to a reduction in contributions from the Metasens project[45] - Esports business revenue increased by approximately 19.6% to HKD 29,737,000, up from HKD 24,860,000 in 2023, driven by revenue growth from teams other than the Peace Elite team[48] Administrative and Operational Expenses - The company reported a significant decrease in administrative expenses to HKD 47,665,000 from HKD 90,056,000 year-on-year[4] - Administrative expenses decreased from approximately HKD 90,056,000 in 2023 to HKD 47,665,000 in 2024, mainly due to reductions in share-based payments, employee costs, and R&D expenses[54] - The group employed approximately 137 employees, with total employee compensation decreasing from HKD 52,595,000 in 2023 to HKD 34,256,000 in 2024, mainly due to a reduction in stock option expenses[61] Future Outlook and Strategic Initiatives - The company aims to continue developing the Metasens project, particularly the Holosens initiative, as a key driver for future economic growth[42] - The company recognizes the long-term development potential of emerging technologies, including AI and blockchain, and plans to seize related market opportunities[41] - The group plans to explore business opportunities related to blockchain technology, AI, and Web3, extending beyond existing segments[51] Compliance and Reporting Standards - The application of the revised Hong Kong Financial Reporting Standards is not expected to have a significant impact on the group's financial performance and condition[12] - The group continues to assess the impact of the new Hong Kong Financial Reporting Standards on its consolidated financial statements[17] - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that are not yet effective, anticipating no significant impact on its performance[13] Dividends and Shareholder Returns - The company did not declare or recommend any dividends for the year ending December 31, 2024, consistent with the previous year[31] - The board does not recommend the payment of any final dividend for the year ended December 31, 2024, consistent with the previous year[73]

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$28,283,000, a decrease of 30.9% compared to HK$41,012,000 in the same period of 2023[4] - Gross profit for the period was HK$6,909,000, significantly up from HK$749,000 in the previous year, representing a gross margin improvement[4] - Loss from operations narrowed to HK$16,670,000, compared to a loss of HK$32,061,000 in the same period of 2023, indicating operational improvements[4] - Loss before tax decreased to HK$25,431,000 from HK$39,284,000 year-over-year, reflecting a reduction in overall losses[4] - Total comprehensive loss for the period was HK$26,540,000, down from HK$43,379,000 in the prior year, showing a significant reduction in losses[5] - The company reported a basic loss per share of HK$0.08, an improvement from HK$0.13 in the same period last year[4] - The Group reported a net loss of approximately HK$25,431,000 for the six months ended June 30, 2024, compared to a loss of HK$39,284,000 in the same period of 2023[12] - Consolidated loss for the period was HK$25,431,000 for the six months ended June 30, 2024, compared to a loss of HK$39,284,000 for the same period in 2023, indicating an improvement of approximately 35.1%[24] - The Group recorded a total loss of reportable segments of HK$12,119,000 for the six months ended June 30, 2024, compared to HK$43,140,000 in the prior year, reflecting a reduction of approximately 72.1%[24] Income and Expenses - Other income increased to HK$6,749,000 from HK$3,818,000, indicating growth in non-operational revenue streams[4] - The Group's other income for the six months ended June 30, 2024, was HK$6,978,000, a decrease from HK$6,882,000 in 2023, primarily due to lower gains on cryptocurrency disposals[25] - Interest revenue for the first half of 2024 was HK$5,000, while interest expense totaled HK$1,957,000, resulting in a net interest loss[20] - Depreciation and amortization expenses for the first half of 2024 were HK$8,601,000, compared to HK$15,398,000 in the same period of 2023[20] - Distribution costs decreased from approximately HK$1,900,000 to about HK$1,100,000 due to a decline in home product sales[93] - Administrative expenses decreased to HK$29,257,000 from HK$45,844,000, reflecting cost control measures implemented by the company[4] - Administrative expenses fell from approximately HK$45,800,000 to about HK$29,300,000, primarily due to a reduction in share-based payments and cryptocurrency impairments[93] Cash Flow and Liquidity - Operating cash outflow for the Group was HK$4,113,000, significantly reduced from HK$17,261,000 in the previous year[9] - The Group experienced a net increase in cash and cash equivalents of HK$385,000, contrasting with a decrease of HK$19,743,000 in the previous year[9] - The Group's cash and bank balances were approximately HK$9,488,000 as of June 30, 2024, down from HK$10,189,000 at the beginning of the year[9] - The Directors believe that the Group will have sufficient cash resources to meet its working capital requirements during the forecast period, assuming successful implementation of planned measures[15] - The Group is implementing strategies to improve cash flow, including monitoring trade receivables and tightening cost control[14] Assets and Liabilities - As of June 30, 2024, the Group had net current liabilities of approximately HK$239,154,000, an increase from HK$208,024,000 in 2023[12] - Total liabilities amounted to HK$279,207,000 as of June 30, 2024, compared to HK$252,815,000 at the end of 2023[12] - The Group's current assets decreased to