Revenue and Financial Performance - The company recorded total revenue of approximately HKD 12,300,000 for the reporting period, a decrease of HKD 3,000,000 compared to HKD 15,300,000 for the same period last year, representing a decline of 19.6%[21] - Revenue from the big data center services segment was approximately HKD 10,800,000, down HKD 3,000,000 from HKD 13,800,000 in the same period last year, a decrease of 21.7%[21] - For the six months ended June 30, 2023, revenue was HKD 12,300,000, a decrease of 19.4% compared to HKD 15,270,000 for the same period in 2022[56] - Revenue for the three months ended June 30, 2023, was HKD 6,150,000, a decrease of 19.4% compared to HKD 7,635,000 for the same period in 2022[76] - The company reported a loss of approximately HKD 8,900,000 for the reporting period, an improvement of HKD 16,500,000 or 65% compared to a loss of HKD 25,400,000 in the same period last year[23] - The net loss attributable to owners for the six months was HKD 8,869,000, down from HKD 25,412,000 in the same period last year, a 65.1% reduction[59] - The company reported a total comprehensive loss of HKD 5,556,000 for the six months ended June 30, 2023, compared to a total comprehensive loss of HKD 27,901,000 for the same period in 2022, marking an improvement of 80.0%[69] Data Center Operations - The group generated revenue of approximately HKD 10,800,000 from data center services during the reporting period, a decrease of about HKD 3,000,000 compared to the same period in 2022, primarily due to a decline in cryptocurrency prices[9] - The data center has a maximum processing capacity of approximately 1,400 kWh and commenced operations in November 2021[8] - The data center services are affected by lower leasing costs for data processors due to the cryptocurrency market downturn[9] - The segment loss for the big data center services was HKD 4,705,000 for the six months ended June 30, 2023, compared to a loss of HKD 11,072,000 for the same period in 2022[82] - The data center services incurred a loss of HKD 8,680,000 for the three months ended June 30, 2023, compared to a loss of HKD 3,398,000 for the same period in 2022[92] Lending Business - The lending business generated revenue of approximately HKD 1,500,000 during the reporting period[12] - The group holds a money lender license under the Money Lenders Ordinance in Hong Kong since January 2020[11] - A loan of HKD 30,000,000 was granted to an independent third party with a term of 24 months and an annual interest rate of 10%[11] - The loan repayment date was extended by 24 months to April 2, 2024, maintaining the annual interest rate at 10%[11] - The group has implemented internal control measures to manage risks associated with its lending activities[13] - The company aims to leverage its expertise and resources to broaden its revenue sources through its lending business[11] Investments and Acquisitions - The company has entered into an agreement to acquire 55% of Your Choice Ever Best, Inc., which operates a data center in the United States, although the acquisition is not yet completed[29] - The company invested USD 150,000 (approximately HKD 1,177,500) in Cyberflow Digital Inc., acquiring a 30% stake in the company[36] - The group incurred expenditures of HK$1,254,000 for the construction of a data center in the United States and recognized a right-of-use asset of approximately HK$2,932,000 for land use rights[104] - The group had capital commitments of HK$2,933,000 for properties, machinery, and equipment related to the new data center in the United States[112] Cash Flow and Assets - As of June 30, 2023, the company's bank balance and cash amounted to HKD 28,500,000, a significant increase from HKD 9,500,000 on June 30, 2022[40] - As of June 30, 2023, the company's net current assets were HKD 62,700,000, up from HKD 41,100,000 on December 31, 2022[41] - The company has no bank borrowings as of June 30, 2023, maintaining a debt ratio of zero[41] - Current assets increased to HKD 73,183,000 as of June 30, 2023, compared to HKD 18,924,000 at the end of 2022, showing a significant growth of 286.5%[63] - The company reported a net cash outflow from operating activities of HKD 7,586,000 for the six months ended June 30, 2023, compared to HKD 1,945,000 for the same period in 2022, indicating a worsening cash flow situation[71] Corporate Governance - The company has established an audit committee, a remuneration committee, and a nomination committee to maintain high standards of corporate governance[132] - The audit committee is responsible for reviewing and supervising the company's financial reporting process and monitoring risk management and internal controls[134] - The company has adhered to the GEM listing rules and corporate governance code, with no significant deviations reported[129] - The company emphasizes the importance of good corporate governance to protect shareholder interests[129] - The audit committee consists of three independent non-executive directors, ensuring oversight and independence in financial matters[134] Employee and Management Information - The company employed a total of 15 employees as of June 30, 2023, down from 26 employees a year earlier[46] - The short-term benefits for key management personnel amounted to