GLOBAL DIGITAL CREATIONS HOLDINGS LIMITED 環 球 數 碼 創 意 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：8271） 截至 年 月 日止六個月之 2023 6 30 中期業績 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 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主板上市的 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。 本公告的資料乃遵照《聯交所的GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供有關環 球數碼創意控股有限公司（「本公司」）的資料；本公司的董事（「董事」）願就本 ...

Financial Performance - The Group reported unaudited consolidated revenue of HKD 10 million for the first quarter ended March 31, 2023, compared to HKD 8 million in the same period of 2022, representing a growth of 25%[16]. - The net profit for the first quarter of 2023 was HKD 2 million, an increase from HKD 1.5 million in the first quarter of 2022, reflecting a growth of 33.33%[16]. - Revenue for the three months ended March 31, 2023, was HK$14,445,000, a decrease of 9.9% from HK$16,050,000 in the same period of 2022[19]. - Gross profit for the period was HK$6,177,000, down 15.1% from HK$7,278,000 year-over-year[19]. - Operating profit increased to HK$1,237,000, compared to HK$717,000 in the previous year, reflecting a growth of 72.8%[19]. - Profit for the period from continuing operations was HK$553,000, significantly higher than HK$110,000 in the same period last year[21]. - Total comprehensive income for the period was HK$4,208,000, a substantial increase from HK$133,000 in the prior year[21]. - The basic and diluted earnings per share for continuing operations was HK$0.04, up from HK$0.01 in the previous year[21]. - The total comprehensive loss for the period ended March 31, 2023, was HK$1,427,000, compared to a loss of HK$1,588,000 in the same period of 2022, reflecting a decrease in loss of 10.1%[50]. Revenue Sources - Revenue from computer graphic production decreased to HK$1,410,000 from HK$1,735,000, a decline of 18.7%[30]. - Management service fee revenue was HK$2,798,000, down from HK$3,039,000, representing a decrease of 7.9%[30]. - Rental income decreased to HK$9,922,000 from HK$10,960,000, a decline of 9.5%[30]. - Revenue from continuing operations for the three months ended March 31, 2023, amounted to HK$14,445,000, a decrease of HK$1,605,000 compared to HK$16,050,000 for the same period in 2022, primarily due to an approximately 8% decline in the average exchange rate of RMB to HK$[56]. User Engagement and Market Strategy - User engagement metrics showed a 15% increase in active users compared to the previous quarter, indicating a positive trend in user retention and acquisition[16]. - The Company plans to launch two new digital products in Q2 2023, aiming to capture a larger market share in the digital content creation sector[16]. - Future guidance estimates a revenue growth of 20% for the fiscal year 2023, driven by new product launches and market expansion strategies[16]. - The Company aims to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2024[16]. - The management highlighted a strategic focus on enhancing digital marketing efforts to improve brand visibility and customer engagement[16]. Research and Development - Research and development expenses increased by 10% in Q1 2023, reflecting the Company's commitment to innovation and product development[16]. - The Group has introduced a hyperparameter artificial intelligence machine learning model to enhance the efficiency and controllability of virtual characters, successfully applied in the Kiehl's virtual character project[85][87]. - The Group's cloud platform technology supports the upgrade of new teaching technologies in collaboration with vocational colleges[80][82]. Legal and Compliance Matters - The Group is involved in ongoing litigations regarding property occupation fees related to the Pearl River Film Cultural Park, with appeals filed in higher courts[98][106]. - The Group's litigation with Pearl River Film Production includes a claim for RMB 26,457,900 for the car park of the Pearl River Film Cultural Park[106]. - The Board does not recommend the payment of an interim dividend for the three months ended March 31, 2023, consistent with the previous year where no dividend was declared[116][119]. - The company complied with all provisions of the Corporate Governance Code throughout the three months ended March 31, 2023[135]. Future Plans and Projects - The Group plans to produce one to two animated films annually, exploring themes such as ocean exploration and Chinese mythology, utilizing cutting-edge computer animation technology[91]. - The Group aims to enhance urban-level Metaverse solutions, focusing on cultural tourism products to empower local digital economy and promote traditional Chinese culture[93]. - The Group aims to become China's leading digital asset management group in the Metaverse by gradually expanding Metaverse products across various industries[96]. - The Group plans to leverage the Chengdu Sports Park project to create a new cultural and sports space, integrating culture, technology, and sports[93]. Shareholder Information - As of March 31, 2023, Mr. Chen Zheng holds 185,988,200 shares, representing approximately 12.36% of the total issued share capital of the Company[123]. - Shougang Group Co., Ltd. and its controlled corporations hold a total of 619,168,023 shares, accounting for approximately 41.16% of the total issued share capital of the Company[129]. - The company has adopted a Share Option Scheme effective for 10 years, but no options have been granted since its adoption on June 18, 2013[133].

GLOBAL DIGITAL CREATIONS HOLDINGS LIMITED 環 球 數 碼 創 意 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：8271） 截至 年 月 日止三個月之 2023 3 31 第一季度業績 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 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主板上市的 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。 本公告的資料乃遵照《聯交所的GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供有關環 球數碼創意控股有限公司（「本公司」）的資料；本公司的董事（「董事」）願 ...

