Group 1 - The virtual asset market is rapidly developing, with Hong Kong accelerating its efforts to establish itself as an international virtual asset center, attracting Chinese brokerage firms to enter the market [1] - The Hong Kong government views Web3.0 and virtual assets as core strategies to reshape financial competitiveness, having released the "Virtual Asset Policy Declaration" in 2023 to support industry innovation [1] - The Hong Kong Securities and Futures Commission (SFC) has tightened regulations, implementing a "dual license" system for virtual asset trading platforms, with 11 institutions already obtaining formal licenses [1] Group 2 - Hong Kong is exploring the issuance of an official stablecoin, the "Digital Hong Kong Dollar," aimed at providing an anchor asset for the virtual economy and enhancing cross-border payment capabilities [2] - Companies listed in Hong Kong are accelerating their layout in the Web3.0 sector, covering various areas such as trading platforms, data analysis, and asset tokenization [2] - OSL Group, as Hong Kong's first licensed virtual asset trading platform, reported a 79% year-on-year revenue increase to HKD 375 million in 2024, with a trading volume exceeding HKD 100 billion [2] Group 3 - Other Hong Kong-listed companies, such as Boyaa Interactive, Victory Securities, and Blueport Interactive, have also made moves in the cryptocurrency space, with stock price increases of 97%, 176%, and 60% respectively this year [3]

Core Viewpoint - The stablecoin concept has gained significant attention in the capital market due to favorable policies, leading to remarkable stock price increases for several companies in this sector [2][3]. Group 1: Company Performance - As of July 16, 2023, the stock of 加幂科技 has surged by 1040%, making it a "10x bull stock" [2]. - Other Hong Kong stocks related to stablecoins have also seen impressive gains, with 耀才证券金融 up 497.37%, 国泰君安国际 up 480.10%, and 金涌投资 up 351.93% [3]. - In the A-share market, 恒宝股份 has increased by 250.01%, while 四方精创 and 楚天龙 have risen by 163.11% and 115.10%, respectively [3]. Group 2: Industry Trends - The rise in stablecoin stocks is attributed to the increasing interest in Web3.0 and blockchain technologies, particularly as the cryptocurrency market recovers [2]. - 加幂科技 has been actively investing in Web3.0-related businesses, including the development of on-chain data analysis platforms and DEX aggregators [2]. - The current market sentiment is driven by future expectations rather than actual business performance, indicating that many companies are still in the early stages of stablecoin-related business development [4]. Group 3: Analyst Insights - Analysts caution that while the stablecoin concept is currently popular, many companies lack substantial business performance disclosures related to stablecoins, leading to speculative trading based on future expectations [4]. - There is a warning against blindly chasing high stock prices, as some companies may be experiencing inflated valuations without solid business foundations [4]. - Investors are advised to focus on companies with advanced technology, leading market shares, and strong management for sustainable investment opportunities [4].

Core Viewpoint - The company, LeTou Interactive (08198.HK), has entered into a subscription agreement with 500.com Limited for the subscription of 169 million shares, representing approximately 44.7% of the company's issued share capital, at a price of HKD 0.62 per share, which is a discount of about 10.1% from the closing price on January 27 [1][2] Group 1 - The net proceeds from the subscription are estimated to be approximately HKD 103 million, primarily intended for payment of acquisition costs related to the purchase of a 49% stake in a target company, Ganzi Prefecture Changhe Hydropower Consumption Service Co., Ltd., for RMB 88.2 million [1] - The target company was established in April 2019 and focuses on data processing and application software services [1] - The board of directors has proposed to increase the company's authorized share capital from HKD 55 million to HKD 65 million by creating an additional 100 million shares, subject to shareholder approval [2] Group 2 - Following the completion of the subscription, the offeror and its concert parties will hold approximately 54.26% of the enlarged issued share capital, assuming all share options are exercised [2] - The offeror is required to make a cash offer for all offer shares at HKD 0.75 per share, representing a premium of about 8.7% over the closing price on January 27 [3] - The offeror is a Cayman Islands registered company with a market capitalization of approximately USD 607 million as of January 27, 2021, and is one of the first companies in China to provide online lottery services [3][4]

