Revenue and Financial Performance - SaaS service revenue reached HKD 30.1 million, an increase of 197.3% from HKD 10.1 million year-on-year[2] - Automated trading service revenue was HKD 13.4 million, up 97.1% from HKD 6.8 million year-on-year[2] - The company reported a significant increase in digital asset trading revenue from HKD 10,114,000 in 2021 to HKD 30,070,000 in 2022[22][23] - The total revenue from digital asset and blockchain platform business was HKD 20,894,000, while the revenue from business park management was HKD 44,365,000[22] - The group reported a revenue of HKD 115.8 million for the year, a decrease of 64.3% compared to HKD 324.3 million for the fiscal year ending December 31, 2021[55] - The group maintained a stable adjusted revenue of HKD 227.6 million, nearly unchanged from HKD 235.1 million in the previous fiscal year despite a weak overall digital asset market[55] - The total revenue from SaaS services for the fiscal year ending December 31, 2022, was HKD 30,070,000[22] - The total digital assets held by the group decreased to 1,061,343,000 HKD in 2022 from 3,519,909,000 HKD in 2021, reflecting a significant decline of approximately 70%[36] - The group reported a total of 24,570,000 HKD in accounts receivable from digital asset and blockchain platform business after deducting loss provisions[38] Losses and Financial Position - The company reported a loss from continuing operations of HKD 550.1 million, compared to a loss of HKD 360.6 million in the previous year[5] - The net loss for the year was HKD 549.9 million, compared to a loss of HKD 369.2 million in the previous year[5] - The overall comprehensive loss for the year totaled HKD 558.1 million, compared to HKD 358.9 million in the previous year[6] - The company reported a net loss attributable to shareholders of HKD 541,179,000 for 2022, compared to a loss of HKD 367,019,000 in 2021, representing an increase in losses of 47%[33] - The company’s accumulated losses increased from HKD (1,181,291) thousand in 2021 to HKD (1,721,148) thousand in 2022, an increase of approximately 45.6%[11] - The group reported a net loss of HKD 108.3 million from digital assets used to facilitate wholesale brokerage business, compared to a net gain of HKD 100.7 million in the previous fiscal year[60] Assets and Liabilities - Total assets decreased from HKD 5,278,759 thousand in 2021 to HKD 2,514,299 thousand in 2022, a decline of approximately 52.5%[9] - Current assets decreased significantly from HKD 4,965,155 thousand in 2021 to HKD 2,251,001 thousand in 2022, representing a decrease of approximately 54.7%[10] - Total liabilities decreased from HKD 4,087,616 thousand in 2021 to HKD 1,855,000 thousand in 2022, a reduction of about 54.5%[10] - The company’s total equity increased from HKD 3,516,123,000 in 2021 to HKD 1,574,062,000 in 2022[45] - The group’s total liabilities as of December 31, 2022, were HKD 18.550 billion, down from HKD 40.876 billion in the previous year, resulting in a debt-to-asset ratio of approximately 73.8%[74] Business Operations and Strategy - The company plans to expand its market presence and invest in new technologies to enhance service offerings[3] - The company ceased operations in its traditional advertising segment, impacting its financial performance for the year[13] - The group plans to gradually reduce its advertising business in Shanghai to free up resources for development and innovation in the digital asset sector[54] - OSL has established partnerships with several companies, including DBS and PDAX, to expand its service offerings in the financial sector[53] - The group is well-prepared to capitalize on the rapidly developing digital asset market in Hong Kong and other regions, aiming for continued growth and increased market share[72] Compliance and Risk Management - The group emphasizes its commitment to compliance and regulatory best practices, enhancing its competitive advantage in the digital asset market[52] - The group has implemented guidelines and risk control procedures to mitigate risks associated with the custody of digital assets, including the use of both "hot" and "cold" wallets[87] - The group has established policies and procedures for anti-money laundering and customer due diligence, continuously monitoring and reporting to reduce related risks[88] - The group has a dedicated security team that has implemented security control measures to protect customer data stored in proprietary databases[90] - The group has implemented a business continuity and disaster recovery plan to ensure operational resilience against external and internal threats[94] Shareholder and Corporate Governance - The company did not recommend any dividend payment for the year ended December 31, 2022, consistent with 2021[29] - The board has resolved not to recommend a final dividend for the year, consistent with the previous year[99] - The company has established an audit committee to review and supervise the financial reporting process, risk management, and internal controls[108] - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[108] - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[107]

Financial Performance - The overall revenue for the group decreased by approximately 76.3% to HKD 36.3 million from HKD 152.8 million in the same period last year[30]. - The net loss for the period was HKD 315.5 million, compared to a net loss of HKD 157.9 million in the same period last year[30]. - The group's operating loss increased to HKD 293.7 million, up HKD 152.3 million from HKD 141.4 million in the first half of 2021[36]. - Total comprehensive loss for the period amounted to HKD 314,034,000, up from HKD 154,478,000 in the previous year, indicating a 103.5% increase[60]. - The company reported a basic and diluted loss per share of HKD (0.73) for the six months ended June 30, 2022, compared to HKD (0.44) in the prior year[113]. Digital Asset Performance - OSL digital asset platform's trading volume increased by 79% year-on-year, while SaaS service fees surged by 332% during the first half of 2022[24]. - The company reported a digital asset loss of approximately HKD 92.2 million and a fair value loss of HKD 7.1 million, impacting overall digital asset revenue[14]. - OSL's revenue from digital asset and blockchain platform business decreased by approximately HKD 108.3 million to HKD 5.6 million due to losses in digital asset trading and fair value losses[30]. - The revenue from digital asset and blockchain platform business for the six months ended June 30, 2022, was HKD 10,524,000, a significant decrease from HKD 101,235,000 in the same period of 2021[102]. - The company incurred a loss of HKD 270,199,000 in the digital asset segment for the six months ended June 30, 2022[90]. SaaS Business Growth - OSL's SaaS product revenue grew over three times compared to the same period last year, reaching HKD 15.2 million[31]. - SaaS service fees increased significantly to HKD 15,161,000 in 2022 from HKD 3,511,000 in 2021, representing a growth of approximately 331%[95]. - The SaaS business continues to attract major banking clients, with improvements