目 錄 2 公司資料 4 行政總裁報告書 6 管理層討論與分析 14 未經審核簡明綜合損益及其他全面收益表 16 未經審核簡明綜合財務狀況表 18 未經審核簡明綜合權益變動表 19 未經審核簡明綜合現金流量表 20 未經審核簡明綜合中期財務資料附註 51 其他資料 公司資料 OSL GROUP LIMITED OSL 集團有限公司 股份代號：863 董事會 執行董事 潘志勇先生 （主席） （於二零二四年一月十二日獲委任） 徐康女士 （於二零二四年一月十二日獲委任） 楊超先生 （於二零二四年一月十二日獲委任） 刁家駿先生 賈瑞馨女士 （於二零二四年八月三十日獲委任） 高振順先生 （於二零二四年八月三十日辭任） Madden Hugh Douglas先生 （於二零二四年一月十二日辭任） Lo Ken Bon先生 （於二零二四年一月十二日辭任） Chapman David James先生 （於二零二四年一月十二日辭任） 獨立非執行董事 周承炎先生 徐飈先生 （於二零二四年一月十二日獲委任） 楊桓先生 （於二零二四年六月十七日獲委任） 楊毓博士 （於二零二四年一月十二日獲委任及 於二零二四年四月十九日辭任） 謝其龍先 ...

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 OSL Group Limited OSL集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：863） 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 | --- | |---------------------------------------------------------------------------------------------------------------------------------------------------| | | | 務 亮 點 | | 本集團數字資產及區塊鏈平台業務的國際財務報告準則收入為 1 億 2,380 萬 ...

Financial Proceeds - The net proceeds from the June placement amounted to approximately HKD 534 million after deducting all related expenses[2]. - The total amount utilized from the June placement proceeds was approximately HKD 534 million[3]. Utilization of Proceeds - As of December 31, 2023, the actual utilization of the proceeds from the June placement for IT-related costs was approximately HKD 198 million[3]. - The company allocated approximately HKD 236 million from the June placement for general operating expenses, including rent, employee costs, and marketing expenses[3]. Future Plans - The company has set aside funds for future market expansion in the UK, Singapore, and the Americas[3].

Digital Asset Market and Strategy - OSL Group Limited is focusing on enhancing its core competitiveness in the digital asset sector amid a strategic realignment[7]. - The approval of the first Bitcoin spot ETF in the US has positively impacted the regulatory environment and increased institutional participation in cryptocurrencies[8]. - Bitcoin and Ethereum prices have significantly risen, indicating a resurgence in investor confidence and market vitality[8]. - OSL Group is well-positioned to expand its service offerings and increase market share in response to regulatory innovations in Hong Kong[8]. - The company aims to leverage strategic investments to capitalize on opportunities in the evolving digital asset landscape in 2024[9]. - The group has laid a solid foundation for innovation in 2024, driven by significant achievements and opportunities in the past year[8]. - OSL Group expresses gratitude to investors for their unwavering support, which is crucial for the company's vision and leadership[9]. - The company anticipates unprecedented growth in 2024 through strategic initiatives and new service expansions[9]. - OSL aims to lead the transformation of the digital asset market while ensuring compliance and regulatory adherence[15]. - The approval to enhance existing licenses allows OSL to offer a wider range of digital asset products to retail investors, reinforcing its commitment to regulatory compliance[14]. Financial Performance - The management discussion highlights the audited financial performance for the fiscal year ending December 31, 2023[11]. - OSL Group's revenue for the fiscal year 2023 reached HKD 209.8 million, a 193.6% increase compared to HKD 71.5 million in the fiscal year 2022[17]. - The net income from digital asset brokerage activities was HKD 72.1 million in 2023, a significant recovery from a net loss of HKD 103.0 million in the previous year[17]. - The company reported a loss per share from continuing operations of HKD 0.58, improving from a loss of HKD 1.30 in the previous fiscal year[17]. - OSL's adjusted non-IFRS revenue for the year was HKD 134.9 million, a decrease of HKD 48.3 million from HKD 183.2 million in the fiscal year 2022[18]. - The company reported a net loss from continuing operations of HKD 249.8 million, a reduction of 55.4% compared to HKD 560.1 million in 2022[25]. - The total comprehensive loss for the year was HKD 265,874 thousand, compared to a total comprehensive loss of HKD 558,100 thousand in 2022, showing a reduction of about 52.4%[193]. Operational Developments - OSL has expanded its retail services by allowing retail investors to trade Bitcoin (BTC) and Ethereum (ETH) following regulatory approval in June 2023[14]. - The strategic investment from BGX is expected to enhance OSL's market share and technological capabilities in the Asia-Pacific region[13]. - OSL has established partnerships with Interactive Brokers and Victory Securities to strengthen its B2B2C business model, providing integrated digital asset trading solutions[15]. - The company has made significant progress in the Security Token Offering (STO) space, partnering with UBS for Hong Kong's first investment-grade warrant token transaction[16]. - The company sold 90% of its stake in Shanghai Jingwei Enterprise Development Co., focusing on the