Core Viewpoint - Daohe Global (00915) expects to incur a loss of no less than $900,000 in the first half of 2025, compared to nearly breakeven in the same period last year [1] Summary by Relevant Sections - **Financial Performance** - The company anticipates a loss of at least $900,000 for the upcoming reporting period [1] - Last year's performance was close to breakeven [1] - **Reasons for Loss** - The board attributes the expected loss primarily to the intensified challenges and uncertainties in the business environment due to the trade war, resulting in a decline in sales compared to the same period last year [1] - The trade and supply chain management services segment recorded a one-time restructuring cost of approximately $400,000 [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 1 1) 因貿易戰加劇了營商環境的挑戰性和不確定性，導致銷售額較去年同期有所 下跌；及 2) 貿易及供應鏈管理服務分部錄得一次性重組成本約400,000美元。 本公佈所載資料乃本集團僅依據未經審核的綜合管理賬目及目前所得的最新資料 而作出之初步評估而發出，且尚未經本公司核數師審閱或審核。本集團於報告期 間的實際業績，尚待有關賬目及資料落實並將根據最新資料進行調整，其可能有 別於本公佈所載資料。本公司將密切關注有關情況，並於有需要時提供進一步最 新資料。 Daohe Global Group Limited 道 和 環 球 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：915） 盈利警告 本公佈乃由Daohe Global Group Limited道和環球集團有限公司（「本公司」，連 同其附屬公司統稱「本集團」）根據香港聯合交易所有限公司證券上市規則 （「上市規則」）第13.09( ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00915 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | USD | 0.013333333333 | USD | | 40,000,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 3,000,000,000 | USD | 0.013333333333 | USD | | 40,000,000 | 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: Daohe Global Group Limited 道和環球集團有限公司 呈交日期 ...

Financial Performance - The total shipment value for the year increased by 4.5% to approximately USD 136.7 million from approximately USD 130.8 million in the previous year[9]. - Segment revenue rose by approximately 9.1% to USD 19.2 million from USD 17.6 million due to increased trade volume resulting from a change in sales mix[9]. - The Group's revenue fell by approximately 5.8%, from approximately USD 44.4 million last year to approximately USD 41.8 million[21]. - The culture and entertainment segment's revenue declined by approximately 15.6% to approximately US$22.6 million, impacted by competition from physical stores and promotional restrictions on Douyin[23][42]. - Gross profit increased by approximately 2.6% to approximately US$17.5 million, attributed to improved gross margins in the culture and entertainment business despite overall revenue decline[24][29]. - Operating expenses decreased by approximately 2.3% to approximately US$15.5 million, primarily due to savings in selling and marketing expenses[25][29]. - The profit for the year rose by approximately 34.2% to approximately US$2.7 million, reflecting improved operational efficiency[26][30]. - The online entertainment revenue dropped approximately 44.8% to approximately US$12.9 million, influenced by increased competition from claw machines and physical stores[45][47]. - Sales of goods surged approximately 182.6% to approximately US$9.7 million, driven by the launch of new self-developed blind box series[46][47]. Strategic Initiatives - The Group plans to explore new offshore markets and collaborate with Chinese suppliers with overseas production lines to alleviate tariff pressures[13]. - The Group will focus on expanding claw machine game varieties and enhancing user satisfaction to attract a broader user base[14]. - The Group aims to increase online traffic through diversified collaborations, advertising, and new media promotions[14]. - The Group will seek new growth opportunities by expanding into Southeast Asian markets due to declining demand in the domestic market[14]. - The Group plans to introduce more design teams and product personnel to create innovative and collectible product lines[14]. - The Group will explore suitable merger, acquisition, or investment opportunities to further expand its business footprint[14]. - The Group will implement lean management and process optimization to reduce costs and enhance