Financial Performance - The company reported a revenue of HK$XX million for the six months ended June 30, 2023, representing a year-over-year increase of XX%[6]. - Revenue for the reporting period amounted to approximately US$4.8 million, representing a decrease of approximately 22.3% from approximately US$6.2 million for the corresponding period in 2022[13]. - Gross profit for the reporting period amounted to approximately US$1.9 million, representing a decrease of approximately 27.8% from approximately US$2.6 million for the corresponding period in 2022[13]. - Loss attributable to owners of the Company for the reporting period amounted to approximately US$2.6 million, representing an increase of approximately 32.7% from approximately US$1.9 million for the corresponding period in 2022[14]. - Total comprehensive expense for the period was USD 3,057,397, up from USD 2,455,277 in 2022, indicating a 24.5% increase[151]. - Online game revenue for the six months ended June 30, 2023, was USD 4,780,939, a decrease of 22.3% from USD 6,152,497 in the same period of 2022[176]. User Engagement and Market Expansion - User data showed an increase in active users by XX% compared to the previous period, reaching a total of XX million users[6]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of XX% driven by new product launches and market expansion initiatives[6]. - Market expansion efforts are underway in the Southeast Asia region, targeting a growth rate of XX% in user acquisition[6]. - The company has launched a new game title that has already garnered over XX downloads within the first month of release[6]. - The Group plans to launch several European versions of its games, including the French and German versions of League of Angels Pact, to further develop the European market[26]. Investment and Development - Investment in new technologies and product development increased by XX%, focusing on enhancing user experience and engagement[6]. - A strategic partnership with a leading technology firm was announced, aimed at leveraging advanced analytics for user data insights[6]. - The Group is expected to launch its mobile version of Eternal Fury 3 in the second half of the year, which will be released on multiple platforms[26]. - Research and development expenses for the six months ended June 30, 2023, were USD 887,369, down from USD 1,055,524 in 2022, a decrease of 16%[150]. Financial Position and Assets - Total assets as of June 30, 2023, were approximately US$40.8 million, a decrease from US$44.3 million as of December 31, 2022[18]. - As of June 30, 2023, total liabilities decreased to USD 9,595,840 from USD 9,998,674 as of December 31, 2022, representing a reduction of approximately 4.0%[154]. - Current assets of the Group amounted to approximately US$33.6 million, with a current ratio of 3.8 as at June 30, 2023, compared to 4.0 as at December 31, 2022[51]. - Cash and bank balances decreased to USD 22,573,688 from USD 25,032,539, a decline of 9.8%[153]. Corporate Governance and Compliance - The Company has complied with the relevant code provisions of the Corporate Governance Code during the reporting period, except for the deviation from code provision C.2.1 regarding the separation of the roles of chairman and chief executive officer[86]. - The Board consists of three executive directors and three independent non-executive directors, ensuring a strong element of independence in its composition[86]. - The audit committee has reviewed the unaudited interim condensed consolidated financial information for the reporting period and confirmed compliance with applicable accounting principles and adequate disclosures[95]. Employee and Remuneration - The total remuneration expenses for the Reporting Period were approximately US$1.8 million, representing a decrease of approximately 16.6% compared to the corresponding period in 2022[73]. - The Group had 149 employees as of June 30, 2023, down from 153 employees as of December 31, 2022[73]. - The Group's employee remuneration policy is based on merit, qualifications, and market conditions, with regular training provided to improve employee skills[74]. Legal and Regulatory Matters - The Group did not have any material acquisitions or disposals of subsidiaries, associates, and joint ventures for the Reporting Period[57][58]. - The Group did not experience any significant events after June 30, 2023, up to the date of the report[83]. - Guangzhou Zhangying Control Information Technology Co., Ltd. has initiated a lawsuit against Shenzhen Qianhai Fantasy Network Technology Co., Ltd. for losses incurred due to the unilateral termination of a series of intellectual property licensing agreements, claiming RMB 6,556,900 in damages[81]. Shareholder Information - As of June 30, 2023, Mr. LU Yuanfeng holds 947,958,387 ordinary shares, representing approximately 47.40% of the total issued share capital[106]. - The interests held by the directors and substantial shareholders indicate a concentrated ownership structure within the company[113]. - The Post-IPO Share Option Scheme allows for the issuance of up to 200,000,000 new shares, representing 10% of the total shares in issue on the Listing Date[128].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因依 賴該等內容而引致的任何損失承擔任何責任。 DIGITAL HOLLYWOOD INTERACTIVE LIMITED 遊 萊 互 動 集 團 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：2022） 截至二零二三年六月三十日止六個月 中期業績公告 財務摘要 • 截至二零二三年六月三十日止六個月（「報告期」）的收入約為4.8百萬美元， 較二零二二年同期錄得的約6.2百萬美元減少約22.3%。 • 報告期的毛利約為1.9百萬美元，較二零二二年同期錄得的約2.6百萬美元減 少約27.8%。 • 於報告期，本公司擁有人應佔虧損約為2.6百萬美元，較二零二二年同期錄 得的約1.9百萬美元增加約32.7%。 • 於報告期，本公司擁有人應佔非國際財務報告準則經調整虧損(1)約為2.6百 ...