digital asset industry as a strategic growth priority[22]. Risk Management and Compliance - The volatility of digital asset prices poses significant risks to the group's performance, with regular reviews of asset positions based on market factors[39]. - The group employs both hot and cold wallet solutions for asset custody, implementing security measures and purchasing insurance for these wallets in 2023[40]. - Anti-money laundering policies and procedures are in place to mitigate risks associated with anonymous transactions in decentralized networks[41]. - The group has strict review processes for new products, focusing on operational, legal, regulatory, market, credit, liquidity, and ESG risks before approval[44]. - The group faces credit risk associated with digital asset trading, particularly from counterparties failing to meet obligations[45]. - The group has implemented a business continuity and disaster recovery plan to ensure operational resilience against external and internal threats[46]. - The company is committed to maintaining strict compliance standards while expanding its global footprint to serve a diverse international clientele[29]. Corporate Governance - The company appointed Mr. Pan Zhiyong as the chairman and CEO on January 12, 2024, which does not comply with the corporate governance code requiring separation of these roles[58]. - The board emphasizes the importance of effective leadership, transparency, and accountability in business operations to ensure high ethical standards and compliance with applicable laws[57]. - The company has adopted the corporate governance code and has complied with the relevant rules for the year ending December 31, 2023[58]. - The board consists of independent non-executive directors with extensive experience in corporate finance and banking, enhancing the company's governance structure[54][55]. - The company has established a fundraising committee for the Eastern District Hospital Charity Trust Fund, indicating its commitment to community involvement[54]. - The board will continue to review and improve corporate governance practices to maximize shareholder returns[58]. Shareholder Engagement and Communication - The company engages with shareholders through various channels, including press releases, interim and annual reports, and shareholder meetings[87]. - The company holds investor meetings, including conference calls and forums, to report on group performance and address investor questions[88]. - The company has established a shareholder communication policy to ensure timely and equal access to relevant information for shareholders and investors[88]. - The board ensures that independent resolutions are presented for significant matters at the annual general meeting, allowing shareholders to vote on each issue[93]. - The company encourages shareholders to raise questions and provide feedback to the board and management at any time[89]. Future Outlook and Strategic Initiatives - The company plans to expand its market presence and is focusing on new product development to drive future growth[123]. - The company has outlined a strategic vision for the next five years, aiming for a substantial increase in user data and engagement metrics[123]. - The company is actively pursuing mergers and acquisitions to enhance its competitive position in the market[123]. - The company has set ambitious performance guidance for the upcoming fiscal year, targeting a revenue growth of over 20%[123]. - The company is investing in new technologies to improve operational efficiency and customer experience[123]. Financial Position and Assets - As of December 31, 2023, the total assets of the group were HKD 14.408 billion, a decrease from HKD 25.143 billion on December 31, 2022[33]. - The total liabilities amounted to HKD 10.457 billion, down from HKD 18.550 billion in the previous year, resulting in a debt-to-asset ratio of approximately 72.6%[33]. - The total equity of the group was HKD 3.951 billion, compared to HKD 6.593 billion as of December 31, 2022[33]. - The cash balance, after deducting customer cash liabilities, was HKD 1.650 billion, a decrease from HKD 4.269 billion in the previous year[33]. - The proprietary digital asset balance increased from HKD 1.583 billion to HKD 1.846 billion over the year[33]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2023[173]. - The audit committee is responsible for overseeing the financial reporting process of the group[184]. - The company has identified key audit matters that are critical to the financial statements, ensuring transparency and compliance with professional ethical standards[187]. - The audit focused on the fair value measurement of financial instruments due to its significance in the consolidated financial statements[182]. - The management's judgments and assumptions regarding the fair value measurement of investments were supported by sufficient evidence[185].