HK$40,114,000 from HK$50,198,000 at the end of 2023[7] - The Group's total assets less current liabilities were HK$(199,040,000) as of June 30, 2024, compared to HK$(157,826,000) at the end of 2023[6] - The Group's gearing ratio increased to 402.1% as of June 30, 2024, from 298.0% as of December 31, 2023[95] Segment Performance - The online gaming segment reported a loss of HK$6,446,000 for the first half of 2024, compared to a loss of HK$28,857,000 in the same period of 2023[20] - The cloud computing and data storage segment generated revenue of HK$2,152,000 in the first half of 2024, down from HK$3,804,000 in the same period of 2023[20] - The esports segment reported a loss of HK$408,000 for the first half of 2024, compared to a loss of HK$7,382,000 in the same period of 2023[20] - The property investment segment recorded a profit of HK$2,534,000 in the first half of 2024, while the money lending segment reported a profit of HK$288,000[20] - The company reported a total segment loss of HK$12,119,000 for the first half of 2024, compared to a total loss of HK$43,140,000 in the same period of 2023[20] Future Outlook and Strategies - The company continues to explore new product development and market expansion strategies to enhance future performance[4] - The Group plans to negotiate with creditors for debt extensions and seek alternative financing options[14] - The Group is actively developing the Holosens project, a social-focused metaverse platform, and plans to conduct market testing in the second half of the year[73] - The Group plans to explore opportunities in blockchain gaming using Web3.0 technology, while also evaluating resource allocation among business segments for diversification[86] - The Group will implement cost-saving measures to enhance its financial position and maximize shareholder returns[88] Corporate Governance - The company complies with all aspects of the Corporate Governance Code except for the separation of the roles of chairman and chief executive officer, which were shared among board members during the reporting period[131] - The Audit Committee, comprising three independent non-executive Directors, reviewed the unaudited condensed consolidated financial statements for the period[132] - The company has established an Audit Committee to review interim and annual reports and internal control procedures[132] - All directors confirmed compliance with the securities trading code during the reporting period, ensuring adherence to the established standards[136]

Financial Performance - The company reported a revenue of HKD 28,283,000 for the six months ended June 30, 2024, a decrease of 30.9% compared to HKD 41,012,000 in the same period of 2023[1]. - The gross loss for the period was HKD 21,374,000, compared to a gross loss of HKD 40,263,000 in the previous year, indicating an improvement[1]. - The net loss attributable to the owners of the company was HKD 26,039,000, a reduction from HKD 38,958,000 in the prior year, reflecting a 33.5% decrease in losses[2]. - The basic and diluted loss per share was HKD 0.08, compared to HKD 0.13 in the same period last year, showing a 38.5% improvement[2]. - Total comprehensive loss for the period was HKD 26,540,000, down from HKD 43,379,000 in the previous year, representing a 38.8% decrease[3]. - The company reported a net loss of approximately HKD 25,431,000 for the six months ended June 30, 2024, compared to a net loss of HKD 39,284,000 for the same period in 2023[8]. - The group reported a loss attributable to owners of the company of approximately HKD 26,000,000 for the six months ended June 30, 2024, down from HKD 39,000,000 in the same period in 2023[49]. Assets and Liabilities - Non-current assets decreased to HKD 40,114,000 from HKD 50,198,000 as of December 31, 2023, indicating a decline of 20.1%[4]. - Current assets also fell to HKD 36,653,000 from HKD 50,731,000, a decrease of 27.8%[4]. - As of June 30, 2024, the company's current liabilities and total liabilities were approximately HKD 239,154,000 and HKD 279,207,000, respectively, compared to HKD 208,024,000 and HKD 252,815,000 in 2023[8]. - The total liabilities due within one year as of June 30, 2024, were HKD 308,648,000, compared to HKD 300,767,000 in 2023[24]. - The debt-to-asset ratio increased from 298.0% as of December 31, 2023, to 402.1% as of June 30, 2024[51]. Cash Flow - The company reported a net cash outflow from operating activities of HKD 4,113,000, an improvement from HKD 17,261,000 in the previous year[7]. - Cash and cash equivalents at the end of the period were HKD 9,488,000, down from HKD 22,138,000 at the end of the same period last year[7]. - The group had cash and bank balances of approximately HKD 9,500,000, down from HKD 10,200,000 as of December 31, 2023[50]. Revenue Segments - Revenue from external customers for the online gaming segment was HKD 12,404,000, while the cloud computing and data storage segment generated HKD 2,152,000[12]. - Online gaming revenue increased by approximately 61.2% to HKD 12,404,000 for the six months ended June 30, 2024, compared to HKD 7,697,000 for the same period in 2023[42]. - Revenue from cloud computing and data storage business was approximately HKD 2,152,000, a decrease of about 43.4% compared to HKD 3,804,000 for the same period in 2023[43]. - Esports business revenue was approximately HKD 12,002,000, an increase of about 7.0% compared to HKD 11,221,000 for the same period in 2023[44]. - Home products business revenue was approximately HKD 803,000, a significant decrease from HKD 17,621,000 for the same period in 2023[45]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the period[70]. - The