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 (於開曼群島註冊成立之有限公司) (股份代號：8198) www lotoie com PANATE OF THE CONSULT OF THE PERSONAL 000 | --- | --- | --- | --- | |-------|-------|-------|-------| | | | | | | | | | | | | | | e | | | | | | | 0 | Em | | | (((=))) 2021 年報 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 ...

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 ...

Revenue Performance - Total revenue for the reporting period was approximately HKD 171,900,000, an increase of HKD 43,200,000 compared to HKD 128,700,000 in the same period last year[13]. - Data center services generated revenue of approximately HKD 170,000,000, up HKD 42,300,000 from HKD 127,700,000 in the same period last year[8]. - The lending business contributed approximately HKD 1,500,000 in revenue, an increase of HKD 700,000 compared to HKD 800,000 in the same period last year[15]. - The online gaming business recorded revenue of HKD 300,000, an increase of HKD 100,000 from HKD 200,000 in the same period last year[16]. - Revenue for the six months ended June 30, 2021, was HKD 171,888,000, an increase of 33.5% from HKD 128,734,000 in the same period last year[41]. - Revenue from big data center services reached HKD 170,044,000 for the six months ended June 30, 2021, a significant increase from HKD 127,707,000 in the same period of 2020, representing a growth of approximately 33.1%[88]. - The company’s revenue from online gaming business was HKD 344,000 for the six months ended June 30, 2021, compared to HKD 247,000 in the same period of 2020, indicating growth[88]. Operational Developments - The company has constructed a new data center in Hong Kong, expected to contribute revenue by the end of Q3 2021[6]. - The company decided to suspend its online gaming operations to better allocate resources towards its core businesses[11]. - The company has begun expanding into self-mining cryptocurrency operations, having purchased 1,807 data processors in 2021, with expected revenue contribution in Q3 of this year[19]. - All three data centers in China are currently non-operational due to regulatory actions and ongoing renovations[5]. Financial Performance - The company recorded a loss of approximately HKD 37,200,000 for the reporting period, an increase of 15% compared to a loss of HKD 32,400,000 in the same period last year[18]. - Gross profit decreased by approximately HKD 13,900,000, primarily due to the impact of the dry season on hydropower production and the suspension of power supply to the subsidiary operating the big data center[18]. - The company reported a loss before tax of HKD 37,199,000 for the six months ended June 30, 2021, compared to a loss of HKD 32,937,000 in the previous year[41]. - The company recorded a total comprehensive loss of HKD 18,768,000 for the six months ended June 30, 2021, compared to a loss of HKD 38,523,000 in the same period last year[44]. - The company reported a loss attributable to owners of HKD 14,372,000 for the three months ended June 30, 2021, compared to a loss of HKD 12,494,000 for the same period in 2020, representing an increase of 15.1%[47]. - The company reported a basic and diluted loss per share of HKD 2.67 for the three months ended June 30, 2021, compared to a loss of HKD 4.62 for the same period in 2020, showing an improvement of 42.3%[47]. Assets and Liabilities - As of June 30, 2021, the net asset value of the company's property, machinery, and equipment was HKD 237,800,000, down from HKD 263,300,000 as of December 31, 2020[22]. - The total non-current assets decreased to HKD 288,197,000 as of June 30, 2021, down from HKD 318,869,000 as of December 31, 2020, reflecting a decline of 9.6%[48]. - Current assets increased to HKD 163,660,000 as of June 30, 2021, compared to HKD 135,670,000 as of December 31, 2020, marking an increase of 20.6%[48]. - The total liabilities decreased from HKD 409,710,000 as of December 31, 2020, to HKD 388,127,000 as of June 30, 2021, a reduction of 5.3%[50]. - The company has no bank borrowings as of June 30, 2021, maintaining a debt ratio of zero[24]. Shareholder Information - The total number of issued shares of the company as of June 30, 2021, was 548,378,822 shares[1]. - The total number of ordinary shares increased from 379,023,983 to 548,378,822 between January 1, 2021, and June 30, 2021[106]. - BIT Mining holds a significant stake in the company with 327,868,805 shares, representing 59.79% of the total issued shares[172]. - The company issued a total of 169,354,839 shares at a subscription price of HKD 0.62 per share to BIT Mining Limited, raising approximately HKD 105,000,000[37]. Corporate Governance - The company emphasizes good corporate governance to protect shareholder interests, with no significant deviations from GEM listing rules during the reporting period[177]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, oversees the financial reporting process and risk management[181]. - The company has established a remuneration committee and a nomination committee to maintain high standards of corporate governance[179]. - There were no reported conflicts of interest among directors and major shareholders during the reporting period[176]. Future Outlook and Strategy - Future outlook indicates a projected revenue growth of 15% year-over-year for the next fiscal period[184]. - The company is investing in new product development, focusing on innovative gaming technologies to enhance user experience[184]. - Market expansion strategies include targeting new demographics and geographic regions to increase market share[184]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the industry[184]. - A new marketing strategy has been implemented to boost brand visibility and attract a younger audience[184]. - The company aims to improve operational efficiency by 10% through technology upgrades and process optimization[184]. - User retention rates have improved by 5% compared to the previous year, indicating successful engagement initiatives[184]. - The company plans to allocate 20% of its annual budget towards research and development for future innovations[184].