efficiency, improving overall profitability[17]. Financial Position - As of December 31, 2024, the Group had cash and cash equivalents of approximately US$21.1 million, an increase from approximately US$20.1 million in 2023[49]. - The Group's current ratio improved to approximately 2.1, indicating better liquidity management compared to approximately 1.8 in 2023[50]. - The Group's net asset value increased to approximately $15.9 million in 2024, compared to $13.3 million in 2023[56]. - Total staff costs for the year ended December 31, 2024, were approximately $11.8 million, up from $11.0 million in 2023, with a reduction in headcount from 261 to 245 employees[58][61]. - The Group's current ratio improved to approximately 2.1 in 2024, compared to 1.8 in 2023, while the debt-to-equity ratio was zero, indicating no significant debt[54]. Governance and Compliance - Daohe Global Group Limited has adopted the Corporate Governance Code as its governance framework, ensuring compliance with applicable provisions throughout the year ended December 31, 2024[97]. - The Company emphasizes effective board management, sound internal controls, and transparency to all shareholders, aligning with the principles of the Corporate Governance Code[98]. - All directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2024[100]. - No incidents of non-compliance with the Employees Written Guidelines were noted during the year ended December 31, 2024[101]. - The Company has established a robust governance structure to enhance accountability and independence within its operations[98]. - Daohe Global Group Limited has maintained adherence to all applicable code provisions of the Corporate Governance Code, with minor deviations discussed in the report[99]. - The governance principles focus on the interests of shareholders and the overall effectiveness of the board[98]. - The Company has implemented written guidelines for securities transactions by employees likely to possess unpublished inside information[101]. Board Composition and Diversity - As of December 31, 2024, the Board consists of six Directors, including two executive Directors and four independent non-executive Directors, complying with Listing Rules 3.10 and 3.10A throughout the year[105]. - The Company has achieved gender diversity in its workforce, with a ratio of 45% male and 55% female employees, including senior management[122]. - A female independent non-executive Director, Ms. LUO Juan, was appointed on December 30, 2024, to enhance Board diversity[122]. - The Nomination Committee is responsible for reviewing and assessing the diversity of the Board annually[123]. - The Company has established a Board Diversity Policy to maintain an effective Board and enhance corporate governance standards[116]. - The Company has adopted a Director Nomination Policy to ensure an appropriate mix of skills, knowledge, experience, and diversity on the Board[124]. Risk Management and Internal Controls - The Audit Committee reviewed the adequacy and effectiveness of the Company's internal audit function and risk management system[193]. - The Audit Committee approved the risk assessment report and reviewed the 2024 Internal Audit Plan[187]. - The Company has arrangements for employees to raise concerns about improprieties in financial reporting, included in the Employee Handbook since 1 April 2012[184]. Management and Operations - The CEO, Mr. WONG Hing Lin, Dennis, managed the Group's day-to-day business operations during the year[147]. - The Executive Committee consists of all executive Directors and is responsible for day-to-day management and operation functions of the Group[177]. - The Company has five committees: Executive Committee, Audit Committee, Remuneration Committee, Nomination Committee, and ESG Committee[171]. - The Board met regularly to review and approve financial and operating performance for the year ended December 31, 2024[136]. - Attendance at Board meetings was high, with all Executive Directors attending 100% of meetings[143].

