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].

Financial Performance - Total revenue for the year ended December 31, 2022, was approximately HKD 133.1 million, a decrease of about 17.4% compared to the previous year[2]. - Gross profit for the same period was approximately HKD 20.4 million, an increase of about 6.3% year-on-year[2]. - Loss attributable to owners of the company was approximately HKD 180.9 million, an increase of about 82.7% compared to the previous year[2]. - Basic and diluted loss per share was HKD 0.58[4]. - The group reported a net loss of HKD 180,351,316 for the year ended December 31, 2022[15]. - The total segment loss for the year 2022 was HKD (99,364,916), compared to HKD (71,915,790) in 2021, indicating an increase in losses of about 38.1%[44]. - The net loss attributable to shareholders for 2022 was approximately HKD 180,884,000, up from HKD 99,031,000 in 2021[80]. - The company reported a significant impairment loss on cryptocurrency of HKD 16,971,751 for the year 2022, which was not present in the previous year[44]. - The company reported a significant impairment loss of approximately HKD 27,000,000 related to cryptocurrency mining machines and deposits[80]. Assets and Liabilities - Non-current assets decreased from HKD 162.1 million in 2021 to HKD 137.4 million in 2022[8]. - Current assets decreased from HKD 126.4 million in 2021 to HKD 109.1 million in 2022[8]. - Total liabilities decreased from HKD 292.6 million in 2021 to HKD 180.3 million in 2022[10]. - Net current liabilities improved from HKD 166.2 million in 2021 to HKD 71.3 million in 2022[10]. - Current liabilities and total liabilities as of December 31, 2022, were HKD 71,295,581 and HKD 128,312,118, respectively[15]. - The total assets of the company as of December 31, 2022, were HKD 246,421,876, down from HKD 288,493,608 in 2021, indicating a decrease of approximately 14.6%[44]. - The group's net current liabilities decreased from HKD 166,237,000 in 2021 to HKD 71,296,000 in 2022, mainly due to the reclassification of loans from related parties[109]. - The debt-to-asset ratio increased from 67.4% in 2021 to 108.2% in 2022, due to an increase in loans from related parties[113]. Revenue Segments - Revenue from the eSports segment increased significantly to HKD 26,435,731 in 2022, compared to HKD 14,156,786 in 2021, showing a growth of approximately 86.5%[46]. - Revenue from the online gaming business increased by approximately 35.8% to HKD 29,083,000, with a segment loss of HKD 48,148,000[81]. - The esports business generated revenue of approximately HKD 57,017,000, representing a growth of about 69.0% compared to HKD 33,736,000 in 2021[85]. - The group's revenue from home products business for the year ended December 31, 2022, was approximately HKD 32,424,000, a decrease of 59.7% compared to HKD 80,464,000 in 2021[92]. - The group's revenue from cloud computing and data storage business for the year ended December 31, 2022, was approximately HKD 12,447,000, a year-on-year decrease of about 44.0% from HKD 22,233,000 in 2021, with a segment loss of approximately HKD 51,626,000 compared to a loss of HKD 10,901,000 in 2021[97]. - The group's revenue from property investment business for the year ended December 31, 2022, was approximately HKD 1,332,000, a slight decrease from approximately HKD 1,401,000 in 2021, with a segment profit of approximately HKD 798,000 compared to HKD 951,000 in 2021[100]. - The group's revenue from lending business for the year ended December 31, 2022, was approximately HKD 798,000, down from HKD 1,870,000 in 2021, with a segment loss of approximately HKD 1,684,000 compared to a loss of HKD 877,000 in 2021[101]. Expenses and Costs - The company incurred total financing costs of HKD 12,202,801 in 2022, up from HKD 10,626,672 in 2021, representing an increase of about 14.9%[49]. - Administrative expenses increased significantly from approximately HKD 67,174,000 in 2021 to about HKD 128,667,000 in 2022, primarily due to increased employee costs and legal fees[107]. - The company reported a significant increase in depreciation and amortization expenses to HKD (45,806,254) in 2022 from HKD (32,442,762) in 2021, reflecting an increase of about 41.3%[44]. - Employee compensation increased to approximately HKD 125,115,000 in the fiscal year 2022, up from about HKD 60,240,000 in 2021, mainly due to stock option expenses[118]. Strategic Focus and Future Plans - The company is focused on expanding its cloud computing and data storage services, as well as exploring opportunities in e-sports and gaming[12]. - The company plans to launch a new game, "PetaRush," in the second half of 2023, which is currently in closed beta testing[83]. - The company is actively developing a large-scale metaverse game, with the first game "MetaSnake" launched in Q1 2022, attracting 30,000 players from over ten countries[81]. - The group plans to invest resources to further explore the blockchain gaming and metaverse markets, establishing a large amusement park called Metasens with various themed planets[119]. - The group aims to expand its esports team in China and will regularly assess resource allocation across business segments to promote diversification and sustainable development[127]. Governance and Reporting - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on the financial statements[18]. - The financial statements are prepared on a going concern basis, supported by financing from related companies and the ultimate holding company[16]. - The audit committee has been established and consists of three independent non-executive directors[129]. - The audit committee reviewed the audited financial statements for the year ended December 31, 2022[130]. - The board does not recommend the payment of a final dividend for the year ended December 31, 2022[133]. - The annual report will be published on the company's website and the Hong Kong Stock Exchange website[134].

Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately HKD 133,101,000, a decrease of about 17.4% compared to the previous year[10] - Gross profit for the year was approximately HKD 20,416,000, an increase of about 6.3% year-on-year[10] - Loss attributable to the owners of the company was approximately HKD 180,884,000, an increase of about 82.7% compared to the previous year[10] - Basic and diluted loss per share was HKD 0.58[10] - The company reported a significant increase in operating loss to HKD 168,402,264 from HKD 89,556,309 in the previous year[12] - The total revenue from external customers across various segments amounted to HKD 133,101,149, with the online gaming segment generating HKD 29,082,576 and the eSports segment generating HKD 12,447,034[30] - The total loss from reportable segments was HKD 99,364,916, compared to a loss of HKD 71,915,790 in the previous year, indicating a deterioration in financial performance[34] - The group reported a net loss of HKD 180,351,316 for the year ended December 31, 2022, compared to a net loss of HKD 100,382,696 in 2021, representing an increase in losses of 79.5%[61] - The company reported a net loss of HKD 33,998,453 for 2022, compared to a loss of HKD 26,976,583 in 2021, indicating an increase in losses of about 25.0%[97] Assets and Liabilities - Non-current assets decreased to HKD 137,368,114 from HKD 162,141,941 year-on-year[14] - Current assets decreased to HKD 109,053,762 from HKD 126,351,667 year-on-year[14] - The group’s total assets as of December 31, 2022, were valued at HKD 225,429,675, with significant contributions from various business segments[30] - The group’s total liabilities decreased significantly, with net liabilities reported at HKD (128,312,118) in 2022 compared to HKD (12,440,978) in 2021[38] - The group’s cash and bank balances were approximately HKD 42,764,000 as of December 31, 2022, compared to HKD 43,026,000 in 2021, with net current liabilities reduced to HKD 71,296,000 from HKD 166,237,000 in the previous year[152] - As of December 31, 2022, the group's current liabilities were approximately HKD 180,349,000, a decrease from HKD 292,589,000 in 2021, primarily due to the reclassification of loans from related parties to non-current liabilities[153] - The group's asset-liability ratio increased from 67.4% in 2021 to 108.2% in 2022, attributed to an increase in loans from related parties[157] Business Segments - The company operates in sectors including cloud computing, data storage, e-sports, game publishing, home product manufacturing, lending, and property investment[17] - The company operates in six main business segments, including cloud computing, home products, and online gaming[57] - Revenue from the online gaming business increased by approximately 35.8% to HKD 29,083,000, with a segment loss of HKD 48,148,000, compared to a loss of HKD 49,001,000 in 2021[107] - The esports business generated revenue of approximately HKD 57,017,000, a 69.0% increase from HKD 33,736,000 in 2021, with a segment profit of HKD 1,604,000 compared to a loss of HKD 13,474,000 in the previous year[110] - Revenue from the home products business decreased by 59.7% to approximately HKD 32,424,000 in 2022, down from HKD 80,464,000 in 2021, primarily due to reduced market demand caused by ongoing US-China conflicts and the COVID-19 pandemic[145] - Revenue from cloud computing and data storage business decreased by approximately 44.0% to HKD 12,447,000 in 2022, with a segment loss of HKD 51,626,000, mainly due to impairment losses on mining machines and decreased cryptocurrency market values[165] Impairment and Write-downs - The group recognized impairment losses on cryptocurrency amounting to HKD 16,971,751, reflecting challenges in the digital asset market[30] - The impairment loss on intangible assets was HKD 2,493,681 in 2022, while there was no such loss reported in 2021[71] - The group recorded a significant increase in cryptocurrency write-downs, amounting to HKD 16,971,751 in 2022, compared to HKD 7,004,817 in 2021, reflecting