company adhered to the corporate governance code, with the roles of chairman and CEO being separated, although the CEO's responsibilities were shared among board members during the reporting period[69]. - The company confirmed compliance with the standard code of conduct for securities transactions by all directors during the reporting period[71]. - The company is committed to maintaining high standards of corporate governance and business practices[69]. Future Plans and Strategies - The company plans to implement measures to improve cash flow and financial condition, including monitoring accounts receivable and tightening cost controls[9]. - The board believes that the company will have sufficient cash resources to meet operational funding requirements and financial obligations for at least the next twelve months[9]. - The company is actively developing the Holosens project, a social metaverse platform, and is exploring the integration of generative AI technology[41]. - The company plans to expand its product range in the home products sector and increase outsourcing to improve cost flexibility[45]. - The company aims to explore opportunities in IT consulting services to diversify its revenue sources[43]. Share Options and Equity - The total number of options available under the share option plan as of June 30, 2024, is 31,103,600, which corresponds to 11.52% of the company's issued share capital[62][63]. - The share option plan aims to encourage and reward eligible participants for their contributions to the group[59]. - The plan will remain effective until June 28, 2028, after which no new options will be granted, but existing options can still be exercised[63]. - The company has issued a total of 35,836,032 shares, which is approximately 11.52% of the total issued shares[63]. - As of June 30, 2024, Diamond State Holdings Limited holds 214,428,488 shares, representing 68.94% of the total issued share capital of the company[56]. Investment Properties - The company recorded a fair value gain of HKD 1,912,000 from investment properties during the reporting period[12]. - The investment property in Malaysia had a fair value of HKD 20,342,000 as of June 30, 2024, up from HKD 19,169,000 as of December 31, 2023[31]. - The rental income from operating leases reported was HKD 622,000 for the six months ended June 30, 2024, compared to HKD 1,643,000 for the same period in 2023[28]. - The total minimum lease payments receivable as of June 30, 2024, amounted to HKD 1,981,000, compared to HKD 427,000 as of December 31, 2023[29]. - The group reported a fair value loss of HKD 515,000 and a foreign exchange difference of HKD 812,000 for investment properties classified under Level 3 fair value measurement[32].

Financial Performance - The Group's revenue for the year 2023 was HK$72,557,000, a decrease of 45.4% compared to HK$133,101,000 in 2022[4] - The loss attributable to owners of the Company for 2023 was HK$127,733,000, compared to a loss of HK$180,884,000 in 2022, indicating a 29.4% improvement[4] - Total assets decreased to HK$100,929,000 in 2023 from HK$246,422,000 in 2022, representing a decline of 59.0%[4] - Total liabilities were HK$353,744,000 in 2023, down from HK$374,734,000 in 2022, a reduction of 5.6%[4] - In 2023, the Group's total revenue decreased by approximately 45.5% to approximately HK$72,557,000, mainly due to a decrease in sales from the household segment and esports segment[47] - The esports business revenue for the year ended 31 December 2023 was approximately HK$24,860,000, representing a decrease of approximately 56.4% compared to HK$57,017,000 in 2022[30] - The Group's blockchain gaming segment reported revenue of approximately HK$20,796,000, down from HK$29,083,000 in 2022, with a segment loss of approximately HK$71,649,000[31] - Revenue from the cloud computing and data storage business was approximately HK$5,292,000 in 2023, representing a year-on-year decrease of 57.5% from HK$12,447,000 in 2022, with a segment loss of approximately HK$20,439,000[53] - Revenue from the household products business decreased to approximately HK$18,292,000 in 2023, down 43.58% from HK$32,424,000 in 2022, while the segment profit was approximately HK$23,959,000[54] - The Group's revenue from property investment business increased to approximately HK$1,642,000 in 2023 from HK$1,332,000 in 2022, with a segment loss of approximately HK$95,000[59] - Revenue from the money lending business increased to approximately HK$1,673,000 in 2023, up from HK$798,000 in 2022, with a segment loss of approximately HK$2,903,000[60] Strategic Initiatives - The Company plans to invest resources in technology-related businesses, particularly in blockchain games, to enhance competitiveness in the online gaming and esports sectors[19] - The Company aims to broaden its revenue sources and maximize shareholder returns through strategic investments in emerging technologies[19] - The Group plans to negotiate with existing and potential customers regarding the use of Filecoin and Chia mining machines to increase capital inflow[34] - The Group plans to invest resources to explore blockchain gaming and develop a large-scale amusement park called Metasens, incorporating Web3.0 technology[66] - A new studio has been established to develop casual games, with the first game projected to launch by the end of this year or the first quarter of next year, targeting regions including Taiwan, Hong Kong, Macau, Southeast Asia, and South America[29] Market Outlook - The global gaming market revenue is projected to reach US$184.0 billion in 2023, with the number of gamers expected to hit 3.38 billion[24] - The