made to the product's market positioning[24]. Cost Management - The company reduced monthly operating costs by approximately 40% starting from the end of June 2022[24]. - The company's sales and distribution expenses decreased by 64.7% to HKD 21.8 million from HKD 61.8 million in the same period last year[30]. - The group expects a significant reduction in operating costs in the second half of 2022 following a company-wide restructuring aimed at improving business efficiency[56]. Market Position and Strategy - OSL was selected as the exclusive digital asset provider for Interactive Brokers in Hong Kong, enhancing its market presence[20]. - OSL aims to become the global leading platform for digital asset financial services by 2025 through its market business and core SaaS product platform[30]. - The overall digital asset market is expected to see increased market share for the company as regulated asset management firms enter the market[25]. Financial Position - As of June 30, 2022, total assets amounted to HKD 3,471,600,000, down from HKD 5,278,800,000 as of December 31, 2021[44]. - The total equity as of June 30, 2022, was HKD 893,200,000, compared to HKD 1,191,100,000 at the end of 2021[44]. - The company's accumulated losses increased to HKD 1,487,854,000 from HKD 1,181,291,000, reflecting a 25.9% increase[63]. Shareholder Information - The company did not recommend any interim dividend for ordinary shareholders for the period, consistent with the previous year[54]. - The number of issued and fully paid ordinary shares remained at 423,247,484 as of June 30, 2022, unchanged from the previous year[137]. - East Harvest Global Limited holds 187,536,194 shares, representing 44.31% of the company's issued share capital[169]. Regulatory and Compliance - The company’s financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency in reporting[68]. - The audit committee has been established in accordance with Listing Rule 3.21, consisting of three independent non-executive directors[186]. - The board has reviewed the corporate governance practices and confirmed compliance with the relevant provisions of the Corporate Governance Code[185].

Financial Performance - In 2021, the total revenue from OSL digital asset business reached HKD 255 million, representing a year-on-year growth of 63%[11] - The overall group revenue for 2021 was HKD 352 million, showing a year-on-year increase of 44%[11] - The brokerage revenue for 2021 was HKD 255 million, with a year-on-year growth of 58%[11] - SaaS service fees increased significantly by 104% in 2021, amounting to HKD 10 million[11] - Total transaction volume reached HKD 306 billion, representing a year-on-year growth of 73%[12] - Active customers increased to 135,000, with a year-on-year growth of 8%[12] - The platform's assets grew to HKD 4 billion, reflecting a year-on-year increase of 44%[12] - OSL's global product offerings significantly expanded, with over 90 new employees hired across key regions including Hong Kong, Singapore, and the Americas[14] - OSL digital asset platform's revenue and earnings grew by 63% year-on-year to HKD 278 million, with overall platform trading volume increasing by 73% to HKD 306 billion[17] - The total revenue for the fiscal year ended December 31, 2021, was HKD 352 million, an increase of approximately 44.4% from HKD 243.7 million in the previous fiscal year[27] - Revenue from the OSL digital asset and blockchain platform business was HKD 277.7 million, a growth of 63.2% compared to HKD 170.2 million in the previous fiscal year[28] Investment and Financing - The company raised a total of HKD 1.24 billion through two share placements in 2021 to invest in business growth and infrastructure[9] - The company completed two rounds of equity financing totaling approximately HKD 12.4 billion to enhance operational efficiency[14] - The company raised approximately HKD 697.5 million from the January placement, with net proceeds of about HKD 658 million allocated for various business expansions and operational needs[24] - The June placement involved the issuance of 31,952,500 new shares at HKD 17.00 per share, aimed at strengthening the company's financial position[25] - The company plans to allocate approximately HKD 400 million from the raised funds for future acquisitions and general operational expenses[26] Operational Strategy and Growth - The company aims to enhance operational excellence and platform efficiency as part of its growth strategy[9] - The company is focusing on expanding its market share among tier-one financial service clients globally[10] - The company has made significant progress in product development and token listings, supported by major investment banks like Morgan Stanley and Macquarie[9] - The company is committed to international expansion and employee diversity, focusing on global growth opportunities[15] - The company plans to launch and issue security tokens in 2022, anticipating this will become a significant part of OSL's overall business[14] - The company aims to leverage its unique SaaS technology to drive growth in the digital asset market[15] Regulatory Compliance and Risk Management - OSL has established itself as a leading regulated digital asset broker, enhancing its reputation for compliance and security[14] - The company has obtained a license from the Hong Kong Securities and Futures Commission for regulated activities related to digital assets, allowing it to operate regulated trading and automated trading services since March 2021[54] - The company is in the process of applying for a license in Singapore under the Payment Services Act, having submitted a notification to the Monetary Authority of Singapore[54] - The company has implemented risk management measures for digital asset price volatility, including limiting positions based on volatility, size, and liquidity[51] - The company has established policies for anti-money laundering and customer due diligence to address risks associated with anonymous digital asset transactions[53] - The company has implemented strict internal contract review procedures to mitigate performance risks associated with its SaaS products offered to third-party clients[56] Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules and has complied with all applicable provisions during the fiscal year ending December 31, 2021[79] - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring a balance of skills and experience[81] - The board is committed to reviewing and enhancing corporate governance practices to ensure effective leadership and maximize shareholder returns[79] - The company has established four committees under the board: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee, with a majority of independent non-executive directors in each[87] - The company emphasizes the importance of ethical standards and compliance with applicable laws and regulations in its business operations[78] Shareholder Information - The company’s distributable reserves as of December 31, 2021, were approximately HKD 1.6 billion, a significant increase from HKD 401 million in 2020[119] - The company did