HK$815,000, a decrease from HK$3,144,000 in the previous year[110] - The chairman of the board receives an additional annual remuneration of HKD 576,000, while the newly appointed Vice President of Business Development receives HKD 540,000[136] Share Capital and Equity - The total issued share capital of the company as of June 30, 2023, is 548,408,822 shares[127] - As of June 30, 2023, Wan Feng Industrial Co., Ltd. holds a 51.02% direct equity stake in the company, equating to 279,815,740 shares[123] - Ever Marvel Group Limited holds 12.32% of the company's shares, amounting to 67,548,564 shares[123] - The company issued 80,591,701 new shares as part of a share purchase agreement valued at $4,311,913, with 67,548,564 shares allocated to Ever Marvel Group Limited[127] Miscellaneous - The company did not declare an interim dividend for the reporting period ending June 30, 2022[37] - The company did not report any income tax expenses for the period[56] - The company has no significant contingent liabilities as of June 30, 2023[43] - The company has not disclosed any new product developments or market expansion strategies in the current report[56] - There were no significant mergers or acquisitions reported during the period[56]

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 （前稱Loto Interactive Limited樂透互娛有限公司） （於開曼群島註冊成立之有限公司） （股份代號：8198） 截至二零二三年六月三十日止六個月期間之 中期業績 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六月三十日止六個月期間的 未經審核簡明綜合中期業績。 本公告載有本公司二零二三年中期報告全文，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」）有關中期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 ...

Financial Performance - The company's revenue for the first quarter of 2023 was HKD 6,150,000, a decrease of 19.4% compared to HKD 7,635,000 in the same period of 2022[5] - Gross profit for the first quarter was HKD 4,569,000, significantly up from HKD 793,000 in the previous year, indicating a substantial improvement in profitability[5] - The total comprehensive loss for the period was HKD 5,953,000, slightly improved from a loss of HKD 6,460,000 in the same quarter of 2022[7] - The company reported a basic and diluted loss per share of HKD 1.09, compared to HKD 1.18 in the prior year[7] - Total revenue for the group was approximately HKD 6,200,000, a decrease of HKD 1,400,000 compared to the same period last year[26] - The group recorded a loss of approximately HKD 6,000,000, a reduction of HKD 500,000 or 7.8% compared to a loss of HKD 6,500,000 in the same period last year[29] Revenue Breakdown - Revenue from big data center services was HKD 5,400,000, down from HKD 6,885,000 in the previous year, while revenue from lending business remained stable at HKD 750,000[11] - Revenue from data center services was approximately HKD 5,400,000, down HKD 1,500,000 year-on-year, primarily due to lower rental fees for data processors caused by a decline in cryptocurrency prices[23] - Revenue from lending business remained stable at approximately HKD 800,000, unchanged from the same period last year[27] Expenses and Cost Management - Administrative expenses decreased to HKD 6,772,000 from HKD 7,137,000 year-over-year, reflecting cost management efforts[5] - The financial expenses for the quarter were HKD 123,000, compared to HKD 98,000 in the same period last year[5] - Employee costs decreased by approximately HKD 1,600,000 due to the cessation of operations in China and the sale of subsidiaries, resulting in a reduced workforce[30] - Professional fees increased by approximately HKD 1,000,000, primarily due to the sale of Da Zheng Limited[30] Dividends and Shareholder Information - The company did not declare any dividends for the quarter, consistent with the previous year[16] - No dividends were recommended for the reporting period ending March 31, 2022[38] - As of March 31, 2023, the major shareholder, Wan Fung Industrial Limited, holds 279,815,740 shares, representing 51.02% of the total issued shares[47] - Ever Marvel Group Limited holds 67,548,564 shares, accounting for 12.32% of the total issued shares[47] Strategic Initiatives and Investments - The group plans to continue investing in blockchain technology and web3.0 applications, aiming to provide related application services[29] - The company is focused on developing data centers to expand its existing business, particularly in overseas markets such as North America and Southeast Asia[31] - The company has entered into an agreement to acquire 55% of Your Choice Ever Best, Inc. for approximately $4.31 million (equivalent to about HKD 33.85 million), with the acquisition still pending completion[34] - The company has invested $150,000 (approximately HKD 1.18 million) in Cyberflow Digital Inc., acquiring a 30% stake in the company, which focuses on developing Web3.0 mobile applications and communication platforms[36] - The company has signed a contract with Green Land Energy Inc. for consulting services related to the construction of a data center in the United States, with a total consulting fee of $800,000 (approximately HKD 6.28 million)[37] - The company completed the sale of a subsidiary for HKD 37 million on January 11, 2023, with all conditions of the sale agreement met[33] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated results for the reporting period, ensuring