乐透互娱 LOTO INTERACTIVE 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) www.lotoie.com 第一季度報告 2021 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 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 報 告 全 部 或 任 何 部 分 ...

Financial Performance - The company recorded data center service revenue of HKD 379.7 million for the year ended December 31, 2020, representing a year-on-year increase of HKD 317.2 million, a growth rate of 510%[23]. - Total revenue for the year was approximately HKD 383,000,000, a substantial increase of HKD 318,400,000 or 4.9 times compared to HKD 64,600,000 in the previous year[36]. - The online gaming business recorded revenue of HKD 1,000,000, a decrease of HKD 1,000,000 compared to HKD 2,000,000 in the previous year[34]. - The lending business contributed approximately HKD 2,300,000 in revenue for the year[39]. - The company incurred a loss of HKD 43,300,000, an increase of HKD 8,500,000 compared to the previous year's loss of HKD 34,800,000[40]. - The company reported a comprehensive financial statement reflecting its performance, financial position, and cash flow for the year[128]. - The group's performance analysis is detailed in the consolidated financial statements, specifically in note 7, with key financial performance indicators discussed on page 148 of the annual report[157]. Data Center Operations - The third data center located in Sichuan, China, commenced operations in late June 2020, contributing to a total operational capacity to support up to 225,000 data processors[24]. - The total area of the three data centers exceeds 18,000 square meters, enhancing the company's ability to provide data analysis and storage services[24]. - The data center services generated revenue of approximately HKD 379,700,000, accounting for 99.1% of total revenue, significantly increasing due to the operation of the third data center[33]. - A significant investment of approximately HKD 125,500,000 was made for the construction of the third data center, which has a total area of 10,500 square meters[43]. - The company implemented integrated management software for the data center, enhancing operational efficiency and real-time monitoring capabilities[31]. - The company plans to expand its business into cryptocurrency mining, having procured 4,000 data processors for its data center[51]. Business Strategy and Market Position - The company is transitioning from a lottery business model to a diversified business model centered around data centers, aiming to enhance customer service quality and maintain market competitiveness[24]. - The company is committed to continuously adjusting its business strategies to respond to market changes and seize new development opportunities[25]. - The demand for data center services is expected to remain high due to the ongoing global fintech development and the rising price of Bitcoin[24]. - The company aims to acquire the remaining 49% stake in a third data center, which will result in full ownership[51]. - The company is focused on expanding its market presence and enhancing its service offerings through strategic partnerships[64]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2025[78]. Corporate Governance - The company has maintained compliance with all corporate governance standards as of December 31, 2020[79]. - The board of directors consists of seven members, ensuring a balance of skills and experience[81]. - The positions of Chairman and CEO are held by non-executive director Ms. Zhang Jing and executive director Mr. Yan Hao, respectively, ensuring independence and accountability[93]. - The board has adopted a diversity policy, recognizing that diversity in age, gender, culture, and professional experience enhances corporate governance[96]. - The nomination committee monitors the implementation of the diversity policy and will set measurable targets as appropriate[96]. - The company has established a securities trading policy to ensure compliance with GEM listing rules, with all directors confirming adherence to these rules during the year[100]. Risk Management and Internal Control - The internal control system aims to protect assets from misappropriation and unauthorized disposal, managing operational risks effectively[135]. - The risk management policy provides a framework for identifying and assessing significant business, operational, financial, and compliance risks[134]. - The board believes that the risk management and internal control systems are effective and adequate[135]. - The audit committee monitored the effectiveness of the internal audit function and reviewed the adequacy of the risk management and internal control systems[112]. - The company has committed to continuous assessment of