Financial Performance - Revenue decreased by approximately 5.8% from about $44.4 million in the year ended December 31, 2023, to approximately $41.8 million in the year ended December 31, 2024[3]. - Profit for the year ended December 31, 2024, was approximately $2.7 million, an increase of about 34.2% compared to approximately $2.0 million for the year ended December 31, 2023[3]. - Gross profit for the year ended December 31, 2024, was approximately $17.5 million, compared to approximately $17.1 million for the previous year[4]. - Basic and diluted earnings per share for the year ended December 31, 2024, were both $0.18, up from $0.13 in the previous year[4]. - The company reported a total comprehensive income of approximately $2.6 million for the year ended December 31, 2024, compared to approximately $2.1 million for the previous year[6]. - The group reported a net profit of $2,655,000 for the year ending December 31, 2024, compared to $1,978,000 in 2023, reflecting a growth of 34.3%[19][21]. - The pre-tax profit for 2024 was $2,655,000, compared to $1,978,000 in 2023, indicating a growth of 34.3%[35]. Revenue Breakdown - For the fiscal year ending December 31, 2024, the total revenue from external customers was $41,777,000, a decrease of 5.5% compared to $44,355,000 in 2023[23]. - The segment revenue from the cultural entertainment division was $22,550,000, which is a decrease of 15.6% from $26,728,000 in the previous year[19][21]. - Revenue from a major customer, identified as Customer A, in the trading and supply chain management services segment was $8,118,000 in 2024, up from $6,552,000 in 2023, reflecting a growth of 23.9%[25]. - Product sales increased to $18,771,000 in 2024 from $11,188,000 in 2023, representing a growth of 67.5%[27]. - Commission income rose to $10,153,000 in 2024, compared to $9,870,000 in 2023, an increase of 2.9%[27]. - Internet value-added services revenue decreased significantly to $12,853,000 in 2024 from $23,297,000 in 2023, a decline of 44.5%[27]. - The cultural entertainment segment's revenue declined by approximately 15.6% to about $22.6 million[53]. - Online entertainment revenue fell by approximately 44.8% to about $12.9 million, while merchandise sales surged by approximately 182.6% to about $9.7 million[54]. Assets and Liabilities - Total assets decreased from approximately $29.4 million in 2023 to approximately $28.0 million in 2024[8]. - Current assets increased from approximately $27.3 million in 2023 to approximately $28.6 million in 2024[8]. - Total liabilities decreased from approximately $15.2 million in 2023 to approximately $13.6 million in 2024[8]. - Net assets increased from approximately $13.3 million in 2023 to approximately $15.9 million in 2024[10]. - The total assets of the group as of December 31, 2024, amounted to $30,009,000, a slight increase from $29,416,000 in 2023[19][21]. - The group’s total liabilities as of December 31, 2024, were $14,087,000, an increase from $16,087,000 in 2023[19][21]. Operational Efficiency - The cost of goods sold for the trading and supply chain management segment was $8,213,000, which is an increase from $7,035,000 in the previous year[19][21]. - The cost of goods sold for 2024 was $13,946,000, up from $9,648,000 in 2023, reflecting a 44.5% increase[30]. - The operating expenses for the year were approximately $15.5 million, a decrease of about 2.3% from the previous year[45]. - The group’s employee benefit expenses totaled $11,112,000 for the year ending December 31, 2024, compared to $10,527,000 in 2023, marking an increase of 5.5%[19][21]. - Total employee costs for the year ended December 31, 2024, were approximately $11,800,000, compared to $11,000,000 in 2023[58]. Dividend and Shareholder Information - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2024[3]. - The company did not recommend any final dividend for the year ending December 31, 2024[32]. - The annual report for 2024 will be sent to shareholders and made available on the company’s website[74]. Future Outlook and Strategy - The company anticipates significant challenges in 2025 due to increased tariffs on Chinese imports, which may reverse progress made in controlling inflation[60]. - The group is focusing on expanding its procurement network outside of China, particularly targeting offshore markets and manufacturers with overseas production capabilities[60]. - The company is exploring potential acquisitions and investment opportunities to strengthen and diversify its business[61]. - The group plans to maintain strict cost control and efficiency measures to enhance productivity and operational efficiency[63]. Governance and Compliance - The group’s consolidated financial statements for the year ending December 31, 2024, have been confirmed by the auditor, Roshan Mei CPA[67]. - The audit committee consists of three independent non-executive directors, ensuring compliance with accounting principles and internal controls[69]. - The company has adopted the corporate governance code and has been compliant with all applicable provisions as of December 31, 2024[71]. - The company has established written guidelines for employees regarding securities trading, ensuring adherence to the standard code[73]. Cash and Receivables - As of December 31, 2024, the company had cash and cash equivalents of approximately $21.1 million, up from about $20.1 million the previous year[55]. - The current ratio improved to approximately 2.1 from 1.8 in the previous year, indicating better liquidity[55]. - Accounts receivable as of December 31, 2024, amounted to approximately $3,900,000, with over 90 days of receivables totaling about $1,300,000 under close management[57]. - Trade receivables at the end of 2024 amounted to $4,531,000, a slight decrease from $4,599,000 in 2023[39]. - Trade payables at the end of 2024 were $1,449,000, down from $1,502,000 in 2023[40].