Financial Performance - The revenue from digital assets and blockchain platform business increased by 193.6% to HKD 209.8 million[2] - The loss from continuing operations narrowed significantly by 55.4% to HKD 249.8 million compared to HKD 560.1 million in the previous year[2] - The total comprehensive loss for the year was HKD 265.9 million, compared to HKD 558.1 million in the previous year[7] - Basic and diluted loss per share from continuing operations was HKD 0.58, improved from HKD 1.30[8] - The company reported a net financial income of HKD 6.5 million, compared to a net financial cost of HKD 11.2 million in the previous year[4] - The company reported a net loss attributable to shareholders of HKD 263,862,000 for the year ended December 31, 2023, compared to a loss of HKD 541,038,000 in 2022, indicating an improvement[33] - The basic and diluted loss per share for continuing operations was HKD (0.58) in 2023, compared to HKD (1.30) in 2022, reflecting a reduction in losses[36] Revenue Breakdown - The total revenue from digital asset and blockchain platform business reached HKD 209,837,000 in 2023, up from HKD 71,480,000 in 2022, showing a substantial increase[28] - Digital asset trading revenue significantly increased to HKD 144,755,000 in 2023 from HKD 24,295,000 in 2022, marking a growth of approximately 495.5%[28] - SaaS service revenue decreased to HKD 17,796,000 in 2023 from HKD 30,070,000 in 2022, representing a decline of approximately 40.7%[27] - The revenue from the digital asset technology infrastructure business was HKD 209,980 million, an increase of HKD 138.3 million from HKD 71.5 million in the previous fiscal year[64] Expenses and Cost Management - Administrative and other operating expenses decreased by 41.0% to HKD 336.6 million[2] - The significant reduction in operational losses indicates improved efficiency and cost management strategies implemented by the company[2] - Total employee costs for the year were HKD 188.9 million, down from HKD 313.4 million in the fiscal year 2022, with a reduction in headcount from 209 to 124 employees[70] - OSL's sales expenses for the year were HKD 42.1 million, a reduction of 24.6% from HKD 55.8 million in the previous fiscal year, primarily due to a decrease in the number of employees[67] Assets and Liabilities - Total non-current assets amounted to HKD 263,298,000 as of December 31, 2023, compared to HKD 77,559,000 in the previous year, reflecting a significant increase[10] - Current assets totaled HKD 2,251,001,000, up from HKD 1,363,227,000, indicating a growth of approximately 65% year-over-year[10] - Total liabilities reached HKD 1,855,000,000, a decrease from HKD 1,045,696,000, showing a reduction in financial obligations[12] - The company's equity totaled HKD 395,090,000, down from HKD 659,299,000, indicating a decline in shareholder equity[14] - The company’s total assets were HKD 2,514,299,000, compared to HKD 1,440,786,000, representing an increase of approximately 75% year-over-year[10] Strategic Focus and Future Plans - The company aims to continue its focus on digital asset and blockchain technology development for future growth[3] - The company plans to sell its 90% stake in a subsidiary, Shanghai Jingwei Enterprise Development Co., Ltd., pending shareholder approval and regulatory completion[16] - The company aims to enhance its market position by expanding services to retail clients and solidifying partnerships with banks and financial institutions[52] - The company anticipates a favorable market development trend and sentiment in 2024 following the sale of its commercial park management operations[66] Regulatory and Compliance - The approval of retail trading for Bitcoin (BTC) and Ethereum (ETH) by the Hong Kong Securities and Futures Commission marks a significant regulatory shift, promoting innovation in financial services[54] - The group is committed to compliance with strict regulatory requirements, including anti-money laundering controls and regular financial audits, which may increase operational costs[89] - The group operates in multiple jurisdictions, ensuring compliance with local regulatory environments to provide digital asset solutions[77] Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[115] - The Audit Committee consists of three independent non-executive directors, ensuring oversight of financial reporting, risk management, and internal controls[116] - The company emphasizes the importance of effective leadership from the Board of Directors to deliver maximum returns to shareholders[115] Risk Management - The group maintains a cautious approach to financial risk management, not engaging in any significant financial instruments for hedging purposes[80] - The group has established policies to mitigate risks associated with anonymous digital asset transactions, including customer due diligence and ongoing monitoring[93] - The group has implemented strong security measures, including advanced encryption protocols and regular vulnerability assessments, to protect sensitive data[95]