Cryptocurrency Mining Industry - The cryptocurrency mining industry is experiencing a critical turning point with the upcoming Bitcoin halving event, leading to a significant reduction in miner revenues and necessitating upgrades in technology and operational models[11]. - The company is optimistic about the future of the cryptocurrency mining industry, expecting improvements in efficiency and sustainability as the ecosystem matures[12]. - The company aims to diversify its revenue streams and maintain market competitiveness through the optimization of its mining operations[12]. Web3.0 Development - The company plans to invest a significant portion of the funds raised from the recent placement into the development of Web3.0 products, which represent a new stage in internet development[14]. - The company believes that the growing market demand for Web3.0 services remains unsaturated, positioning itself as a pioneer in capturing potential market share[13]. - The company has initiated research and development activities related to blockchain and Web 3.0 applications and infrastructure[35]. Data Center Operations - The company has successfully optimized its data center in Indiana, resulting in reduced power costs and stable cash flow, with no major incidents reported throughout the year[12]. - The establishment of a data center is expected to effectively position and set up operations for the analysis platform and DEX aggregator, expanding the company's business scale[13]. - The data center services generated revenue of approximately HKD 56,000,000, an increase of about HKD 34,000,000 compared to the same period in 2023, primarily due to the contribution from the new US data center[19]. Financial Performance - The company recorded total revenue of approximately HKD 58,100,000 for the year, an increase of HKD 32,900,000 compared to HKD 25,200,000 in the previous year[36]. - The company reported a loss of approximately HKD 13,100,000 for the year, a reduction of 57.2% from a loss of HKD 30,600,000 in the previous year[40]. - The lending business generated revenue of approximately HKD 2,100,000, a decrease of HKD 1,100,000 from HKD 3,200,000 in the previous year[38]. Lending Operations - The lending business recorded interest income of approximately HKD 1,800,000 for the year, with total revenue from the lending business amounting to about HKD 2,100,000[23]. - The company has implemented internal control measures to ensure risk management in its lending activities, safeguarding the interests of the company and its shareholders[24]. - The company has established a credit risk assessment process to evaluate potential clients' credit ratings, repayment ability, and overall credit risk[25]. Corporate Governance - The company emphasizes values such as innovation, sustainability, integrity, responsibility, and collaboration in its business operations[79][80][81]. - The management has committed to improving corporate governance practices and ensuring compliance with the GEM Listing Rules[77][78]. - The board consists of six members, with three independent non-executive directors, exceeding the GEM listing rule requirement of one-third[87]. Risk Management - The board is responsible for ensuring a robust internal control and risk management system to protect shareholder investments and the group's assets[131]. - The risk management policy provides a framework for identifying and assessing significant business, operational, financial, and compliance risks[133]. - The internal control system aims to protect assets from misappropriation and unauthorized disposal, managing operational risks[135]. Shareholder Communication - The company maintains effective communication with shareholders through various channels, ensuring timely and equal access to information[149]. - The board encourages shareholder participation in the annual general meeting, providing an opportunity for questions and discussions[147]. - The company supports corporate governance principles that encourage shareholder engagement and participation[147]. Employee and Director Compensation - Total compensation for directors and the CEO was approximately HKD 2,700,000 for the year ending December 31, 2024, up from HKD 2,000,000 in 2023[60]. - The company continues to provide employee compensation packages in line with market practices and past performance, including mandatory provident fund and medical insurance[60]. - The company employed a total of 36 employees as of December 31, 2024, compared to 18 employees in 2023[60]. Legal and Regulatory Compliance - The company continues to comply with relevant laws and regulations affecting its business operations[170]. - The company has faced various risks related to legal and regulatory compliance, particularly as it expands operations in Hong Kong and the United States, which may affect its reputation and legal liabilities[158]. - The company has not faced any environmental claims, lawsuits, penalties, or disciplinary actions during the year[168].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 58,109,000, a significant increase of 130.5% compared to HKD 25,187,000 in the previous year[5] - The cost of sales and services for the same period was HKD 46,552,000, resulting in a gross profit of HKD 11,557,000, down 26.9% from HKD 15,751,000 in 2023[5] - The company recorded a loss before tax of HKD 13,081,000, an improvement from a loss of HKD 26,831,000 in the prior year, reflecting a reduction in operational losses[5] - The total comprehensive loss for the year was HKD 13,049,000, compared to HKD 30,548,000 in 2023, showing a 57.3% decrease in overall losses[7] - The loss attributable to owners of the company from continuing operations was HKD 13,049,000, compared to HKD 27,150,000 in the previous year, indicating improved financial health[7] - The group reported a pre-tax loss from continuing operations of HKD 13,081,000 for the year ending December 31, 2024, compared to a loss of HKD 