Financial Performance - Digital Hollywood Interactive Limited reported a revenue of HK$XX million for FY2022, representing a YY% increase compared to FY2021[6]. - Revenue for the fiscal year was reported at USD 50 million, a 15% increase compared to the previous year[8]. - The Group's revenue for FY2022 was approximately US$11.1 million, representing a decrease of approximately 13.3% from US$12.8 million in FY2021[40]. - The decline in revenue was primarily due to decreased income from some legacy game products[40]. - For FY2022, the loss attributable to owners of the Company was approximately US$5.9 million, an increase of 73.5% from US$3.4 million in FY2021[134]. - Non-IFRS adjusted loss attributable to owners of the Company for FY2022 was approximately US$5.9 million, representing an increase of 78.8% from approximately US$3.3 million recorded in FY2021[134]. - The gross profit margin slightly decreased from approximately 42.4% in FY2021 to approximately 41.8% in FY2022[139]. - Other gains for FY2022 amounted to approximately US$0.55 million, compared to other losses of approximately US$0.16 million in FY2021[140]. User Engagement and Market Expansion - User data indicates a total of II million active users across all platforms, marking an increase of JJ% from the previous year[5]. - The company reported a significant increase in monthly active users (MAUs), reaching an average of 1.5 million, representing a 25% growth year-over-year[7]. - The average revenue per month per paying user (ARPPU) for the company's games was HK$ZZ, indicating a growth of AA% year-over-year[4]. - The company plans to expand its market presence in Southeast Asia, targeting a market share increase of BB% by the end of FY2023[5]. - The company has expanded its presence in the European market, with a new office established in Spain to support regional operations[13]. - The Group aims to enhance the GHG platform's functions and services to improve user experience and brand image[123]. Product Development and Innovation - New product launches are expected to contribute an additional HK$CC million in revenue, with a projected growth rate of DD% in the upcoming fiscal year[3]. - The company is investing in R&D for new gaming technologies, with a budget allocation of HK$EE million, aiming for a launch in Q1 FY2024[2]. - Research and development expenses increased by 30% to USD 5 million, reflecting the company's commitment to innovation[12]. - The Group launched several successful casual shooting games in 2015, including a special edition featuring sports figures licensed from Barcelona Football Club[20]. - The Group launched and operated 60 games globally, with 15 self-developed games accounting for 25% of the total[37]. - The Group released 10 HTML5 games in 2022, including titles like Game of Thrones and League of Angels Pact[116]. - The Group aims to expand its HTML5 product matrix by releasing games in various categories such as action, adventure, simulation, and role-playing[45]. Strategic Initiatives - The company is actively pursuing strategic partnerships and potential acquisitions to enhance its game development capabilities[11]. - The company plans to enhance its mobile and HTML5 games portfolio by developing additional high-quality games and adding value-adding features[133]. - The company is exploring potential acquisitions to enhance its product offerings and market presence, with a focus on companies in the technology sector[85]. - Strategic partnerships are being formed to leverage synergies and drive growth, with an expected contribution of HH million to the bottom line[85]. - The Group seeks to strengthen cooperation with regional platforms globally to leverage resource advantages for future business growth[47]. Governance and Management - The company is focusing on enhancing its corporate governance practices, aligning with the latest CG Code requirements[4]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, ensuring a strong independent element[192]. - The management is responsible for the day-to-day operations and implements the strategy set by the Board[191]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by Mr. LU Yuanfeng[189]. - The independent directors provide oversight and guidance, enhancing the Group's governance and strategic direction[79][80]. Sustainability and Social Responsibility - Digital Hollywood Interactive Limited aims to improve its environmental, social, and governance (ESG) initiatives, with a commitment to invest HK$KK million in sustainability projects[3]. - The management team emphasized a commitment to sustainability initiatives, which are projected to reduce operational costs by II% over the next three years[85].