Regulatory Approvals and Market Position - The company successfully obtained regulatory approval to upgrade its digital asset trading license in Hong Kong to include the retail market, strengthening its market leadership position[15]. - OSL received approval from the Securities and Futures Commission (SFC) in August 2023 to enhance its license to provide services to retail investors, marking a significant milestone for the company[20]. - The SFC's new regulatory framework for licensed virtual asset trading platforms came into effect on June 1, 2023, further solidifying Hong Kong's position as a leading digital asset hub[20]. - The company has received regulatory approval to enhance its existing license, allowing retail investors to trade Bitcoin and Ethereum, positioning OSL as a pioneer in the regulated digital asset market in Hong Kong[37]. Financial Performance - The company's revenue for the first half of 2023 was HKD 126.4 million, an increase of HKD 98.1 million compared to HKD 28.3 million in the first half of 2022[24]. - The loss from continuing operations significantly decreased from HKD 312.1 million in the first half of 2022 to HKD 94.7 million in the first half of 2023[24]. - The company reported a loss per share of HKD 0.22 for the first half of 2023, down from HKD 0.72 in the same period of 2022[24]. - The group reported a net loss of HKD 306,563,000 for the period ending June 30, 2023, compared to a loss of HKD 304,701,000 in the same period of 2022, indicating a slight increase in losses[52]. - The total loss for the period was HKD 94,742,000, compared to a loss of HKD 312,059,000 in the previous year[82]. Operational Efficiency and Technology - The application of artificial intelligence has significantly improved operational efficiency, reducing overall operating costs by approximately 50%[13]. - The company's AI robots currently handle about 95% of customer inquiries, with only a small percentage requiring human intervention[13]. - The company continues to prioritize artificial intelligence solutions to enhance operational efficiency and user experience, aiming to optimize operations through its proprietary AI trading bots[39]. - The company is focusing on expanding its digital asset services and enhancing its blockchain platform capabilities[81]. Strategic Partnerships and Collaborations - The company is focusing on strategic partnerships to accelerate revenue growth while maintaining stable costs in the coming years[14]. - The company has highlighted its ongoing collaboration with Zodia Markets and Standard Chartered Bank as a testament to its strength in the market[15]. - The company established strategic partnerships with various firms, including a collaboration with Yu Cheng Financial to create a comprehensive digital asset financial services ecosystem[22]. - OSL's strategic collaborations aim to enhance compliance and operational efficiency in the digital asset space, contributing to the overall growth of the industry[21]. Revenue Streams and Business Segments - The revenue from the digital asset and blockchain platform business reached HKD 105,217,000 for the six months ended June 30, 2023, a significant increase from HKD 5,637,000 in the same period of 2022[27]. - Revenue from digital asset trading was HKD 71,631,000, a substantial rise from a loss of HKD 10,524,000 in the previous year[91]. - The revenue from commercial park management services was HKD 21,174,000, slightly down by 6.6% from HKD 22,661,000 in the same period of 2022[27]. - The adjusted non-IFRS revenue for the digital asset and blockchain platform business was HKD 67,142,000, compared to HKD 104,902,000 in the first half of 2022, reflecting a decrease of 36.3%[28]. Asset and Liability Management - As of June 30, 2023, the total assets of the group were HKD 2.173 billion, down from HKD 2.514 billion as of December 31, 2022, representing a decrease of approximately 13.6%[42]. - The total liabilities decreased to HKD 1.615 billion from HKD 1.855 billion, a reduction of about 12.9%[42]. - The total equity as of June 30, 2023, was HKD 557.5 million, down from HKD 659.3 million, indicating a decline of approximately 15.4%[42]. - The cash balance, after deducting customer cash liabilities, was HKD 263.2 million, a decrease from HKD 426.9 million, representing a decline of about 38.3%[42]. Employee and Operational Costs - Total employee costs for the period amounted to HKD 95.4 million, down from HKD 180.7 million in the same period last year, with a total of 119 employees as of June 30, 2023, compared to 260 employees a year earlier[34]. - Administrative and other operating expenses significantly decreased to HKD 169,900,000 from HKD 336,500,000 in the first half of 2022, attributed to reduced technology-related expenditures[32]. - Sales expenses increased to HKD 24,500,000, up from HKD 21,800,000 in the first half of 2022, mainly due to increased referral expenses[31]. Stock Options and Incentives - The company has multiple batches of stock options with varying percentages and exercise periods, indicating a structured approach to employee incentives[141]. - The stock options plan reflects the company's strategy to align employee interests with long-term performance[141]. - The total number of stock options granted includes 1,675,000 that were exercised, with 875,000 remaining after expirations[163]. - The company has a stock option plan that allows for the exercise of options in four tranches, with the first tranche available from August 22, 2022, to August 22, 2027[164]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the financial reporting procedures and internal control systems[173]. - The company confirmed compliance with the corporate governance code throughout the six-month period ending June 30, 2023[172]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with listing rules[171].