a rise of approximately 142.5%[71] - The group recorded an impairment loss of approximately HKD 20,389,000 related to its Filecoin and Chia mining machines due to recent market price declines[116] Expenses and Income - Administrative expenses increased from approximately HKD 67,174,000 in 2021 to HKD 128,667,000 in 2022, primarily due to increased employee costs and legal and professional fees[122] - The group incurred interest expenses of HKD 2,663,598, which reflects the financial burden associated with its liabilities[30] - The company reported a significant increase in interest income from other loans, rising to HKD 10,949,343 in 2022 from HKD 9,756,123 in 2021, an increase of 12.2%[65] - Other income increased from approximately HKD 692,000 in 2021 to about HKD 5,769,000 in 2022, mainly due to increased government subsidies, bank interest income, and revenue from the sale of esports players[150] Future Plans and Initiatives - The group plans to launch a new game, "PetaRush," in the second half of 2023, which will incorporate elements of collection, nurturing, and breeding, in collaboration with a popular Asian music brand[109] - The group plans to continue diversifying its business, particularly in game publishing and esports sectors, as part of its Metasens initiative[121] - The group plans to invest resources to further explore the blockchain gaming and metaverse markets, developing a large amusement park called Metasens with various themed planets and game facilities[161] - The group will actively seek partnerships for IP licensing in gaming, including collaborations with popular Asian music artists[183] Government Support - The company confirmed government subsidies related to the COVID-19 pandemic amounting to HKD 512,000 for the year, compared to HKD 31,810 in 2021[64] - The company received government grants totaling HKD 680,119 in 2022, compared to HKD 100,518 in 2021, marking a significant increase of about 576.5%[84] Shareholder Information - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2022 (2021: none) [192] - The audit committee has reviewed the audited financial statements for the year ended December 31, 2022, in collaboration with the external auditor [189] - The annual report will include all information required by the listing rules and will be timely sent to shareholders [193]

Fund Utilization - The net amount of funds raised as of December 31, 2021, is HKD 116.2 million, with HKD 69.4 million utilized and HKD 46.8 million remaining [25]. - The company plans to fully utilize the remaining funds for online gaming (HKD 27.8 million), esports (HKD 19.0 million), and cloud computing and data storage services (HKD 47.7 million) by December 31, 2022 [25]. - The board has no intention to change the planned use of the net proceeds from the placement of shares as disclosed in the announcements dated April 11, 2021, and the annual report [25]. Loan Management - As of December 31, 2021, the group has outstanding loans with an unpaid principal amount of approximately HKD 6.4 million, down from HKD 9.9 million in 2020 [30]. - Interest income from outstanding loans for the year ended December 31, 2021, was approximately HKD 1.9 million, compared to HKD 2.9 million in 2020 [30]. - The company has not issued any new loans or renewed any loan agreements since 2020 due to challenges and competitive environment exacerbated by the COVID-19 pandemic [32]. - The company’s lending business is conducted through its wholly-owned subsidiary, focusing on large loans exceeding HKD 1 million [29]. - The company has a comprehensive policy and procedure manual for loan approval, renewal, collection, compliance, monitoring, and anti-money laundering [30]. Credit Risk - The expected credit loss ratio for receivables is 0.02%, with no impairment recognized for the year ended December 31, 2021 [33]. Stock Options - The estimated fair value of stock options granted to executive directors and senior management is approximately HKD 25.24 million and HKD 9.21 million, respectively [26].

