User Growth and Engagement - As of June 30, 2022, the total number of registered users on the Changyou Platform reached approximately 122.0 million, an increase of about 25.3 million compared to December 31, 2021[16]. - The Group expanded its user points usage by connecting with traffic portals like games and entertainment platforms, enhancing offline user engagement and retail chain services[20]. - The Group is actively building the Changyou community to provide targeted services, aiming to enhance user retention and activity[30][32]. Financial Performance - The Group recorded a consolidated revenue of approximately RMB105.4 million for the six months ended June 30, 2022, representing an increase of approximately 171.0% compared to RMB38.9 million for the same period in 2021[36][39]. - Gross profit for the same period amounted to approximately RMB15.4 million, with a gross profit margin of approximately 14.6%, up from 12.5% in the previous year[37][40]. - The loss for the period decreased to RMB 22,702,000 in 2022 from RMB 60,268,000 in 2021, reflecting a reduction of approximately 62%[92]. Cost Management - Selling and distribution expenses decreased to approximately RMB3.0 million, down from approximately RMB10.5 million in the prior year, due to reduced sales and promotion activities[43][44]. - Administrative expenses decreased to approximately RMB14.7 million from approximately RMB26.8 million, attributed to cost-saving measures including staff layoffs[46]. - Research and development costs decreased to approximately RMB6.2 million from approximately RMB17.8 million, mainly due to reduced staff costs in R&D activities[46]. Cash Flow and Liquidity - As of June 30, 2022, the Group's cash and cash equivalents amounted to approximately RMB 43.3 million, a decrease of approximately RMB 7.1 million compared to RMB 50.4 million as of December 31, 2021[49]. - The net cash outflow from operating activities for the six months ended June 30, 2022, was approximately RMB 1.1 million, compared to a net cash inflow of approximately RMB 103.4 million for the year ended December 31, 2021[49]. - The Group's financial position indicates material uncertainties that may cast significant doubt on its ability to continue as a going concern[126]. Debt and Liabilities - The total liabilities increased to approximately RMB 256.2 million as of June 30, 2022, compared to approximately RMB 253.2 million as of December 31, 2021[49]. - The debt ratio as of June 30, 2022, was approximately 1.52, up from approximately 1.33 as of December 31, 2021[49]. - The Group had total borrowings of approximately RMB 126.8 million as of June 30, 2022, compared to approximately RMB 112.3 million as of December 31, 2021[49]. Strategic Initiatives - The Group's efforts in developing a global financial platform for blockchain tokenization of assets are underway, leveraging advanced technologies like blockchain and big data[12]. - The Group aims to leverage the Changyou Points Marketing SaaS Platform to offer corporate customer-oriented products and services to SMEs/merchants, enhancing marketing channels and planning support[80]. - The Group plans to optimize its existing 2C points business and improve profitability, targeting steady profit growth based on current business scale[84]. Investments and Future Plans - The Company intends to issue HK$126.0 million 3.5% convertible bonds to expand its Digital Points Business into Hong Kong and overseas markets[51]. - The company plans to allocate HK$25 million for the development of the New International Changyou Platform, which aims to create a comprehensive database of consumer transactions and behavior[60]. - The total funding planned amounts to HK$124.4 million, with a significant portion directed towards the New International Changyou Platform[60]. Compliance and Reporting - The interim financial report has been prepared in accordance with Hong Kong Accounting Standards (HKAS) 34, ensuring compliance with applicable disclosure provisions[118]. - The Group has not applied any new accounting standards or interpretations that have not yet come into effect during the current accounting period[132]. - The Group's operations are focused solely on its electronic trading platform, with no segment information presented as it is considered the only business[133].