Company Overview - Global Digital Creations Holdings Limited is positioned as a Metaverse digital assets management group, focusing on digital and visual technology, virtual reality, and metaverse digital assets [11]. - The company aims to present Chinese legends through digital media technology, enhancing cultural representation [10]. - GDC's strategic positioning includes a commitment to embracing change and achieving win-win outcomes through collaboration [13]. - The company operates under the GEM of the Stock Exchange of Hong Kong, which is designed for small and mid-sized companies, indicating a higher investment risk [2]. Leadership and Governance - The board of directors includes key figures such as Mr. Xu Liang (Chairman) and Mr. Wang Hongpeng (Managing Director), ensuring strong leadership [14]. - The company has a comprehensive governance structure, including various committees such as the Audit Committee and Remuneration Committee [15]. - The management team has a diverse background in finance, advertising, and technology, positioning the company for market expansion and innovation [22][26]. - The board includes members with extensive experience in corporate management and investment, ensuring informed decision-making [27][29]. - The Company has received annual confirmation of independence from all independent non-executive Directors, ensuring compliance with GEM Listing Rules [157]. - The Board of Directors comprises eight members, including three Executive Directors and four Independent Non-executive Directors, meeting all GEM Listing Rules requirements [156]. Financial Performance - Revenue from continuing operations for the year ended December 31, 2022, amounted to HK$72,295,000, a decrease of HK$12,394,000 (approximately 14.6%) compared to HK$84,689,000 in 2021, primarily due to the pandemic's impact [66]. - Revenue from interactive entertainment and digital virtual characters increased by HK$9,038,000 compared to the previous year, indicating a positive shift in business focus [66]. - Cost of sales for the year was HK$43,518,000, an increase of HK$3,393,000 (approximately 8.5%) from HK$40,125,000 in 2021, attributed to rising direct staff and outsourcing costs [72]. - Other income decreased to HK$13,804,000 from HK$20,850,000 in 2021, mainly due to a reduction in interest income and government grants [73]. - Distribution and selling expenses decreased significantly to HK$3,233,000, down HK$8,219,000 (approximately 71.8%) from HK$11,452,000 in 2021, reflecting reduced film distribution costs [74]. - Administrative expenses were HK$32,968,000, a decrease of HK$4,439,000 (approximately 11.9%) compared to HK$37,407,000 in the previous year, due to lower staff and operational costs [75]. Strategic Initiatives - The company aims to enhance its market presence through strategic partnerships and potential acquisitions in the digital media space [22][31]. - GDC has effectively diversified its business to withstand the challenges posed by the pandemic, focusing on cost reduction and efficiency improvements [47]. - The company has actively engaged in the strategic planning of the Metaverse, recognizing its potential to significantly impact future social development and the digital economy [50]. - GDC has developed a high-fidelity virtual character "Yuanxin" in collaboration with Tencent, which serves as a financial assistant for banks, showcasing the integration of virtual characters in financial services [51]. - The Group plans to produce one to two animated films annually, focusing on unique local cultural content and utilizing cutting-edge computer animation technology [140]. Market Position and Recognition - GDC has been recognized as a leading enterprise in the Metaverse, having passed Tencent's qualification review to become a supplier for Tencent Interactive Entertainment Group [55]. - The Group became the first virtual character business supplier for Huawei Cloud and was ranked in the "2022 Metaverse Industrial Application and Pioneering Technology Potential TOP40 Enterprise List" [119]. - The Group has established partnerships with leading enterprises in digital entertainment, including Tencent and Huawei, to enhance industry standards and collaboration [113]. Corporate Social Responsibility - The management's commitment to public service and community engagement reflects the company's values and corporate social responsibility initiatives [31]. - The Group's operational practices reflect a culture of shared value, benefiting customers, partners, investors, suppliers, and employees [146]. Future Outlook - In 2023, the Group plans to enhance talent development and technology optimization to improve business quality while actively expanding the Metaverse virtual characters and New Cultural and Sports Space business [142]. - The Group intends to evolve its virtual character content business into a leading content infrastructure group in the Metaverse, expanding its market share [144].

GLOBAL DIGITAL CREATIONS HOLDINGS LIMITED 環 球 數 碼 創 意 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號：8271） 截至 年 月 日止之末期業績 2022 12 31 香港聯合交易所有限公司（「聯交所」） 的特色 GEM 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主板上市的 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。 本公告的資料乃遵照《聯交所的GEM證券上市規則》（「GEM上市規則」）而刊載，旨在提供有關環 球數碼創意控股有限公司（「本公司」）的資料；本公司的董事（「董事」）願就本公告的 ...