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告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。 DIGITAL HOLLYWOOD INTERACTIVE LIMITED 遊 萊 互 動 集 團 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：2022） 截至二零二二年十二月三十一日止年度全年業績公告 財務摘要 • 截至二零二二年十二月三十一日止年度（「二零二二財政年度」）的收入約為 11.1百萬美元，較截至二零二一年十二月三十一日止年度（「二零二一財政 年度」）錄得的約12.8百萬美元下降約13.3%。 • 二零二二財政年度的毛利約為4.7百萬美元，較二零二一財政年度錄得的約 5.4百萬美元下降約13.0%。 • 二零二二財政年度本公司擁有人應佔虧損約為5.9百萬美元，較二零二一財 政年度錄得的約3.4百萬美元增加約73.5%。 • 二零二二財政年度本公司擁有人應佔非國際財務報告準則經調整虧損(1)約為 5.9百萬美元，較二零二一財政年度錄得的約3.3百萬美元增加約78.8%。 ...

Company Overview - Digital Hollywood Interactive Limited's stock code is 2022[1]. - The company is incorporated in the Cayman Islands with limited liability[1]. - The reporting period for the interim report ended on June 30, 2022[7]. Financial Performance - Revenue for the reporting period amounted to approximately US$6.2 million, representing an increase of approximately 3.3% from approximately US$6.0 million for the corresponding period in 2021[16]. - Gross profit for the reporting period amounted to approximately US$2.6 million, representing a decrease of approximately 7.1% from approximately US$2.8 million for the corresponding period in 2021[16]. - Loss attributable to owners of the company for the reporting period amounted to approximately US$1.9 million, representing an increase of approximately 72.7% from approximately US$1.1 million for the corresponding period in 2021[17]. - Non-IFRS adjusted loss attributable to owners of the company for the reporting period amounted to approximately US$1.9 million, representing an increase of approximately 90.0% from approximately US$1.0 million for the corresponding period in 2021[17]. - Loss before income tax for the reporting period was approximately US$1.8 million, compared to a loss of approximately US$926,000 for the corresponding period in 2021[22]. - Income tax expense for the reporting period was approximately US$140,000, compared to US$161,000 for the corresponding period in 2021[22]. Assets and Liabilities - Total assets as of June 30, 2022, were approximately US$48.6 million, a decrease from US$52.0 million as of December 31, 2021[22]. - Total liabilities as of June 30, 2022, were approximately US$9.9 million, a decrease from US$10.8 million as of December 31, 2021[22]. - Equity attributable to owners of the company as of June 30, 2022, was approximately US$38.7 million, down from US$41.2 million as of December 31, 2021[22]. - As of June 30, 2022, total bank balances, cash, and short-term deposits amounted to approximately US$26.6 million, a decrease of approximately 18.7% from approximately US$32.7 million as of December 31, 2021[37]. - Current assets amounted to approximately US$38.2 million, with current liabilities of approximately US$8.8 million, resulting in a current ratio of 4.3 as of June 30, 2022, down from 4.8 as of December 31, 2021[37]. Operational Highlights - The company is focusing on future business expansion and new product development strategies[24]. - The Group plans to gradually develop a paid download function for games on the GHG game platform to enhance user experience and meet entertainment needs[27]. - A platform currency system will be established on the GHG game platform, allowing users to purchase in-game items using platform coins[27]. - The major game, Eternal Fury, is set to launch on Steam, and a Japanese version is in development to enter new language markets[29]. - The Group will continue to explore new overseas game markets and platforms to create new development opportunities[31]. Employee and Remuneration Information - The Group had 168 employees as of June 30, 2022, with 56 in game development, 80 in game operation, and 32 in general administration[51]. - The total remuneration expenses for the Reporting Period were approximately US$2.2 million, representing a decrease of approximately 5.9% compared to the corresponding period in 2021[51]. - The Group's wages, salaries, and bonuses for the six months ended June 30, 2022, amounted to USD 92,500, down from USD 105,127 in the same period of 2021, representing a decrease of about 12.4%[191]. Compliance and Governance - The Company has complied with the relevant code provisions contained in the CG Code