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$66,432,000, a decrease of 7.1% compared to HK$71,993,000 in the same period of 2021[9]. - Gross profit for the same period was HK$9,056,000, slightly down from HK$9,189,000, resulting in a gross margin of approximately 13.6%[9]. - Loss from operations increased significantly to HK$100,046,000, compared to a loss of HK$30,096,000 in the prior year, indicating a deterioration in operational performance[9]. - Loss before tax for the period was HK$105,464,000, compared to HK$34,058,000 in the previous year, reflecting increased financial pressures[9]. - The total comprehensive loss for the period was HK$113,471,000, a substantial increase from HK$34,410,000 in the same period of 2021[11]. - Basic and diluted loss per share for the period was HK$0.35, compared to HK$0.11 in the previous year, indicating a significant decline in shareholder value[9]. - The company reported a loss for the period attributable to owners of the company amounting to HK$108,348,000, compared to HK$34,131,000 in the previous year[9]. - The Group incurred a net loss of approximately HK$105,424,000 during the six months period ended 30 June 2022, with net current liabilities and net liabilities of approximately HK$195,235,000 and HK$91,622,000 respectively[23]. - The consolidated loss for the period was HK$105,424,000, compared to a loss of HK$34,097,000 in the same period of 2021, reflecting a worsening financial position[35]. - The loss attributable to shareholders for the Period was approximately HK$105,424,000, significantly higher than the loss of HK$34,097,000 in the same period of 2021, primarily due to non-cash items incurred[136][139]. Assets and Liabilities - Non-current assets decreased from HK$152,346,000 at December 31, 2021, to HK$127,570,000 at June 30, 2022, representing a decline of approximately 16.3%[13]. - Current liabilities increased significantly from HK$194,527,000 at December 31, 2021, to HK$333,223,000 at June 30, 2022, an increase of about 71.4%[13]. - Total equity decreased from HK$37,572,000 at June 30, 2021, to a negative equity of HK$91,622,000 at June 30, 2022, indicating a significant decline in financial health[17]. - The total liabilities of the company increased from HK$12,441,000 at December 31, 2021, to HK$91,622,000 at June 30, 2022, indicating a rise of approximately 638.5%[15]. - Cash and cash equivalents at June 30, 2022, were HK$55,407,000, a decrease from HK$115,867,000 at June 30, 2021, reflecting a decline of approximately 52.2%[19]. - The company’s trade receivables decreased from HK$6,949,000 at December 31, 2021, to HK$4,171,000 at June 30, 2022, a decline of approximately 40.2%[13]. - The total amount due to related companies increased to approximately HK$218,424,000 as of 30 June 2022, compared to HK$194,527,000 in 2021, with interest rates ranging from 0% to 2% per annum[127][128]. Operational Strategies - The company is focusing on cost management strategies to mitigate losses and improve future performance[8]. - Future outlook includes potential market expansion and new product development initiatives to drive revenue growth[8]. - The Group plans to invest resources in exploring the blockchain game and metaverse market, aiming to build a large-scale universe park with various themed planets[184]. - The Group will actively seek collaboration for IP licensing in different games to expand its business into various markets, particularly the fast-growing game market[185]. - The Group intends to expand its esports team in China and implement cost-saving measures to enhance financial performance and maximize shareholder returns[189]. Segment Performance - The segment loss for the reportable segments was HK$59,774,000 for the first half of 2022, compared to a loss of HK$26,795,000 in the same period of 2021, indicating a significant increase in losses[35]. - Revenue from the game publishing business increased year-on-year by approximately 10.6% to HK$11,930,000, compared to HK$10,787,000 for the six months ended 30 June 2021[142]. - The esports business generated revenue of approximately HK$34,460,000, representing a year-on-year increase of approximately 86.0%, with segment profit of approximately HK$671,000 compared to a loss of HK$4,691,000 in the previous year[152]. - Revenue from the cloud computing and data storage business increased by approximately 198.2% year-on-year to HK$10,722,000, despite a segment loss of approximately HK$41,637,000 due to impairment losses on mining machines[163]. - Revenue from the household products business decreased by 78.3% to approximately HK$8,085,000 compared to HK$37,325,000 in the previous year[165]. - Revenue from the property investment business was approximately HK$686,000, a slight decrease from HK$707,000 in the previous year[170]. - Revenue from the money lending business decreased to approximately HK$549,000 from HK$1,053,000 in the previous year, resulting in a segment loss of approximately HK$1,643,000[171]. Future Developments - The Group aims to explore opportunities in the blockchain games and metaverse sectors, focusing on game publishing and esports to maximize shareholder returns[135][138]. - The Group's Metasens project has made good progress and will continue to diversify its business, particularly in game publishing and esports[136][139]. - The Group plans to launch an additional 2,000 NFT ancestral equipment in four phases, with the first phase selling all 500 NFTs for approximately HK$1,495,000[144]. - The second game "PetaRush" is expected to launch in the second half of 2022, incorporating elements of collection, raising, and breeding[148]. - The third game, a PC-based metaverse sandbox game, is currently in closed beta testing, allowing players to create and edit their own virtual worlds[149]. Accounting and Compliance - The application of new and amended HKFRSs in the current period has had no material impact on the Group's financial performance and position[25]. - The Group's financial statements have been prepared on a going concern basis despite the existing material uncertainties[23]. - Adjustments may be required to restate asset values and classify noncurrent assets and liabilities as current if the Group cannot continue as a going concern[23]. - The Group's financial statements reflect the historical cost basis, except for certain properties and financial instruments measured at fair value[25]. - The Group's financial performance and position for the current and prior periods remain unaffected by the new accounting standards adopted[25].