not recommend any dividend payment for the year ended December 31, 2021, consistent with the previous year[123] - The company’s financial performance and future expansion plans are key considerations in its dividend declaration[112] - The company’s board is committed to listening to shareholder opinions and encourages participation in meetings[104] - Shareholders can submit inquiries to the board via email or phone, ensuring open communication[111] Digital Asset Operations - The group’s digital asset and blockchain platform business includes over-the-counter trading and automated trading services through its proprietary platform[185] - The digital asset market is characterized by rapid developments, regulatory changes, and volatility, posing unique risks to the group’s operations[184] - The company grants credit terms of 1 to 3 days for most counterparties, while white label customers generally receive 30 days[190] - The company has a significant volume of daily transactions primarily in over-the-counter trading and BC platform arbitrage opportunities[187] - The company’s revenue from digital assets and blockchain platform operations primarily in Hong Kong and Singapore was a key focus area during the year[199]

Revenue Growth - Overall revenue increased by 54% year-on-year, driven by strong performance from the OSL digital asset platform, with total revenue from the platform growing by 70%[19] - SaaS transaction volume surged by 3,029% to HKD 4.9 billion, while SaaS revenue increased by 32% year-on-year[19] - The number of active customers grew over tenfold year-on-year, with revenue from strategic customers increasing by over 300%[19] - The total revenue for the period was HKD 152.8 million, an increase of approximately 54.2% or HKD 53.7 million compared to HKD 99.1 million in the same period last year[28] - The overall revenue for the first half of 2021 was HKD 150 million, representing a 54.2% increase compared to HKD 99.1 million in the same period of 2020[38] - Revenue from the OSL digital asset and blockchain platform business was HKD 114 million, a 69.5% increase from HKD 67.3 million in the same period last year[29] - OSL's revenue from wholesale brokerage business increased by 65.0% year-on-year to HKD 105.3 million in the first half of 2021, compared to HKD 63.8 million in the same period last year[40] - Digital asset trading revenue reached HKD 104,340,000, a 67% increase from HKD 62,435,000 in the previous year[114] Financial Performance - The operating loss for the period was HKD 141.4 million, an increase of 74.3% or HKD 60.3 million from a net operating loss of HKD 81.1 million in the same period last year[28] - The net loss for the period was HKD 157.9 million, an increase of HKD 58.3 million from HKD 99.6 million in the same period last year[33] - The company reported a cumulative loss of HKD (963,715) thousand, compared to a loss of HKD (806,066) thousand in the previous year, reflecting a worsening of approximately 19%[51] - The company reported a total comprehensive loss of HKD 158,099 thousand for the period, compared to a loss of HKD 102,675 thousand in the previous year, representing an increase in losses of 54%[52] - The company reported a loss attributable to owners of HKD 158,099,000 for the six months ended June 30, 2021, compared to a loss of HKD 102,019,000 for the same period in 2020, representing a 55.2% increase in losses[129] Asset and Liability Management - The total assets of the platform reached HKD 38 billion, reflecting a 36% increase from HKD 28 billion as of December 31, 2020[15] - As of June 30, 2021, the total assets of the group amounted to HKD 5.49 billion, an increase from HKD 4.04 billion as of December 31, 2020, while total liabilities rose to HKD 4.16 billion from HKD 3.87 billion[34] - The total liabilities increased to HKD 4,164,171 thousand from HKD 3,879,391 thousand, indicating a growth of approximately 7%[51] - The company's equity attributable to owners increased to HKD 4,193 thousand, up from HKD 3,366 thousand, showing a growth of approximately 25%[51] - The group’s total borrowings as of June 30, 2021, were HKD 265,573,000, down from HKD 566,317,000 as of December 31, 2020[160] Investment and Strategic Initiatives - The company successfully completed two share placements totaling HKD 1.24 billion, indicating strong interest from institutional investors[19] - The company made a strategic investment in AllInfra, a blockchain company providing climate-related products and services[19] - The company is investing significantly in technology and talent to expand OSL's scale and commercialize partnerships with major banks[21] - The company plans to allocate approximately HKD 225 million for maintaining sufficient liquidity to meet regulatory requirements and expand its prime brokerage business[23] - The company is exploring future market expansions in the UK, Singapore, and the US[24] Regulatory and Compliance - A new regulatory framework for digital assets is expected to come into effect in 2022, which may increase enforcement against unregulated platforms, benefiting OSL as a licensed participant[21] - OSL is positioned as one of the most compliant digital asset platforms globally, ready to serve institutional clients[22] - The company believes that global acceptance of digital assets will drive continuous growth, supported by increasing regulatory clarity[22] Operational Efficiency - The company emphasizes the importance of environmental, social, and governance (ESG) strategies and aims to integrate sustainability into its culture[22] - The group maintains a cautious approach to financial risk management and does not engage in high-risk principal financial investments[35] - The group plans to enhance its capabilities in technology, security, risk, and compliance to meet emerging regulatory standards and operational requirements of partners[45] Shareholder and Equity Information - The company did not recommend an interim dividend for the six months ended June 30, 2021[33] - The company has established policies to ensure sales to reputable and creditworthy customers, which include monitoring procedures for overdue receivables[140] - The total number of issued and fully paid shares increased to 419,282,096 from 336,621,033 at the beginning of the period, representing a growth of approximately 24.5%[162] - The company issued 79,113,360 new shares during the period, raising a total of HKD 657,549,000 in share premium at a subscription price of HKD 15.50 per share[162] Digital Asset Focus - The company is focusing on expanding its digital asset and blockchain services as a key growth strategy moving forward[98] - The company holds digital assets primarily for facilitating over-the-counter trading and providing automated trading services through its proprietary platform[94] - The digital assets and blockchain platform business focuses on facilitating trading and providing technology solutions as SaaS[97]