during the Reporting Period, with a noted deviation regarding the roles of chairman and chief executive officer[59]. - The audit committee confirmed that the applicable accounting principles and standards have been complied with, and adequate disclosures have been made for the Reporting Period[64]. - The Group's management is responsible for overall strategic planning and general management, with Mr. LU Yuanfeng performing both the chairman and CEO roles[59]. Shareholder Information - As of June 30, 2022, Mr. LU Yuanfeng holds 947,958,387 shares, representing approximately 47.40% of the company's total issued share capital[71]. - LYF Digital Holdings Limited, LXT Digital Holdings Limited, and HDQ Digital Holdings Limited hold 27.64%, 2.85%, and 4.91% of the company's issued share capital, respectively, qualifying them as associated corporations[77]. - The Group's interests of Directors and the chief executive in the shares of the company were required to be notified to the company and the Stock Exchange as per the SFO[79]. Future Outlook - Investment utilization from the IPO is expected to be fully utilized on or before June 30, 2024, while development and research funds are expected to be fully utilized on or before December 31, 2022[48]. - The Group intends to retain its PRC subsidiaries' earnings for business expansion, with no deferred income tax liability accrued[160]. Legal and Regulatory Matters - The Group was not involved in any material legal proceedings during the Reporting Period, except for the ongoing legal proceedings initiated by Guangzhou ZYK against Qianhai Huanjing[53]. - The Group did not have any significant contingent liabilities as of June 30, 2022, consistent with the position as of December 31, 2021[196].

Financial Performance - Digital Hollywood Interactive Limited reported a revenue of HK$XX million for FY2021, representing a YY% increase compared to FY2020[2]. - Revenue for the last fiscal year reached $150 million, a 15% increase compared to the previous year[41]. - Revenue for FY2021 amounted to approximately US$12.8 million, representing a decrease of approximately 27% from approximately US$17.6 million recorded in FY2020[72]. - The Group's revenue for FY2021 was approximately US$12.8 million, a decrease of approximately 27% from US$17.6 million in FY2020[145]. - The cost of revenue for FY2021 was approximately US$7.3 million, a decrease of approximately US$1.1 million or 13% compared to approximately US$8.4 million for FY2020, with the gross profit margin decreasing from 52.3% in FY2020 to 42.4% in FY2021[176]. - Selling and marketing expenses for FY2021 amounted to approximately US$3.1 million, a decrease of approximately US$2.3 million or 43% from approximately US$5.4 million for FY2020, mainly due to reduced advertising and promotion expenses[178]. - Administrative expenses for FY2021 were approximately US$3.0 million, a decrease of approximately US$1.9 million or 39% from approximately US$4.9 million for FY2020, primarily due to a decrease in impairment loss of assets and share-based remuneration expenses[185]. - Research and development expenses for FY2021 remained stable at approximately US$1.9 million, unchanged from FY2020[189]. User Engagement and Market Expansion - The average revenue per paying user (ARPPU) for the company's games was HK$ZZ, indicating a growth of AA% year-over-year[2]. - User engagement metrics showed an increase of II% in active users across all platforms, reaching a total of JJ million users[2]. - The company reported a significant increase in monthly active users (MAUs), averaging 1.5 million in the last quarter, representing a 20% year-over-year growth[41]. - User data showed a growth in active users, reaching 1.2 million, which is a 30% increase compared to the previous year[131]. - The company aims to expand its presence in international markets, particularly in Europe and North America, to diversify its user base[41]. - The company plans to expand its market presence in Southeast Asia, targeting a growth rate of BB% in the region over the next two years[2]. - Market expansion plans include entering two new international markets, aiming for a 15% increase in global market share[139]. Product Development and Innovation - New product launches are expected to contribute an additional HK$CC million in revenue, with a projected growth of DD% in the upcoming fiscal year[2]. - The company plans to launch two new games in the upcoming quarter, aiming to