Financial Performance - In 2021, the Group's revenue was HK$161,124,366, a decrease of 13.5% from HK$186,363,525 in 2020[6] - The loss attributable to owners of the Company for 2021 was HK$99,031,460, compared to a loss of HK$80,214,996 in 2020[6] - The Group's total revenue for 2021 decreased by approximately 13.5% to approximately HK$161,124,000 compared to HK$186,364,000 in 2020[39] - The loss attributable to shareholders for the year was approximately HK$99,031,000, up from HK$80,215,000 in 2020[39] - The revenue from the game publishing business for the year ended December 31, 2021, was approximately HK$21,420,000, representing a decrease of about 7.1% compared to the previous year[58] - The segment loss for the game publishing business was approximately HK$49,001,000 for the year, compared to HK$45,960,000 in 2020[59] - The revenue from the cloud computing and data storage business for the year ended December 31, 2021, was approximately HK$22,233,000, with a segment loss of approximately HK$10,901,000[71] - The revenue from the esports business increased to approximately HK$33,736,000, representing a year-on-year growth of approximately 149.2%[82] - The household products business revenue was approximately HK$80,464,000, a decrease of 44.7% compared to HK$145,453,000 in 2020[89] - The gross profit margin improved from 5.6% in 2020 to 11.9% in 2021, driven by higher margins in the esports and cloud computing sectors[94] - Distribution costs rose from approximately HK$8,750,000 in 2020 to approximately HK$17,894,000 in 2021 due to increased marketing expenses[95] - Administrative expenses increased from approximately HK$63,245,000 in 2020 to approximately HK$77,251,000 in 2021, primarily due to higher staff costs[95] - The segment profit for the household products business was approximately HK$1,385,000, compared to a segment loss of HK$6,880,000 in 2020[89] - The property investment business revenue remained stable at approximately HK$1,401,000, with a segment profit of approximately HK$951,000[92] - The finance costs increased from approximately HK$7,945,000 in 2020 to approximately HK$10,627,000 in 2021 due to increased loans from related parties[96] - Other income decreased significantly from approximately HK$11,371,000 in 2020 to approximately HK$692,000 in 2021, mainly due to reduced government grants and bank interest income[94] - As of December 31, 2021, the Group had cash and bank balances of approximately HK$43,026,000, a decrease from HK$55,149,000 in 2020[109] - The Group's net current liabilities increased to approximately HK$156,441,000 in 2021 from HK$69,864,000 in 2020, primarily due to a decrease in inventories and an increase in loans from related parties[109] - The gearing ratio decreased from 75.7% in 2020 to 67.4% in 2021, attributed to an increase in property, plant, and equipment[112] - The Group had capital commitments of approximately HK$4,837,000 as of December 31, 2021, related to the acquisition of licensing rights for online games[113] - Contingent liabilities amounted to approximately HK$6,133,000 as of December 31, 2021, compared to HK$5,970,000 in 2020, related to economic compensation payable under PRC labor laws[114] - The Group employed approximately 360 staff as of December 31, 2021, with total employee remuneration decreasing by approximately HK$9,964,000 to approximately HK$51,785,000 for the fiscal year of 2021[116] Business Strategy and Development - The Group plans to enter the blockchain games and metaverse sectors to enhance competitiveness and broaden revenue sources[26] - A mega meta-universe game world named "Metasens" is planned for global players, along with several NFT games to be released in 2022[26] - The Group aims to maximize shareholder returns through the combination of gaming and NFT mechanisms[26] - The Group plans to launch multiple NFT games in 2022, including the first NFT game "METASNAKE" on the Metasens platform[52] - The Metasens project aims to create a large-scale metaverse game world with various themed planets and game facilities, utilizing Web3.0 technology[51] - The Group is focusing on expanding its business in blockchain games and the metaverse to maximize returns for shareholders[39] - The NFT ancestral equipment for Metasens was oversubscribed by approximately 149%, raising Ethereum equivalent to about US$752,000 for development[52] - The Group is focusing on the development of the Metasens platform, which is expected to broaden revenue sources and maximize shareholder returns[59] - The Group plans to introduce several NFT metaverse games in 2022 to build a large-scale universe park called Metasens, which will include an NFT marketplace and