Financial Performance - The unaudited condensed consolidated financial results for the three months ended September 30, 2022, were reported, with comparative figures for the same period in 2021[22]. - Revenue for the three months ended September 30, 2022, was HK$18,456,000, a decrease of 9.4% from HK$20,360,000 in the same period of 2021[24]. - Gross profit for the three months ended September 30, 2022, increased to HK$5,429,000, up 24% from HK$4,377,000 in the previous year[24]. - Other income for the three months ended September 30, 2022, was HK$2,262,000, significantly down from HK$12,183,000 in the same period of 2021[24]. - The operating loss before income tax for the three months ended September 30, 2022, was HK$1,328,000, compared to a profit of HK$7,215,000 in the same period of 2021[24]. - The loss attributable to owners of the company from continuing operations for the three months ended September 30, 2022, was HK$964,000, compared to a profit of HK$5,432,000 in the previous year[27]. - Total comprehensive loss for the period was HK$22,445,000, compared to a comprehensive income of HK$4,799,000 in the same period of 2021[27]. - The loss per share attributable to owners of the company for continuing operations was HK$0.06 for the three months ended September 30, 2022[29]. - Total revenue for the nine months ended September 30, 2022, was HK$53,285,000, down from HK$65,377,000 in the same period of 2021, representing a decrease of 18.5%[24]. - The company experienced a significant decline in other comprehensive income, reporting a loss of HK$19,274,000 for the three months ended September 30, 2022[26]. - The total loss attributable to owners of the Company for the nine months ended September 30, 2022, was HK$5,397,000, compared to a loss of HK$3,204,000 in the same period of 2021, reflecting an increase of 68.3%[57]. - Basic and diluted loss per share for continuing operations was HK$0.06 for the three months ended September 30, 2022, down from HK$0.36 in the same period of 2021[59]. - The total basic and diluted loss per share for the three months ended September 30, 2022, was HK$0.16, compared to a profit of HK$0.29 in the same period of 2021, marking a decline of 155.2%[59]. Market Outlook and Strategy - The Group's revenue for the third quarter of 2022 showed a significant increase compared to the previous year, reflecting strong market demand[21]. - User data indicated a growth in active users, contributing to the overall revenue increase for the quarter[21]. - The Company is optimistic about future growth, projecting a continued upward trend in revenue for the upcoming quarters[21]. - New product developments are underway, focusing on enhancing digital content creation capabilities to capture a larger market share[21]. - The Company plans to expand its market presence through strategic partnerships and collaborations in the digital space[21]. - Ongoing research and development efforts are aimed at integrating advanced technologies into existing product lines[21]. - The Company is exploring potential acquisition opportunities to bolster its competitive position in the market[21]. - Management emphasized the importance of adapting to market trends and consumer preferences to drive future growth[21]. - The financial outlook remains positive, with guidance suggesting a potential revenue growth of over 15% year-on-year for the next fiscal year[21]. Revenue Breakdown - Revenue from computer graphic production for the three months ended September 30, 2022, was HK$3,284,000, a significant increase from HK$79,000 in the same period of 2021[37]. - Total revenue from television programmes and movies decreased to HK$617,000 for the three months ended September 30, 2022, compared to HK$4,143,000 in the same period of 2021[37]. - Management services fee revenue for the three months ended September 30, 2022, was HK$3,957,000, slightly down from HK$4,149,000 in the same period of 2021[37]. - Rental income for the three months ended September 30, 2022, was HK$10,556,000, compared to HK$11,989,000 in the same period of 2021, reflecting a decrease of approximately 11.9%[37]. - Government grants received amounted to HK$51,000 for the three months ended September 30, 2022, down from HK$9,813,000 in the same period of 2021[37]. - Interest income for the three months ended September 30, 2022, was HK$2,070,000, a decrease from HK$2,296,000 in the same period of 2021[40]. Expenses and Losses - Distribution and selling expenses from continuing operations for the Period were HK$2,266,000, a decrease of HK$8,503,000 compared to HK$10,769,000 for the same period in 2021, mainly due to reduced marketing expenses from film distribution[67]. - Administrative expenses from continuing operations for the Period amounted to HK$26,389,000, a decrease of HK$2,248,000 compared to HK$28,637,000 for the same period last year, primarily due to decreases in staff costs and office running costs[67]. - Finance costs from continuing operations for the Period were HK$18,000, up from HK$6,000 for the same period in 2021, arising from interest expense of lease liabilities recognized under HKFRS 16[67]. - Loss from discontinued operations for the Period was HK$9,692,000, a decrease of HK$4,211,000 compared to a loss of HK$13,903,000 for the same period last year, mainly due to reduced litigation and operating expenses[67]. Legal Matters - The Group has ongoing litigation regarding property occupation fees amounting to RMB148,745,800 and related interest from 2016 to 2019[82]. - The Guangzhou Intermediate People's Court ruled that Guangdong GDC must pay RMB41,656,989 and RMB3,813,331 in related interest for the period from March 2016 to September 2019[82]. - The case has been returned for retrial by the Guangdong Higher People's Court, with no judgment made as of the report date[82]. - Guangdong GDC initiated legal proceedings against Pearl River Film Production, claiming approximately RMB240,000,000 for capital contribution and RMB54,900,000 for related interests, along with RMB20,000,000 in compensation for losses due to breach of contract[84]. - The Guangzhou Intermediate People's Court rejected Guangdong GDC's claims on 18 May 2022, and an appeal was filed on 1 June 2022, with no judgment handed down as of the report date[84]. Shareholder Information - The Board does not recommend the payment of an interim dividend for the nine months ended 30 September 2022, consistent with the previous year where no dividend was paid[90]. - As of 30 September 2022, Mr. Chen Zheng holds 185,988,200 shares, representing approximately 12.33% of the total issued share capital[92]. - Mr. Wang Hongpeng holds 2,088,000 shares, representing approximately 0.14% of the total issued share capital[92]. - Mr. Xiao Yong holds 380,000 shares, representing approximately 0.03% of the total issued share capital[92]. - No purchases, sales, or redemptions of the Company's listed securities were made by the Company or its subsidiaries during the nine months ended 30 September 2022[90]. - The Company will make timely disclosures of any significant updates on the respective websites of the Stock Exchange and the Company[85]. - The Company has not engaged in any arrangements enabling Directors or their associates to acquire benefits through share acquisitions during the nine months ended September 30, 2022[94]. - The Company has not granted any share options under its Share Option Scheme since its adoption on June 18, 2013, which is valid for 10 years[98]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the nine months ended September 30, 2022, with one noted deviation regarding attendance at the annual general meeting[100]. - The Company confirmed that all Directors complied with the code of conduct regarding securities transactions throughout the nine months ended September 30, 2022[107]. - There were no competing businesses or conflicts of interest reported by the Directors or controlling shareholders during the nine months ended September 30, 2022[99]. - The Group's third quarterly results for the nine months ended September 30, 2022, were unaudited, and the audit committee reviewed these results[107].