26,831,000 in 2023, showing an improvement of 51.2%[30][33] - The group recorded a loss of approximately HKD 13,100,000, a reduction of HKD 17,500,000 or 57.2% compared to a loss of HKD 30,600,000 in the previous year[100] Expenses and Investments - Research and development expenses amounted to HKD 8,602,000, indicating a new investment in innovation as there were no R&D expenses reported in the previous year[5] - The company’s administrative expenses decreased to HKD 22,618,000 from HKD 28,742,000, representing a reduction of 21.4%[5] - The company incurred a net loss of HKD 46,552,000 in cost of sales and services for the fiscal year ending December 31, 2024, compared to HKD 9,436,000 in the previous year[46] - The company’s employee costs, including director remuneration, increased to HKD 17,035,000 in the fiscal year ending December 31, 2024, from HKD 8,331,000 in the previous year[46] - Research and development expenses for the Web3.0 business amounted to HKD 8,600,000, compared to none in the previous year[99] Assets and Liabilities - Total non-current assets increased to HKD 35,437,000 in 2024 from HKD 29,839,000 in 2023, representing a growth of approximately 18%[8] - Current assets decreased to HKD 33,982,000 in 2024 from HKD 40,303,000 in 2023, a decline of about 16%[8] - Current liabilities rose significantly to HKD 27,064,000 in 2024 from HKD 15,733,000 in 2023, an increase of approximately 72%[8] - Total equity decreased to HKD 36,829,000 in 2024 from HKD 49,878,000 in 2023, reflecting a decline of about 26%[10] - The total liabilities for the company in 2024 amounted to HKD 13.1 million, compared to HKD 6.85 million in 2023, indicating a significant increase[15] Revenue Sources - Revenue from big data center services reached HKD 56,009,000 in 2024, significantly up from HKD 22,037,000 in 2023, indicating an increase of 154.1%[23] - The group reported total revenue from continuing operations of HKD 9,587,000 in Hong Kong and HKD 48,522,000 in the United States for the fiscal year ending December 31, 2024[39] - The group recorded total revenue of approximately HKD 58,100,000, an increase of HKD 32,900,000 compared to HKD 25,200,000 in the previous year, representing a growth of 130.6%[96] - The data center services contributed approximately HKD 56,000,000 to revenue, an increase of HKD 34,000,000 from HKD 22,000,000 in the same period last year, reflecting a growth of 154.5%[96] - The lending business generated revenue of approximately HKD 2,100,000, a decrease of HKD 1,100,000 from HKD 3,200,000 in the previous year, representing a decline of 34.4%[97] Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[5] - The company aims to enhance its product offerings and explore potential mergers and acquisitions to strengthen its market position[5] - The company is focused on expanding its business in storage, power, and related services, as well as developing a Web3.0 platform[11] - The company plans to invest a significant portion of the funds raised from the successful placement on March 6, 2025, into the development of Web3.0 products[77] - The group plans to allocate approximately 35% of the net proceeds from a share placement for Web3.0-related development and new opportunities, and about 10.7% for expanding and enhancing data center capabilities[101] Compliance and Governance - The company has adopted new Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements for the current and prior years[16] - The company has complied with all provisions of the GEM Listing Rules Corporate Governance Code, except for the monthly updates to the board prior to October 2024[123] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements for the year ending December 31, 2024[127] Operational Developments - The company is actively researching blockchain and Web3.0 applications, aiming to develop various products including analytical platforms and DEX aggregators[76] - The company’s data center optimization efforts have successfully reduced power supply costs and maintained stable operations without major incidents throughout the year[74] - The group has expanded its overseas business due to challenges in the Hong Kong cryptocurrency market, focusing on potential customers for its data center services[25] - The group is considering exploring joint ventures and other means to accelerate product development and market expansion[114]

Revenue and Business Performance - The Group's revenue from data center services reached approximately HKD 29.6 million, an increase of about HKD 18.8 million compared to the same period in 2023, primarily due to contributions from the new US data center[5]. - The US data center, which began operations in December 2023, generated revenue of approximately HKD 26 million during the reporting period[5]. - The Hong Kong data center, operational since November 2021, produced revenue of approximately HKD 3.6 million during the reporting period[5]. - The group recorded total revenue of approximately HKD 30,300,000 for the reporting period, an increase of HKD 18,000,000 compared to HKD 12,300,000 for the same period last year[13]. - Revenue from big data center services contributed approximately HKD 29,600,000, representing an increase of HKD 18,800,000 compared to HKD 10,800,000 for the same period last year[13]. - Revenue from lending business was approximately HKD 700,000, a decrease of