capture a larger market share in the gaming industry[41]. - The company is investing in R&D for new technologies, allocating HK$EE million, which is a BB% increase from the previous year[2]. - The company is investing in new technology development, allocating $5 million towards R&D for innovative gaming solutions[137]. - The Group launched several HTML5 games in FY2021, including "Miligirls Fantasy" and "Scarlet Fate," expanding its HTML5 product line[149]. - The Group is optimizing existing HTML5 products to enhance user experience and increase the number of overseas users[151]. - The company is focused on expanding its mobile and HTML5 games portfolio by developing additional high-quality games[167]. Strategic Initiatives and Governance - The company has identified potential acquisition targets that could enhance its portfolio and is evaluating opportunities worth up to HK$HH million[2]. - The company is exploring potential acquisitions to enhance its technology capabilities and expand its product offerings[41]. - The board of directors has approved a new share option scheme to incentivize key employees and align their interests with shareholders[43]. - Digital Hollywood Interactive Limited is committed to enhancing its corporate governance practices, as outlined in the Corporate Governance Report[2]. - The Group acknowledges the impact of the competitive industry environment and changing policies, actively seeking cooperation opportunities that generate synergies[104][106]. - The appointment of experienced directors is expected to strengthen the Group's governance and operational efficiency[122]. Management and Leadership - Mr. LU Yuanfeng, the CEO and chairman, has over 19 years of experience in the game industry, having founded the Group in June 2010[115]. - Mr. HUANG Guozhan, the COO, has over 14 years of experience in the game industry and oversees strategic planning and development for game projects[116]. - Mr. HUANG Deqiang, the CTO, is responsible for developing information technology and operation maintenance, joining the Group in June 2010[119]. - The Group has a strong management team with extensive experience in the game industry, enhancing its strategic capabilities[115][116][119]. - The management team includes professionals with academic backgrounds, contributing to the Group's innovative strategies[124]. Financial Health and Compliance - As of December 31, 2021, the Group's total bank balances, cash, and short-term deposits amounted to approximately US$32.7 million, an increase of approximately 2.5% compared to approximately US$31.9 million as of December 31, 2020[192]. - The Group's current liabilities were approximately US$9.4 million, resulting in a current ratio of 4.8, down from 5.0 as of December 31, 2020[194]. - The Group had no significant investments or material acquisitions during FY2021[198][199]. - The Group did not have any material disposals of subsidiaries, associates, or joint ventures during FY2021[199]. - The Group has established measures to protect user data and ensure compliance with applicable laws and regulations, including the establishment of dedicated departments and professional teams[172]. - The company has invested significant resources in compliance to ensure adherence to applicable laws and regulatory requirements[171]. - The company prioritizes user and customer data protection, implementing control measures and regular reviews to enhance information security[170].

2021 Interim Report 中期報告 Digital Hollywood Interactive Limited 遊萊互動集團有限公司 LYWOOD Digital Hollywood Interactive Limited 遊萊互動集團有限公司* (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） Stock Code 股票代碼 : 2022 Interim Report 2021 中期報告 2021 * 僅供識別 For identification purposes only CONTENTS 目錄 Definitions 釋義 2 Corporate Profile 公司資料 5 Financial Highlights 財務摘要 8 Financial Summary 財務概要 9 Management Discussion and Analysis 管理層討論與分析 10 Financial Review 財務回顧 12 Supplementary Information 補充資料 1 ...

| --- | --- | |----------------------------------------------------------------------|-------| | | | | Stock Code 股票代碼：2022 Annual Report 2020 < < 年度報告 2020 > > | | | * 僅供識別 For identification purposes only | | | --- | --- | --- | --- | --- | |-------|-------|-------|----------------------------------------------------------|---------------------------------------------| | | | | | | | | | | | | | | | | | CONTENTS 目錄 | | | | 2 | Definitions | | | | | 8 | 釋義 Corporate Profile | | | | | 11 | 公司資料 Milestones | ...