compliance with applicable accounting standards[52] - There are no competing business interests held by directors or major shareholders that could conflict with the company's operations[51] - The company has not disclosed any new strategies or market expansions during the reporting period[45] - The company did not report any new product or technology developments in the first quarter of 2023[45] Share Options and Equity - The new share option plan approved on December 28, 2022, will remain effective for 10 years from the date of adoption[44] - No share options were granted, exercised, expired, or canceled during the reporting period under the 2012 share option plan[46] - The total number of share options outstanding as of March 31, 2023, is 30,233,600[46] - The total number of options exercised during the reporting period was zero[46] - The company has not reported any mergers or acquisitions in the recent quarter[45] - As of March 31, 2023, the total number of issued shares is 548,408,822, with Wan Feng Industrial Limited holding 279,815,740 shares, representing approximately 51% of the total issued shares[50] - The company entered into a share purchase agreement on March 16, 2023, to acquire shares of Your Choice Ever Best, Inc. for a total consideration of $4,311,913, to be settled by issuing 80,591,701 new shares[50] - Sichuan Hengjia holds 100% direct interest in Ever Marvel Group Limited, which is linked to the acquisition of 67,548,564 shares as part of the share purchase agreement[50]

B_table indent_4.5 mm N_table indent_4 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公告全部或任何 盡量排滿版面， 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 可斬半段 Crypto Flow Technology Limited 加幂科技有限公司 （前稱Loto Interactive Limited樂透互娛有限公司） （於開曼群島註冊成立之有限公司） （股份代號：8198） 截至二零二三年三月三十一日止 三個月期間之第一季度業績 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」）謹此宣佈本集團截至二零二三年三月三十一日止三個月期間之未經審核簡 明綜合業績。 本公告載有本公司二零二三年第一季度報告全文，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」）有關第一季度業績初步公告所附資料的有關 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 ...

Corporate Structure and Governance - The company completed a mandatory unconditional cash offer on September 9, 2022, making Wan Feng Industrial the controlling shareholder[11]. - The company changed its name from Loto Interactive Limited to Crypto Flow Technology Limited to better reflect its future development direction[11]. - The company has appointed notable figures in the blockchain and digital infrastructure sectors to its board and management team[11]. - The company emphasizes the importance of good corporate governance to protect shareholder interests and has adhered to all corporate governance codes except for the monthly updates to the board, which were not provided this year[77]. - The board consists of six members, with three executive directors and three independent non-executive directors, ensuring a balance of skills and experience necessary for effective leadership[83]. - The roles of Chairman and CEO are held by different individuals to ensure independence and accountability[96]. - The board consists of six directors, three of whom are independent non-executive directors, exceeding the GEM listing rules requirement of at least one-third[88]. - The company has established mechanisms to ensure independent opinions and suggestions are provided to the board, which are reviewed annually[88]. - The board regularly reviews compensation policies, succession plans, internal controls, and risk management systems[92]. - The company has adopted a nomination policy to identify and evaluate candidates for board appointments[111]. - The board's diversity policy has been reviewed and deemed effective in the current year[110]. - The company has appropriate insurance arrangements for potential legal actions faced by directors and officers, with no claims made this year[122]. - The board is responsible for the overall management and control of the company's business, guided by the CEO[123]. - The company received no significant reports of fraud or misconduct affecting its financial statements or operations this year[143]. - The independent auditor's report is included in the annual report, confirming the integrity of the financial statements[148]. - The company is committed to maintaining the highest standards of integrity and ethical behavior in its operations[146]. - The board has taken necessary measures to safeguard the group's assets and prevent fraud[148]. Financial Performance - The total revenue for the year was approximately HKD 29,600,000, a significant increase of HKD 20,900,000 compared to HKD 8,700,000 in the previous year, representing a growth of 240.2%[35]. - Revenue from the ongoing business of the Hong Kong data center was HKD 26,600,000, up from HKD 5,700,000 in the previous year, marking an increase of 466.7%[35]. - The company recorded a loss of approximately HKD 56,900,000 for the year, a reduction of HKD 235,400,000 or 80.5% compared to a loss of HKD 292,300,000 in the previous year[40]. - The lending business contributed approximately HKD 3 million in revenue for the year, with a loan amount of HKD 30 million granted at an interest rate of 10%[26]. - The data processing rental service generated zero revenue this year, down from HKD 1,200,000 in the previous