Financial Performance - Total revenue for the year 2020 increased by 32% year-on-year, reaching RMB 217 million[9]. - The total revenue for the year ended December 31, 2020, was RMB 216.5 million, an increase of approximately 31.5% compared to RMB 164.7 million for the year ended December 31, 2019[31]. - OSL revenue accounted for 70% of total group revenue in 2020, up from 44% in 2019[9][17]. - The revenue from the digital asset and blockchain platform business, OSL, was RMB 151.1 million, representing a growth of 111.0% from RMB 71.6 million in the previous fiscal year[32]. - The advertising business revenue decreased by RMB 31.2 million or 53.9% to RMB 26.7 million due to macroeconomic slowdown and the impact of COVID-19[33]. - The group’s advertising business revenue decreased by 53.9% to RMB 26.7 million, while commercial park management services revenue increased by 10.0% to RMB 38.7 million[39]. - The company reported a net loss of RMB 258,910,196 for the year ended December 31, 2020, compared to a loss of RMB 245,122,309 in 2019[196]. - The net loss increased to RMB 258.9 million from RMB 245.1 million in the previous fiscal year, an increase of RMB 13.8 million or 5.6%[36]. - The operating loss for the year was RMB 224.4 million, an increase of RMB 17.8 million or 8.6% compared to the previous year's operating loss of RMB 206.6 million[31]. - The company recorded a loss per share of RMB 0.79, compared to RMB 0.92 in the previous fiscal year[31]. Customer and Market Growth - Active customer count grew by 130% year-on-year[9]. - Institutional client trading volume represented 93% of total trading volume[13]. - The group achieved 93% of its platform trading volume driven by institutional clients in 2020, with expectations for this percentage to increase in the coming months and years[18]. - Digital asset platform trading volume surged by 487% year-on-year, reaching RMB 2.6 billion[13]. - OSL's total assets grew by 487.1% year-on-year to RMB 2.6 billion, with active customers increasing by 130% and total transaction volume rising by 228% to RMB 149.4 billion[41]. Strategic Initiatives and Partnerships - The company has established a partnership with DBS Bank to expand its SaaS product offerings[17]. - The company received licenses for regulated activities from the Hong Kong Securities and Futures Commission, marking a significant milestone[17]. - The group aims to expand its SaaS solutions for large financial institutions and increase platform assets in 2021[21]. - The group has established strategic partnerships with blockchain carbon market companies and completed two ESG-related investments during the year[19]. - The company plans to invest heavily in human resources, innovation, and new technology products, including mobile applications, in 2021[21]. Financial Position and Capital Management - The group raised HKD 658 million in January 2021 through a placement of shares, attracting significant blue-chip international financial investors[19]. - The total net proceeds from the issuance of 43,100,000 shares in January amounted to approximately HKD 280.15 million, with a net amount of HKD 280 million utilized by December 31, 2020[26]. - The company plans to use approximately HKD 210 million of the net proceeds for general operating funds and financial reserves, with HKD 70 million allocated for loan repayment[28]. - Monthly recurring expenses for the company are approximately HKD 17 million[28]. - The company has utilized HKD 195.7 million for monthly expenses and HKD 14.3 million for other expenditures by December 31, 2020[29]. - The total debt amounted to RMB 477.9 million, up from RMB 338.2 million in 2019, with interest rates ranging from 3% to 8%[58]. - The total asset-liability ratio decreased to approximately 96.0% from 105.8% in 2019[58]. Regulatory Compliance and Risk Management - The company has established anti-money laundering policies and procedures to monitor and verify customer identities during account opening[48]. - The company has implemented guidelines and risk control procedures for the custody of digital assets, including the use of both hot and cold wallets[47]. - The company is investing in building a strong legal, risk, and compliance team to manage regulatory compliance and operational risks associated with its licensed digital asset business[45]. - The company has implemented a transparent compliance system since 2018, focusing on anti-money laundering policies for digital asset operations[120]. - The company has established a risk committee to manage credit risks associated with digital asset trading, setting and monitoring pre-financing limits, trading limits, and collateral requirements[52]. Corporate Governance - The company emphasizes the importance of corporate governance in ensuring effective leadership, transparency, accountability, and ethical business practices[69]. - The management team includes experienced professionals with over 15 years in finance and technology, such as CFO Steve Zhang and CEO Wayne Trench, who have held senior positions in major financial institutions[68]. - The board of directors includes independent non-executive directors with extensive experience in corporate finance and legal compliance, enhancing the company's governance structure[67]. - The company has adopted the corporate governance code as per the Stock Exchange's listing rules and has complied with all applicable provisions for the year ending December 31, 2020[70]. - The board will continue to review and enhance corporate governance practices to maximize shareholder returns[70]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to achieve carbon neutrality by purchasing voluntary carbon credits using blockchain or distributed ledger technology, offsetting over 647 tons of CO2 equivalent emissions from 2018 to 2020[105]. - The Environmental, Social, and Governance (ESG) working group was established to enhance communication and engagement regarding the company's ESG capabilities and impact[105]. - The company is committed to integrating ESG considerations into its business practices to create long-term value for stakeholders[100]. - The board is responsible for the overall direction of the company's ESG strategy and ensuring the effectiveness of related policies[101]. - The company encourages shareholders to participate in annual general meetings to express their opinions and exercise their voting rights[93]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements of BC Technology Group Limited accurately reflect the group's financial position as of December 31, 2020, in accordance with International Financial Reporting Standards[169]. - The audit identified key audit matters, including the accounting treatment of digital asset transactions and the impairment assessment of trade receivables related to advertising business[173]. - The financial statements are prepared in accordance with International Financial Reporting Standards and the Hong Kong Companies Ordinance[194]. - The company’s financial performance and cash flow for the year ending December 31, 2020, were audited and found to be in compliance with the Hong Kong Companies Ordinance[169]. - The audit found sufficient evidence to support management's recorded digital asset transactions and related balances[179].

