Business Growth and Strategy - The Company reported steady growth in its existing business in China, particularly in the "game hall" sector, while also exploring new areas such as mobile gaming and MCN broadcasting [6]. - The PC game revenue showed sustainable growth in the first half of 2022, driven by enhanced user experience and marketing efforts aimed at attracting new users [7]. - The collaboration with iQIYI for the web game "All City Fight Landlord" has progressed, providing hundreds of millions of users with diverse entertainment experiences across multiple platforms [10]. - Allied Esports produced 183 events in the first half of 2022, including 133 proprietary events and 50 third-party productions, highlighting its operational capabilities in the esports sector [15]. - The live broadcast business has established partnerships with platforms like Kuaishou and Douyin, enhancing the promotion of card and board games [11]. - The Company is focused on expanding its card and board games ecosystem, aiming to strengthen its position in the global sports and entertainment markets [17]. - The Company aims to cultivate the traditional card and board games market while exploring new opportunities in puzzle games [10]. - The launch of the Web3 strategy and NFT collection by Allied Esports marks a significant step towards innovation in the esports content business [15]. - The Company plans to continue enhancing its marketing strategies and expanding cooperation channels to attract new users on the PC platform [7]. Financial Performance - For the six months ended June 30, 2022, the loss attributable to equity holders of the Company was RMB 25.6 million, compared to a loss of RMB 7.8 million for the same period in 2021 [22]. - Revenue from continuing operations for the six months ended June 30, 2022, was RMB 72.7 million, an increase of RMB 14.1 million or 24.1% compared to RMB 58.6 million for the same period in 2021 [23]. - The gross profit margin from continuing operations increased from 41.3% for the six months ended June 30, 2021, to 51.1% for the six months ended June 30, 2022 [24]. - Other income from continuing operations for the six months ended June 30, 2022, was RMB 4.9 million, an increase of RMB 3.3 million or 206.3% compared to RMB 1.6 million for the same period in 2021 [29]. - Selling and marketing expenses from continuing operations for the six months ended June 30, 2022, were RMB 14.5 million, an increase of RMB 7.2 million or 98.6% compared to RMB 7.3 million for the same period in 2021 [30]. - Administrative expenses from continuing operations for the six months ended June 30, 2022, were RMB 67.9 million, an increase of RMB 1.0 million or 1.5% compared to RMB 66.9 million for the same period in 2021 [31]. - Research and development expenses from continuing operations for the six months ended June 30, 2022, were RMB 8.5 million, a decrease of RMB 3.1 million or 26.7% compared to RMB 11.6 million for the same period in 2021 [32]. - The Group reported a loss attributable to equity holders of RMB 25.6 million for the six months ended June 30, 2022, compared to a loss of RMB 7.8 million in the same period of 2021 [46]. - The total comprehensive loss for the period was RMB 14,432,000, significantly improved from a loss of RMB 36,165,000 in the same period last year [153]. Assets and Liabilities - As of June 30, 2022, the Group's current assets amounted to RMB 703.1 million, with current liabilities of RMB 67.6 million, resulting in a current ratio of 10.4 [49]. - The Group's total bank balances and cash decreased by 0.5% from RMB 609.1 million as of December 31, 2021, to RMB 605.8 million as of June 30, 2022 [49]. - The Group's financial assets at fair value through profit or loss were RMB 46.3 million as of June 30, 2022, down from RMB 56.2 million as of December 31, 2021 [53]. - The Group had no borrowings as of June 30, 2022, maintaining a gearing ratio of nil [49]. - The Group's investments in unlisted equity investments amounted to RMB 46.3 million, primarily in startups engaged in games or mind sports related technological research and development [54]. - The Group's total equity attributable to equity holders of the Company was RMB 281,634,000, up from RMB 279,591,000, representing an increase of approximately 0.7% [163]. - The company reported a deferred revenue of RMB 18,965,000, which increased from RMB 16,571,000, marking a growth of about 14.5% [161]. - Current liabilities decreased from RMB 72,307,000 to RMB 67,577,000, showing a reduction of approximately 6.4% [161]. Shareholder Information - Choi Shun Investment Limited holds 261,782,242 shares, representing 24.29% of the company's interests [82]. - Irena Group Co., Ltd. has an interest of 291,919,848 shares, accounting for 27.08% of the company's interests [82]. - Mr. Yang holds 36,531,064 shares, which is 3.39% of the company's interests, and has an interest in a controlled corporation with 221,653,555 shares, representing 20.57% [82]. - The total number of shares issued as of the interim report date is 1,077,799,887 [77]. - No interim dividend was declared for the six months ended June 30, 2022 [75]. - The report highlights the interests of substantial shareholders and their respective percentages in the company [81]. Corporate Governance and Compliance - The Company has adopted stringent corporate governance policies to enhance transparency and accountability to shareholders [118]. - The Company has established an Audit Committee to supervise internal control and financial reporting processes [126]. - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2022 [130]. - The Company provided loans totaling HK$62,484,799 to Fast Express Trading Limited, which were not repaid as scheduled [128]. - The company has filed a report with the police regarding potential wrongdoing related to the Merit Horizon loan, and an investigation is currently underway [135]. Legal and Regulatory Matters - A civil complaint was filed against Merit Horizon Limited and Ms. Fu Qiang for breach of a loan agreement on January 10, 2022 [129]. - The arbitration initiated by the Board and Card Games Administrative Center against Beijing Lianzhong and Tianjin Zhongqi is still in progress, with no arbitral award made [140]. - The company reported that the aggregate amount claimed in arbitration against Beijing Lianzhong and Tianjin Zhongqi is approximately RMB 90 million [137]. - The company has not declared any interim dividends for the previous period ending June 30, 2021 [75]. Employee and Share Option Schemes - The total remuneration expenses for the six months ended 30 June 2022 were RMB 43.0 million, representing an increase of 18.3% compared to the same period in 2021 [69]. - The Management Pre-IPO Share Option Scheme aims to motivate key participants for long-term growth and profitability [99]. - The Company aims to enhance the value of its shares for the benefit of shareholders through the Share Option Scheme [109]. - The total number of options granted during the period is not specified, but the outstanding options as of June 30, 2022, remain unchanged from January 1, 2022 [110].

Financial Performance - Revenue for the year ended 31 December 2021 was RMB 143,815,000, representing a 30.3% increase from RMB 110,407,000 in 2020[4] - Profit attributable to equity holders from continuing operations was a loss of RMB 74,367,000, compared to a profit of RMB 100,871,000 in 2020, reflecting a change of 58.9%[4] - Basic earnings per share from continuing operations was a loss of RMB 7.05, an improvement of 58.8% from a loss of RMB 17.12 in 2020[4] - The profit attributable to equity holders for the year ended December 31, 2021, was RMB 26.5 million, compared to a loss of RMB 186.4 million in 2020, primarily due to the gain on the disposal of the WPT business[36] - Revenue for 2021 amounted to RMB 143.8 million, representing an increase of RMB 33.4 million or 30.3% compared to RMB 110.4 million in 2020, driven by new business initiatives in the card and board games sector in China[37] Revenue Breakdown - Total revenue from the People's Republic of China was RMB 111,836,000, up 26.7% from RMB 88,242,000 in 2020[6] - Revenue from outside the PRC was RMB 31,979,000, an increase of 44.3% from RMB 22,165,000 in 2020[6] Assets and Liabilities - The Group's total assets as of 31 December 2021 were RMB 810,025,000, compared to RMB 735,367,000 in 2020[11] - The Group's total liabilities decreased to RMB 122,038,000 from RMB 247,481,000 in 2020[11] - The Group's total equity increased to RMB 687,987,000 from RMB 487,886,000 in 2020[11] Discontinued Operations - The Group has committed to a plan to sell the World Poker Tour business, which has been classified as discontinued operations[12] - The gain on disposal of discontinued operations amounted to RMB 319.0 million, resulting from the sale of the entire equity interests of CSI, which operated the WPT business[62] Expenses - The cost of revenue for 2021 was RMB 87.7 million, an increase of RMB 2.0 million or 2.2% from RMB 85.7 million in 2020, while the gross profit margin improved from 22.3% in 2020 to 39.0% in 2021[38] - Selling and marketing