year[38]. - The lending business generated revenue of approximately HKD 3,000,000, unchanged from the previous year[39]. - The company has terminated its operations in China, resulting in no revenue from data center services in that region for the year[22]. - The company’s financial performance analysis is detailed in the consolidated financial statements, with key performance indicators highlighted in the annual report[182]. - The group recorded a capital surplus of HKD 77 million as of December 31, 2022, down from HKD 137 million in 2021[46]. - The company extended the repayment period of a loan agreement worth HKD 30,000,000 for an additional 24 months, maintaining an annual interest rate of 10%[44]. - The total fees paid to the independent auditor for audit services amounted to HKD 880,000, with an additional HKD 230,000 for non-audit services, totaling HKD 1,110,000[160]. Business Operations and Strategy - The company ceased operations of three data centers in Sichuan, China, in 2021, impacting short-term revenue, but has developed an overseas expansion strategy[12]. - The company is optimistic about the stable development of cryptocurrency mining services, leveraging data centers for various mining services[15]. - The company is actively exploring acquisitions and investments in data centers in North America, where energy prices and rents are lower[15]. - The company aims to build a scalable blockchain infrastructure service enterprise, focusing on Web3.0 and metaverse technology and applications[11]. - The company is actively seeking to expand its blockchain and related applications, supported by the Hong Kong government, to enhance its business offerings[16]. - The company is considering the application of blockchain technology and web 3.0 in response to the Hong Kong government's policy declaration on virtual asset development[49]. - The company is actively exploring the development of data centers to align with its overall growth strategy and meet market demand[50]. - The company acknowledges the challenges posed by high inflation and tightening financial policies in the current market environment[11]. - The company has implemented internal control measures to manage risks associated with its lending activities, ensuring compliance with relevant laws and regulations[27]. - The management team is focused on identifying new growth points to achieve long-term sustainable development goals[17]. Risk Management and Compliance - The company is focusing on risk management and compliance in response to tightening regulations in the virtual asset industry[11]. - The lending control team conducts credit risk assessments based on potential clients' financial status and repayment capabilities[28]. - The company has established a process for credit approval that includes independent evaluations and compliance with GEM listing rules[31]. - The company has established a robust internal control and risk management system to safeguard shareholder investments and assets[152]. - The risk management policy provides a framework for identifying and assessing significant business, operational, financial, and compliance risks[153]. - The internal control system aims to protect assets from misappropriation and unauthorized disposal, managing operational risks effectively[156]. - The audit committee has reviewed the effectiveness of the risk management and internal control systems, covering all significant financial, operational, and compliance controls[158]. - The group faces risks related to legal and regulatory compliance as it expands its business into Hong Kong and other overseas markets, which may involve adherence to new applicable laws and regulations concerning data protection and internet information security[183]. - Economic and public health conditions, including the risk of recession and the impact of new COVID-19 variants, may lead to more conservative decision-making by the group and its business partners[186]. - The group relies on a concentrated customer base for its data center and lending businesses, which poses risks if key customers terminate services or experience credit issues[189]. Employee and Stakeholder Relations - The company employed 10 employees as of December 31, 2022, down from 24 in 2021, with total director remuneration of approximately HKD 3.7 million[55]. - Approximately 25% of senior employees, including directors and senior management, are female, while about 50% of all employees are female[107]. - The company recognizes the importance of maintaining strong relationships with employees, customers, and suppliers for its ongoing development[199]. - The board encourages open expression of opinions among directors during meetings[88]. - The company maintains effective communication with shareholders and stakeholders to enhance investor relations and ensure timely access to balanced information[172]. - The board of directors encourages shareholder participation during the annual general meeting, providing a platform for questions and discussions[171]. Environmental and Social Responsibility - The group is committed to environmental sustainability by reducing consumption of electricity, gasoline, diesel, and water, and has not faced any environmental claims or penalties during the year[193].