gaming market is anticipated to grow to US$205.7 billion by 2026, with a compound annual growth rate (CAGR) of 4.7% from 2021 to 2026[24] - The long-term development prospect of the game market is considered positive, with a strong momentum in blockchain games, prompting the Group to explore game publishing opportunities[46] - The global economic growth rate was revised down to 3.0% for 2023, with increasing risks to the economic outlook[24] Operational Challenges - The Group will take initiatives to increase revenue and reduce costs in response to market challenges[54] - The Group recorded a reversal of impairment on cryptocurrencies of approximately HK$2,725,000 in 2023 as the cryptocurrency market stabilized[72] - An impairment loss of approximately HK$4.6 million was incurred in 2023, compared to HK$2.5 million in 2022, due to limited repayments from borrowers[65] - Finance costs increased from approximately HK$12,203,000 in 2022 to approximately HK$16,793,000 in 2023 due to increased loans from related parties[72] Employee and Safety Management - The Group employed approximately 177 staff as of December 31, 2023, and emphasizes continuous training and development to enhance employee skills and productivity[112][135] - The Group has not experienced any work-related accidental fatalities in the past three years, indicating a strong focus on employee safety[130] - The average training hours for male employees in the game publishing business is 3.80 hours, while for female employees it is 5.21 hours[140] - The percentage of employees trained in the game publishing business is 63.64%, in the esports business is 67.74%, and in the cloud computing and data storage business is 57.89%[142] - The company provides subsidies for employees participating in accredited external courses to enhance their professional knowledge and skills[140] Corporate Governance - As of December 31, 2023, the Board consists of eight members, including the Chairman, three executive Directors, and four independent non-executive Directors[160] - The Board meets regularly, with a total of six Board meetings held during the year ended December 31, 2023[168] - All independent non-executive Directors have confirmed their independence annually, and the company considers them independent[172] - The company has implemented a comprehensive supply chain management mechanism, including a code of conduct and supplier assessment system[159] - The company requires suppliers to comply with minimum environmental and social performance standards, as well as local laws and regulations[156] - The Board has adopted a diversity policy to enhance transparency and governance, considering various factors such as gender, age, and professional experience in appointments[161] - The company conducts annual SSI system audits of suppliers to ensure compliance with corporate social responsibility standards[159] - The company prioritizes partnerships with suppliers that have sustainable development principles and corporate social responsibility[159]

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately HK$72,557,000, a decrease of about 45.5% compared to the previous year[2] - The gross profit for the year was approximately HK$10,641,000, reflecting a decrease of about 47.9% year-on-year[2] - The loss attributable to owners of the company was approximately HK$127,733,000, a reduction of about 29.4% compared to the previous year[2] - The basic and diluted loss per share for the year was HK$0.41[7] - Total assets as of December 31, 2023, were HK$100,929,000, while total liabilities were HK$353,744,000[7] - The equity attributable to owners of the company was reported as a loss of HK$252,577,000[7] - The Group's total revenue decreased by approximately 45.5% to approximately HK$72,557,000 in 2023, down from HK$133,101,000 in 2022, primarily due to decreased sales in the household and esports segments[52] - Loss attributable to shareholders for the year was approximately HK$127,733,000, compared to HK$180,884,000 in 2022[52] - Revenue from the Group's game publishing business was approximately HK$20,796,000 in 2023, down from HK$29,083,000 in 2022, with a segment loss of approximately HK$71,649,000[33] - Revenue from the esports business was approximately HK$24,860,000, representing a decrease of approximately 56.4% from HK$57,017,000 in 2022, with a segment loss of approximately HK$13,352,000[55] - Revenue from cloud computing and data storage business decreased by approximately 57.5% to HK$5,292,000 in 2023 from HK$12,447,000 in 2022, with a segment loss of approximately HK$20,439,000 compared to a loss of HK$51,626,000 in 2022[61] - The Group's revenue from property investment business increased to approximately HK$1,642,000 in 2023 from HK$1,332,000 in 2022, but the segment loss was approximately HK$95,000 compared to a profit of HK$798,000 in 2022[65] - Revenue from the money lending business increased to approximately HK$1,673,000 in 2023 from HK$798,000 in 2022, with a segment loss of approximately HK$2,903,000 compared to a loss of HK$1,684,000 in 2022[66] - The Group incurred an impairment loss of approximately HK$4.6 million in 2023, up from HK$2.5 million in 2022, due to limited repayments from borrowers[71] - The gross profit margin decreased from 15.3% in 2022 to 14.7% in 2023, attributed to declines in the esports and cloud computing sectors[74] - Other income decreased from approximately HK$5,874,000 in 2022 to approximately HK$1,405,000 in 2023, mainly due to the decrease in government grants and bank interest income[106] Trading and Market Activity - The company has announced a suspension of trading on the