expenses surged to RMB 22.0 million in 2021, an increase of RMB 17.8 million or 424.4% compared to RMB 4.2 million in 2020, attributed to enhanced cooperation with distribution channels[44] - Administrative expenses decreased to RMB 128.9 million in 2021, down RMB 41.4 million or 24.3% from RMB 170.3 million in 2020, primarily due to changes in cash held in escrow[45] - Research and development expenses rose significantly to RMB 24.1 million in 2021, an increase of RMB 23.9 million or 15,474.8% from RMB 0.2 million in 2020, reflecting greater development efforts on online games[51] Cash and Liquidity - As of December 31, 2021, the Group's total bank balances and cash increased by 666.9% to RMB 609.1 million from RMB 79.4 million in 2020, due to proceeds from the WPT business sale[71] - The current ratio improved to 9.76 as of December 31, 2021, compared to 3.15 in 2020, indicating enhanced liquidity[71] - The Group's gearing ratio was nil, indicating no borrowings against total equity[71] Employee and Compensation - The total remuneration expenses for the year ended December 31, 2021, were RMB 77.2 million, representing a 17.4% increase compared to 2020[105] - The total employee compensation for the year ended December 31, 2021, was RMB 77.2 million, an increase of 17.4% compared to 2020[107] - The Group had 180 employees as of December 31, 2021, with 99 involved in game development and operation in the PRC[105] Strategic Initiatives - The company adopted a proactive approach to cope with regulatory challenges and market conditions, focusing on a "dual-circulation" strategy for domestic and international growth[18] - The existing business in China has shown steady growth, particularly in the "game hall" sector, while new ventures in mobile gaming and MCN broadcasting are being explored[18] - The company is actively expanding its business in Southeast Asia, including Singapore, Vietnam, and Cambodia, and is progressing with investments and partnerships in Japan[34] Share Option Schemes - The company has adopted three share option schemes, with a total of 73,062,128 share options granted to directors as of December 31, 2021[150] - The exercise price for the Employee Pre-IPO Share Option Scheme is RMB 0.1276 per share, adjusted for capitalisation[157] - The maximum number of shares available for issuance under the Employee Pre-IPO Share Option Scheme is 25,009,600 shares, granted to 29 key employees[164] - As of December 31, 2021, a total of 50,042,554 options were granted under the Management Pre-IPO Share Option Scheme, with 3,822,624 options exercised, leaving an outstanding balance of 46,219,930 options, representing approximately 4.23% of the issued shares[168] Corporate Governance and Sustainability - The company emphasizes the importance of sustainable development in environmental, social, and corporate governance practices[131] - The Group emphasizes sustainability and resource conservation, encouraging employees to save water, power, and paper[126] - The Group donated US$12,000 to the 100 Dreams Fund BroadcastHER Academy in 2021, supporting women in gaming and content creation[123] Future Outlook - The Group intends to finance future expansion and operations primarily with internal resources, while exploring other financing sources as needed[71] - The Group does not plan for any material investments or capital assets beyond what is disclosed in the annual report[110]

Financial Performance - Ourgame International Holdings Limited reported a significant increase in revenue, reaching approximately HKD 1.2 billion, representing a year-over-year growth of 25%[1] - The company reported steady development in its business in China, with consistent "value added" performance in existing operations despite COVID-19 restrictions[14] - For the six months ended June 30, 2021, the loss attributable to equity holders of the Company was RMB 7.8 million, a significant improvement compared to a loss of RMB 70.5 million for the same period in 2020[24] - Revenue from continuing operations for the six months ended June 30, 2021, amounted to RMB 58.6 million, representing a decrease of RMB 2.8 million or 4.5% compared to RMB 61.4 million for the corresponding period in 2020[25] - The gross profit margin from continuing operations increased from 15.5% for the six months ended June 30, 2020, to 41.3% for the same period in 2021[27] - The loss attributable to equity holders of the Company decreased to RMB 7.8 million from RMB 70.5 million for the same period in 2020, reflecting improved operational results[52] User Growth and