Financial Performance - Overall revenue increased by 6% year-on-year, marking the first positive adjusted EBITDA in four years[4] - Net loss decreased by 31% year-on-year to RMB 91 million, down from RMB 132 million in the first half of 2019[6] - Total revenue for the six months ended June 30, 2020, was RMB 90 million, an increase of approximately 5.9% from RMB 85 million in the same period of 2019[27] - The company's net loss for the period was RMB 90.8 million, a decrease of RMB 41 million compared to RMB 131.8 million in the same period of 2019, primarily due to significant revenue growth from digital assets and blockchain platform business[35] - The company reported a net loss of RMB 90,751,244 for the six months ended June 30, 2020, compared to a profit from continuing operations of RMB 1,235,777 in the same period of 2019[107] - The company reported a loss attributable to owners of the company from continuing operations of RMB 92,954,028 for the six months ended June 30, 2020, compared to RMB 133,292,148 for the same period in 2019, indicating a decrease in losses by approximately 30.3%[126] Digital Asset Business - OSL digital asset platform revenue grew by 47% compared to the same period last year, accounting for 68% of total revenue[5] - The digital asset platform business is expected to grow significantly due to regulatory pressures forcing other players out of the market[9] - OSL's monthly annualized trading volume reached record levels in four out of the first six months of the year, continuing growth for six consecutive quarters[6] - The group’s digital asset income increased sevenfold, becoming the main source of revenue, with a significant rise in institutional and professional investors as clients[56] - Revenue from digital asset and blockchain platform business reached RMB 56,547,360 for the six months ended June 30, 2020[107] - The digital asset and blockchain platform business now accounts for 68% of the company's total revenue and earnings[48] Cost Management and Expenses - The administrative and other operating expenses decreased by RMB 18 million to RMB 137 million compared to the same period in 2019, mainly due to strict cost control[34] - The company incurred a total employee benefit expense of RMB 91,762,690 for the six months ended June 30, 2020, down from RMB 101,305,159 in the same period of 2019, a decrease of about 9.5%[10] - The total costs related to advertising services decreased to RMB 9,589,688 for the six months ended June 30, 2020, from RMB 23,416,057 in the same period of 2019, a reduction of approximately 59%[10] Strategic Initiatives and Growth Plans - The company is focused on expanding its digital asset revenue through its exchange and SaaS products during the reporting period[8] - The company aims to diversify its digital asset revenue sources and expects revenue growth from its digital asset trading platform and SaaS products to exceed existing advertising and commercial property management services[14] - The company plans to maintain financial discipline while expanding its market share in digital asset business across multiple jurisdictions[14] - The company plans to continue its expansion in the digital asset industry, despite challenges in its other businesses due to the COVID-19 pandemic[50] - The company aims to expand its customer base in Hong Kong and other major jurisdictions in Asia, focusing on providing digital asset trading platforms and related SaaS services[64] Regulatory and Compliance - OSL received preliminary approval from the Hong Kong Securities and Futures Commission for licenses to conduct regulated activities, becoming the first company to apply under the new regulatory framework[11] - The group is actively pursuing digital asset financial service licenses in Hong Kong and Singapore to support regulatory developments[63] - The group expects to enhance its banking relationships and increase trading frequency with licensed securities firms and asset management companies[11] Shareholder and Equity Information - The company issued 43,100,000 new shares at a subscription price of HKD 6.5 per share, raising approximately RMB 387,761 in capital[155] - As of June 30, 2020, Mr. Gao Zhenshun holds a total of 191,736,194 shares, representing 58.53% of the issued share capital[182] - East Harvest Global Limited owns 187,536,194 shares, accounting for 57.25% of the issued share capital[186] Financial Position and Assets - Total assets as of June 30, 2020, were RMB 1.8652 billion, up from RMB 1.1447 billion as of December 31, 2019, while total liabilities increased to RMB 1.7259 billion from RMB 1.211 billion, resulting in a total equity of RMB 139.3 million compared to a loss of RMB 66.3 million in the previous year[37] - The company reported cash and cash equivalents of RMB 470,234,529, a substantial increase from RMB 191,852,375 at the end of 2019[73] - The total liabilities increased to RMB 1,725,906,106 as of June 30, 2020, from RMB 1,210,953,032 as of December 31, 2019, reflecting a growth of approximately 42.4%[74] Employee and Management Changes - The company appointed three senior executives to enhance performance and flexibility, including a former CEO of Saxo Bank Hong Kong[6] - The workforce was reduced to 130 employees as of June 30, 2020, down from 177 employees in the previous year, with total employee costs amounting to RMB 99.6 million[46] Advertising Business Performance - The advertising business declined by 56% due to COVID-19 policies and ongoing trade tensions, impacting major advertising clients[8] - Advertising business revenue decreased by RMB 14.8 million or 55.7% to RMB 11.8 million due to reduced client budgets amid economic challenges[30] - Advertising revenue for the six months ended June 30, 2020, was RMB 11,783,668, a decrease of 55.7% compared to RMB 26,603,023 for the same period in 2019[112] Acquisitions and Investments - The group acquired core intellectual property assets from Enuma Technologies and hired its CEO Antoine Cote, enhancing its engineering capabilities in blockchain technology[12] - The acquisition of Enuma Technologies includes a SaaS-based digital asset portfolio management system, which will broaden the product offerings available to regulated asset management firms[12] Risk Management - The company maintains a cautious approach to financial risk management and has not used any significant financial instruments for hedging purposes during the period[39] - The company has established policies to ensure sales to reputable customers with appropriate financial and credit records, enhancing credit risk management[136]