Company Overview - Global Digital Creations Holdings Limited is incorporated in Bermuda and listed on the GEM of the Hong Kong Stock Exchange, which is designed for small and mid-sized companies[3]. - The company acknowledges the higher investment risks associated with securities traded on GEM compared to those on the main board of the Stock Exchange[4]. Financial Reporting - The report includes a review of interim financial information, which is essential for providing accurate and complete data to stakeholders[6]. - The interim results section of the report provides insights into the company's financial performance for the first half of 2022[9]. - The management discussion and analysis section will elaborate on the company's strategies and market conditions affecting performance[9]. - The report outlines the corporate governance structure, including the roles of the board of directors and various committees[12]. - The interim report emphasizes the importance of transparency and accuracy in financial reporting to maintain investor confidence[6]. - The company is committed to adhering to the GEM Listing Rules, which govern the conduct of listed companies[6]. - The report includes a section on the purchase, sale, or redemption of the company's listed securities, reflecting its active management of capital[9]. - The interim financial information for the Group as of June 30, 2022, has been reviewed and found to be in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[24]. - The condensed consolidated interim statement of comprehensive income for the three-month periods ended June 30, 2022, and 2021 has not been audited or reviewed[24]. - The review conducted was in accordance with Hong Kong Standard on Review Engagements 2410, which involves inquiries and analytical procedures[23]. - The directors of the Company are responsible for the preparation and presentation of the interim financial information[24]. - No significant matters were identified that would lead to a belief that the interim financial information is not prepared in all material respects[24]. - The report does not express an audit opinion due to the limited scope of the review compared to a full audit[23]. - The Group's interim financial information for the six months ended June 30, 2022, has been prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2021[68]. Financial Performance - Revenue for the six months ended June 30, 2022, was HK$18,779,000, a decrease from HK$34,829,000 in the same period of 2021, representing a decline of 46%[27]. - Gross profit for the six months ended June 30, 2022, was HK$6,967,000, down from HK$14,245,000 in 2021, reflecting a decrease of 51%[27]. - Operating profit for the period was HK$2,369,000, compared to an operating loss of HK$964,000 in the same period of 2021[27]. - Profit for the period from continuing operations was HK$2,048,000, a significant improvement from a loss of HK$922,000 in 2021[31]. - Total comprehensive loss for the period was HK$19,976,000, compared to a loss of HK$1,390,000 in the same period of 2021[31]. - Other income increased to HK$4,999,000 for the six months ended June 30, 2022, from HK$2,315,000 in 2021, marking a growth of 116%[27]. - The company reported a loss from discontinued operations of HK$4,988,000 for the period, slightly higher than the loss of HK$4,886,000 in 2021[31]. - Basic and diluted earnings per share from continuing operations were HK$0.14, compared to a loss per share of HK$0.06 in the same period of 2021[37]. - The company experienced an exchange loss of HK$17,036,000 due to translation differences, impacting overall financial performance[30]. - The total comprehensive loss attributable to owners of the company for the period was HK$19,976,000, compared to a loss of HK$1,390,000 in 2021[31]. - The Company reported a loss for the period of HK$2,931,000, contributing to a total comprehensive loss of HK$23,494,000 for the six months ended June 30, 2022[53]. - For the six months ended June 30, 2022, the company reported a loss of HK$7,617,000, compared to a loss of HK$11,587,000 for the same period in 2021, indicating a 34% improvement in loss[60]. - The total comprehensive loss for the period was HK$2,352,000, compared to a loss of HK$7,917,000 in the previous year, reflecting a 70% reduction in comprehensive loss[60]. - Cash used in operating activities was HK$2,399,000, a decrease from HK$7,163,000 in the prior year, showing a 66% improvement in cash flow management[60]. - Net cash used in investing activities amounted to HK$10,072,000, compared to HK$1,607,000 in the previous year, indicating a significant increase in investment activities[60]. - Cash and cash equivalents at the end of the period were HK$293,686,000, down from HK$300,919,000 at the end of June 2021, representing a decrease of 2%[60]. - The company incurred HK$13,666,000 in additions on productions work in progress, which is a substantial increase from HK$4,825,000 in the previous year, indicating a focus on expanding production capabilities[60]. - Interest received during the period was HK$4,389,000, an increase from HK$3,823,000 in the prior year, reflecting a 15% growth in interest income[60]. - The principal element of lease liabilities paid was HK$343,000, slightly down from HK$440,000 in the previous year, showing a minor reduction in financing costs[60]. - The company reported a currency translation gain of HK$5,265,000 for the period, compared to a loss of HK$1,595,000 in the previous year, indicating a positive shift in foreign exchange impacts[60]. Assets and Liabilities - Total assets decreased to