Economic Performance - In 2021, China's GDP reached RMB 114,367 billion, marking an 8.1% year-on-year increase, indicating a stable recovery in the economy[27]. - The COVID-19 pandemic has led to a decline in customer consumption and spending, impacting the Group's business operations despite diversification efforts[151]. - The Group recorded a year-on-year revenue decrease of approximately 57.5% for the year ended December 31, 2021, primarily due to a refined business model aimed at improving gross profit[173]. Changyou Platform Development - The Changyou platform aims to integrate digital points as financial assets, leveraging the resources of six founding shareholders, including China Mobile and Bank of China[21]. - The platform will utilize advanced technologies such as big data and blockchain to create a global "Digital Point Business Ecosystem Alliance" and "Virtual Asset Circulation and Settlement System"[21]. - The Group is focused on global expansion of the Changyou platform, positioning digital points as a key component of internet digital inclusive financing[21]. - The collaboration with major financial institutions aims to establish a sustainable and recyclable digital points ecosystem[21]. - The Changyou Platform aims to integrate digital membership points, resources, and strategic advantages of business partners, leveraging advanced technologies such as blockchain and big data analysis[45]. - The Group is currently negotiating with potential business partners to enhance the Changyou Platform and expand the scope of its Digital Point Business into other sectors[47]. - The Group aims to strengthen cooperation with large enterprises and enhance brand influence through customized equity cooperation with top brands in related industries[165]. - The Group plans to leverage cutting-edge technologies such as big data and artificial intelligence to create a benchmark cross-industry digital point marketing platform[167]. Financial Performance - For the year ended December 31, 2021, the total revenue from the business operations of Changyou Alliance and the Changyou Platform decreased to approximately RMB 114.2 million, representing a decrease of approximately RMB 154.6 million or approximately 57.5% compared to 2020[46]. - The gross profit from the business operations of the Changyou Alliance and the Changyou Platform increased to approximately RMB 12.7 million for the year ended December 31, 2021, representing an increase of approximately RMB 11.7 million or approximately 11.1 times compared to 2020[46]. - The gross merchandise volume of the Digital Point Business amounted to approximately RMB 157.3 million for the year ended December 31, 2021, representing a decrease of approximately RMB 282.8 million or approximately 64.3% over the same period of last year[47]. - The total revenue from the digital points business decreased to approximately RMB 114.2 million in 2021, down about RMB 154.6 million or 57.5% compared to RMB 268.8 million in 2020[49]. - The gross profit from the digital points business increased to approximately RMB 12.7 million in 2021, an increase of about RMB 11.7 million or approximately 11.1 times compared to RMB 1.0 million in 2020[49]. - The total online and offline transaction volume for the digital points business reached approximately RMB 157.3 million in 2021, a decrease of about RMB 282.8 million or 64.3% from RMB 440.1 million in 2020[50]. User Engagement and Market Strategy - The cumulative number of registered users of the Changyou Platform reached approximately 96.69 million as of December 31, 2021, representing an increase of approximately 38.19 million or 65% compared to December 31, 2020[30]. - The Changyou Platform aims to enhance user loyalty and activity through cross-marketing models and by granting benefits to users[53]. - The Group's strategy focuses on providing products with higher profit margins, which is expected to benefit the development of the Digital Points Business[73][78]. - The Group's operational center will focus on the main site APPs and public account to build a high-quality supply chain[159]. - The Group seeks additional profits from enhancing digital point utilization under the bonus point transaction scenario[159]. Financial Position and Assets - As of December 31, 2021, cash and cash equivalents were approximately RMB 50.4 million, a decrease of approximately RMB 101.9 million from RMB 152.3 million in 2020[88]. - The Group's net current assets amounted to approximately RMB 46.0 million, down from approximately RMB 136.4 million as of December 31, 2020[126]. - Total assets as of December 31, 2021, were approximately RMB 191.0 million, a decrease from approximately RMB 289.9 million as of December 31, 2020[127]. - Total liabilities increased to approximately RMB 253.2 million as of December 31, 2021, from approximately RMB 227.7 million as of December 31, 2020[127]. - The debt ratio as of December 31, 2021, was 1.33, compared to 0.79 as of December 31, 2020[127]. - The Group's total borrowings, including convertible bonds, amounted to approximately RMB 112.3 million as of December 31, 2021, compared to RMB 84.2 million as of December 31, 2020[132]. Research and Development - The Group continues to invest significant resources in research and development to enhance its technology infrastructure and improve its existing systems[147]. - The Group will continue to invest in R&D to enhance existing systems and strengthen technology infrastructure, particularly in big data and blockchain technology[1]. Management and Governance - The company has a strong board of directors with diverse backgrounds in technology and finance[185]. - The management team has a proven track record in project development and external cooperation[184]. - The company is committed to maintaining high standards of corporate governance through the expertise of its board members[196]. - The independent non-executive directors have held significant positions in other listed companies, indicating their extensive industry experience[197]. - The board's composition reflects a balance of skills and experience, which is crucial for strategic decision-making and risk management[198]. Future Plans and Strategies - In 2022, the Group plans to deepen its two-wheel drive strategy to enhance digital asset resource allocation and improve point utilization for merchants[159]. - The company intends to issue HK$126.0 million 3.5% convertible bonds to expand the Digital Point Business into Hong Kong and overseas markets[103]. - The Group aims to strengthen its role as a service provider in UnionPay and banking channels, focusing on entertainment, public transportation, and user promotion[164].

暢由聯盟集團有限公司 CHANGYOU ALLIANCE GROUP LIMITED (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) (Stock Code 股份代號：1039) 8 o 202 eport Contents 目錄 | --- | --- | |---------------------------------------------------------------------------|--------------------------| | | | | Corporate Information | 公司資料 | | Management Discussion and Analysis | 管理層討論及分析 | | Consolidated Statement of Profit or Loss | 綜合損益表 | | Consolidated Statement of Profit or Loss and Other Comprehensive Income | 綜合損益及其 ...

暢由聯盟集團有限公司 changyou alliance group Limited (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) (Stock Code 股份代號：1039) 2020 Interim Report 中期報告 | --- | --- | --- | |-------|----------|--------| | | | | | | | | | | minuture | O | | | | 品 0 O | | o | | | | | | | Contents 目錄 | --- | --- | |---------------------------------------------------------------------------|--------------------------| | | | | Corporate Information | 公司資料 | | Management Discussion and Analysis | 管理層討論及分析 | | Conso ...

鑫網易商集團有限公司 FORTUNET E-COMMERCE GROUP LIMITED (incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) (Stock Code 股份代號：1039) 2019 Interim Report 中期報告 2 品 fring g 197 tif 品 0 0 t pag Contents 目錄 | --- | --- | |---------------------------------------------------------------------------|--------------------------| | | | | Corporate Information | 公司資料 | | Management Discussion and Analysis | 管理層討論及分析 | | Consolidated Statement of Profit or Loss | 綜合損益表 | | Consolidated Statement of Profit or ...

鑫網易商集團有限公司 FORTUNET E-COMMERCE GROUP LIMITED (Incorporated in the Cayman Islands with limited liability)(於開曼群島註冊成立的有限公司) (Stock Code 股份代號：1039) C R E A T I N G A GLOBAL "virtual and intelligent commerce and finance platform for asset management, credit payment and settlement" | --- | --- | --- | |----------|-------|-------| | | | | | | | | | | | | | 打造一個 | | | | --- | --- | --- | |-------|----------------------------------|------------------------------------------------------------------------------------- ...