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]

财联社2月9日讯（编辑 胡家荣）今天港股迎来兔年收官站，市场并未迎来大涨，但是部分数字概念股的表现十分活跃，比如OSL集团(00863.HK)今日大涨. 截至收盘，OSL集团涨15.08%，报7.86港元。 | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | 7.880 | | | | | | | | 7.730 | | | | | | | | 7.580 | | | | | | | | 7.430 | | | | | | | | 7.280 | | | | | | | | 7.130 | | | | | | | | 6.980 | | | | | | | | 6.830 | | | | | | | | 6.680 | | | | | | | | 6.530 | | | | | | | | 6.380 | | | | | | | | 6.230 | | | | | | | | 6.080 | | | | | | | | 5. ...

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].

Financial Data and Key Metrics Changes - The company reported a revenue increase of 15% year-over-year, reaching $2.5 billion [1] - Net income rose to $300 million, reflecting a 10% increase compared to the previous quarter [1] - Gross margin improved to 40%, up from 38% in the last quarter [1] Business Line Data and Key Metrics Changes - The technology segment saw a 20% increase in revenue, driven by strong demand for cloud services [1] - The consumer products division experienced a decline of 5% in sales, attributed to supply chain disruptions [1] - The healthcare segment reported a 12% growth, benefiting from new product launches [1] Market Data and Key Metrics Changes - North American market revenue increased by 18%, while the European market grew by 10% [1] - The Asia-Pacific region showed a decline of 3% due to economic slowdowns in key markets [1] - Market share in the technology sector expanded to 25%, up from 22% last year [1] Company Strategy and Development Direction - The company plans to invest $500 million in R&D to enhance product innovation and maintain competitive advantage [1] - A focus on sustainability initiatives is being prioritized, with a goal to reduce carbon emissions by 30% over the next five years [1] - The company aims to expand its presence in emerging markets to capture new growth opportunities [1] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand post-pandemic, particularly in the technology sector [1] - Concerns were raised regarding potential inflationary pressures and their impact on margins [1] - The outlook for the next quarter remains positive, with expected revenue growth of 10% to 15% [1] Other Important Information - The company announced a share buyback program worth $200 million to enhance shareholder value [1] - A new strategic partnership was formed with a leading tech firm to co-develop innovative solutions [1] Q&A Session Summary Question: What are the expectations for the consumer products division moving forward? - Management indicated that they are working on resolving supply chain issues and expect a rebound in sales by the next quarter [1] Question: How does the company plan to address inflationary pressures? - The company is exploring cost-cutting measures and price adjustments to mitigate the impact of rising costs [1] Question: Can you elaborate on the new R&D initiatives? - The R&D initiatives will focus on developing next-generation products and enhancing existing offerings to meet customer needs [1]

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]