the risk register, considering the likelihood and impact of identified risks[134]. Shareholder Information - The company issued 63,164,000 shares at a placement price of HKD 0.26 per share, raising approximately HKD 16,423,000[47]. - The company's distributable reserves as of December 31, 2020, were approximately HKD 294,306,000, a decrease from HKD 311,161,000 in 2019[177]. - The largest customer accounted for 19% of total revenue in 2020, down from 33% in 2019, while the top five customers represented 70% of total revenue, down from 77%[178]. - The company has proposed a share consolidation, merging every ten existing shares into one share with a par value of HKD 0.10, which was approved on May 26, 2020[191]. - The total number of issued shares was 379,023,983 as of December 31, 2020[191]. Management and Leadership - The management team includes experienced professionals with over ten years in financial management and personnel management[68]. - The CEO, Mr. Yan, has a legal background and has served as an independent non-executive director prior to his current role[67]. - The CFO, Ms. Huang, has over ten years of experience in accounting, auditing, taxation, and financial management[68]. - The management team is committed to driving growth through innovative strategies and market expansion initiatives[64]. - The company encourages continuous professional development for all directors to update their knowledge and skills[102].

Revenue Performance - The total revenue for the group during the reporting period was approximately HKD 128,700,000, a significant increase of HKD 121,600,000 compared to HKD 7,100,000 for the same period last year[16]. - Revenue from the big data center services amounted to HKD 127,700,000, primarily due to the commencement of operations of the second and third data centers[11]. - The online gaming business generated revenue of HKD 200,000, a decrease of HKD 200,000 compared to the same period last year, attributed to reduced promotional activities during the COVID-19 pandemic[12]. - The lending business contributed revenue of approximately HKD 800,000, following the granting of a loan of HKD 30,000,000 at an annual interest rate of 10%[13]. - The lottery business recorded revenue of approximately HKD 30,000, attributed to providing technical solutions to the China Welfare Lottery Issuance Management Center[15]. - For the six months ended June 30, 2020, the company reported revenue of HKD 128,734,000, a significant increase from HKD 7,105,000 in the same period of 2019, representing a growth of approximately 1,711%[45]. - The revenue from the big data center services segment reached HKD 127,707,000 for the six months ended June 30, 2020, compared to HKD 6,584,000 in the same period of 2019, reflecting a growth of 1,838%[71]. Financial Performance - The group recorded a loss of HKD 32,400,000 for the reporting period, an increase of HKD 17,500,000 compared to a loss of HKD 14,900,000 in the same period of 2019[21]. - The company incurred a loss before tax of HKD 32,937,000 for the six months ended June 30, 2020, compared to a loss of HKD 14,946,000 in the same period of 2019, reflecting a deterioration in financial performance[45]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD 38,523,000, compared to HKD 15,324,000 in 2019, indicating an increase in overall losses[50]. - The company’s loss attributable to owners for the six months ended June 30, 2020, was HKD 30,116,000, compared to HKD 14,747,000 in the same period of 2019, reflecting a worsening financial position[50]. - The loss for the six months ended June 30, 2020, was HKD 13,204,000, compared to a loss of HKD 2,803,000 in the same period of 2019, indicating a deterioration in financial performance[83]. Operational Capacity and Investments - The total operational capacity of the three data centers exceeds 225,000 data processors, covering a total area of over 18,000 square meters[8]. - The group made a significant investment of approximately HKD 93,600,000 in the construction of the third data center, which was completed in late June 2020, covering an area of 10,500 square meters[24]. - The construction of the third data center was delayed by one month due to the COVID-19 pandemic but was completed in late June 2020[8]. - The integrated management software implemented in the data centers allows clients to remotely monitor their data processors and receive real-time notifications of any anomalies[11]. Employee and Operational Costs - Employee costs increased by HKD 6,800,000 due to the expansion of new big data center services, with staff numbers rising from 36 to 129[21]. - Employee benefits costs for the period amounted to HKD 14,200,000, up from HKD 7,400,000 in the previous