blockchain wallet[130][137] - The Group aims to accelerate the expansion of its cloud computing and data storage business, as well as enlarge its esports team in the PRC[137] - The Group will continue to adopt suitable cost-saving measures and evaluate business operations to enhance its financial position and maximize shareholder returns[137] - The company plans to create a unique game economy within the "Holosens" planet, allowing players and developers to build an open world in 3D models[138] - Players can shape unique game characters, items, digital collectibles, land, and equipment within the sandbox mode of the game[138] - The "Holosens" platform aims to enhance user engagement and participation in the Metasens ecosystem[138] Market Overview - The GDP of the People's Republic of China grew at an annual rate of 8.1% in 2021, exceeding market expectations[26] - The global game market revenue reached US$175.8 billion in 2021, with the Asia-Pacific region accounting for US$88.2 billion, or 50.2% of the total market[40] - The global game market is expected to grow to US$218.7 billion at a CAGR of 8.7% from 2019 to 2024, indicating a positive long-term outlook[40] Governance and Management - The Group officially changed its English name to "Imperium Technology Group Limited" on July 2, 2021, to reflect its current status and future direction[26] - The Chairman expressed appreciation for the ongoing support from investors, customers, partners, and shareholders[26] - Mr. Tse Ting Kwan has over 10 years of experience in auditing, finance, and accounting, previously serving as the financial controller of Chinese People Holdings Company Limited from December 2006 to September 2020[155] - Ms. Li Tingting has extensive experience in the online games industry, blockchain technology applications, and cloud operation services, having served as CEO of Wanhui Suzhou since September 2020[156] - Mr. Lee Chia Hsien has over 15 years of experience in the information technology industry and is currently the chief digital officer of the Group, focusing on advanced software technologies[159] - The Company has a history of appointing experienced financial professionals, with Mr. Luk Wai Keung serving as CFO since April 30, 2021[162] - The Company has maintained a strong governance structure with a mix of executive and independent non-executive directors[189] Customer and Supplier Concentration - The largest customer accounted for 24.6% of the Group's total sales, while the five largest customers in aggregate represented 50.7%[186] - The largest supplier contributed 44.5% to the Group's total purchases, with the five largest suppliers in aggregate accounting for 99.3%[186] Dividend and Share Capital - The Company did not recommend any final dividend for the year ended December 31, 2021, consistent with the previous year[167] - The Company was incorporated in the Cayman Islands on January 19, 2005, as an exempted company with limited liability[165] - The principal activities of the Company include acting as an investment holding company, with details of its subsidiaries provided in the financial statements[166] - The financial year ended December 31, 2021, saw no changes in the share capital of the Company as detailed in the financial statements[182]

Revenue and Profitability - Revenue for the six months ended June 30, 2021, was HK$71,993,000, a decrease of 10% compared to HK$79,883,000 in the same period of 2020[10] - Gross profit increased to HK$9,189,000, up from HK$2,676,000 in 2020, representing a significant improvement[10] - Loss for the period attributable to owners of the company was HK$34,131,000, compared to HK$39,006,000 in 2020, reflecting a 12% decrease[10] - Basic loss per share for the period was HK$0.11, unchanged from the previous year[10] - Total comprehensive loss for the period was HK$34,410,000, down from HK$45,304,000 in 2020, showing a 24% reduction[12] - Consolidated loss for the period was HK$34,097,000, compared to a loss of HK$40,398,000 in the prior year, indicating a reduction in losses[61] - The gross profit margin increased from 3.3% to approximately 12.8% for the six months ended 30 June 2021, mainly due to higher margins in the esports and cloud computing segments[168] Expenses and Costs - Loss from operations for the period was HK$30,096,000, reduced from HK$36,733,000 in the previous year, indicating an 18% improvement[10] - Other income for the period was HK$1,397,000, down from HK$3,822,000 in the same period last year[10] - Administrative expenses increased slightly to HK$31,079,000 from HK$30,270,000 in 2020[10] - Distribution costs rose to HK$7,923,000, compared to HK$5,937,000 in the previous year, indicating