HKD 800,000 compared to HKD 1,500,000 for the same period last year[14]. - For the six months ended June 30, 2024, the company reported revenue from continuing operations of HKD 30,258 thousand, a significant increase from HKD 12,300 thousand in the same period of 2023, representing a growth of 145%[47]. - The revenue breakdown shows that the United States contributed HKD 25,957 thousand and Hong Kong contributed HKD 4,301 thousand for the six months ended June 30, 2024[47]. - The company’s data center services generated external customer revenue of HKD 29,557 thousand, while the lending business contributed HKD 701 thousand for the same period[49]. Financial Position and Losses - The group recorded a loss of approximately HKD 2,900,000, a reduction of HKD 6,000,000 or 67.4% compared to a loss of HKD 8,900,000 for the same period last year[15]. - The company reported a loss before tax of HKD 2,910,000 for the six months ended June 30, 2024, an improvement from a loss of HKD 5,471,000 in the previous year[34]. - The total comprehensive loss for the period was HKD 2,898,000, compared to HKD 8,869,000 for the same period in 2023, indicating a reduction in losses[35]. - The company incurred a loss attributable to owners of the company of HKD 2,898,000 for the six months ended June 30, 2024, compared to a loss of HKD 8,869,000 for the same period in 2023, indicating an improvement of 67.3%[70][71]. - The company reported a decrease in cash and cash equivalents to HKD 3,071 thousand as of June 30, 2024, down from HKD 28,533 thousand as of June 30, 2023, a reduction of approximately 89%[43]. Lending and Credit Provisions - The Group's lending business generated revenue of approximately HKD 700,000 during the reporting period[6]. - As of June 30, 2024, the Group made a cumulative provision of approximately HKD 4.9 million for a loan due to credit status and collateral valuation[6]. - The Group's total outstanding loan principal and accrued interest amount to approximately HKD 24.3 million as of the report date[6]. - The expected credit loss model indicated a provision for impairment losses of HKD 2,554 thousand, with HKD 1,903 thousand from data center services and HKD 651 thousand from the lending business[49]. - The expected credit loss for the loans was HKD 4,905,000 as of June 30, 2024, down from HKD 8,547,000 in the previous year[77]. Operational Costs and Employee Expenses - Employee costs increased by approximately HKD 3,100,000 due to an increase in headcount for the US data center and multiple application development projects[15]. - Operating expenses increased by approximately HKD 1,100,000 due to the new US data center commencing operations in 2024[15]. - Short-term employee benefits for key management personnel increased to HKD 1,257,000 for the six months ending June 30, 2024, compared to HKD 815,000 in the previous year[83]. Assets and Liabilities - Total non-current assets increased to HKD 42,711 thousand as of June 30, 2024, from HKD 29,839 thousand as of December 31, 2023, representing a growth of approximately 43%[38]. - Current assets decreased to HKD 35,061 thousand as of June 30, 2024, down from HKD 40,303 thousand as of December 31, 2023, a decline of about 13%[38]. - Total current liabilities rose to HKD 23,243 thousand as of June 30, 2024, compared to HKD 15,733 thousand as of December 31, 2023, an increase of approximately 48%[39]. - The company recognized a total of HKD 9,097,000 in right-of-use assets during the interim period, compared to HKD 7,000,000 in the same period of 2023[74]. - The company reported a total of HKD 27,797,000 in impairment provisions for receivables as of June 30, 2024, compared to HKD 35,400,000 in the previous year[76]. Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance to protect shareholder interests, adhering to GEM listing rules and maintaining high transparency[99]. - The management did not provide monthly updates to the board as per the corporate governance code but provided business updates as necessary, ensuring a balanced assessment of the company's performance and outlook[100]. - The audit committee, composed of three independent non-executive directors, is responsible for overseeing the financial reporting process and risk management[102]. Investments and Acquisitions - The company acquired property, machinery, and equipment worth approximately HKD 1,559,000 during the reporting period[22]. - The company has not authorized any significant investments or acquisitions during the reporting period[21]. - The company completed the sale of its data center services in China for a total consideration of HKD 37,000 thousand, with a net asset value of HKD 40,398 thousand at the time of sale[61]. Share Capital and Options - The total issued and fully paid ordinary shares as of June 30, 2024, were 548,408,822, with a total share capital of HKD 54,841,000[81]. - Wan Fung Industrial Co., Ltd. holds 279,815,740 shares, representing 51.02% of the total issued shares[94]. - The average share price for options granted on August 10, 2020, is HKD 0.26, with an expected volatility of 87.11%[92]. - The average exercise price for options granted on April 1, 2019, is HKD 1.1, with an expected volatility of 75.86%[92]. - The company approved a new share option plan on December 28, 2022, allowing directors to grant options to eligible persons for a period of 10 years[93].

