| --- | --- | |----------------------------------------------------------------------|-------| | | | | 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].

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