Hong Kong Stock Exchange pending the release of its annual results and report[13] - The company plans to resume trading on May 2, 2024, following the publication of its annual results[13] - The Group has established new esports teams to participate in various games, aiming to diversify revenue sources and improve performance in the esports sector[92] Future Plans and Developments - The Group plans to launch its first casual game by the end of 2023 or the first quarter of 2024, targeting markets in Taiwan, Hong Kong, Macau, Southeast Asia, and South America[54] - The Group continues to explore opportunities in the blockchain games sector, which has shown strong development momentum[51] - The Group plans to invest resources to explore blockchain gaming and develop a large-scale amusement park called Metasens, incorporating Web3.0 technology and blockchain[72] - The Group's new casual game development initiative is expected to launch by the end of this year or early next year, targeting markets in Taiwan, Hong Kong, Macau, Southeast Asia, and South America[87] Financial Management and Resources - The Group will continue to seek alternative financial resources to meet working capital requirements[81] - As of December 31, 2023, the Group's current liabilities increased to approximately HK$258,755,000 from HK$180,349,000 in 2022, primarily due to the reclassification of loans from related parties[80] - The Group's income tax expense increased to approximately HK$590,000 in 2023 from an income tax credit of HK$254,000 in 2022, mainly due to deferred tax charges[79] - As of 31 December 2023, the Group had cash and bank balances of approximately HK$10,189,000, down from HK$42,764,000 in 2022, and net current liabilities increased to approximately HK$208,024,000 from HK$71,295,000[108] - The Group's gearing ratio increased from 108.2% in 2022 to 298.0% in 2023, reflecting the rise in loans from related parties[115] - Loans from related parties amounted to approximately HK$299,387,000 as of 31 December 2023, compared to HK$266,623,000 in 2022[121] - The Group had no bank borrowings as of 31 December 2023 and 2022[110] - The ultimate controlling party of the Company committed to provide unutilised loan facilities of approximately HK$5,000,000[109] Environmental, Social, and Governance (ESG) Initiatives - The Group aims to achieve zero fatal accidents in the workplace, promoting a healthy and safe work environment[138] - The Group's total greenhouse gas emissions for the reporting year were calculated based on various guidelines, including the IPCC Sixth Assessment Report[153] - The Group has developed comprehensive policies to manage occupational health and safety issues, including the Occupational Health and Safety Policy and the Indoor Air Quality Policy[138] - The Board of Directors is responsible for overseeing environmental, social, and governance (ESG) issues and ensuring they are integrated into the company's strategy[134] - The Group requires suppliers to comply with its environmental standards, covering various aspects such as child labor and working conditions[138] - The Group is committed to enhancing its ESG management and improving risk identification related to sustainability issues[140] - The Group emphasizes the importance of diversity and inclusion, maintaining high ethical standards and promoting an inclusive culture[138] - The Group has implemented targeted energy-saving measures across its game publishing, esports, and cloud computing businesses to further reduce energy consumption[160] - The Group promotes environmental recycling by placing multi-sort recycling bins in offices to encourage employees to cultivate sorting and recycling habits[184] - The Group's energy consumption management includes regular reviews and analyses of monthly electricity bills and actual usage to develop improvement measures[188] - The Group has obtained FSC certification for its household products, ensuring that wood materials are sourced sustainably[192] - The Group's water management measures include regular checks and maintenance of water equipment to achieve water savings[163] - The Group is committed to reducing the environmental impact of its operations by identifying climate-related risks and developing countermeasures[171] - The company has implemented Measures for Energy Saving Publicity and Training to enhance employee awareness of energy conservation[194] - The Human Resources and Technical Support Departments are jointly conducting training on environmental protection for employees[194] - The company has incorporated vegetarian elements into free meals for employees to promote a low carbon diet[196] - The initiative aims to reduce global carbon dioxide emissions and protect the ecological environment[196] - The company recognizes the importance of a low carbon diet as part of an environmentally friendly lifestyle[196] - Long-term risks include extreme weather events resulting from climate change, which may lead to instability in raw material supply[199][200]