Cryptocurrency Mining and Data Centers - The cryptocurrency mining market faced challenges and opportunities in 2023, with the company optimizing its data centers to enhance efficiency and maintain competitiveness [8]. - The company successfully constructed and commissioned its first data center in Indiana, USA, within six months, achieving approximately 90% capacity sold and stable operations for three months [8]. - The company has ceased operations of its data center in mainland China after selling related companies, focusing on maintaining existing operations in Hong Kong [8]. - The US data center, which commenced operations in December 2023, is expected to generate revenue of around HKD 4,000,000 in its first year [16]. - The Hong Kong data center generated revenue of approximately HKD 18,000,000 since its operation began in November 2021 [16]. - The total revenue from data center services and leasing for the year was approximately HKD 22,000,000, a decrease of about HKD 4,600,000 compared to the same period last year, primarily due to cryptocurrency market volatility and supply chain issues [17]. - The US data center has a maximum processing capacity of approximately 11 megawatts [16]. - The Hong Kong data center has a maximum processing capacity of approximately 1,400 kilowatts [16]. Financial Performance and Revenue - The group recorded total revenue of approximately HKD 25,200,000 for the year, a decrease of HKD 4,400,000 compared to HKD 29,600,000 in 2022 [32]. - Revenue from the big data center services segment was approximately HKD 22,000,000, down HKD 4,600,000 from HKD 26,600,000 in the same period of 2022 [32]. - The lending business generated revenue of approximately HKD 3,200,000 for the year [22]. - The lending business generated revenue of approximately HKD 3,200,000, an increase of HKD 200,000 from HKD 3,000,000 in 2022 [33]. - The group recorded a loss of approximately HKD 30,500,000 for the year, a reduction of 46.4% compared to a loss of HKD 56,900,000 in the same period of 2022 [34]. - Gross profit from the big data center services increased by approximately HKD 4,200,000 due to impacts from cryptocurrency market volatility and supply chain issues [34]. Lending Activities and Risk Management - A provision of approximately HKD 8,700,000 was made for loans due to a decrease in the valuation of mortgaged assets [21]. - The company extended the repayment date of a loan amounting to HKD 30,000,000 by an additional 24 months, maintaining an annual interest rate of 10% [18]. - The company has implemented internal control measures to manage risks associated with its lending activities [23]. - The lending monitoring team conducts credit risk assessments based on various financial documents and client evaluations [24]. - The group operates a lending business in Hong Kong, facing risks from borrower defaults, making credit assessment and collateral management critical [173]. Market Outlook and Strategic Initiatives - The company remains optimistic about the future of the cryptocurrency mining industry, anticipating improvements in efficiency and sustainability as the ecosystem matures [9]. - The company acknowledges the increasing acceptance of cryptocurrency as a legitimate asset, driven by growing institutional investor interest [7]. - The company aims to leverage partnerships and innovations to explore the potential of blockchain technology across various industries [11]. - The group plans to invest resources in blockchain technology and Web 3.0 applications, following the Hong Kong government's policy declaration on virtual assets [48]. - The group is developing data centers overseas, particularly in North America and Southeast Asia, to expand its big data center business [49]. Corporate Governance and Board Structure - The company has adhered to all corporate governance codes as per GEM listing rules, except for the monthly updates to the board, which were not consistently provided [72]. - The board consists of six members, with three executive directors and three independent non-executive directors, ensuring a balance of skills and experience [77]. - The independent non-executive directors represent over one-third of the board, complying with GEM listing rules [83]. - The board is responsible for leading and controlling the group, ensuring the best interests of shareholders and stakeholders are considered [85]. - The company has established three board committees: audit committee, nomination committee, and remuneration committee, each with defined responsibilities and sufficient resources [112]. Diversity and Inclusion - The board has adopted a diversity policy, emphasizing the importance of gender diversity, with currently 25% of senior staff being female and 33% of all employees being female [96]. - The board