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 （前稱Loto Interactive Limited樂透互娛有限公司） （於開曼群島註冊成立之有限公司） （股份代號：8198） 截至二零二二年十二月三十一日止年度之全年業績 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他 在聯交所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該 等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交 所主板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣的 證券會有高流通量的市場。 本公告之資料乃遵照聯交所GEM證券 ...

Revenue Performance - The total revenue for the group during the reporting period was approximately HKD 22,900,000, a decrease of HKD 149,900,000 compared to HKD 172,800,000 for the same period last year[10]. - Revenue from data center services was approximately HKD 20,700,000, down HKD 149,300,000 from HKD 170,000,000 in the same period last year[10]. - Revenue from lending business was approximately HKD 2,300,000, unchanged from the same period last year[13]. - The company reported revenue of HKD 22,905,000 for the nine-month period ending September 30, 2022, a decrease of 87.5% compared to HKD 172,753,000 for the same period in 2021[30]. - For the three months ended September 30, 2022, the revenue from big data center services was HKD 6,885,000, while for the nine months, it was HKD 20,655,000, a significant decrease from HKD 170,044,000 in the same period last year[37]. - The total revenue for the three months ended September 30, 2022, was HKD 7,635,000, compared to HKD 865,000 in the same period last year, and for the nine months, it was HKD 22,905,000, down from HKD 172,753,000 year-on-year[37]. Loss and Financial Performance - The company recorded a loss of approximately HKD 29,700,000, a decrease of HKD 150,800,000 or 83.6% compared to a loss of HKD 180,500,000 in the same period of 2021[14]. - The gross loss from data center services decreased by approximately HKD 23,700,000, primarily due to a reduction in sales and service costs by about HKD 173,500,000, which outweighed the revenue decrease of approximately HKD 149,400,000 from the closure of three data centers[14]. - The company incurred a loss before tax of HKD 29,663,000 for the nine-month period, compared to a loss of HKD 180,447,000 in the same period last year, reflecting a reduction in losses[30]. - The total comprehensive loss for the nine-month period was HKD 40,911,000, compared to HKD 160,156,000 in the previous year, showing a substantial decrease[32]. - The basic and diluted loss per share for the nine-month period was HKD 5.41, compared to HKD 35.10 in the previous year, indicating a reduction in loss per share[32]. Asset Management and Impairment - The group has made provisions for impairment of fixed assets due to the closure of three data centers in Sichuan, China, which will close in the fourth quarter of 2022[6]. - Fixed asset impairment provisions decreased by approximately HKD 115,700,000 due to the closure and dismantling of three data centers since June 2021[14]. - Employee costs decreased by approximately HKD 9,600,000 due to a reduction in workforce following the closure of the three data centers[14]. Business Segments and Services - The group’s data center services are part of its main business segments, which also include data processor leasing and lending services[4]. - The group recorded no revenue from data processor leasing services during the reporting period[11]. - The cryptocurrency mining business generated no revenue in the current periods, compared to HKD 115,000 in the previous year[37]. - The online gaming business reported no revenue for the current periods, down from HKD 344,000 in the previous year[37]. Strategic Initiatives and Future Plans - The company plans to explore the development of data centers in overseas markets, including North America and Southeast Asia, to expand its existing business[17]. - The company is considering research into blockchain technology and web 3.0 applications in response to the Hong Kong government's policy declaration on the development of virtual assets[16]. - The company has no plans for significant investments or acquisitions during the reporting period[22]. Corporate Changes and Governance - The company changed its name from "Loto Interactive Limited" to "Crypto Flow Technology Limited" to better reflect its future development direction[18]. - The company completed a mandatory unconditional cash offer, resulting in a new major shareholder, Wan Fung Industries, acquiring approximately 51% of the company's issued share capital for HKD 78,308,496[23]. - The company has appointed new executive directors and independent non-executive