Engagement - The company’s user base expanded to 15 million active users, marking a 30% increase compared to the previous period[1] - Ourgame is focusing on enhancing user engagement through new loyalty programs, aiming to increase user retention by 10%[1] - The company has launched two new mobile games, which have already garnered over 1 million downloads within the first month[1] - The Company is enhancing its traditional products by integrating them with popular trends like short videos and live broadcasts to boost user engagement[15] Strategic Initiatives and Future Outlook - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[1] - Ourgame plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[1] - The company is investing HKD 200 million in research and development for new gaming technologies and platforms[1] - The partnership with iQIYI for the web game "All City Fight Landlord" has provided hundreds of millions of users with enriching entertainment experiences[15] - The Company has implemented various initiatives to optimize its PC games business, focusing on enhancing customer experience and increasing brand loyalty[15] Financial Management and Expenses - Operating profit margin improved to 18%, up from 15% in the previous year, reflecting better cost management[1] - The cost of revenue from continuing operations decreased to RMB 34.4 million, down RMB 17.4 million or 33.6% from RMB 51.8 million in the same period of 2020[27] - Selling and marketing expenses increased by RMB 5.0 million or 218.4% to RMB 7.3 million compared to RMB 2.3 million for the same period in 2020[41] - Administrative expenses decreased by RMB 36.2 million or 35.1% to RMB 66.9 million compared to RMB 103.1 million for the same period in 2020[41] - Research and development expenses increased by RMB 11.5 million or 13,199% to RMB 11.6 million compared to RMB 0.1 million for the same period in 2020[42] Corporate Governance and Compliance - The Company aims to identify and appoint an independent non-executive director to comply with Listing Rules as soon as practicable[175] - The Company is committed to maintaining stringent corporate governance policies to enhance transparency and accountability[170] - The company has established several committees, including the Audit Committee, Nomination and Corporate Governance Committee, Remuneration Committee, and Risk Prevention and Digital Assets Management Committee[181] - The company has adopted the Model Code for securities transactions by its Directors, with all confirming compliance during the six months ended June 30, 2021[178] Shareholder Information - As of June 30, 2021, the company had 1,077,799,887 shares issued[108] - The total outstanding share options as of June 30, 2021, were 64,001,339 shares after accounting for cancellations and lapses[168] - The Company has adopted three share option schemes to motivate participants and retain key contributors for long-term growth and profitability[139] - The Company aims to enhance the value of its shares for the benefit of all shareholders through these share option schemes[155] Employee and Operational Insights - The Group had 194 employees as of June 30, 2021, with 73 involved in games development and operation in the PRC[83] - Total remuneration expenses for the six months ended June 30, 2021, were RMB 31.1 million, representing an increase of 8.4% compared to the same period in 2020[83] - The company expressed gratitude to the management team and staff for their hard work and dedication during the reporting period[197]

OURGAME INTERNATIONAL HOLDINGS LIMITED 聯眾國際控股有限公司 STOCK CODE 股份代碼: 06899 年度報告２０２０ Annual Report 20 Contents 目錄 02 Corporate Information 公司資料 06 Financial Highlights 財務摘要 07 Five Years Financial Summary 五年財務摘要 08 Chairman's Statement 主席報告 10 19 Management Discussion and Analysis 管理層討論及分析 Directors' Report 董事會報告 Corporate Governance Report 企業管治報告 Independent Auditor's Report 獨立核數師報告 Consolidated Statement of Profit or Loss and Other Comprehensive Income 綜合損益及其他全面收益表 Consolidated Statement of Financial Positio ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous period[6]. - Revenue for the six months ended June 30, 2020, was RMB 124,288,000, a decrease of 15.7% compared to RMB 147,390,000 in the same period of 2019[14]. - Loss attributable to equity holders of the Company for the same period was RMB 70,541,000, representing a 15.3% improvement from a loss of RMB 83,243,000 in 2019[14]. - The company reported a loss before income tax increased to RMB 156,527,000, compared to a loss of RMB 95,284,000 in the prior year, reflecting