consists of six members, including one female director, and aims to avoid a single gender in its composition [96]. - The company aims to enhance its board's gender diversity by actively seeking female candidates [96]. - The nomination committee is responsible for identifying and evaluating candidates for board positions [99]. Shareholder Communication and Engagement - The company emphasizes the importance of effective communication with shareholders and stakeholders to strengthen investor relations [156]. - The company maintains effective communication with shareholders through various channels, ensuring equal and timely access to information [155]. - The board of directors encourages shareholder participation and welcomes questions during the annual general meeting [154]. - The company has established multiple channels for ongoing communication with shareholders, including printed reports and online access [157]. Risk Factors and Compliance - The group faces risks related to economic and public health conditions, including potential disruptions from pandemics or natural disasters, which may lead to conservative decision-making [166]. - The group relies heavily on stable electricity supply and pricing for its data center operations, with high electricity costs impacting performance [168]. - Customer concentration risk exists, as the group's data center services depend on a small number of clients, which could adversely affect business performance if contracts are terminated [170]. - Poor management of accounts receivable could lead to cash flow risks, affecting the group's ability to meet financial obligations [171]. - The group has not faced any significant environmental claims, lawsuits, or penalties during the year, indicating compliance with environmental policies [175]. Financial Management and Reporting - The company reviewed its financial performance and reports quarterly [25]. - The audit committee conducted a review of the effectiveness of the internal audit function [25]. - The independent auditor's report confirms the integrity of the group's consolidated financial statements, with audit fees totaling HKD 2,238,000, including HKD 908,000 for audit services and HKD 1,330,000 for non-audit services [143]. - The board is responsible for ensuring that the financial statements reflect the true and fair view of the company's performance and cash flows [131]. - The company has implemented a clear process for selecting and recommending candidates for board positions, ensuring independence and conflict of interest considerations [104].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue from continuing operations of HKD 25,187,000, a decrease of 14.8% compared to HKD 29,550,000 in 2022[5] - The gross profit for the year was HKD 15,751,000, representing a significant increase of 36.5% from HKD 11,533,000 in the previous year[5] - The company incurred an operating loss before tax of HKD 26,831,000, which is a 88.5% increase from the loss of HKD 14,204,000 in 2022[5] - The total comprehensive loss for the year was HKD 30,548,000, a reduction of 46.2% compared to HKD 56,894,000 in the prior year[7] - The loss attributable to owners of the company from continuing operations was HKD 27,150,000, compared to HKD 14,204,000 in 2022[7] - The company reported a loss from discontinued operations of HKD 3,398,000, a decrease from HKD 42,690,000 in the previous year[7] - The basic loss per share from continuing operations was HKD 5.57, compared to HKD 10.37 in 2022[9] - The company reported a total comprehensive loss of HKD 60,292,000 for the year, compared to a loss of HKD 56,894,000 in the previous year[14] - The company reported a loss attributable to shareholders of HKD 30,548,000 for 2023, a decrease from a loss of HKD 56,893,000 in 2022[45] - The basic and diluted loss per share from continuing operations was HKD 27,150,000 in 2023 compared to HKD 14,203,000 in 2022[45] Expenses and Provisions - The administrative expenses rose to HKD 28,742,000, up 36.5% from HKD 21,066,000 in 2022[5] - The company recorded an expected credit loss provision of HKD 11,782,000, a significant increase from HKD 97,000 in the previous year[5] - The company recognized an impairment provision of HKD 8,654,000 for receivables and interest, up from zero in 2022[48] - The company reported a credit loss provision of HKD 3,120,000 for trade receivables, significantly higher than HKD 97,000 in 2022[52] - Provisions for trade receivables, loans, and other receivables increased by approximately HKD 11,700,000 based on expected credit loss models[92] Assets and Liabilities - Total non-current assets decreased from HKD 36,211,000 to HKD 29,839,000, a decline of approximately 17.6% year-over-year[11] - Current assets decreased significantly from HKD 73,505,000 to