Financial Performance - The Group reported a revenue of HK$41,012,000 for the six months ended 30 June 2023, a decrease of 38.3% compared to HK$66,432,000 in the same period of 2022[4]. - Gross profit for the period was HK$749,000, down 91.7% from HK$9,056,000 in 2022[4]. - The loss from operations was HK$32,061,000, significantly improved from a loss of HK$100,046,000 in the previous year[4]. - The Group incurred a net loss of approximately HK$39,284,000, compared to a net loss of HK$105,424,000 in the prior period, indicating a reduction in losses[12]. - Total comprehensive loss for the period was HK$43,379,000, down from HK$113,471,000 in the previous year, reflecting a 61.7% reduction[187]. - The Group's loss attributable to shareholders for the first half of 2023 was approximately HK$39,284,000, a decrease from HK$105,424,000 in the same period of 2022[151]. Assets and Liabilities - Net liabilities increased to HK$180,413,000 as of 30 June 2023, compared to HK$128,312,000 at the end of 2022[6]. - The total equity attributable to owners of the Company was reported at HK$180,413,000, reflecting a decrease from HK$128,312,000[6]. - The Group's current liabilities amounted to approximately HK$114,256,000, raising concerns about its ability to continue as a going concern[12]. - The Group's net current liabilities increased to HK$114,256,000 as of June 30, 2023, compared to HK$71,295,000 at December 31, 2022[180]. - The Group's total assets less current liabilities were reported at HK$5,218,000, a significant decrease from HK$66,073,000 at the end of 2022[180]. Revenue Segments - Revenue from the online gaming segment was HK$7,697,000, while the esports segment generated HK$11,221,000, contributing to the overall revenue[22]. - Revenue from the game publishing business decreased year-on-year by approximately 35.5% to HK$7,697,000, with a segment loss of approximately HK$28,857,000[153]. - The esports business revenue for the first half of 2023 was approximately HK$11,221,000, representing a year-on-year decrease of approximately 67.4%[158]. Cash Flow and Financing - The Group's net cash used in operating activities for the six months ended June 30, 2023, was HK$17,261,000, compared to a net cash generated of HK$1,616,000 in the same period of 2022[182]. - Total cash and cash equivalents at June 30, 2023, were HK$22,138,000, down from HK$55,407,000 at the same date in 2022, reflecting a decrease of 60%[182]. - The Group's cash flow from financing activities was HK$4,238,000 for the six months ended June 30, 2023, down from HK$37,481,000 in the same period of 2022[182]. Operational Developments - The Group's Metasens project has made significant progress and will continue to diversify its business, particularly in game publishing and esports sectors[127]. - The company plans to launch several new games this year, including two games incorporating blockchain and metaverse concepts[132]. - A PC-based metaverse game is currently undergoing closed testing, allowing players to create and customize their virtual worlds[133]. - The esports team will receive increased resources to enhance performance in competitive gaming[139]. Management and Governance - The Group's financial statements were prepared on a going concern basis, indicating confidence in meeting future financial obligations[193]. - The Group's financial position reflects significant uncertainty regarding its ability to continue as a going concern due to the current liabilities exceeding current assets[194]. - The Group's management believes it has sufficient financial resources to meet its operational funding needs and financial obligations in the foreseeable future[90]. Shareholder Information - No dividend has been paid, declared, or proposed during the interim period, consistent with the previous year[52]. - The weighted average number of ordinary shares for calculating basic and diluted loss per share was 311,036,000 for both 2023 and 2022[33]. - The Group's issued and fully paid ordinary shares remained at 311,036,000 shares as of June 30, 2023, with a total value of HK$3,110,000[68].

Financial Performance - Total revenue for the six months ended June 30, 2023, decreased by approximately 38.3% to about HKD 41,012,000 compared to HKD 66,432,000 for the same period in 2022[32]. - Loss attributable to shareholders for the period was approximately HKD 39,284,000, a decrease from HKD 105,424,000 in the same period last year, mainly due to a reduction in losses from non-cash items[32]. - Revenue from the gaming publishing business decreased by approximately 35.5% to HKD 7,697,000, with a segment loss of HKD 28,857,000, primarily due to impairment losses recognized on game intellectual property and goodwill[33]. - Revenue from the home products business increased by 117.9% to approximately HKD 17,621,000, driven by increased market demand as the global economy recovered from the COVID-19 pandemic[41]. - Revenue from the esports business for the six months ended June 30, 2023, was approximately HKD 11,221,000, a decrease of about 67.4% year-on-year[48]. - Revenue from cloud computing and data storage business was approximately HKD 3,804,000, down 64.5% compared to HKD 10,722,000 for the same period in 2022[49]. - The company reported a net loss of approximately HKD 39,284,000 for the six months ended June 30, 2023, compared to a net loss of HKD 105,424,000 for the same period in 2022[124]. - Gross profit decreased to HKD 749,000, a significant drop from HKD 9,056,000 in the previous year, indicating a decline in profitability[109]. - Operating loss for the period was HKD 32,061,000, compared to an operating loss of HKD 100,046,000 in the prior year, showing a 68.0% reduction in operating losses[109]. - Total comprehensive loss for the period was HKD 43,379,000, down from HKD 113,471,000 in the previous year, indicating a 61.7% reduction[99]. Assets and Liabilities - The total accounts receivable from related parties amounted to HKD 290,000,000 as of June 30, 2023, with an interest rate between 0% to 2%[22]. - The total accounts payable as of June 30, 2023, was HKD 4,963,000, compared to HKD 10,180,000 as of December 31, 2022[21]. - The group’s net current liabilities amounted to HKD 114,256,000, compared to HKD 71,295,000 in the