Financial Performance - Revenue for the six months ended June 30, 2024, increased by approximately 1.5% to about $19,539,000 compared to $19,257,000 for the same period in 2023[2] - Gross profit decreased from $7,309,000 to $6,963,000, reflecting a decline in profitability[2] - The net profit attributable to the company's owners dropped significantly from $601,000 to $24,000, indicating a near break-even situation[2] - The company reported a decrease in other income from $726,000 to $270,000, impacting overall financial performance[2] - The adjusted profit before tax for the group was $74 thousand, compared to $653 thousand for the same period in 2023, indicating a significant decrease[10][11] - The group reported a net profit of $24 thousand for the six months ended June 30, 2024, a decrease from $601 thousand for the same period in 2023[11] - The group recorded a net loss of approximately $600,000 for the period ending June 30, 2023, down from a profit in the previous year[27] Dividends and Shareholder Returns - The company did not declare any interim dividend for the six months ended June 30, 2024[1] - The group did not declare any interim dividends for the six months ending June 30, 2024, consistent with the previous year[19] - No interim dividend was declared for the six months ending June 30, 2024[42] Assets and Liabilities - Total current assets as of June 30, 2024, were $27,106,000, slightly down from $27,284,000 as of December 31, 2023[4] - Current liabilities decreased from $15,155,000 to $14,736,000, improving the company's liquidity position[4] - Non-current assets totaled $1,614,000 as of June 30, 2024, down from $2,132,000 at the end of 2023[4] - The group reported a total asset value of $28,720 thousand as of June 30, 2024, down from $29,416 thousand as of December 31, 2023[12] - The total liabilities amounted to $15,377 thousand as of June 30, 2024, compared to $16,087 thousand at the end of 2023[12] - The company’s total equity remained stable at $13,343,000 compared to $13,329,000 at the end of 2023[5] Revenue Breakdown - For the six months ended June 30, 2024, the total revenue from external customers was $19,539 thousand, a 1.5% increase from $19,257 thousand for the same period in 2023[10] - The segment profit for the Trade and Supply Chain Management Services was $129 thousand, while the Online Social Platform segment reported a profit of $226 thousand, totaling $355 thousand for the group[10] - The group recognized $8,130 thousand in revenue from Internet Value-Added Services for the six months ended June 30, 2024, down from $9,878 thousand in the previous year[13] - Revenue from trade and supply chain management services increased by approximately 4.5% to about $8,500,000, up from around $8,200,000 last year[27] - Revenue from gamified social and online entertainment decreased by approximately 17.7% to about $8,100,000[32] - The merchandise sales increased significantly by approximately 136.6% to about $2,900,000 due to the launch of a new series of blind boxes[33] - Revenue from trade and supply chain management services was approximately $8,500,000, representing about 43.7% of total group revenue[31] Operational Efficiency and Cost Management - Operating expenses for the period were approximately $7,200,000, a decrease of about 3.0% from around $7,400,000 in the same period last year[27] - The group incurred a total of $472 thousand in unallocated corporate expenses for the six months ended June 30, 2024[10] - The group will continue to strictly control costs and improve productivity and operational efficiency[39] Market Conditions and Future Outlook - The market conditions for trade and supply chain management services remain uncertain, with ongoing inflation and geopolitical tensions impacting global economic stability[38] - Despite a rebound in online social platform business after the easing of COVID-19 restrictions in China, domestic demand remains weak, influenced by a sluggish real estate market and trade tensions, which continue to dampen business confidence and economic growth[39] - The business environment is expected to remain challenging and uncertain in the short term, prompting the group to closely monitor global economic developments and adjust strategies and measures accordingly[39] Investments and Capital Expenditures - Capital expenditures for the group were $41 thousand for the six months ended June 30, 2024, compared to $290 thousand for