HKD 40,303,000, representing a reduction of about 45.0%[11] - Total current liabilities decreased from HKD 32,453,000 to HKD 15,733,000, a decrease of approximately 51.5%[11] - The company's net assets decreased from HKD 76,961,000 to HKD 49,878,000, a decline of about 35.3%[12] - The company’s equity attributable to owners decreased from HKD 77,194,000 to HKD 49,878,000, a reduction of about 35.3%[12] - The company’s total liabilities decreased to HKD 6,851,000 in 2023 from HKD 8,027,000 in 2022[57] - Current assets exceeded current liabilities by HKD 24,600,000 as of December 31, 2023[102] Revenue Streams - Revenue from data center services was HKD 22,037,000 in 2023, down from HKD 26,550,000 in 2022, reflecting a decline of 17.0%[26] - The group recorded total revenue of approximately HKD 25,200,000, a decrease of HKD 4,400,000 compared to HKD 29,600,000 in 2022, representing a decline of 14.9%[86] - Revenue from big data center services was approximately HKD 22,000,000, down HKD 4,600,000 from HKD 26,600,000 in the same period of 2022, a decrease of 17.3%[86] - Revenue from the lending business increased to approximately HKD 3,200,000, an increase of HKD 200,000 from HKD 3,000,000 in 2022, representing a growth of 6.7%[87] - Interest income from lending activities increased to HKD 3,150,000 in 2023, compared to HKD 3,000,000 in 2022, representing a growth of 5.0%[26] Market Strategy and Operations - The company aims to explore new market opportunities and enhance its product offerings in the upcoming fiscal year[5] - The group has signed an agreement with an independent third party to identify potential customers for its data center services in Hong Kong, focusing on expanding overseas operations[28] - The group’s strategy includes focusing on overseas market expansion due to the decline in the cryptocurrency market in Hong Kong[28] - The company plans to expand its data center business in overseas markets, including North America and Southeast Asia[104] - The company remains optimistic about the future of the cryptocurrency mining industry, anticipating improvements in efficiency and sustainability as the ecosystem matures[63] Capital and Investments - The company completed the sale of its data center services in China for HKD 37,000,000 on January 11, 2023, with the net assets of the sold business amounting to HKD 40,398,000[35][38] - The company acquired 55% equity in Your Choice Ever Best, Inc. for USD 4,311,913 (approximately HKD 33,848,515), but the agreement automatically terminated due to unmet conditions[93] - The group invested USD 150,000 (approximately HKD 1,177,500) in Cyberflow Digital Inc., acquiring a 30% stake in the company[94] - The group spent HKD 18,201,000 on machinery and equipment for a new data center in the U.S. and HKD 2,310,000 on property renovations[95] Employee and Management - The company has not declared any dividends for the years ending December 31, 2023, and December 31, 2022[42] - The total remuneration for directors was approximately HKD 2,000,000 for the year, down from HKD 3,700,000 in the previous year[109] - As of December 31, 2023, the company employed a total of 18 employees, an increase from 10 employees in the previous year[109] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the annual performance and audited financial statements[116] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the year[118] - The company will hold its Annual General Meeting on May 10, 2024, with a suspension of share transfer registration from May 7 to May 10, 2024[119] - The preliminary announcement of the financial results for the year ending December 31, 2023, will be consistent with the audited consolidated financial statements[121] - The annual report for the year ending December 31, 2023, will be published on the company's website and distributed to shareholders at an appropriate time[123]

Revenue Performance - The company reported total revenue of approximately HKD 18,500,000 for the reporting period, a decrease of HKD 4,400,000 compared to HKD 22,900,000 for the same period last year[18]. - Revenue from the big data center services segment was approximately HKD 16,200,000, down HKD 4,500,000 from HKD 20,700,000 in the same period last year[18]. - Revenue from the lending business increased to approximately HKD 2,330,000, an increase of HKD 80,000 compared to HKD 2,250,000 in the same period last year[19]. - Revenue from continuing operations for the three months ended September 30, 2023, was HKD 6,225 thousand, down 18.5% from HKD 7,635 thousand in the same period of 2022[43]. - Revenue from continuing operations for the nine months ended September 30, 2023, was HKD 18,525 thousand, a decrease of 19.2% compared to HKD 22,905 thousand for the same period in 2022[43]. Loss and Financial Position - The company recorded a loss of approximately HKD 11,300,000, a reduction of HKD 18,400,000 or 62% compared to a loss of HKD 29,700,000 in the same period last year[21]. - The total comprehensive loss attributable to owners of the company for the nine months ended September 30, 2023, was HKD 11,294,000, a significant reduction from HKD 29,663,000 in the same period last year[37]. - For the three months ended September 30, 2023, the company reported a loss attributable to owners of the company from continuing operations of HKD (2,181) thousand, compared to a loss of HKD (1,733) thousand for the same period in 2022, representing a 26% increase in loss[39]. - For the nine months ended September 30, 2023, the loss attributable to owners from continuing operations was HKD (7,737) thousand, a decrease of 47% compared to HKD (14,641) thousand for the same period in 2022[39]. - The company reported a total loss attributable to owners of HKD (2,425) thousand for the three months ended September 30, 2023, compared to HKD (4,252) thousand for the same period in 2022[54]. Business Segments - The Group's data center services generated revenue of approximately HKD 16,200,000, a decrease of about HKD 4,500,000 compared to the same period in 2022, primarily due to a decline in cryptocurrency prices affecting rental fees[8]. - The Group's data center has a maximum processing capacity of approximately 1,400 kWh and commenced operations in November 2021[7]. - The Group's data center services ceased operations in Sichuan Province, China, prior to 2022, and did not generate revenue during the reporting period[8]. - The lending business generated revenue of approximately HKD 2,300,000 during the reporting period[11]. Lending Activities - The Group's subsidiary obtained a money lender license under the Money Lenders Ordinance in January 2020, expanding its revenue sources[10]. - A loan of HKD 30,000,000 was granted to an independent third party with a term of 24 months at an annual interest rate of 10%[10]. - The Group has implemented internal control measures to manage risks associated with its lending activities[12]. - The Group's lending activities include a second loan agreement for HKD 3,000,000 at an annual interest rate of 10% with a 24-month term[10]. - The Group's management emphasizes the importance of credit risk assessment and internal controls in its lending operations[14]. Strategic Plans and Investments - The company plans to invest resources in blockchain technology research and web 3.0 applications to provide related application services[22]. - The company is focused on expanding its big data center business, including developing data centers in overseas markets such as North America and Southeast Asia[23]. - The company has entered into a contract with Green Land Energy Inc. for consulting services related to the construction of a new data center in the United States, expected to be completed in Q4 2023[25]. - The acquisition of 55% of Your Choice, a company operating data centers in the United States, is still pending completion[23]. - The company will continue to review its operational and financial conditions to formulate long-term business development plans and explore other business opportunities[22]. Shareholder and Equity Information - As of September 30, 2023, the company had a total issued share capital of HKD 54,841,000, unchanged from the previous year[58]. - The total number of issued shares as of September 30, 2023, is 548,408,822 shares[72]. - Wan Feng Industrial Co., Ltd. holds 279,815,740 shares, representing 51.02% of the total issued shares[69]. - Ever Marvel Group Limited owns 67,548,564 shares, accounting for 12.32% of the total issued shares[69]. - The company has not declared any dividends for the nine months ended September 30, 2023[26]. Audit and Compliance - The company has established an audit committee responsible for overseeing financial reporting and risk management processes[76]. - The audit committee consists of three independent non-executive directors, ensuring compliance with applicable accounting standards[76]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[60]. - No share options were granted, exercised, lapsed, or cancelled during the reporting period[70].

B_table indent_4.5 mm N_table indent_3.5 mm 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，並明確表示概不就因本 盡量排滿版面， 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之任何損失承擔 可斬半段 任何責任。 Crypto Flow Technology Limited 加幂科技有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8198） 截至二零二三年九月三十日止九個月期間之 第三季度業績 加幂科技有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」） 會（「董事會」）謹此公佈本集團截至二零二三年九月三十日止九個月期間的 未經審核簡明綜合業績。 本公告載有本集團二零二三年第三季度報告全文，符合香港聯合交易所有 限公司GEM證券上市規則（「GEM上市規則」）有關第三季度業績初步公告隨 附資料的相關規定。 承董事會命 加幂科技有限公司 行政總裁兼執行董事 黃亦斌 香港，二零二三年十一月十日 ...