previous year, indicating a worsening liquidity position[109]. - The total equity of the group as of June 30, 2023, was HKD 180,413,000, a decrease from HKD 128,312,000 in the previous year, reflecting a decline of 40.7%[104]. - The group reported a significant reduction in trade receivables, which fell from HKD 33,998,000 to HKD 13,024,000 over the same period[90]. - The group’s debt-to-asset ratio decreased from 92.4% as of December 31, 2022, to 60.1% as of June 30, 2023[72]. - Cash and bank balances as of June 30, 2023, were approximately HKD 22,100,000, down from HKD 42,800,000 as of December 31, 2022[61]. - The group’s financing costs increased to HKD 7,223,000 from HKD 5,418,000, reflecting a rise of 33.3%[97]. Subsidiary and Investments - The group sold 100% of its issued share capital in Jiefeng Home Products (Asia) Limited for a total consideration of HKD 1[2]. - As of June 30, 2023, the net liabilities of the sold subsidiary amounted to HKD 4,430,000, with total proceeds from the sale being HKD 21,107,000[3]. - The group has significant capital commitments related to gaming intellectual property and licenses amounting to HKD 2,118,000 as of June 30, 2023[4]. - The company plans to launch several new games within the year, including two games incorporating blockchain and metaverse concepts[47]. - The company plans to develop a large-scale amusement park in the metaverse, featuring various themed planets and games utilizing blockchain technology[56]. Corporate Governance and Management - The group’s financial director is responsible for fair value measurements, reporting directly to the board at least twice a year[25]. - The company has established an audit committee responsible for reviewing interim and annual reports, consisting of three independent non-executive directors[181]. - The company is currently seeking suitable candidates for independent non-executive director positions, as all current independent non-executive directors have served for over nine years[171]. - The company has complied with the corporate governance code throughout the reporting period, with no changes to the structure of the roles of the chairman and CEO[171]. - The company will continue to review its corporate governance practices to ensure compliance with the corporate governance code[179]. Market and Economic Conditions - The global economic recovery is showing significant divergence due to geopolitical factors and high interest rates, impacting different economies differently[31]. - The global gaming market is projected to reach USD 211.2 billion by 2025, with an expected compound annual growth rate of 4.3% from 2020 to 2025[156]. - The estimated tax rate for the group’s subsidiaries in Malaysia is 24% for the current period, unchanged from 2022[129]. - The estimated corporate income tax rate for the group’s subsidiaries in China remains at 25% for the current period, consistent with the previous year[130]. Employee and Compensation - The group employed 208 staff members as of June 30, 2023, with total employee compensation (including directors' remuneration) amounting to approximately HKD 29,314,000[83]. - The company recognized a total expense of approximately HKD 6,276,000 for share options during the period, a decrease from HKD 32,325,000 in 2022[191]. - The share option plan aims to encourage and reward eligible participants for their contributions to the group, facilitating the retention of talented employees[177]. Future Outlook and Strategies - The company will actively expand its esports teams in China and implement cost-saving measures to enhance financial conditions and maximize shareholder returns[46]. - The company expects to continue exploring opportunities in the blockchain gaming and metaverse sectors, aiming to maximize returns for shareholders[32]. - The company is conducting closed beta testing for a new computer metaverse game, which allows players to create and interact in a 3D open world[160].

Financial Performance and Proceeds - The net proceeds from the placement of shares as of December 31, 2022, amounted to HKD 116.2 million, with HKD 69.4 million utilized and HKD 46.8 million remaining unutilized[4]. - Online gaming generated HKD 38.2 million in net proceeds, while eSports contributed HKD 30.3 million, and cloud computing and data storage services accounted for HKD 47.7 million[4]. - The company plans to utilize the proceeds from the share placement for business strategies, including online gaming and cloud services, to enhance performance and efficiency[4]. Share Option Scheme - The total number of share options available under the share option scheme increased from 23,988,168 to 31,103,600 as of December 31, 2022[7]. - The company did not set performance targets or vesting periods for the share options granted to directors and employees, considering it appropriate based on current market practices[9]. - The board of directors approved the granting of share options to executive directors in accordance with the listing rules, with independent non-executive directors abstaining from voting on their own grants[12]. - The company aims to enhance its competitive position in talent retention and performance optimization through its share option scheme[9]. - The board remains committed to transparency and governance in the management of share options and financial reporting[12]. Market Trends and Future Outlook - The company reported a significant increase in user engagement in online gaming and eSports, reflecting a growing market demand[4]. - Future outlook includes continued investment in new technologies and market expansion strategies to drive growth[4].