the same period in 2023[10][11] - There were no significant investments, major acquisitions, or sales during the six months ending June 30, 2024[40] - The group has no plans for any significant future investments or capital assets as of the announcement date[41] - The company and its subsidiaries did not buy, sell, or redeem any listed securities during the six months ending June 30, 2024[43] Cash and Liquidity - As of June 30, 2024, the group had cash and cash equivalents of approximately $18,900,000, down from $20,100,000 as of December 31, 2023[34] - The group maintained a current ratio of approximately 1.8 and a debt-to-asset ratio of zero as of June 30, 2024[34] Audit and Compliance - The audit committee reviewed the accounting policies adopted by the group, including the unaudited condensed consolidated interim financial information for the six months ending June 30, 2024[44]

Economic Environment - In 2023, the Group faced a challenging macro environment with high inflation and continuous interest rate hikes, leading to a low-growth trend in the economy and affecting order and shipment volumes[9]. - Looking ahead to 2024, the Group anticipates continued uncertainties in the global economy, with weak international trade and cautious customer ordering behavior expected to persist[14]. - The overall economic recovery in 2023 was slower than expected, impacting the Group's trading performance due to high customer inventory levels and weak demand[9]. - The Group's trading and supply chain management services will continue to face challenges due to geopolitical tensions and supply chain disruptions[14]. Business Performance - The Group's revenue decreased by approximately 14.5% to approximately US$44.4 million from approximately US$51.9 million in the previous year[23]. - The trading and supply chain management services segment's revenue fell by approximately 34.1% to approximately US$17.6 million, accounting for approximately 39.7% of the Group's total revenue[24][40]. - Shipment volume for trading and supply chain management services declined by approximately 19.7% to approximately US$130.8 million[24][34]. - Revenue from the online social platforms business increased by approximately 6.3% to approximately US$26.7 million, driven by the relaxation of COVID-related restrictions in the PRC[25][41]. - The gamified social and online entertainment business recorded moderate growth, with revenue increasing to approximately US$23.3 million from approximately US$21.3 million[44]. Profitability and Cost Management - The Group achieved a profit for the year of approximately US$2.0 million, nearly double the profit for the year in 2022[29]. - Operating expenses decreased by approximately 6.5% to approximately US$15.9 million, primarily due to reduced personnel costs[27]. - Gross profit slightly decreased by approximately 0.3% to approximately US$17.1 million, with improved gross margin in the online social platforms business offsetting overall revenue decline[26]. - Total staff costs for the year ended December 31, 2023, were approximately US$11.0 million, down from US$12.2 million in 2022[53]. - The Group aims to improve operational efficiency and focus on profitability enhancement through stringent cost control and quality service improvements[19]. - Cost control measures have been implemented to meet customer demands and provide excellent service, ensuring long-term value creation for stakeholders[65]. Strategic Initiatives - The Group plans to expand its claw crane games into overseas markets to broaden its income base and enhance market share[15]. - The Group will explore more popular products in the pop toys segment and customize exclusive intellectual property products to meet consumer demand for unique items[15]. - The Group aims to expand its claw crane online games into overseas markets to drive business growth and increase overall revenue[61]. - The company plans to enhance user acquisition by collaborating with popular social media influencers on platforms like Douyin, aiming to expand its user base[64]. - Continuous upgrades to the gaming system and online claw machine games are intended to improve user engagement and satisfaction, thereby increasing user loyalty and attracting new users[64]. Corporate Governance - The Company has adopted the Corporate Governance Code (CG Code) and is committed to complying with its provisions to ensure effective governance and accountability