[8 -> 10] This meeting is being recorded. [437 -> 463] blockchain technology and accelerate the adoption of Web3 initiatives in various industries. And the government also allocated 50 million Hong Kong dollars to develop this sector. We at B6 Technology and OSL fully acknowledge the increased scrutiny that the crypto currency market is facing both locally and worldwide. And these events underscore the need for vigilant and proactive regulatory approaches and serve as a reminder that we operate in a highly ...

Financial Performance - The revenue from digital assets and blockchain platform business reached HKD 152 million, a significant increase of HKD 99.6 million compared to HKD 5.6 million in the same period last year, representing a growth of approximately 1,776%[2] - The loss from continuing operations narrowed significantly to HKD 94.7 million, compared to a loss of HKD 312.1 million in the same period last year, reflecting a decrease of approximately 70%[2] - The total comprehensive loss for the period amounted to HKD 98.2 million, compared to HKD 314.0 million in the previous year, indicating a reduction of about 69.7%[7] - Basic and diluted loss per share from continuing operations was HKD 0.22, compared to HKD 0.72 in the same period last year, showing an improvement of approximately 69%[10] - The company reported a financial income of HKD 2.5 million, an increase from HKD 0.7 million in the previous year, representing a growth of approximately 253%[4] - The company incurred a financial cost of HKD 7.3 million, down from HKD 11.3 million in the previous year, reflecting a decrease of about 35%[4] - The company reported a net loss of HKD 315,489,000 for the six months ended June 30, 2023, compared to a loss of HKD 312,059,000 for the same period in 2022[31] - The company reported a loss attributable to owners from continuing and discontinued operations of HKD 94,952 thousand for the six months ended June 30, 2023, compared to HKD 306,563 thousand for the same period in 2022, indicating a significant reduction in losses[39] Operational Efficiency - Administrative and other operating expenses decreased to HKD 169.9 million, down HKD 163.6 million from HKD 333.5 million in the same period last year, a reduction of about 49%[2] - The company aims to improve operational efficiency and reduce costs further in the upcoming quarters to enhance profitability[3] - The total employee count as of June 30, 2023, is 119, down from 260 on June 30, 2022, reflecting a significant reduction in workforce[73] - Total employee costs for the period amounted to HKD 95.4 million, a decrease from HKD 180.7 million in the same period last year[73] Asset and Liability Management - Non-current assets decreased from HKD 263,298,000 to HKD 214,183,000, a decline of approximately 18.7%[13] - Current assets increased from HKD 2,251,001,000 to HKD 1,958,827,000, a decrease of about 12.9%[13] - Total liabilities decreased from HKD 1,855,000,000 to HKD 1,615,511,000, representing a reduction of approximately 12.9%[16] - Total equity decreased from HKD 659,299,000 to HKD 557,499,000, a decline of about 15.5%[17] - Cash and cash equivalents decreased significantly from HKD 1,009,157,000 to HKD 470,936,000, a drop of approximately 53.3%[13] - The company’s total liabilities amounted to HKD 1,855,000,000 as of December 31, 2022[31] - The company’s total assets were valued at HKD 2,477,127,000 as of December 31, 2022[31] Digital Asset Growth - The overall financial performance indicates a positive trend towards recovery and growth in the digital asset sector[3] - The company’s digital assets held in its own wallets amounted to HKD 1,192,712 thousand as of June 30, 2023, up from HKD 1,025,730 thousand as of December 31, 2022, showing growth in digital asset holdings[42] - The total digital assets, including those held by trading institutions, reached HKD 1,228,726 thousand as of June 30, 2023, compared to HKD 1,061,343 thousand at the end of 2022, indicating an increase in overall digital asset value[42] - The fair value of digital assets held by OSL Digital Securities Limited, a wholly-owned subsidiary, was approximately HKD 590,740 thousand as of June 30, 2023, significantly increasing from HKD 251,365 thousand at the end of 2022, indicating strong asset management[43] - The company held digital assets valued at approximately HKD 590,740,000 as of June 30, 2023, a significant increase from HKD 251,365,000 on December 31, 2022, representing a growth of approximately 134%[52] Strategic Initiatives - The company has plans for market expansion and new product development, focusing on enhancing its digital asset offerings and blockchain technology[3] - OSL has complied with new