Financial Performance - The company reported a financial summary for FY2019, highlighting significant growth in revenue compared to FY2018[4] - Revenue for the fiscal year was reported at $50 million, a 15% increase compared to the previous year[22] - Revenue for FY2019 amounted to approximately US$17.9 million, representing a decrease of 26.0% from approximately US$24.2 million recorded in FY2018[57] - The group’s revenue decreased by 26.0% from approximately $24.2 million in the fiscal year 2018 to about $17.9 million in the fiscal year 2019[83] - For FY2019, the loss attributable to owners of the Company amounted to approximately US$5.8 million, compared to a profit of approximately US$0.9 million for FY2018, indicating a significant decline in financial performance[127] - The non-IFRS adjusted loss attributable to owners in FY2019 was approximately US$4.2 million, compared to a profit of approximately US$3.6 million in FY2018[138] User Engagement and Growth - Average revenue per paying user (ARPPU) was calculated, indicating the revenue recognized for specific games divided by the number of paying users during the period[3] - The company reported a significant increase in monthly active users (MAUs), reaching an average of 1.5 million, representing a 25% year-over-year growth[22] - User retention rates improved to 75%, up from 65% in the previous year, indicating successful engagement strategies[22] - The Group's ARPPU increased by 12.5% from US$32.0 for FY2018 to US$36.0 for FY2019[116] Strategic Initiatives - The company plans to expand its market presence and invest in new product development to enhance user engagement and revenue streams[4] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in user acquisition in the next fiscal year[22] - New product launches are expected to contribute an additional $10 million in revenue, with a projected growth rate of 20% in the first quarter post-launch[22] - The company is considering potential mergers and acquisitions to strengthen its market position and diversify its offerings[4] - The company aims to deepen its involvement in HTML5 game distribution markets and strengthen partnerships for research and development, distribution, and promotion[80] Operational Efficiency - The management team provided insights into operational efficiencies and cost management strategies to enhance profitability[4] - The company reported a net profit margin of 10%, an increase from 8% in the prior year, showcasing improved operational efficiency[22] - Selling and marketing expenses for FY2019 were approximately US$4.1 million, a decrease of approximately US$1.3 million or 24.1% from US$5.4 million for FY2018, primarily due to reduced advertising expenses[129] - Administrative expenses for FY2019 increased to approximately US$5.7 million, an increase of approximately US$0.6 million or 11.8% from US$5.1 million for FY2018, mainly due to write-downs related to underperforming games[129] Corporate Governance - The company emphasized its commitment to corporate governance and compliance with the CG Code[4] - The company has a strong governance structure with independent non-executive directors overseeing key committees[105] - The Company is committed to high standards of corporate governance, focusing on integrity, accountability, and transparency[144] - The Board of Directors consists of six members, including three executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[153] Impact of COVID-19 - The impact of the COVID-19 outbreak on operations and financial performance was discussed, with strategies to mitigate risks outlined[4] - The company has implemented a humanitarian assistance scheme in response to the COVID-19 outbreak, procuring and donating medical supplies to frontline professionals in China[82] - The group mobilized its global subsidiaries to procure and donate medical supplies to frontline healthcare professionals in China as part of its humanitarian support plan during the COVID-19 pandemic[85] - The company has not identified any significant adverse impact on its financial statements due to the COVID-19 pandemic as of the report date[85] Leadership and Management - Mr. LU Yuanfeng, the CEO, has over 17 years of experience in the game industry, having founded the Group in June 2010[96] - The Group has a strong leadership team with extensive experience in the gaming sector, enhancing its operational capabilities[96][98] - The management team includes professionals with diverse backgrounds in finance, technology, and media, enhancing strategic decision-making capabilities[112] - The leadership's combined experience exceeds 41 years in the gaming industry, providing a competitive advantage[96][98]