to shareholders[93]. - The corporate governance principles emphasize an effective Board, sound internal controls, and transparency to all shareholders[94]. - The Company complied with all applicable code provisions of the CG Code throughout the year ended December 31, 2023, with some deviations discussed in the report[95]. - The Company has established written guidelines for securities transactions by relevant employees, with no incidents of non-compliance noted during the year[97][100]. - The Company aims to achieve gender diversity by appointing one female director on or before December 31, 2024[118]. Board Composition and Diversity - As of December 31, 2023, the Board consisted of five Directors, including two executive Directors and three independent non-executive Directors[102]. - The Board's composition reflects a diverse range of skills, knowledge, and experience, which is essential for effective governance[113]. - The Nomination Committee is responsible for reviewing and assessing the diversity of the Board to maintain an appropriate mix of skills and perspectives[113]. - The Company has committed to developing a pipeline of potential successors to achieve gender diversity in senior management positions[118]. - The workforce gender ratio is 49% male and 51% female, achieving gender diversity in the company[119]. Board Meetings and Responsibilities - The Board met regularly during the year to review and approve financial and operational performance, compliance with the CG Code, and overall strategies[132]. - The Audit Committee is responsible for reviewing the Company's annual reports and accounts, interim reports, and results announcements[181]. - The Audit Committee held three meetings during the year ended December 31, 2023, to review financial statements and reports, ensuring the integrity of the Group's financial reporting system[183]. - The Remuneration Committee met once during the year ended December 31, 2023, to review and determine the remuneration policy for executive Directors and senior management[194]. - The Nomination Committee conducted two meetings during the year ended December 31, 2023, focusing on the structure, size, and composition of the Board[197].

Financial Performance - Revenue decreased by approximately 14.5% from about $51.9 million in the year ended December 31, 2022, to approximately $44.4 million in the year ended December 31, 2023[3] - Profit for the year ended December 31, 2023, was approximately $2 million, representing a growth of about 93.7% compared to approximately $1 million for the year ended December 31, 2022[3] - Gross profit for the year ended December 31, 2023, was approximately $17.1 million, with a gross margin of about 38.5%[4] - For the fiscal year ending December 31, 2023, total revenue from external customers was $44.355 million, a decrease from $51.878 million in the previous year, representing a decline of approximately 14.3%[26] - The adjusted profit before tax for the trade and supply chain management segment was $1.269 million, while the online social platform segment reported an adjusted loss of $1.157 million, leading to a total adjusted profit before tax of $2.161 million[26] - The company reported a net profit of $1.978 million for the fiscal year ending December 31, 2023, compared to $1.021 million in the previous year, reflecting a significant increase[26] - The total tax expense for the year was $183,000, a decrease from $240,000 in 2022, representing a decline of 23.8%[40] - The company's gross profit slightly decreased by about 0.3% to approximately $17.1 million[54] - Operating expenses decreased by approximately 6.5% from about $17 million to approximately $15.9 million, primarily due to reduced employee costs[56] - The company achieved a net profit of approximately $2 million, nearly double the profit from the previous year[56] Assets and Liabilities - Total assets increased from approximately $27.3 million in 2022 to approximately $29.4 million in 2023[8] - Current liabilities rose from approximately $14.1 million in 2022 to approximately $15.2 million in 2023[8] - The net asset value increased from approximately $11.3 million in 2022 to approximately $13.3 million in 2023[10] - The total assets as of December 31, 2023, amounted to $29.416 million, with classified assets contributing $29.297 million and unallocated assets at $119 thousand[26] - The total liabilities were reported at $16.087 million, with