a 64.3% increase in losses[156]. - Total comprehensive loss for the period was RMB 176,468,000, significantly higher than RMB 88,741,000 in the same period of 2019, marking a 98.8% increase[157]. - The company experienced a significant increase in losses year-over-year, with a total loss increase of approximately 75.7% from the previous year[198]. User Engagement and Market Expansion - User data showed an increase in active users, reaching Z million, which is an A% increase year-over-year[6]. - New product launches are expected to contribute an additional $C million in revenue, with anticipated market expansion into D regions[6]. - Market expansion strategies include potential acquisitions, with a focus on companies that align with the company's growth objectives[6]. - The management highlighted a strategic shift towards digital assets management, aiming to capture emerging market opportunities[6]. - The company plans to enhance its marketing efforts, increasing the budget by F% to drive user acquisition and retention[6]. - The Company has launched "user recall" marketing efforts to reactivate dormant users, which have shown positive results[22]. Operational Efficiency and Cost Management - Operational efficiency improvements are expected to reduce costs by G%, contributing to overall profitability[6]. - The Company has focused on optimizing its cost structure in China by shifting away from less profitable games and channels[21]. - Selling and marketing expenses decreased by RMB 18.4 million or 70.0% to RMB 7.9 million in the first half of 2020, attributed to fewer events held due to the COVID-19 pandemic[41]. - Administrative expenses increased by RMB 24.8 million or 21.8% to RMB 138.7 million in the first half of 2020, mainly due to losses from cash returns and financing costs from new convertible notes[42]. - Research and development expenses decreased significantly by RMB 2.2 million or 95.7% to RMB 0.1 million for the six months ended June 30, 2020, attributed to reduced activities due to the pandemic[47]. Shareholder Value and Dividends - The company remains committed to shareholder value, with plans to increase dividends by H% in the upcoming fiscal year[6]. - For the six months ended June 30, 2020, no dividends were paid by the invested startup companies, indicating a focus on product development and launching[70]. - The Group did not declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[89]. Corporate Governance and Management Changes - The Company complied with the Corporate Governance Code during the six months ended June 30, 2020, with a noted deviation regarding the roles of chairman and chief executive officer being held by the same individual[131]. - Mr. Yang resigned as chairman and CEO effective June 30, 2020, and Mr. Li was appointed as chairman and acting CEO[132]. - The company is currently seeking a new CEO following the resignation of Mr. Yang on June 30, 2020, with Mr. Li Yangyang serving as the acting CEO[135]. - The Board consists of two executive Directors, four non-executive Directors, and three independent non-executive Directors, ensuring a strong independence element[132]. Cash Flow and Financial Position - The net cash used in operating activities for the first half of 2020 was RMB 39,353,000, significantly higher than RMB 4,632,000 in the same period of 2019[166]. - Cash flows from investing activities resulted in a net cash outflow of RMB 19,367,000 for the six months ended June 30, 2020, compared to RMB 47,270,000 in the prior year, indicating a decrease in cash outflow of 59.0%[167]. - The company generated net cash from financing activities amounting to RMB 67,006,000 in the first half of 2020, compared to RMB 18,574,000 in the same period of 2019, reflecting an increase of 260.5%[167]. - Cash and cash equivalents at the end of the period increased to RMB 190,344,000, up from RMB 121,825,000 at the end of June 2019, marking a growth of 56.2%[167]. Strategic Initiatives and Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of B% based on current market trends and user engagement[6]. - The company is investing in R&D for new technologies, allocating $E million to enhance product offerings and improve user experience[6]. - The company has reorganized its WPT and eSports businesses into Allied Esports Entertainment, Inc. for a separate listing on NASDAQ, indicating a strategic move to enhance market presence[170]. - The company is expanding its eSports and sports e-commerce businesses globally, which reflects a strategic focus on diversifying its revenue streams[170].