Revenue Growth - Overall revenue and digital asset and blockchain platform business income increased by 13.6% year-on-year[20] - OSL, the fastest-growing segment, saw revenue growth of 736.9% year-on-year, accounting for 43.5% of total revenue in 2019[20] - The digital asset brokerage business generated revenue of RMB 66.9 million, while SaaS products contributed RMB 2.3 million in revenue[23] - Revenue from the digital asset and blockchain platform business reached RMB 71.6 million, a significant increase of 736.9% from RMB 8.6 million in the previous fiscal year[36] - The revenue from optimized digital asset trading was RMB 66.9 million, with RMB 1.5 million generated from clients using the proprietary technology on the automated trading platform[36] - The total revenue for the year ended December 31, 2019, was RMB 164.7 million, an increase of approximately 13.6% or RMB 19.7 million compared to RMB 145 million for the year ended December 31, 2018[35] - The group reported revenue from digital asset transactions of RMB 66,912,210 for the year ended December 31, 2019, compared to RMB 8,560,749 in 2018, representing a year-over-year increase of approximately 680%[189] - Revenue from licensing transactions and technical solutions amounting to RMB 2,261,879 for the year ended December 31, 2019, with no revenue recorded in 2018[189] Customer and Trading Volume Growth - Active customers on the OSL digital asset platform grew by 253.6% year-on-year, with total trading volume increasing by 653.8% to RMB 48.3 billion[20] - The total digital asset trading volume for the year reached RMB 48.3 billion, representing a year-on-year growth of 653.8%[45] - The trading volume of digital assets in Japan grew by 450% within 12 months of implementing a licensing framework, compared to a global growth of only 18%[25] Financial Performance and Losses - The operating loss for the year was RMB 206.6 million, an increase of RMB 78.3 million or 61.0% from the net operating loss of RMB 128.3 million in the previous fiscal year[35] - The net loss increased from RMB 160.7 million in 2018 to RMB 245.1 million in 2019, representing an increase of RMB 84.4 million or 52.5%[35] - The group incurred a loss of RMB 245,122,309 for the year ended December 31, 2019, compared to a loss of RMB 160,696,958 in 2018, reflecting an increase in losses of approximately 53%[191] - The total comprehensive loss for the year amounted to RMB 249,532,691, compared to RMB 162,936,577 in 2018, indicating a significant increase in overall losses[200] Operational Expenses - Administrative and other operating expenses increased to RMB 277.3 million, primarily due to costs associated with establishing the digital asset and blockchain platform business[39] - The total employee cost for the year was RMB 167.2 million, an increase from RMB 85.8 million in the previous fiscal year, primarily due to a full year's expenses compared to only five months recorded in the previous year[41] - Administrative and other operating expenses surged to RMB 277,267,367, up from RMB 168,711,319 in 2018, indicating increased operational costs[200] Strategic Initiatives and Future Outlook - The company anticipates stable capital expenditure and revenue for its China business in 2020, despite challenges posed by the COVID-19 pandemic[24] - The strategic vision is to drive the next generation of capital markets in Asia through digital assets, enhancing performance, security, and compliance standards[20] - The digital asset business is expected to continue its rapid growth, attracting more institutional investors, with a focus on maintaining a leading position in regulatory compliance[26] - The company plans to continue investing in the OSL digital asset platform and increase resources for sales and marketing to accelerate customer acquisition and revenue growth[59] Corporate Governance - The company emphasizes the importance of good corporate governance as a framework for effective management and successful business growth[76] - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring a diverse skill set and experience relevant to the company's business[82] - The company has established a governance framework to ensure transparency and accountability in its operations[76] - The board is committed to providing effective and responsible leadership, acting in the best interests of the company and its shareholders[83] Risk Management and Compliance - The company has established anti-money laundering policies and procedures to mitigate risks associated with anonymous transactions in digital assets[52] - The company conducts strict review processes for new products and business activities to assess operational, legal, regulatory, market, credit, and liquidity risks[55] - The company manages credit risk associated with digital asset trading by setting and monitoring pre-financing limits, trading limits, and collateral requirements[56] - The company has implemented business continuity and disaster recovery plans to ensure operations can continue during crises or disruptions[57] Environmental and Social Responsibility - The group plans to announce its carbon neutrality strategy in the first half of 2020, emphasizing a commitment to environmental, social, and governance (ESG) initiatives[26] - The company has complied with all environmental laws and regulations in its operational areas during the reporting year[116] - The group maintained a safe working environment with no work-related fatalities reported during the year[133] - The group has a zero-tolerance policy towards child labor and forced labor, with no violations reported[135] Shareholder Engagement and Communication - The board encourages shareholder engagement through annual general meetings, allowing direct communication and voting on significant matters[108] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[109] - The company emphasizes the importance of stakeholder feedback for sustainable development, maintaining effective communication through various channels[114]

Financial Performance - In the first half of 2019, BC Technology Group recorded a revenue growth of 29.1% or RMB 19.2 million compared to the same period in 2018[28]. - The company recorded total revenue of RMB 85 million for the six months ended June 30, 2019, an increase of approximately 29.1% or RMB 19.2 million compared to RMB 65.8 million for the same period in 2018[39]. - The digital asset and blockchain platform business generated revenue of RMB 41.6 million during the period, compared to zero revenue in the same period of 2018[40]. - The company reported a revenue of RMB 41,623,739 from digital asset business, surpassing its advertising and commercial management services revenue[53]. - The group experienced a net loss of RMB 131,756,582 for the six months ended June 30, 2019, compared to a loss of RMB 14,065,064 in the same period of 2018, indicating a significant increase in losses[54]. - The net loss for the period was RMB 131.8 million, an increase of RMB 121.7 million compared to a net loss of RMB 14.1 million in the same period of 2018[44]. - Basic and diluted loss per share from continuing operations was RMB (0.52), compared to RMB (0.06) in the previous year, reflecting a substantial decline in performance[56]. Revenue Breakdown - Revenue from advertising and commercial park management services was RMB 43.4 million, a decrease of 34.1% compared to the same period in 2018, primarily due to the slowdown in the automotive industry and reduced advertising budgets[28]. - Revenue from the advertising business was RMB 26.6 million, a decrease of RMB 20 million or 43.0% compared to the same period in 2018[41]. - Revenue from commercial park management services was RMB 16.8 million, down 12.5% year-on-year due to a decrease in occupancy rates[49]. - Digital asset trading revenue reached RMB 39.5 