classified liabilities at $12.144 million and shareholder loans contributing $3.856 million[26] - The group's non-current assets totaled $2,009,000 in 2023, an increase of 55.5% from $1,291,000 in 2022[31] - The total accounts receivable increased from $3.87 million to $4.6 million, with significant increases in the 30 days and 31-60 days categories[49] - The total accounts payable rose from $885,000 to $1.5 million, with a notable increase in the 31-60 days category[50] - The group has no significant liabilities or guarantees as of December 31, 2023, and has not pledged any assets[69] Dividends - The company does not recommend the payment of a final dividend for the year ended December 31, 2023[3] - The group did not recommend a final dividend for the year ending December 31, 2023, compared to no dividend in 2022[41] Accounting Policies - The group has adopted the revised Hong Kong Accounting Standard No. 1 and the revised Practice Note No. 2, which impacts the disclosure of significant accounting policies[14] - The group has implemented the revised Hong Kong Accounting Standard No. 12, narrowing the scope of initial recognition exemptions related to temporary differences arising from transactions such as leases[16] - The changes in accounting policies due to the revised standards have no significant impact on the group's financial position and performance for the years ended January 1, 2022, December 31, 2022, and December 31, 2023[17] - The company has adjusted its accounting treatment for employer contributions to the long-term service fund in accordance with new guidelines from the Hong Kong Institute of Certified Public Accountants[21] Market Performance - Revenue from the Chinese market was $29.014 million for 2023, an increase from $27.834 million in 2022, indicating a growth of approximately 4.2%[30] - Revenue from customer A, a major client accounting for over 10% of the group's revenue, decreased to $6,552,000 in 2023 from $9,937,000 in 2022, representing a decline of 34.5%[32] - Revenue from trade and supply chain management services fell by approximately 34.1% from about $26.7 million to approximately $17.6 million[53] - Revenue from the online social platform business increased by approximately 6.3% from about $25.1 million to approximately $26.7 million[64] Employee and Operational Insights - The total employee cost for the year was approximately $11 million, down from $12.2 million in 2022, with 261 employees as of December 31, 2023[70] - The group plans to enhance user acquisition through collaborations with popular social media platforms, aiming to expand its user base[74] - The group intends to upgrade its gaming systems and online games to improve user engagement and satisfaction, which is expected to attract new users[74] - The group is focused on cost control and capacity enhancement as primary tasks to improve profitability[73] Governance and Compliance - The audit committee consists of three independent non-executive directors, with Liu Shuren as the chairman[81] - The company has complied with all applicable corporate governance code provisions as of December 31, 2023[83] - The company has adopted the standard code for securities trading by directors and confirmed compliance by all directors for the year ending December 31, 2023[84] - The annual report for 2023 will be sent to shareholders and published on the company's website in due course[85] - The executive directors are Huang Qingnian and Long Liping, with independent non-executive directors Wang Minxiang, Liu Shuren, and Zhang Huijun[87]

Revenue and Profitability - Revenue for the six months ended June 30, 2023, was $19,257,000, a decrease of 36.5% compared to $30,389,000 in the same period of 2022[3]. - Profit for the period attributable to owners of the company was $601,000, compared to $681,000 in the prior year, representing a decline of 11.8%[5]. - Total comprehensive income for the period attributable to owners was $295,000, an increase from $243,000 in the same period last year[5]. - The total comprehensive income for the period was US$243,000, compared to US$681,000 in the same period of 2022, reflecting a decrease of 64.3%[17]. - Profit before tax for the period was US$653,000, a decrease from US$819,000 in the prior year, representing a decline of 20.3%[44]. - The Group's profit for the period was US$601,000, down from US$681,000 in the previous year, indicating a decrease of 11.8%[44]. Assets