regulatory requirements effective June 1, 2023, and received approval in August to enhance its license to provide services to retail investors[56] - OSL became the first digital asset platform to receive an upgraded license, marking a significant milestone in expanding digital asset accessibility to a broader audience[56] - OSL launched an AI trading robot on April 14, 2023, aimed at enhancing user experience through automation of trading services[58] - The company announced the launch of a new product, "Finlink," aimed at helping financial institutions integrate digital asset services more easily, which is expected to attract new customers and generate additional revenue[81] Revenue Sources - The company generated HKD 105,217,000 in total revenue for the six months ended June 30, 2023, compared to HKD 5,637,000 for the same period in 2022[34] - Revenue from digital asset trading amounted to HKD 71,631,000 for the six months ended June 30, 2023, compared to a loss of HKD 10,524,000 in the same period of 2022[34] - The revenue from commercial park management services was HKD 21,174,000, slightly down by 6.6% from HKD 22,661,000 in the first half of 2022[68] - The main reason for the revenue increase was the digital asset revenue of HKD 28.5 million, compared to a loss of HKD 92.2 million in the first half of 2022[61] Compliance and Governance - The financial statements are prepared in accordance with International Financial Reporting Standards[20] - The group has adopted new accounting standards effective from January 1, 2023, with no significant impact expected on current or future periods[22] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal control systems[93] - The board has reviewed and acknowledged adherence to corporate governance rules throughout the six-month period ending June 30, 2023[92]

Financial Performance - The company's IFRS revenue for the year was HKD 115.84 million, a decrease of 64.3% from HKD 324.34 million in the previous fiscal year[20]. - The loss from continuing operations increased from HKD 360.6 million in the previous fiscal year to HKD 550.1 million this year[20]. - The adjusted non-IFRS revenue for the year was HKD 227.56 million, slightly down from HKD 235.09 million in the previous fiscal year[24]. - Revenue from the digital asset and blockchain platform business was HKD 71.48 million, down 74.3% from HKD 277.68 million in the previous fiscal year[23]. - The group reported a total cash amount of HKD 426.9 million as of December 31, 2022, down from HKD 519.8 million in 2021, primarily due to a significant drop in cryptocurrency market value[37]. - The proprietary digital asset balance decreased from HKD 7.210 billion as of December 31, 2021, to HKD 1.583 billion as of December 31, 2022, highlighting the impact of market volatility[37]. - The group reported a total revenue of 21,730,000 for the year, with a significant increase compared to previous periods[152]. - The earnings per share (EPS) for the year was 14.39, reflecting a growth from 8.88 in the previous year[153]. Trading Volume and Market Position - OSL's trading volume increased by 49% year-on-year in 2022, despite a significant overall market decline[12]. - OSL digital asset platform's trading volume increased by 48.9% year-on-year due to a growing customer base and focus on providing a secure platform for institutional and private investors[18]. - The total trading volume for the OSL digital asset platform increased by 48.9% to HKD 455.9 billion from HKD 306.1 billion in the previous fiscal year[27]. - The trading volume for OTC and iRFQ combined increased by 59.0% to HKD 375.5 billion from HKD 236.2 billion in the previous fiscal year[27]. Cost Management and Restructuring - The company achieved a nearly 40% reduction in overall costs through a comprehensive restructuring and major technology upgrades[12]. - The company is reducing its advertising business in Shanghai to reallocate resources and funds towards the development and innovation of its digital asset business[19]. - Total employee costs before capitalization were HKD 314.4 million in FY2022, down from HKD 354.6 million in FY2021, mainly due to reduced share-based payment expenses[34]. - Administrative and other operating expenses increased by 8.2% to HKD 574 million in FY2022, primarily due to investments in digital asset business infrastructure[32]. Technology and Innovation - The focus has shifted entirely towards technology and artificial intelligence within the digital asset sector[11]. - The company aims to leverage advancements in artificial intelligence and modern technology as a key to success in the tech-driven industry[12]. - The company is implementing artificial intelligence