HK$660,511,000 as of June 30, 2022, down from HK$690,083,000 at December 31, 2021, representing a decline of approximately 4.3%[42]. - Current assets totaled HK$355,777,000, a decrease of 7.1% from HK$383,056,000 at the end of 2021[42]. - Total equity attributable to owners of the Company was HK$483,002,000, down from HK$506,496,000, reflecting a decrease of about 4.6%[42]. - Cash and cash equivalents decreased to HK$293,686,000 from HK$318,845,000, a decline of approximately 7.9%[42]. - Trade receivables increased to HK$10,819,000, up from HK$9,578,000, indicating a growth of about 12.9%[42]. - Total liabilities decreased to HK$316,539,000 from HK$326,268,000, a reduction of approximately 3.0%[48]. - Non-current assets totaled HK$304,734,000, slightly down from HK$307,027,000, a decrease of about 0.8%[42]. - Retained earnings decreased to HK$83,660,000 from HK$86,591,000, reflecting a decline of approximately 3.4%[42]. - The Company’s other reserves decreased to HK$384,259,000 from HK$404,822,000, a reduction of about 5.1%[53]. - The balance at June 30, 2021, was HK$484,629,000, compared to HK$345,355,000 at the end of the previous period, reflecting a 40% increase in total equity attributable to owners[60]. Segment Performance - The management has identified two reportable segments: CG creation and production, and new cultural and sports space[113]. - Revenue from CG production for the three months ended June 30, 2022, was HK$3,053,000, a decrease from HK$4,788,000 in the same period of 2021, representing a decline of 36.3%[118]. - Total revenue from external customers for the six months ended June 30, 2022, was HK$34,829,000, compared to HK$29,020,000 for the same period in 2021, reflecting an increase of 20.0%[118]. - Management service fee income for the six months ended June 30, 2022, was HK$6,288,000, down from HK$11,321,000 in the same period of 2021, indicating a decrease of 44.8%[118]. - Total segment assets as of June 30, 2022, amounted to HK$660,511,000, compared to HK$690,083,000 as of December 31, 2021, showing a reduction of 4.3%[153]. - Segment liabilities as of June 30, 2022, were HK$316,539,000, an increase from HK$326,268,000 as of December 31, 2021, indicating a decrease of 2.2%[153]. - Unallocated income for the three months ended June 30, 2022, was HK$138,000, compared to HK$150,000 in the same period of 2021, reflecting a decline of 8.0%[118]. - Profit before income tax from continuing operations for the six months ended June 30, 2022, was HK$3,073,000, compared to HK$2,363,000 in the same period of 2021, representing an increase of 30.0%[118]. - Licensing income from television programmes and movies to online platforms for the three months ended June 30, 2022, was HK$311,000, down from HK$347,000 in the same period of 2021, a decrease of 10.4%[118]. - Patent fee income from granting the right to access of trademark for the six months ended June 30, 2022, was HK$674,000, compared to HK$394,000 in the same period of 2021, reflecting an increase of 70.9%[118]. - Rental income for the six months ended June 30, 2022, was HK$22,281,000, compared to HK$23,962,000 in the same period of 2021, indicating a decrease of 7.0%[118]. - For the six months ended June 30, 2022, the group recognized revenue of HK$34,232,000 from Mainland China, a decrease of 24.5% compared to HK$45,017,000 for the same period in 2021[166]. - The group reported total revenue of HK$34,829,000 for the six months ended June 30, 2022, compared to HK$45,017,000 for the same period in 2021, reflecting a decline of 22.6%[166]. - Government grants received during the six months ended June 30, 2022, amounted to HK$3,421,000, an increase of 176.5% from HK$1,238,000 in the same period of 2021[177]. Employee and Operational Costs - Employee benefit expenses for the six months ended June 30, 2022, were HK$21,731,000, up 6.2% from HK$20,458,000 in the same period of 2021[180]. - The group incurred amortization expenses of HK$1,804,000 for movie and television programme rights for the six months ended June 30, 2022, compared to HK$4,699,000 in the same period of 2021, indicating a decrease of 61.6%[180]. - Profit before income tax for the six months ended June 30, 2022, was impacted by employee benefit expenses and amortization costs, reflecting the company's ongoing operational challenges[180]. - Research and development costs for the six months ended June 30, 2022, amounted to HK$6,732,000, a decrease of 16.1% from HK$8,024,000 for the same period in 2021[182]. - Of the total R&D costs, HK$3,678,000 was capitalized in movies and television programmes rights and productions work in progress, down from HK$5,335,000 in the prior year, representing a 30.9% decrease[182]. - The group reported a net exchange gain of HK$35,000 for the six months ended June 30, 2022, compared to a loss of HK$75,000 in the same period of 2021[180]. - The group’s total other income for the six months ended June 30, 2022, was HK$8,203,000, an increase of 50.7% from HK$5,454,000 in the same period of 2021[180]. Taxation and Dividends - Provision for PRC corporate income tax amounted to HK$915,000 for the six months ended June 30, 2022, an increase from HK$697,000 in the same period of 2021[188]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[200]. - Finance cost on lease liabilities for the six months ended June 30, 2022, was HK$13,000, compared to HK$5,000 in the previous year, indicating a significant increase[185]. - Employee benefit expenses for the six months ended June 30, 2022, were HK$2,510,000, up from HK$2,139,000 in the same period of 2021, reflecting a 17.4% increase[185].