year, reflecting a 92% increase in employee-related expenses[41]. - The company employed a total of 129 employees as of June 30, 2020, a significant increase from 36 employees as of June 30, 2019, indicating a substantial expansion in workforce[41]. Assets and Liabilities - As of June 30, 2020, the net asset value of the group's property, plant, and equipment was HKD 252,200,000, an increase of HKD 87,700,000 from HKD 164,500,000 on December 31, 2019[24]. - The group's bank balance and cash as of June 30, 2020, was HKD 45,700,000, down from HKD 95,000,000 on December 31, 2019, primarily due to the expansion of the data center[26]. - The group's net current assets as of June 30, 2020, were HKD 71,500,000, a decrease from HKD 150,200,000 on December 31, 2019[27]. - Total non-current assets increased to HKD 302,359,000 as of June 30, 2020, compared to HKD 194,232,000 as of December 31, 2019, representing a growth of 55.8%[52]. - Current assets decreased to HKD 151,677,000 as of June 30, 2020, down from HKD 217,683,000 as of December 31, 2019, a decline of 30.3%[52]. - Total liabilities increased to HKD 80,212,000 as of June 30, 2020, compared to HKD 67,445,000 as of December 31, 2019, an increase of 18.3%[52]. Shareholder and Corporate Governance - The company proposed a share consolidation, merging every ten existing shares into one new share, which was approved by shareholders on May 26, 2020[29]. - The company has a beneficial owner, 500.com Limited, holding 127,871,432 shares, representing approximately 40.48% of the total issued shares[120]. - The company emphasizes the importance of good corporate governance to protect shareholder interests and maintains high transparency for all shareholders[125]. - The audit committee is responsible for reviewing and supervising the financial reporting process and monitoring risk management and internal controls[129]. - There were changes in the board of directors, with Mr. Yan Hao resigning as an independent non-executive director and Mr. Huang Jian appointed as the new independent non-executive director[130].

Financial Performance - The company reported revenue of HKD 72,239,000 for the three months ended March 31, 2020, a significant increase from HKD 1,318,000 in the same period of 2019, representing a growth of approximately 5,373%[8] - The cost of sales and services for the same period was HKD 72,174,000, leading to a gross profit of HKD 65,000, compared to a gross profit of HKD 268,000 in 2019[8] - The company incurred a loss before tax of HKD 18,076,000 for the reporting period, compared to a loss of HKD 5,033,000 in the previous year, indicating a deterioration in performance[8] - The total comprehensive loss for the period was HKD 24,614,000, compared to HKD 4,970,000 in the same period of 2019, reflecting a significant increase in losses[11] - Basic and diluted loss per share for the period was HKD 0.56, compared to HKD 0.16 in the previous year, indicating a worsening of per-share performance[11] - The group incurred a loss of approximately HKD 17,800,000, an increase of 256% compared to a loss of HKD 5,000,000 in the same period last year[40] Revenue Sources - The revenue breakdown showed that big data center services contributed HKD 71,976,000, while mobile game agency services and lottery product distribution services contributed HKD 233,000 and HKD 30,000, respectively[16] - The total revenue for the group during the reporting period was approximately HKD 72,200,000, a significant increase of HKD 70,900,000 compared to HKD 1,300,000 for the same period last year[35] - Revenue from the big data center services was approximately HKD 72,000,000, representing a substantial increase of HKD 70,900,000 from HKD 1,100,000 in the same period last year[35] - The online gaming business generated revenue of HKD 200,000, which remained roughly the same as the previous year[31] - The lottery business recorded revenue of approximately HKD 30,000 during the reporting period[37] Operational Developments - The group is currently constructing its third data center, expected to be completed by the end of May 2020, with an operational scale 2.5 to 3 times larger than the second data center[27] - The group has developed integrated management software for the data center, enhancing operational efficiency and real-time monitoring capabilities[30] - The group has suspended the sale of lottery terminals and components due to a downturn in demand in the mainland Chinese market[32] - The company plans to continue expanding its big data center services, with a third center under construction expected to attract more customers and generate significant revenue[45] Employee and Operating Costs - Employee costs increased by HKD 3,400,000 due to the expansion