tools to automate business processes, resulting in double-digit percentage productivity growth in some operational functions[15]. - The company recognizes the importance of large language models and generative pre-trained transformers in the tech landscape[11]. Regulatory Environment and Compliance - The regulatory environment has created a fair competitive landscape, benefiting licensed companies like BC Technology Group[12]. - The company emphasizes the importance of security and compliance in the evolving digital asset landscape, positioning itself as a reliable choice for financial institutions[19]. - The group’s digital asset trading business is subject to strict regulatory compliance in jurisdictions such as Hong Kong and Singapore, including anti-money laundering requirements[49]. - The group has implemented anti-money laundering policies and procedures during customer onboarding, including ongoing monitoring and reporting[54]. Strategic Growth and Market Expansion - The company is positioned to capitalize on the rapid growth of decentralized finance (DeFi) in the current regulatory environment[12]. - The group plans to leverage the recent regulatory changes in Hong Kong to expand its digital asset platform and capture new market opportunities, particularly with retail investors[36]. - The company is focusing on business expansion plans, having already established a licensed digital asset platform recognized by institutional investors[15]. - The company is exploring opportunities for market expansion and potential acquisitions to drive growth[67][68]. Risk Management - The group maintains a cautious financial risk management approach, avoiding high-risk financial investments or speculative derivatives, with most assets and transactions denominated in RMB, HKD, and USD[42]. - The group has implemented risk management policies to address price volatility in digital assets, regularly reviewing positions based on volatility, holding size, and liquidity[51]. - The company has established a comprehensive risk management framework to identify, assess, manage, and control significant risks[123]. - The internal audit function assists the board and committees in reviewing the effectiveness of the risk management and internal control systems[125]. Corporate Governance - The company has committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[73]. - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring a balance of skills and experience[82]. - The company has adopted the corporate governance code as per the Stock Exchange's listing rules, ensuring compliance throughout the year[73]. - The company emphasizes the importance of ethical conduct and compliance with applicable laws and regulations in its operations[76]. Shareholder Communication and Transparency - The company emphasizes the importance of transparency and timely disclosure of financial information to enable shareholders and investors to make informed investment decisions[111]. - The company has established a shareholder communication policy to ensure that shareholders receive comprehensive and timely information regarding financial performance and strategic goals[113]. - The board of directors is committed to maintaining effective communication with shareholders and encourages participation in annual general meetings[112]. - The company conducts regular investor meetings, including earnings briefings and conference calls, to provide updates on performance and accept questions from investors[113]. Employee and Director Compensation - The remuneration policy for directors and senior management is linked to the group's operating performance and individual contributions, approved by shareholders at the annual general meeting[139]. - The salary levels for senior management members range from HKD 500,001 to HKD 4,500,000[95]. - The company has granted stock options and reward shares to key personnel to incentivize their contributions to the long-term development of the digital asset business[190]. - The total expense recognized for share-based payments during the fiscal year was approximately HKD 13,863,000, a decrease from HKD 39,219,000 for the year ending December 31, 2021[184].

[175 -> 186] This meeting is being recorded. [207 -> 224] Good morning, everybody. Thank you for joining BC Technology Group's 2022 Annual Results Presentation. My name is William Wang. I am the head of IR at BC Technology Group and OSL. With me today are BC Group and OSL CEO and founder Hugh Madden. [224 -> 245] VC Group Executive Director and Co-Founder Dave Chapman, and VC Group CFO Devin Wu. During the presentation, Hugh, Devin, and Dave will cover a number of topics, including VC Group's 2022 financial ...