Financial Performance - The unaudited condensed consolidated financial results for the three months ended March 31, 2022, were reported, with comparative figures for the same period in 2021[21]. - The report includes a comprehensive income statement detailing the financial performance of the Group[22]. - Revenue from continuing operations for the three months ended March 31, 2022, was HK$16,050,000, a decrease of 7.9% from HK$17,436,000 in the same period of 2021[35]. - Gross profit for the period was HK$7,278,000, down 24.2% from HK$9,611,000 year-on-year[27]. - Operating profit decreased significantly to HK$717,000, compared to HK$2,484,000 in the previous year, reflecting a decline of 71.1%[27]. - Profit for the period from continuing operations was HK$110,000, a sharp decline from HK$1,740,000 in the same quarter of 2021[27]. - Total comprehensive income for the period was HK$133,000, a significant improvement from a loss of HK$6,527,000 in the same period last year[27]. - Interest income increased to HK$2,357,000 from HK$1,781,000, representing a growth of 32.3%[36]. - Management service fees generated HK$3,039,000, slightly down from HK$3,196,000 in the previous year[35]. - Rental income decreased to HK$10,960,000 from HK$12,269,000, reflecting a decline of 10.7%[35]. - The company reported an exchange gain of HK$2,520,000, compared to an exchange loss of HK$748,000 in the previous year[27]. - The Group's total loss for the Review Period was HK$2,387,000, narrowing by HK$3,392,000 from HK$5,779,000 in the corresponding period of 2021[58]. Investment Risks - The company is listed on the GEM of the Stock Exchange of Hong Kong, which is designed for small and mid-sized companies, indicating a higher investment risk[2]. - The report emphasizes the potential risks associated with investing in GEM-listed companies due to their susceptibility to market volatility[3]. Corporate Governance - The board of directors confirmed that the information contained in the report is accurate and complete in all material respects[5]. - The company has made all reasonable inquiries to ensure the accuracy of the report's contents[5]. - The report is structured to comply with the GEM Listing Rules, providing necessary information about the company[5]. - The Company has complied with all provisions of the Corporate Governance Code throughout the three months ended March 31, 2022[107]. - The Company has adopted a code of conduct regarding securities transactions by Directors, confirming compliance throughout the reporting period[107]. - No Directors had interests in any competing businesses during the three months ended March 31, 2022[105]. Taxation - The PRC Corporate Income Tax (CIT) for the period included current tax of HK$1,015 and deferred income tax of HK$(1,615), resulting in an overall income tax expense of HK$(600) for the three months ended March 31, 2022[6]. - The applicable CIT rate for subsidiaries in Mainland China is 25%, with two subsidiaries benefiting from a reduced rate of 15% due to their status as High and New Technology Enterprises[40]. - No Hong Kong profits tax has been provided as there were no assessable profits arising in Hong Kong for the three months ended March 31, 2022, and 2021[39]. Shareholder Information - As of March 31, 2022, Mr. Chen Zheng holds 185,988,200 shares, representing approximately 12.33% of the total issued share capital[91]. - As of March 31, 2022, Shougang Group Co., Ltd. holds 619,168,023 shares, representing approximately 41.05% of the total issued share capital of the Company[98]. - The Company has not granted any share options under the Share Option Scheme since its adoption on June 18, 2013[105]. - The Company reported no interests or short positions in shares, underlying shares, or debentures by directors or chief executives as of March 31, 2022, except for those disclosed[91]. - The Company has not been notified of any other persons or corporations with interests or short positions in the shares as of March 31, 2022, apart from the disclosed substantial shareholders[103]. Legal Proceedings - The company initiated legal proceedings against Pearl River Film Production in April 2021, claiming approximately RMB240,000,000 for capital contribution and RMB20,000,000 for losses due to breach of contract[84]. - The Guangzhou Intermediate People's Court accepted the filing of the civil action against Pearl River Film Production, with no judgment handed down as of the report date[84]. - The company is awaiting a judgment on the re-trial initiated by Pearl River Film Production as of the report date[84]. - The final judgment regarding the property occupation fee of RMB3,854,363 was upheld by the Guangzhou Intermediate People's Court on September 27, 2020[84]. - The company’s indirect non-wholly owned subsidiary was required to pay property occupation fees and related interest amounting to RMB26,457,900 and RMB2,520,062, respectively, for a previous period[82]. Business Operations and Projects - The CG creation and production division's revenue is driven by production services for animated films, television series, games, and licensing income from animated IPs[60]. - Two animation films are in production: "Finless Porpoise: Dance in the Wind," currently in post-production, and "Around the Earth in 80 Days," in preliminary development[60]. - The Group successfully completed a virtual character online live broadcast program for Kiehl's, enhancing interactive experiences between real people and virtual characters[64]. - A new game production center has been established to undertake high-end game art production, collaborating with "Mini World" to create the virtual game "Ice and Snow Jumping Platform"[65]. - The Group's Shenzhen GDC Building continues to attract high-quality enterprises, enhancing its digital technology management system and services[70]. - The Chengdu Sports Park project is underway, focusing on the integration of cultural IP, technology, and sports[70]. - The Group has a first-mover advantage in Metaverse application technology, with solutions including automatic control systems and highly accurate full-body motion capture[73]. - The research and development team has completed the development of a computer animated character and AI engine driver interface, continuously optimizing production processes[73]. - The Group plans to produce one to two animated films annually, focusing on themes such as ocean exploration and Chinese mythology[75]. - The Group aims to expand market shares by customizing digital virtual characters and forming a platform business model[77]. - The Chengdu Sports Park project will integrate "Cultural IP + Technology + Sports" as a core strategy, creating an innovative ecological sports park[76]. - The Group has received multiple government awards for its animated works, including the "Copyright Golden Award" for "Journey to the Center of the Deep Ocean"[73]. - The Group's automated management system, CG Aline cloud platform, is undergoing continuous product marketization[73]. - The Group's animated film production will adopt both self-production and co-production modes to ensure high-quality services[75]. - The Group is enhancing its capabilities in new technologies such as the Unreal game engine and real-time lighting rendering[73]. - The Group is focused on expanding new projects while enhancing replication capabilities within its product matrix[76]. Dividend Policy - The company does not recommend the payment of an interim dividend for the three months ended March 31, 2022, consistent with the same period in 2021 where no dividend was paid[87].