million during the period, compared to zero in the same period of 2018[51]. - Digital asset business revenue amounted to RMB 41,623,739, with RMB 40,262,961 generated from digital asset trading and RMB 2,053,233 from providing digital asset software as a service[115]. Expenses and Losses - The operating loss for the period was RMB 112.6 million, an increase of RMB 106.5 million compared to an operating loss of RMB 6.1 million in the same period of 2018[39]. - Administrative and other operating expenses increased by RMB 129 million to RMB 155 million, primarily due to the expansion of the digital asset and blockchain platform business[43]. - The company incurred a loss of RMB 131,752,213 for the six months ended June 30, 2019[102]. - The company reported a loss attributable to owners of the company from continuing operations of RMB 133,292,148 for the six months ended June 30, 2019, compared to a loss of RMB 14,309,285 for the same period in 2018[126]. Assets and Liabilities - The total assets of the group as of June 30, 2019, amounted to RMB 1.337 billion, an increase from RMB 1.026 billion as of December 31, 2018[45]. - Total liabilities reached RMB 1,305,292,858, up from RMB 967,951,879, indicating an increase of around 34.8%[60]. - The company reported a total equity of RMB 28,404,503, a decrease from RMB 34,627,291, indicating a decline of about 17.9%[60]. - The total customer payables related to digital assets liabilities reached RMB 463,180,239 as of June 30, 2019, compared to RMB 180,513,792 as of December 31, 2018, reflecting a significant increase[83]. - The total liabilities measured at fair value through profit or loss increased from RMB 401,321,753 as of December 31, 2018, to RMB 708,218,093 as of June 30, 2019[83]. Share Issuance and Financing - The company completed a share placement of HKD 114 million to strengthen its balance sheet and continue building its market-leading brands OSL and ANXONE in Asia[27]. - The company issued 22,091,860 shares, raising a net amount of approximately RMB 10.4 million to cover regular monthly expenses of approximately RMB 20 million[36]. - The group is actively seeking to enhance its operational capital base through debt and equity financing to support growth initiatives[52]. - The total number of ordinary shares issued increased to 283,699,413, with a total capital raised of HKD 114,381,800 (approximately RMB 100,560,733) from the issuance of 22,091,860 shares[175]. Business Strategy and Future Outlook - BC Technology Group aims to focus on increasing revenue and engaging with regulatory bodies to achieve long-term growth in the digital asset platform business[27]. - The company plans to continue expanding its digital asset platform business in the second half of 2019 while maintaining cost efficiency and revenue growth[32]. - The group aims to improve performance in the second half of 2019 by seeking new clients and expanding its industry scope[49]. - The group is optimistic about the future of its digital asset business, anticipating increased revenue and collaboration with regulatory bodies[51]. - The company plans to expand its digital asset trading platform and related SaaS products, focusing on diversifying revenue streams and increasing its customer base in Hong Kong and other major jurisdictions in Asia[52]. Employee and Operational Costs - The total employee cost for the group was RMB 10.13 million, up from RMB 7.7 million in the same period of 2018, reflecting an increase in workforce[47]. - The company incurred administrative and other operating expenses of RMB 101,305,159, a notable increase from RMB 7,704,248 in the previous period, primarily due to increased employee benefits[118]. Regulatory and Compliance - The group has seen increasing institutional interest in its services, positioning itself as one of the few market participants capable of complying with emerging regulations[52]. - The company has established policies to ensure sales to reputable customers with appropriate financial and credit records[138]. - The company has monitoring procedures in place to follow up on overdue debts[138]. Shareholder Information - The total number of ordinary shares held by executive director Gao Zhenshun is 187,536,194, representing 66.46% of the issued share capital[199]. - The company’s shareholding structure indicates a concentration of ownership among a few key executives[199]. - The company has implemented a share option scheme for its directors, which is reflected in the shareholdings[200].

Financial Performance - In 2018, Branding China Group Limited improved financial performance and profitability by offering customized and professional one-stop integrated marketing services despite macro uncertainties in Mainland China due to ongoing trade disputes with the United States[21]. - The Group recorded total revenue and income of RMB144,960,209 for the Year, representing a decrease of approximately 10.53% or RMB17,054,947 compared to FY2017[33]. - The operating loss of the Group was RMB128,263,265 for the Year, an increase of approximately 130% or RMB72,496,243 from the net operating loss of RMB55,767,022 for FY2017[32]. - The net loss of the Group increased from RMB57,223,723 for FY2017 to RMB160,696,958 for the Year[32]. - Revenue from advertising business was RMB100,431,065, a decrease of RMB23,891,373 compared to the previous year, primarily due to a slowdown in the automotive industry[35]. - Revenue from business park area management services was RMB35,968,395, compared to RMB37,692,718 in FY2017, indicating stability in this segment[35]. - The cost of revenue for the Year was RMB92,069,201, representing a decrease of approximately 35.26% or RMB50,153,615 compared to RMB142,222,816 for FY2017[34]. - The gross profit margin for advertising and business park area management services was 32.50%, up from 12.22% in FY2017, attributed to a decrease in lower-margin service income[34]. - Administrative and other operating expenses increased by RMB107,754,445 to approximately RMB168,711,319, mainly due to expenditures related to operational infrastructure and business expansion initiatives[41]. - Selling and distribution expenses decreased by RMB4,636,629 from RMB10,573,430 for FY2017 to RMB5,936,801 for the Year[40]. - Revenue from digital assets and blockchain-related technology business was RMB8,560,749, primarily generated from trading facilitation since August 2018[33]. - Significant investments made in 2018 have positioned the Group to improve operating leverage and strengthen its financial position in 2019[27]. Digital Assets and Blockchain Technology - The Group is strategically entering the digital asset and blockchain technology space by increasing investments in blockchain technology infrastructure and capabilities[22]. - Significant investments have been made across the industry in building an ecosystem for potential widespread adoption of digital assets, with billions of dollars anticipated for this purpose[20]. - The Group has assembled an experienced executive team with expertise in the digital asset industry, supported by veterans from technology, financial services, regulatory compliance, and law[22]. - The focus on tokenization of assets and the development of a