directors, which may influence future strategic decisions[26]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial data for the third quarter, ensuring compliance with internal controls and risk management[69]. - The company has established a risk management framework to oversee its financial reporting processes and enhance internal controls[68]. Shareholder Information - As of September 30, 2022, the total number of issued shares was 548,378,822[62]. - Wan Fung Industrial Co., Ltd. holds 279,815,740 shares, representing 51.03% of total shares[62]. - BIT Mining Limited owns 48,195,605 shares, accounting for 8.79% of total shares[62]. - The company reported a significant increase in user data, with a total of 279,815,740 shares held by its major shareholder, representing a 35% equity interest[64]. Financial Management - The company reported other income and gains of HKD 566,000 for the nine-month period, compared to a loss of HKD 114,932,000 in the previous year, indicating a positive shift[30]. - The company’s financial expenses for the nine-month period were HKD 236,000, a decrease from HKD 592,000 in the previous year, suggesting improved financial management[30]. - The company did not record any deferred tax assets or liabilities due to operational losses in both periods[39]. - The tax rate for the company's subsidiaries in China is 25% as per the Corporate Income Tax Law[40]. Dividends and Stock Options - The company does not recommend the payment of an interim dividend for the reporting period[19]. - No dividends were declared or paid for the nine months ended September 30, 2022, consistent with the same period last year[41]. - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[46]. - There were no new share option plans established after the expiration of the 2012 share option plan on May 18, 2022[48]. - The company did not grant or exercise any stock options under the 2012 stock option plan during the reporting period[54]. - A total of 32,083,600 stock options were reported, with 31,793,600 remaining unexercised[53]. - The stock options granted on April 1, 2019, have an exercise price of HKD 1.10 and a validity period until March 31, 2029[54]. - The stock options granted on August 10, 2020, have an exercise price of HKD 0.26 and a validity period until August 9, 2030[54].

Revenue Performance - The total revenue for the group during the reporting period was approximately HKD 15,300,000, a decrease of HKD 156,600,000 compared to the same period last year[11]. - Revenue from data center services was approximately HKD 13,800,000, down HKD 156,200,000 year-on-year, primarily due to the closure of three data centers in Sichuan, China[6]. - Revenue for the six months ended June 30, 2022, was HKD 15,270,000, a decrease of 91.1% compared to HKD 171,888,000 in the same period of 2021[87]. - Revenue for the three months ended June 30, 2022, was HKD 7,635,000, a decrease of 92.2% compared to HKD 97,629,000 for the same period in 2021[87]. - Big data center services generated revenue of HKD 6,885,000 for the three months ended June 30, 2022, compared to HKD 96,784,000 in the same period of 2021, representing a decline of 92.9%[87]. - Major customers contributing over 10% of total revenue included Customer A, which generated HKD 6,885,000 for the three months ended June 30, 2022, compared to HKD 15,253,000 in the same period of 2021[92]. Financial Losses - The group recorded a loss of approximately HKD 25,400,000, which is a reduction of HKD 11,800,000 or 31.7% compared to the loss of HKD 37,200,000 in the same period last year[15]. - The company reported a loss before tax of HKD 25,412 thousand for the six months ended June 30, 2022, compared to a loss of HKD 37,199 thousand in the same period of 2021[32]. - The total comprehensive loss for the six months ended June 30, 2022, was HKD 28,556 thousand, compared to a loss of HKD 18,768 thousand in the same period of 2021[35]. - The company reported a loss of approximately HKD 18,952,000 for the three months ended June 30, 2022, compared to a loss of HKD 14,372,000 for the same period in 2021[97]. - The total loss attributable to owners of the company for the six months ended June 30, 2022, was HKD 27,901,000, compared to HKD 25,410,000 in the previous year[44]. Asset Management - The group has made provisions for fixed asset impairment due to the closure of three data centers in China, which significantly reduced the cost of sales and services by approximately HKD 165,100,000[15]. - Non-current assets as of June 30, 2022, amounted