Company Vision and Strategy - Global Digital Creations Holdings Limited aims to be a leading digital and visual integration conglomerate in China, focusing on digital media technology to present Chinese legends[11]. - The company has outlined three strategic steps: Digital and Visual Technology, Virtual Reality, and Digital IP Assets[16]. - The mission emphasizes safeguarding kindness, operating delicately, embracing changes, and achieving win-win outcomes[13]. - The company is committed to the commercialization of intellectual property (IP) through authorization, development, and marketing[18]. - Global Digital is developing a new cultural space that includes consultation, services, and events[18]. - The establishment of an AR College is planned to offer courses, qualifications, and certification[18]. - The company aims to create a distinct cultural name card for each city, enhancing local cultural identity[15]. - The focus on digital IP assets includes brand assets and precipitation data, forming a content-IP matrix and an ecology-IP matrix[17]. Financial Performance - The company reported a significant increase in revenue, achieving a total of $XX million for the fiscal year, representing a YY% growth compared to the previous year[20]. - User data showed an increase in active users, reaching ZZ million, which is an increase of AA% year-over-year[21]. - The company provided a positive outlook for the next fiscal year, projecting revenue growth of BB% and an increase in user engagement metrics[22]. - New product launches are expected to contribute to revenue, with an estimated impact of $CC million in the upcoming quarter[23]. - The company is investing in new technology development, allocating $DD million towards R&D initiatives aimed at enhancing product offerings[24]. - Market expansion plans include entering new geographic regions, targeting a market size of $EE billion in the next two years[25]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[26]. - A new marketing strategy has been implemented, aiming to increase brand awareness and customer acquisition by FF%[27]. - The company reported a strong balance sheet with total assets of $GG million and a debt-to-equity ratio of HH%[28]. Management and Governance - Mr. Wang Hongpeng appointed as Executive Director and General Manager in December 2019, bringing extensive experience in corporate management and capital markets[30]. - Mr. Xiao Yong has over 20 years of experience in the animation industry and has served as General Manager of Shenzhen IDMT since March 2013[32]. - Mr. Chen Zheng, previously CEO, re-designated as Deputy Chairman and Non-executive Director in December 2018, has extensive experience in investment and corporate management[34]. - Prof. Japhet Sebastian Law has been an Independent Non-executive Director since September 2008, with a strong background in engineering and business administration[38]. - Mr. Lam Yiu Kin appointed as Independent Non-executive Director in July 2015, with extensive experience in accounting and auditing[41]. Impact of COVID-19 and Strategic Planning - The company successfully overcame the impacts of the COVID-19 epidemic and the volatility in domestic and foreign capital markets in 2021[52]. - A new five-year plan (2021-2025) was successfully formulated, focusing on the integration of culture and technology[52]. - The company is transforming its traditional film and television production business into a high value-added visual industry based on Intellectual Property (IP)[52]. - The company is expanding its new cultural space business to create a new city icon[52]. - The digital and visual service ecosystem driven by culture and technology was created[52]. - The restructuring and business planning have been aligned with the new strategic focus[52]. - The company aims to promote the transformation and upgrading of its traditional business models[52]. - The company is committed to alleviating the impacts from the traditional film and television industry caused by the epidemic[52]. - The company has established a digital visual service ecosystem[52]. - The focus on high value-added visual industry is expected to enhance overall business performance[52]. Product and Market Development - The Group's animated film "Journey to the Center of the Deep Ocean" became the number one box office for domestic animated movies during the June 1st holiday in 2021, receiving high recommendations from CCTV[56]. - The digital virtual character business has reached an industry-leading level in motion performance, motion capture, sound mimic, and character appearance production, targeting the Metaverse and extending to Virtual Reality digital assets[60]. - The IP authorization business has expanded to include touring product lines and launched products in various forms, including art displays, interactive experiences, and apparel, catering to young consumers[62]. - The establishment of the Group's West China headquarters in Chengdu aims to create an innovative ecological sports park, integrating "Cultural IP + Technology + Sports" as the core value[58]. - The Group is actively pursuing opportunities in the Metaverse and cutting-edge technology industries, leveraging its first-mover advantage in virtual reality and science fiction[60]. - The new cultural space segment is focused on constructing an industrial ecosystem involving animation, film and television, games, and virtual reality, promoting animation education and entrepreneurship[58]. - The Group's projects with Jiangxi and Jiangsu Provinces aim to narrate Chinese stories with local IP, assisting local governments in creating distinctive city icons[56]. - The animated film "Journey to the Center of the Deep Ocean" won multiple awards, including "Excellent Animation" and was nominated for Best Animated Feature Film at the Xinguang Award[66]. - The Group plans to continue enhancing traditional industries while supporting emerging industries, focusing on developing digital cultural content in 2022[67]. - The negotiation regarding the Western Zhi Gu Global Digital Base Project is in progress, aiming to create new experiences of online-offline immersion and cultural-technology integration[58]. Financial Results and Metrics - Revenue from continuing operations for the year ended December 31, 2021, amounted to HK$84,689,000, an increase of 8% compared to HK$78,635,000 in 2020[81]. - Gross profit margin improved to 53% in 2021 from 46% in 2020, representing a 7% increase[79]. - Profit attributable to owners of the Company was HK$15,963,000, a significant increase of 97% from HK$8,107,000 in the previous year[79]. - Earnings per share rose to 1.06 HK cents, up 96% from 0.54 HK cents in 2020[79]. - Total assets increased by 6% to HK$690,083,000 in 2021 from