of big data center services, with the workforce growing from 34 to 103 employees[40] - Operating expenses, including consulting and rental costs, rose by HKD 3,900,000 primarily due to the expansion of big data center services[40] Tax and Accounting - The deferred tax credit recognized during the period was HKD 288,000, with no tax provision made for Hong Kong profits tax due to lack of taxable profits[18] - The company has not applied any new accounting standards that have been issued but are not yet effective, indicating stability in accounting policies[14] Share Options and Holdings - The total number of shares outstanding for 500.com as of March 31, 2020, was 44,024,595 shares[57] - Zhang Jing holds 49,200 American Depositary Shares (ADS) options, representing approximately 0.11% of the total shares[57] - Huang Lilan holds 15,500 ADS options, representing approximately 0.04% of the total shares[57] - Yuan Qiang holds 26,667 ADS options, representing approximately 0.06% of the total shares[57] - The exercise price for the majority of the options granted to directors is $10.00, with various exercise periods[59][61] - The company has granted a total of 6,000,000 options to various directors under the 2012 Stock Option Plan[65] - The company has a total of 62,000,000 options granted to certain directors, with an exercise price of $0.20[65] - The company has reported no other significant shareholdings or interests from directors or key executives as of March 31, 2020[61] - The company is committed to maintaining transparency regarding share options and holdings as per regulatory requirements[61] - The total number of shares issued by the company as of March 31, 2020, is 3,158,599,836 shares[75] - 500.com Limited holds 1,278,714,329 shares, representing approximately 40.48% of the company's total issued shares[75] - The company granted 5,000,000 share options during the reporting period, with a total of 72,300,000 options outstanding as of March 31, 2020[68] - The exercise price for the options granted on January 5, 2018, is HKD 0.20, with an exercise period until January 4, 2028[69] Governance and Compliance - The company has established an audit committee to review and supervise the financial reporting process and risk management[78] - No directors or major shareholders have interests that compete with the company's business during the reporting period[76] - The financial data in the first quarter report has not been audited by the company's auditors but has been reviewed by the audit committee[78] - The company appointed Zhang Jing as a director on January 2, 2020, and Pan Zhengming resigned on the same date[69] - The company aims to ensure that consultants receive share options similar to those provided to employees for their services[70] Dividends - The company did not recommend the payment of an interim dividend for the reporting period[20] - The company does not recommend the payment of an interim dividend for the reporting period[46] Other Financial Activities - The company issued a loan of HKD 30,000,000 with a term of 24 months and an interest rate of 10% post-reporting period[44] - No revenue was generated from the lending business during the reporting period[38] - The group recognized an increase of HKD 1,200,000 in amortization of intangible assets due to acquisitions[40] - The company experienced a foreign exchange loss increase of HKD 1,000,000 during the reporting period[40]

Financial Performance - The company reported revenue of HKD 64.6 million for the year, a significant increase of HKD 58.6 million compared to the previous year[12]. - The loss attributable to the owners of the company for the year was HKD 33.6 million, a decrease of HKD 0.5 million from the loss of HKD 34.1 million in the previous year[12]. - The total revenue for the group was HKD 64,600,000, an increase of approximately HKD 58,600,000 compared to HKD 6,000,000 in the previous year[25]. - The online gaming business generated revenue of HKD 2,000,000, representing a 250.1% increase from HKD 600,000 in the same period last year[26]. - The lottery business revenue was approximately HKD 100,000, a decrease of HKD 300,000 from HKD 400,000 in the previous year[28]. - The group recorded a loss of HKD 34,800,000, consistent with the previous year's loss, influenced by various factors including increased operational costs[29]. - Revenue from the data center services for the year was approximately HKD 62,500,000, accounting for 96.7% of the total group revenue[22]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[54]. - Revenue for the last fiscal year reached $150 million, representing a 15% increase compared to the previous year[54]. - Future guidance indicates an