a 33% increase[10] - The Group's administrative expenses increased from approximately HK$30.3 million to approximately HK$31.1 million, mainly due to rising staff costs and legal fees[171] Financial Position - Total equity of the Group at June 30, 2021, was HK$37,572,000, a significant recovery from a negative equity of HK$45,189,000 at the beginning of the year[18] - Cash and cash equivalents increased to HK$115,867,000 at June 30, 2021, compared to HK$55,149,000 at January 1, 2021, reflecting a net increase of HK$61,031,000[20] - Current liabilities decreased to HK$88,607,000 at June 30, 2021, from HK$25,943,000 at December 31, 2020, indicating improved liquidity management[16] - The Group's net current liabilities improved to HK$31,411,000 at June 30, 2021, from HK$69,864,000 at December 31, 2020, reflecting better financial health[16] - The Group's cash used in operating activities was HK$36,702,000 for the six months ended June 30, 2021, compared to a cash inflow of HK$700,000 in the same period of 2020[20] Segment Performance - The Group has six reportable segments for management purposes, an increase from four in 2020, including cloud computing and data storage, esports, game publishing, household products, money lending, and property investment[50] - Total loss of reportable segments for the six months ended June 30, 2021, was HK$26,795,000, improved from a loss of HK$31,405,000 in the same period of 2020[60] - Cloud computing and data storage segments contributed approximately 30.7% of the Group's total revenue during the reported period[175] - The revenue from cloud computing and data storage business for the period ended 30 June 2021 was approximately HK$3,596,000, with a segment loss of approximately HK$1,244,000[197] - The revenue from esports business for the six months ended 30 June 2021 was approximately HK$18,525,000, with a segment loss of approximately HK$4,691,000[200] Cryptocurrency and Investments - Cryptocurrency receivables totaled HK$1,401,000 as of June 30, 2021, with no recorded amount in the previous period, indicating a new revenue stream[87] - The Group recorded a loss of approximately HK$950,000 due to the change in fair value of cryptocurrency as of 30 June 2021, resulting in a total loss of approximately HK$890,000 for the Filecoin related service segment[183] - The Group held approximately 220 units of Chia coins with a carrying amount of approximately HK$840,000, reflecting a loss of approximately HK$37,000 due to the cryptocurrency downturn[184] - The Group is exposed to liquidity risks in the cryptocurrency market, influenced by the number of exchanges and public demand, alongside price volatility concerns[191] - The Group has established in-house policies to manage cryptocurrency risks, including daily monitoring of price and liquidity[193] Corporate Governance and Compliance - The financial statements have been prepared on a going concern basis, indicating the Directors' confidence in the Group's ability to meet its financial obligations in the foreseeable future[30] - The Group's financial resources are deemed sufficient to meet working capital requirements and financial obligations as they become due[30] - The accounting policies used in the preparation of the interim financial statements are consistent with those followed in the previous annual financial statements[40] - The Group has adopted new and revised Hong Kong Financial Reporting Standards for the first time, which do not impact the interim financial statements[43] - The Group's financial controller is responsible for fair value measurements and reports directly to the Board, with discussions held at least twice a year[136]

Financial Performance - The Group's revenue for 2020 was approximately HK$186,364,000, a decrease of about HK$47,203,000 compared to 2019[14]. - The loss attributable to shareholders for 2020 was approximately HK$80,215,000, representing an increase of approximately HK$2,279,000 from 2019[14]. - The Group's total revenue decreased by approximately 20.2% in 2020 compared to the previous year, with household products sales declining by approximately 20.4% and game publishing revenue decreasing by approximately 47.6%[20][21]. - The basic loss per share for 2020 was HK$0.28, consistent with the diluted loss per share[5]. - The gross profit margin decreased from 9.1% in 2019 to 5.6% in 2020, primarily due to low profit margins in the game publishing business[47]. - Revenue from the money lending business was approximately HK$2,916,000, down from HK$5,264,000 in 2019, with a segment loss of approximately HK$518,000[41]. - The Group reported a segment loss of approximately HK$101,000 from the property