and Liabilities - Non-current assets increased to $2,587,000 as of June 30, 2023, from $1,458,000 at the end of 2022, primarily due to increases in property, plant, and equipment[7]. - Current assets totaled $25,579,000, up from $24,815,000 at the end of 2022, driven by an increase in bank deposits[7]. - Total liabilities increased to $16,611,000 as of June 30, 2023, compared to $15,013,000 at the end of 2022, mainly due to higher current liabilities[8]. - Net assets as of June 30, 2023, were $11,555,000, an increase from $11,260,000 at the end of 2022[8]. - Segment assets as of June 30, 2023, totaled $27,904,000, an increase of 11.3% from $26,034,000 as of December 31, 2022[50]. Cash Flow and Investments - Net cash generated from operating activities increased to US$1,375,000, up 88.0% from US$732,000 in the prior year[17]. - The company incurred a net cash outflow from investing activities of US$1,245,000, compared to a net inflow of US$78,000 in the same period last year[17]. - Cash and cash equivalents at June 30, 2023, were US$14,040,000, down from US$15,628,000 at the end of June 2022, representing a decrease of 10.1%[17]. - The Group acquired assets totaling US$290,000 during the six months ended 30 June 2023, significantly higher than US$28,000 in the same period of 2022[73][76]. Revenue Breakdown - Revenue from merchandise sales was $5,071,000, down 53.8% from $10,993,000 in the previous year[53]. - Internet value-added services (IVAS) revenue decreased to $9,878,000 from $13,262,000, representing a decline of 25.5%[53]. - Revenue from trading and supply chain management services fell approximately 46.4% from approximately US$15.2 million to approximately US$8.2 million[108]. - Revenue from the operation of online social platforms fell by approximately 26.8% from approximately US$15.2 million to approximately US$11.1 million[124]. - Revenue from gamified social and online entertainment dropped by approximately 25.5% year-on-year from approximately US$13.3 million to approximately US$9.9 million[127]. Expenses and Cost Management - Gross profit for the period was $7,309,000, down from $9,538,000, reflecting a gross margin of 38.0%[3]. - Employee benefit expenses decreased to $5,417,000 from $6,451,000, a reduction of 16.0% year-over-year[62]. - Operating expenses for the six months ended 30 June 2023 amounted to approximately US$7.4 million, representing a drop of approximately 20.0% from approximately US$9.2 million for the corresponding period last year[110]. - Management will continue to enforce strict cost controls and work with suppliers to lower purchase and operating costs to improve profitability[146]. Foreign Exchange and Taxation - The company reported an exchange difference on translation of foreign operations of $(306,000), compared to $(438,000) in the previous year[5]. - The company reported a total tax expense of $52,000 for the period, down from $138,000 in the previous year[66]. VIE Contracts and Compliance - The VIE Contracts enable the financial results and economic benefits of the OPCO Group to flow into the WFOE, ensuring compliance with PRC laws that restrict foreign ownership in certain sectors[165]. - The Exclusive Technology Consulting and Services Agreement allows the WFOE to charge a service fee equal to 100% of the net profit of the OPCO after deducting taxes, costs, and expenses[169]. - The VIE Contracts may not be as effective as direct ownership in providing control over the OPCO, posing potential risks[178]. - The PRC Legal Adviser confirmed that the VIE Contracts would not constitute a violation of GAAP's Notice 13, which prohibits foreign control of online game businesses in China[188]. Future Plans and Strategic Focus - The company plans to focus on expanding its online social platform operations to enhance revenue streams in the future[52]. - The Group plans to expand sales channels through social media and improve game quality to capture potential growth in the online gaming sector[146].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 Daohe Global Group Limited 道 和 環 球 集 團 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：915） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 未 經 審 核 中 期 業 績 公 佈 中期業績摘要： • 收益較截至二零二二年六月三十日止六個月約30,400,000美元（相等於約 236,500,000港 元）下 跌 約36.6%至 約19,300,000美 元（相 等 於 約150,200,000港 元）。 • 截至二零二三年六月三十日止六個月錄得溢利約為600,000美元（相等於 約4,700,000港元）（二零二二年：約700,000美元（相等於約5,400,000港元））。 • 董事不就截至二零二三年六月三十日止六個月宣派任何中期股息。 ...