expected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion[54]. Investment and Expansion - The company established a big data center in Sichuan, China, providing comprehensive services and has built two data centers with a total construction area of 6,760 square meters, with plans for further expansion[12]. - The company invested approximately HKD 176,100,000 in the construction of data centers during the year[31]. - The company is focusing on expanding its data center services, with two centers in Sichuan province already operational and a third under construction[41]. - The company completed the acquisition of 100% equity in Sichuan Le Cai Yun Tian Network Technology Co., Ltd. for HKD 15,000,000, with goodwill amounting to HKD 10,996,000[30]. - The company is exploring potential acquisitions to enhance its technology capabilities and expand its service offerings[54]. Corporate Governance - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[66]. - The company emphasizes the importance of good corporate governance to protect shareholder interests and maintain high transparency[64]. - The chairman and CEO roles are held by different individuals to ensure independence and accountability[72]. - The board will continue to review and monitor the company's corporate governance practices to ensure compliance with the governance code[65]. - The independent non-executive directors collectively represent more than one-third of the board, ensuring a balance of skills and independence[69]. - The company has established three board committees: Audit Committee, Nomination Committee, and Remuneration Committee, to oversee various aspects of the group's affairs[88]. - The board's responsibilities include guiding and supervising the company's affairs in the interest of shareholders[71]. - The company has made appropriate insurance arrangements for potential legal actions faced by its directors and officers, with no claims made under the policy in 2019[84]. Risk Management - The company is committed to continuous risk assessment and management related to its business activities, ensuring timely mitigation measures for newly identified significant risks[110]. - The board believes that the risk management and internal control systems are effective and adequate, complying with corporate governance codes[111]. - The risk management policy provides a framework for identifying and assessing significant business, operational, financial, and compliance risks[110]. - The internal control system aims to protect assets from misappropriation and unauthorized disposal, managing operational risks effectively[111]. - The audit committee reviewed the effectiveness of the risk management and internal control systems, covering all significant financial, operational, and compliance controls[114]. Shareholder Relations - The company aims to balance shareholder expectations with prudent capital management through a sustainable dividend policy, considering various factors including financial performance and future expansion plans[123]. - The board does not recommend the distribution of a final dividend for the year, consistent with the previous year[150]. - The company reported a reserve available for distribution to shareholders of approximately HKD 311,161,000 as of December 31, 2019, down from HKD 335,729,000 in 2018[157]. - The company emphasizes the importance of corporate governance and encourages shareholder participation in annual meetings[124]. Employee and Supplier Relations - The company emphasizes the importance of maintaining good relationships with employees, offering competitive compensation to attract and retain top talent[146]. - The company has established long-term business relationships with suppliers to ensure the provision of quality products and services[148]. - The company has not reported any significant disputes with suppliers or customers during the year[148]. Environmental Commitment - The company is committed to reducing its environmental impact through energy-saving measures and recycling initiatives, with no environmental claims or penalties reported during the year[142]. - The company’s data centers are strategically located near rivers and rural areas to access low-cost hydroelectric power, but they are also at risk from natural disasters such as earthquakes[141]. Related Party Transactions - The company confirmed that related party transactions were conducted on normal commercial terms and in the interest of the company and its shareholders[192]. - The auditor issued an unqualified opinion regarding the company's disclosure of related party transactions in the annual report[192]. - No significant contracts were established between the company and its major shareholders during the year[194].