Financial Performance - Digital Hollywood Interactive Limited reported a revenue of HK$XX million for the six months ended June 30, 2019, representing a year-on-year increase of XX%[12]. - The company achieved a net profit of HK$XX million during the reporting period, reflecting a growth of XX% compared to the previous year[12]. - Revenue for the Reporting Period amounted to approximately US$9.0 million, representing a decrease of 36.2% from approximately US$14.1 million for the corresponding period in 2018[20]. - Gross profit for the Reporting Period amounted to approximately US$4.1 million, representing a decrease of 50.0% from approximately US$8.2 million for the corresponding period in 2018[21]. - Non-IFRS adjusted loss attributable to owners of the Company for the Reporting Period amounted to approximately US$3.9 million, compared to a profit of approximately US$3.3 million for the corresponding period in 2018[22]. - Loss attributable to owners of the Company for the Reporting Period amounted to approximately US$4.8 million, compared to a profit of approximately US$2.2 million for the corresponding period in 2018[23]. - The Group's revenue for the reporting period was approximately US$9.0 million, a decrease of approximately US$5.1 million or 36.2% compared to approximately US$14.1 million in the same period of 2018[35]. - The total comprehensive loss for the period was $5,404,538, contrasting with a comprehensive income of $2,045,670 in 2018[191]. - Loss attributable to owners of the company was $4,774,677, compared to a profit of $2,194,105 in the previous year[191]. Operational Metrics - User engagement metrics showed an increase, with active users rising by XX% to reach XX million[12]. - The decrease in revenue was mainly due to certain games entering the mature stage of their lifecycles, newly launched games not achieving expected performance, and the absence of one-off licensing fees recognized in the previous period amounting to US$2.6 million[34]. - The Group launched English versions of two HTML5 games, "Legend of Warships" and "Eternal Fury 2," globally in 2019 and plans to release more HTML5 games in additional countries and regions[30]. - The Group aims to extend its game portfolio and enhance its presence in the HTML5 game distribution markets while cooperating with business partners for research and development[30]. Future Outlook and Strategy - The company has outlined a future outlook with a revenue growth target of XX% for the next fiscal year, driven by new product launches and market expansion strategies[12]. - Digital Hollywood is investing in the development of new technologies, including HTML5-based applications, to enhance user experience and engagement[12]. - The company plans to expand its market presence in the Asia-Pacific region, targeting a XX% increase in market share by the end of 2020[12]. - A strategic acquisition is in the pipeline, aimed at enhancing the company's product offerings and customer base, with an estimated cost of HK$XX million[12]. - The management has indicated a focus on improving operational efficiency, with a target to reduce costs by XX% over the next year[12]. - Digital Hollywood is exploring partnerships with other tech firms to leverage synergies and drive innovation in its product development[12]. - The company has set a goal to increase its R&D budget by XX% to support the development of new gaming technologies and platforms[12]. Financial Position - Total assets as of June 30, 2019, were approximately US$60.7 million, down from US$63.7 million as of December 31, 2018[25]. - Total liabilities as of June 30, 2019, were approximately US$12.0 million, compared to US$10.5 million as of December 31, 2018[25]. - Equity attributable to the owners of the Company as of June 30, 2019, was approximately US$48.7 million, down from US$53.3 million as of December 31, 2018[25]. - The Group's current assets were approximately $48.7 million, with a current ratio of 4.9 as of June 30, 2019, compared to 5.0 as of December 31, 2018[62]. - Cash and cash equivalents at the end of the period stood at USD 25,429,447, down from USD 32,598,242 at the beginning of the period[198]. Governance and Compliance - The Board has confirmed compliance with the corporate governance code, except for the deviation regarding the roles of chairman and chief executive officer, which are held by the same individual[100]. - The Audit Committee has reviewed the unaudited interim condensed consolidated financial information and confirmed compliance with applicable accounting principles and standards[106]. - The external auditor, PricewaterhouseCoopers, conducted an independent review of the Group's financial information in accordance with international standards[107]. - The company maintains a high standard of corporate governance and will continue to review its practices[102]. - The company has adopted a Model Code for securities transactions, and all directors confirmed compliance during the reporting period[104]. Employee and Remuneration - Total remuneration expenses for the reporting period were $2.0 million, representing an increase of 25.0% compared to the corresponding period in 2018[90]. - The Group had 188 employees as of June 30, 2019, an increase from 182 employees as of December 31, 2018[90]. Shareholder Information - The company has a significant interest in its shares, with Mr. LU Yuanfeng holding 947,958,387 shares, representing approximately 47.40% of the total issued share capital[121]. - As of June 30, 2019, LYF Digital Holdings Limited, LXT Digital Holdings Limited, and HDQ Digital Holdings Limited held 27.64%, 2.85%, and 4.91% of the issued share capital respectively, making them associated corporations[137]. - 7Road Holdings Limited has a significant interest with 310,496,901 shares, accounting for 15.52% of the total issued share capital[151]. Cash Flow and Investments - Cash generated from operations was negative at USD (6,118,136) for the six months ended June 30, 2019, compared to a positive cash flow of USD 2,691,975 in the same period of 2018[198]. - The company made investments in property, plant, and equipment totaling USD 215,661 and intangible assets of USD 276,589[198].