to HKD 62,015 thousand, an increase from HKD 50,952 thousand as of December 31, 2021[40]. - Current assets totaled HKD 72,679 thousand as of June 30, 2022, down from HKD 114,568 thousand as of December 31, 2021[40]. - The company's net assets decreased to HKD 109,453 thousand as of June 30, 2022, from HKD 137,001 thousand as of December 31, 2021[42]. - The company did not purchase any fixed assets during the reporting period[21]. Employee Costs - Employee costs decreased by approximately HKD 6,400,000 due to the reduction in workforce following the closure of the three data centers[15]. - The group employed a total of 26 employees as of June 30, 2022, down from 97 employees a year earlier, with employee benefit costs amounting to HKD 7,300,000[30]. - The total compensation for directors and key management personnel was HKD 3,496,000 in the first half of 2022, a decrease of 18.2% from HKD 4,274,000 in the same period of 2021[107]. Cash Flow and Liquidity - As of June 30, 2022, the group's bank balance and cash amounted to HKD 29,900,000, a decrease from HKD 35,800,000 as of December 31, 2021, primarily due to the expansion of big data centers[22]. - The cash flow from operating activities for the six months ended June 30, 2022, was a net outflow of HKD 2,120,000, a significant decrease from an inflow of HKD 11,124,000 in 2021[81]. - Cash and cash equivalents at the end of the period were HKD 29,924,000, down from HKD 51,060,000 at the end of June 30, 2021[83]. - The net cash flow from investing activities for the six months ended June 30, 2022, was HKD 75,000, a decrease from a net outflow of HKD 105,855,000 in 2021[83]. Corporate Governance - The company emphasizes the importance of good corporate governance to protect shareholder interests and maintains high transparency[141]. - The company has established an audit committee, remuneration committee, and nomination committee to uphold high standards of corporate governance[143]. - The audit committee is responsible for reviewing and supervising the financial reporting process and risk management[145]. Strategic Development - The company is actively exploring the development of big data centers in other regions to align with its overall strategic development and meet market demand[17]. - The group plans to continue its cautious risk management policy to maintain the quality of its loan portfolio[9]. Shareholder Transactions - The company has entered into a share purchase agreement to sell 279,673,200 shares, representing approximately 51% of the total issued share capital, for a total consideration of HKD 78,308,496[30]. - The mandatory unconditional cash offer will be made to acquire all issued shares not already owned by the offeror and its concert parties[30]. - As of June 30, 2022, the total number of issued shares was 548,378,822, with directors holding a total of 3,566,800 options, representing approximately 0.65% of the total issued shares[112]. - BIT Mining holds 327,868,805 shares, representing approximately 59.79% of the total issued shares[135]. - The company did not declare or pay any interim dividends for the six months ended June 30, 2022[95].

Financial Performance - The company's revenue for the three months ended March 31, 2022, was HKD 7,635,000, a decrease of 89.7% compared to HKD 74,259,000 for the same period in 2021[6] - The gross profit for the reporting period was HKD 793,000, compared to a gross loss of HKD 11,636,000 in the previous year[6] - The company reported a loss before tax of HKD 6,460,000, significantly improved from a loss of HKD 22,795,000 in the same period last year[6] - Total comprehensive loss for the period was HKD 6,089,000, compared to HKD 10,319,000 in the previous year[9] - The basic and diluted loss per share for the period was HKD 1.18, compared to HKD 4.52 in the same period last year[9] - Total revenue for the group during the reporting period was approximately HKD 7,600,000, a significant decrease of HKD 66,700,000 compared to HKD 74,300,000 for the same period in 2021[30] - Revenue from data center services was approximately HKD 6,900,000, a decrease of about HKD 66,400,000 compared to HKD 73,300,000 for the same period in 2021[30] - The group recorded a loss of approximately HKD 6,500,000, a decrease of HKD 16,300,000 or 71.5% compared to the loss of HKD 22,800,000 in the same period of 2021[34] Revenue Sources - Revenue from big data center services was HKD 6,885,000, while online gaming business revenue was nil, compared to HKD 73,260,000 and HKD 249,000 respectively