Financial Performance - Total revenue for the six months ended June 30, 2019, was RMB 147,390,000, a decrease of 24.2% compared to RMB 194,448,000 in 2018[20] - Games revenue decreased by 32.7% to RMB 107,527,000 from RMB 159,874,000 in the same period last year[20] - Non-Games revenue increased by 15.3% to RMB 39,863,000, up from RMB 34,574,000 in 2018[20] - Loss attributable to equity holders of the Company was RMB (83,243,000), a significant improvement of 79.6% compared to a loss of RMB (408,360,000) in 2018[20] - Basic and diluted loss per share attributable to equity holders of the Company improved to (7.74) RMB cents from (37.62) RMB cents in the previous year[20] - Revenue from the People's Republic of China (excluding Hong Kong, Macau, and Taiwan) was RMB 130,048,000, a decrease of 57.5% compared to RMB 55,286,000 in 2018[37] - Revenue outside the PRC was RMB 92,104,000, an increase of 43.0% from RMB 64,400,000 in 2018[41] Cost Management - Cost of revenue decreased to RMB 70.6 million, down RMB 50.6 million or 41.8% from RMB 121.2 million in the same period of 2018, resulting in a gross profit margin increase from 37.7% to 52.1%[69] - Selling and marketing expenses were RMB 26.3 million, a decrease of RMB 27.5 million or 51.1% compared to RMB 53.8 million in the same period of 2018[76] - Administrative expenses amounted to RMB 116.8 million, down RMB 59.1 million or 33.6% from RMB 175.9 million in the same period of 2018[77] - Research and development expenses were RMB 2.3 million, a decrease of RMB 26.9 million or 92.1% compared to RMB 29.2 million in the same period of 2018[79] - Impairment of assets was RMB 12.9 million, significantly lower than RMB 281.3 million in the same period of 2018[90] Business Strategy and Outlook - The Company is focusing on expanding its eSports Group, which engages in eSports venue management and content production[47] - The Company continues to explore new online services and brand licensing opportunities through its Peerless Group[47] - Future outlook includes potential market expansion and new product development in the gaming and entertainment sectors[47] - The Company plans to continue expanding its domestic business in China while seeking overseas growth opportunities through acquisitions and asset injections via AESE and other subsidiaries[64] eSports and Events - The Company's overseas business in eSports and WPT saw a revenue increase of RMB27.7 million or 43%, reaching RMB92.1 million for the six months ended June 30, 2019, compared to RMB64.4 million for the same period in 2018[54] - WPT conducted 11 international events in March 2019 across 4 continents, 5 countries, and 9 cities, with 3 events televised on FOX Sports Network[54] - Traditional television ratings for WPT increased by 62% in viewership from Q1 to Q2 2019, with distribution coverage up by 30 million households year over year[54] - The WPT television show premiered on TV Azteca in July 2019, coinciding with the launch of the WPT social gaming platform WPTGO, attracting over 25 million weekly viewers[54] - The Company's eSports business, Allied ESports, launched several branded tournaments and TV programs, contributing to significant growth in viewership[60] - AES's Las Vegas flagship arena saw increased attendance and usage frequency, hosting notable third-party events that enhanced brand reach[60] - AES's mobile arena truck utilization increased due to high demand for participation in eSports events, featured in major events like CES and Super Bowl[60] Shareholder Information - As of June 30, 2019, Mr. Yang Eric Qing and Mr. Ng Kwok Leung Frank each held 221,653,555 shares, representing 20.27% of the company's total shares[155] - Mr. Liu Jiang held 2,182,000 shares, accounting for 0.20% of the total shares[155] - Mr. Yang also has beneficial interests in 36,531,064 shares, which is 3.34% of the total shares[155] - The total number of shares issued as of June 30, 2019, was 1,093,355,443[161] - Irena Group Co., Ltd. holds 290,690,848 shares, representing 26.59% of the company's interest[167] - Glassy Mind Holdings Limited also holds 290,690,848 shares, equating to 26.59% of the company's interest[167] - The total number of shares in issue as of June 30, 2019, is 1,093,355,443[184] Share Option Schemes - The company has adopted three share option schemes to encourage performance and retention among key participants[199] - The Employee Pre-IPO Share Option Scheme allows participants to acquire existing shares without issuing new ones, promoting long-term growth and profitability[199] - The Management Pre-IPO Share Option Scheme aims to motivate key management participants to enhance their performance and efficiency[200] - The share option schemes are part of the company's strategy to align employee interests with shareholder value[199] - The financial statements include detailed notes on the share option schemes, ensuring transparency and compliance with regulations[198]