investment business, compared to a profit of approximately HK$1,822,000 in 2019[40]. - Other income increased from approximately HK$5,889,000 in 2019 to approximately HK$11,371,000 in 2020, mainly due to government grants and gains on disposal of intangible assets[47]. - Administrative expenses rose from approximately HK$55,962,000 in 2019 to approximately HK$63,245,000 in 2020, driven by increased staff costs and legal fees[48]. - The Group's reserves available for cash distribution amounted to approximately HK$42,967,000 as of December 31, 2020[119]. - The Board does not recommend payment of any final dividend for the year ended December 31, 2020, consistent with the previous year[117]. Assets and Liabilities - Total assets as of 31 December 2020 were HK$223,770,007, while total liabilities were HK$268,959,397[5]. - The Group's total equity attributable to owners of the Company was negative HK$48,746,456 as of 31 December 2020[5]. - The Group's current liabilities increased to approximately HK$197,827,000 in 2020 from approximately HK$108,657,000 in 2019, mainly due to increased loans from related parties[55]. - The Group had no bank borrowings as of 31 December 2020, compared to approximately HK$41,416,000 in 2019[56]. - The Group's loan from related parties increased to approximately HK$169,328,000 in 2020 from approximately HK$93,328,000 in 2019[56]. - As of December 31, 2020, the company had cash reserves available for distribution amounting to approximately HKD 42,967,000[125]. Business Strategy and Operations - The Group plans to expand its esports and game publishing business, particularly in the lucrative PRC market[15]. - The Group will continue to evaluate its business operations and consider restructuring to enhance long-term growth potential[15]. - The company plans to focus on cost-saving measures and evaluate business operations to enhance long-term growth potential, including exploring blockchain technology applications and cloud operation services[85]. - The company is broadening its product range to include console games and exploring expansion into the lubricant market in China[86]. - The company is investing in R&D, allocating $H million towards the development of new technologies and products[93]. - The company is focused on improving customer engagement, with initiatives aimed at increasing customer satisfaction scores by K%[93]. Market and Industry Insights - The PRC's GDP growth rate for 2020 was 2.3%, significantly lower than the 6.0% recorded in 2019[14]. - The esports business generated revenue of approximately HK$13,537,000 in 2020, with a segment loss of approximately HK$11,163,000[30][34]. - The revenue from the game publishing business for 2020 was approximately HK$23,056,000, representing a decrease of approximately HK$20,973,000 compared to 2019, with a segment loss of approximately HK$45,960,000[31][35]. - The household products business revenue for 2020 was approximately HK$145,453,000, a decrease of 20.2% from 2019, with a gross profit margin of approximately 7.8%[38][39]. - The global esports revenue is projected to grow to USD1.1 billion in 2020, with a growth rate of approximately 15.7%, and China being the largest market with total revenue of USD385.1 million[29][34]. Corporate Governance and Structure - The Company was incorporated in the Cayman Islands as an exempted company with limited liability on January 19, 2005[115]. - The Company acts as an investment holding company, with principal subsidiaries' activities outlined in the financial statements[116]. - The Company has not reported any final dividend for the year ended December 31, 2020, indicating a focus on retaining earnings[117]. - The company’s directors are subject to retirement by rotation, with eligible directors offering themselves for re-election at the upcoming annual general meeting[142]. - The company has received written confirmations of independence from all independent non-executive directors[145]. - The company maintains independence from competing businesses, with measures in place to manage potential conflicts of interest involving directors[170][175]. Future Outlook - The management remains positive on the outlook for the mobile gaming segment, which is expected to exceed USD100 billion in revenue by 2023[32][36]. - The company provided guidance for the next quarter, expecting revenue to be between $B million and $C million, indicating a projected growth rate of D%[93]. - Recent acquisitions are expected to enhance operational efficiency and are projected to add $G million in annual revenue[93]. - Overall, the company remains optimistic about future growth, driven by innovation and market demand[194].