Revenue and Business Performance - The group reported total revenue of HKD 7,100,000 for the six months ended June 30, 2019, an increase of approximately HKD 3,800,000 compared to HKD 3,300,000 for the same period in 2018[10]. - Data center services generated revenue of approximately HKD 6,600,000, accounting for 93% of the group's total revenue during the reporting period[6]. - Online gaming business recorded revenue of approximately HKD 400,000 during the reporting period[12]. - Lottery business generated revenue of approximately HKD 100,000, a decrease of HKD 200,000 compared to HKD 300,000 for the same period in 2018[13]. - For the six months ended June 30, 2019, the company reported a revenue of HKD 7,105,000, which is an increase from HKD 3,251,000 in the same period of 2018, representing a growth of approximately 118%[33]. - Revenue from big data center services in the three-month period ended June 30, 2019, was HKD 5,514 thousand, compared to HKD 6,584 thousand in the same period of 2018, reflecting a decrease of approximately 16.3%[59]. - Lottery business revenue for the six-month period ended June 30, 2019, was HKD 77 thousand, down from HKD 3,251 thousand in the same period of 2018, indicating a significant decline[59]. Financial Losses and Costs - The group incurred a loss of HKD 14,900,000, an increase of 13% compared to a loss of HKD 13,200,000 in the same period of 2018[14]. - The company incurred a loss before tax of HKD 14,946,000 for the six months ended June 30, 2019, compared to a loss of HKD 13,196,000 in the same period of 2018, reflecting a deterioration of approximately 13%[33]. - The total comprehensive loss for the six months ended June 30, 2019, was HKD 15,324,000, compared to HKD 14,138,000 in the same period of 2018, indicating an increase in losses of about 8%[35]. - The company reported a net loss of HKD 14,946,000 for the six months ended June 30, 2019, compared to a loss of HKD 13,196,000 in the same period of 2018, representing an increase in loss of approximately 13.2%[46]. Employee and Operational Costs - Employee costs increased by HKD 3,200,000 due to a doubling of full-time employees from 18 to 36[14]. - The group’s employee benefit costs for the reporting period were HKD 12.3 million, compared to HKD 8.1 million for the same period in 2018[30]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2019, was HKD 8,243,000, an increase from HKD 6,521,000 in 2018[85]. - The company recognized share-based payment expenses of HKD 4,897,000, up from HKD 3,998,000 in the previous year, indicating a rise in employee compensation costs linked to equity[46]. Assets and Liabilities - The group's net current assets as of June 30, 2019, were HKD 229 million, down from HKD 341.6 million as of December 31, 2018[20]. - The company’s equity attributable to owners decreased to HKD 355,045,000 as of June 30, 2019, from HKD 364,873,000 as of December 31, 2018, reflecting a decline of about 3%[39]. - The company's total liabilities increased to HKD 132,211,000 as of June 30, 2019, from HKD 18,788,000 as of December 31, 2018, representing a significant rise of approximately 604%[37]. - Non-current assets increased significantly to HKD 134,209,000 as of June 30, 2019, from HKD 29,571,000 as of December 31, 2018, showing a growth of approximately 353%[37]. Cash Flow and Investments - As of June 30, 2019, the group's bank balance and cash amounted to HKD 182.1 million, a decrease from HKD 198.2 million as of December 31, 2018[18]. - The company reported cash and cash equivalents of HKD 182,098,000 as of June 30, 2019, down from HKD 198,221,000 as of December 31, 2018, indicating a decrease of approximately 8%[37]. - The cash flow from operating activities showed a net outflow of HKD 14,953,000, an improvement from a net outflow of HKD 20,949,000 in the previous year[46]. - The company reported a total cash outflow from investing activities of HKD 30,580,000, compared to HKD 22,375,000 in the previous year, reflecting increased capital expenditures[46]. - The group plans to utilize the majority of its cash and cash equivalents for new investment opportunities[18]. Strategic Initiatives and Future Plans - The group has established two data centers in Sichuan, China, which commenced operations in March and June 2019, contributing significantly to the company's growth[16]. - The group is actively seeking new business opportunities in the gaming and entertainment sectors to maximize long-term shareholder value[16]. - The group plans to continue leveraging its core expertise and resources to explore new markets and business areas[16]. Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance to protect shareholder interests[115]. - The company has established an audit committee to review and monitor financial reporting processes and risk management[119]. - The management provides quarterly updates to the board regarding financial information and business conditions[115]. Share Capital and Transactions - The total number of issued shares increased from 3,145,935,836 to 3,158,599,836 due to the exercise of share options, representing an increase of approximately 0.4%[80]. - The company granted stock options in three tranches on January 5, 2018, with an exercise price of HKD 0.20 and an exercise period ending on January 4, 2028[105]. - The company also granted stock options on April 1, 2019, with an exercise price of HKD 0.11, and the exercise period ending on March 31, 2029[105]. - The total number of stock options granted was 168,000,000, with 84,000,000 options exercised[104]. - The company has a stock option plan approved in May 2012, which will expire on May 17, 2022[98].