Board Composition and Diversity - The Board consists of eight members, including one female director, resulting in a gender ratio of approximately 73% male to 27% female in the workforce as of December 31, 2022[22]. - The Company has adopted a Board diversity policy to enhance performance quality through diverse skills and experiences[16]. - The Board is committed to improving gender diversity and will consider measurable objectives to implement the Diversity Policy[21]. - The Company’s hiring practices are merit-based and non-discriminatory, contributing to achieving gender diversity in the workforce[22]. - The Nomination Committee reviews the implementation and effectiveness of the Diversity Policy to ensure the Board has the appropriate mix of skills and experience[23]. - The Company emphasizes the importance of Board diversity, including gender diversity, as a vital asset to the business[154]. Board Meetings and Committees - A total of eight Board meetings, four Audit Committee meetings, four Remuneration Committee meetings, and three Nomination Committee meetings were held during the year ended December 31, 2022[5]. - The Board meets regularly, at least four times a year, to review financial and operational performance and develop future strategies[4]. - The Company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee to oversee specific aspects of the group's affairs[1]. - The Company has established a Nomination Committee to review the structure, size, and composition of the Board at least annually[173]. - The Audit Committee reviewed the annual results for the year ended December 31, 2021, and the interim results for the six months ended June 30, 2022, for Board approval[172]. - The Audit Committee approved the external auditor's scope, plan, and fees for the annual audit and interim review[172]. - The Company has established an Audit Committee comprising three independent non-executive Directors to ensure compliance with corporate governance practices[181]. - The Remuneration Committee reviewed the remuneration package for Executive Director Mr. Yeung Tong Seng Terry during the financial year[179]. - The Nomination Committee conducted an annual review of the Board's composition, structure, and diversity policy[186]. Financial Performance and Reporting - The financial statements for the year ended December 31, 2022, were prepared under applicable statutory and regulatory requirements, ensuring a true and fair view of the Group's operations and cash flows[28]. - For the financial year ending December 31, 2022, the company reported a total revenue of HK$24,000,000, a significant increase from HK$6,000,000 in the previous year[92]. - For the period from 1 January 2022 to 31 December 2022, the company reported revenue of HK$8,600,000, an increase from HK$6,500,000 in the previous period[1]. - The projected revenue for the year ending 31 December 2023 is estimated at HK$6,000,000, indicating a decrease of approximately 30% compared to 2022[1]. - The actual amount incurred for connected transactions in 2022 will be reported in the upcoming financial disclosures[1]. Share Options and Capital Structure - The company has 20,877,808 shares under the Share Option Scheme, representing approximately 6.71% of the issued shares[43]. - The Share Option Scheme allows for options to be granted until June 28, 2028, with specific terms for exercise and acceptance[54]. - The exercise price for options is based on the closing price of shares on the offer date, rounded to the nearest whole cent[42]. - The fair value of share options was calculated using the Binomial Model, with a fair value of HK$35,360,821 for options exercisable from 28.9.2022 to 27.9.2031[61]. - The expected volatility for the share options was 81.16% and 78.61% for different grants, indicating significant fluctuations in share price[61]. - The exercise price for the share options was set at HK$17.14 and HK$11.04, with the share price at the date of grant being HK$17.02 and HK$11.04 respectively[61]. - The total outstanding share options as of 31.12.2022 amounted to 7,842,792 options[80]. - There are no pre-emptive rights under the Company's Articles of Association or the laws in the Cayman Islands[35]. - The company has not purchased, sold, or redeemed any of its shares during the year, maintaining a stable capital structure[101]. Corporate Governance and Compliance - The company has committed to high standards of corporate governance, complying with the Corporate Governance Code provisions during the reporting period[105]. - The Company has implemented a Whistle-blowing Policy to promote zero tolerance towards corruption and protect whistle-blowers[161]. - The Company is committed to maintaining effective risk management and internal control systems to protect its assets and shareholders' interests[1]. - The Company has a balanced composition of executive and non-executive Directors to ensure effective oversight of management[153]. - The Company has a formalized structure for delegating responsibilities between the Board and management to ensure effective governance[153]. - The Company ensures transparent communication with shareholders through various channels, including its website and regular reports[1]. - The Company is committed to transparent communication of its business and financial performance through various channels[164]. Risk Management and Internal Controls - The risk management framework includes identifying significant risks in the Group's operational environment and evaluating their impact on business[192]. - The Board concluded that the risk management and internal control systems were adequate and effective during the year[198]. - The internal control system is designed to prevent misappropriation of resources and protect the Company's assets[190]. - The Audit Committee performed various reviews and considerations during the financial year to enhance internal controls[182]. - The Company has implemented a risk register and internal control audit plan to monitor risks effectively[196]. - The Company Secretary received no less than 15 hours of relevant professional training to update skills and knowledge during the financial year[199].