in the previous year[14] - The group recorded no revenue from data processor leasing services during the reporting period, consistent with the same period in 2021[31] - Revenue from lending business was approximately HKD 800,000, unchanged from the same period in 2021[32] Expenses and Costs - Administrative expenses for the period were HKD 7,137,000, down from HKD 11,819,000 in the previous year[6] - The company recorded other income of HKD 21,000, a decrease from HKD 729,000 in the previous year[6] - Employee costs decreased by approximately HKD 2,500,000 due to a reduction in headcount following the termination of operations at three data centers[34] - Gross profit from big data center services increased by approximately HKD 12,400,000, primarily due to a reduction in sales and service costs by approximately HKD 79,100,000[34] Dividends and Share Options - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2022[18] - The company does not recommend the payment of an interim dividend for the reporting period[38] - The total number of options exercised during the reporting period was 32,083,600, with a significant portion at an exercise price of HKD 0.26[74] - The company has a total of 16,770,000 options outstanding as of the reporting date[73] Loans and Financial Agreements - The group has a loan of HKD 30,000,000 with a term of 24 months and an annual interest rate of 10%, contributing to the lending business revenue[29] - The loan agreement with an independent third party was extended for an additional 24 months, with a principal amount of HKD 30,000,000 and an annual interest rate of 10%[35] - The second phase interest payment of HKD 3,000,000 was made by the borrower as per the loan agreement[35] Business Operations and Strategy - The data center located in Sichuan, China, was closed in January 2022, contributing to the revenue decline[26] - The group has agreed to temporarily waive rental fees for data processors during power outages in Kazakhstan, affecting customer operations[27] - The group plans to remove machinery and equipment from three data centers in China, leading to fixed asset impairment provisions[25] - The company is actively exploring the development of data centers in North America and other regions to meet market demand and expand its data center business[37] - The group plans to continue leasing previously purchased data processors to independent third parties to generate rental income[37] - The company will continue to seek new opportunities in a rapidly changing business environment, focusing on innovation and policy changes[37] Corporate Governance - The company has established an audit committee to oversee financial reporting processes and risk management, consisting of two independent non-executive directors and one non-executive director[89] - The report indicates that there are no competing business interests held by directors or major shareholders that conflict with the company's operations[88] - There were no significant changes in the ownership structure of major shareholders during the reporting period[78] - BIT Mining holds 327,868,805 shares, representing 59.79% of the total shares issued as of March 31, 2022, which amounts to 548,378,822 shares[84] Share Option Scheme - The 2012 Share Option Scheme was approved at the annual general meeting on May 18, 2012, allowing directors to grant options to eligible persons until May 17, 2022[54] - As of March 31, 2022, the total number of share options granted under the 2012 scheme was 14,633,600, with various exercise prices ranging from HKD 0.26 to HKD 1.10[56] - The company has not granted, exercised, or cancelled any share options under the 2012 Share Option Scheme during the reporting period[75] - The exercise periods for options granted in 2018, 2019, and 2020 vary, with the latest ending in 2030[75] - The company continues to recognize the contributions of consultants by granting them share options similar to those of employees[75]

乐透互娱 LOTO INTERACTIVE 樂透互娛有限公司 (於開量群島註冊成立之有限公司) (股份代號 : 8198) www.lotoie.com 第三季度報告 2021 | --- | --- | |-------|-------| | | | | | | | | | | | | | | | | | | | | | 315 158 香 港 聯 合 交 易 所 有 限 公 司（「聯 交 所」）GEM的特色 GEM的 定 位，乃 為 中 小 型 公 司 提 供 一 個 上 市 的 市 場，此 等 公 司 相 比 起 其 他 在 聯 交 所 上 市 的 公 司 帶 有 較 高 投 資 風 險。有 意 投 資 的 人 士 應 了 解 投 資 於 該 等 公 司 的 潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由 於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主 板 買 賣 之 證 券 承 受 較 大 的 市 場 波 動 風 險，同 時 無 法 保 證 在GEM買賣的證券會有 高流通量的市場。 香 港 交 易 及 結 算 所 有 限 公 司 及 聯 交 所 對 本 報 告 之 內 ...