token economy is a key trend being monitored by the Group[20]. - The Group's efforts in digital assets are seen as critical for future business growth in the financial services industry[20]. - The Group is well-prepared to seize opportunities in the evolving landscape of digital assets and blockchain technology[20]. - The Group successfully consolidated its technology capabilities under the ANXONE Solutions brand, offering a range of services including a white label digital asset facilitation SaaS platform and insured custody services for digital assets[23]. - The ANXONE MarketPlace was launched in early 2019 to facilitate trading in non-securities digital assets, targeting professional and institutional counterparts[26]. - The Group's Solutions and MarketPlace combine digital asset technology solutions with custody services, catering to institutional clients seeking to facilitate digital asset trading[26]. - The Group believes the digital assets industry will move towards regulation and adoption by institutions in the foreseeable future[25]. - The Group has established a world-class trading engine and market surveillance capabilities to mitigate risks associated with trading[24]. - The Group has strategically expanded into digital assets and blockchain technology, positioning itself as a service provider and facilitator in this sector[57]. - The Group has developed a proprietary digital asset wallet solution to enhance security and risk mitigation for its cold wallets[68]. - The Group's digital asset inventories are subject to price volatility, which can significantly impact performance; risk management includes controlling inventory levels based on volatility and liquidity[64]. - The Group has implemented comprehensive security controls for both "hot" and "cold" wallets to mitigate risks associated with the safekeeping of digital assets, including obtaining insurance for these wallets in 2019[68]. Corporate Governance - The Company emphasizes the importance of good corporate governance for effective management and successful business growth[102]. - The Board is responsible for formulating and reviewing the Company's corporate governance policies and practices[103]. - The Company aims to ensure timely, transparent, and complete information disclosure to safeguard investors' interests[103]. - The Company has not appointed a new Chairman since Mr. Fang Bin's resignation on May 3, 2018, and the responsibilities have been performed by other Directors[104]. - The Board comprises eight Directors, with five being executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[110]. - The Company is committed to maintaining high standards of corporate governance, ensuring timely, transparent, and complete information disclosure[105]. - The day-to-day management and operation of the Company are delegated to senior management, who must report to the Board before entering into any material transactions[117]. - The Directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2018[108]. - The Company is actively seeking a suitable candidate to assume the post of Chairman as soon as possible[106]. - The company maintains at least one-third of the Board members as independent non-executive Directors, ensuring independent judgment for shareholder interests[120]. - The Audit Committee consists of 3 independent non-executive Directors, responsible for monitoring financial reports and overseeing internal control procedures[132]. - The Risk Management Committee reviewed overall business risks and the effectiveness of the internal audit function during the year ended December 31, 2018[134]. - The company has arranged appropriate liability insurance for Directors, which is reviewed annually[128]. - The Board has established four committees: Audit, Remuneration, Nomination, and Risk Management, with a majority of independent non-executive Directors[129]. - The company ensures that at least one independent non-executive Director has appropriate professional qualifications or financial management expertise[120]. - The company provides independent professional advice to Directors at its expense to support their duties[122]. - The Remuneration Committee comprises 3 Directors, focusing on developing remuneration policies linked to the Company's operating results and individual performances[136]. - During the year ended December 31, 2018, the Remuneration Committee reviewed the overall remuneration policy and fixed the remuneration for Directors and senior management[137]. - The Nomination Committee also consists of 3 Directors and is responsible for recommending appointments or reappointments of Directors[138]. - The Nomination Committee reviews the nomination policy and considers various factors for potential new Directors, including gender, age, and professional experience[139]. - The Company has adopted a nomination policy that outlines selection criteria for assessing candidates for directorship[142]. - The Board diversity policy aims to enhance effectiveness by maintaining a balance of skills, gender, and experience among Board members[143]. - The Company recognizes the importance of Board diversity in supporting corporate strategies and enhancing governance[144]. - The current Board composition is considered diverse, although there are no female Directors[144]. - The Company will regularly review the nomination policy to ensure its effectiveness[142]. - Attendance records for Board and committee meetings during the year ended December 31, 2018, are documented[148]. Environmental, Social, and Governance (ESG) Performance - The company is committed to improving its Environmental, Social, and Governance (ESG) performance and has prepared its third ESG report in compliance with relevant guidelines[174]. - The company aims to transform into a low-carbon business model while maximizing resource efficiency[188]. - Total greenhouse gas emissions increased to 142.26 tCO2e in 2018 from 32.22 tCO2e in 2017, primarily due to different emission factors used for calculations[186]. - Direct emissions (Scope 1) rose to 58.62 tCO2e in 2018 from 22.54 tCO2e in 2017, while indirect emissions (Scope 2) increased to 51.65 tCO2e from 9.68 tCO2e[186]. - The increase in air emissions was attributed to more frequent business travels and customer visits, leading to higher vehicle usage[182]. - The total water consumption reported was 55.93 m³ in 2018[188]. - The company strategically expanded its digital assets and blockchain-related technology business, necessitating the expansion of office spaces[186]. - The Group has implemented energy-efficient measures, including using energy-efficient equipment and adjusting air conditioning settings to reduce carbon footprint[191]. - No significant hazardous waste was produced or emitted to water and land during the reporting year[193]. - The Group is committed to applying industry best practices and complying with environmental legislation to minimize waste and emissions[196]. - Employee benefits are prioritized to reward contributions, with a comprehensive human resources manual in place to ensure fair treatment[198]. - The Group complied with all relevant laws and regulations impacting its business operations during the reporting year[200].