HK$650,302,000 in 2020[79]. - Cash and cash equivalents as of December 31, 2021, were HK$318,845,000, a 4% increase from HK$306,850,000 in 2020[90]. - Other income from continuing operations increased to HK$20,850,000 in 2021 from HK$13,061,000 in 2020, primarily due to government grants and interest income[87]. - Distribution and selling expenses rose significantly to HK$11,452,000, an increase of 208% from HK$3,714,000 in 2020, mainly due to marketing expenses for an animated film[87]. - The Group's current ratio improved to 1.28 in 2021 from 1.23 in 2020, indicating better liquidity[91]. - Equity attributable to owners of the Company increased to HK$506,496,000 as of December 31, 2021, up 8% from HK$467,168,000 in 2020[96]. - As of December 31, 2021, the equity attributable to owners of the company increased to HK$506,496,000, up from HK$467,168,000 in 2020, primarily due to a special reserve increase of HK$19,813,000 from the sale of a 10% stake in a subsidiary in Mainland China[97]. - The Group did not have any material acquisitions, disposals, or significant investments during the year ended December 31, 2021[98]. - The Group employed 194 full-time employees as of December 31, 2021, a decrease from 221 in 2020[100]. - The Group's revenue from the CG creation and production division was mainly derived from production services, box office receipts, and IP licensing, with significant projects undertaken in Mainland China[105]. - The original animated film "Journey to the Center of the Deep Ocean" was released on June 12, 2021, and ranked first in the domestic animated film box office on its screening day despite COVID-19 impacts[109]. - The Group is currently in production of the Yangtze River-themed animated film "Finless Porpoise: Dance in the Wind" in collaboration with local cultural groups[111]. - The authorization of animation IP-derived products expanded during the year, launching various products in over ten first-tier cities, focusing on apparel and food licensing[112]. - The Group's operational cash flow and liquidity are not significantly exposed to foreign exchange risks, with an additional exchange gain of approximately HK$9.91 million recognized due to currency fluctuations[100]. - The closing Renminbi exchange rate as of December 31, 2021, was approximately 1.3% and 3.0% higher than the average rate and the end of 2020 rate, respectively[100]. - The Group had no significant contingent liabilities as of December 31, 2021[100]. Projects and Innovations - GDC Building in Shenzhen continues to attract high-quality animated film and television, high technology, and cultural enterprises, enhancing its digital technology management system and improving ancillary facilities and services[117]. - The Chengdu Sports Park project is in full swing, focusing on "Cultural IP + Technology + Sports" to redefine the city and create a city landmark with technology[118]. - The Group has completed the development of a computer animated character and artificial intelligence engine driver interface, optimizing production processes and techniques[122]. - The Group plans to develop a digital virtual character IP asset matrix and a SaaS platform for customization, targeting areas such as live streaming for virtual marketing and financial services[123]. - The Group will invest substantially in the Metaverse-related industrial chain, leveraging its first-mover advantage in virtual reality and science fiction industries[131]. - Animated film and television original business will continue to develop multiple theme series, expanding into animated films, web dramas, and game animation production[134]. - The Group aims to enhance replication capabilities and continue expanding new projects, particularly in high-tech experience and operations[136]. Corporate Governance - The Board of Directors comprises eight members, including three Executive Directors and four Independent Non-executive Directors, ensuring a balanced composition for independent judgment[147]. - The Board held six meetings during the year ended December 31, 2021, to review various projects and approve quarterly, interim, and annual results[159]. - All Directors confirmed compliance with the code of conduct regarding securities transactions throughout the year ended December 31, 2021[145]. - The Company has maintained compliance with all provisions of the Corporate Governance Code throughout the year ended December 31, 2021[143]. - The Company Secretary is responsible for ensuring compliance with meeting procedures and regulations, and for taking detailed minutes of Board meetings[157]. - Non-executive Directors play a crucial role in making independent judgments and scrutinizing the Company's performance[150]. - The Board is responsible for overall strategy formulation and monitoring the performance of the Group[153]. - The Company aims to provide at least 14 days' notice for regular Board meetings and send agenda papers at least three days in advance[157]. - The attendance records of the Board meetings and general meetings held in 2021 are documented, with some Directors unable to attend due to other commitments[160]. - The Company has a strong emphasis on accountability and transparency in its corporate governance practices[141]. - The Board held a total of 6 meetings during the year ended December 31, 2021, with all directors actively participating in the group's affairs[162]. - The company reviewed and approved its quarterly, interim, and annual performance during the board meetings[162]. - The Board adopted a diversity policy in 2013 to ensure a balance of skills, experience, and perspectives among its members[168]. - The Nomination Committee is responsible for reviewing the profiles of candidates and making recommendations for the appointment and reappointment of directors[168]. - Directors are appointed for a specific term and are subject to retirement by rotation at least once every three years[168]. - The company provides independent professional advice to directors to assist them in discharging their duties[166]. - Monthly updates on the company's performance and financial position are provided to all directors[166]. - The Board has the ultimate responsibility for the selection and appointment of directors as permitted in the Bye-laws[168]. - The Nomination Policy was adopted in December 2018 to ensure a formal and transparent procedure for director appointments[168]. - The company emphasizes the importance of diversity in its board appointments, considering various perspectives including gender, race, and professional experience[168]. - The roles of the Chairman and the Managing Director are separate to reinforce independence and accountability, with Mr. Xu Liang appointed as Chairman on June 30, 2021, and Mr. Wang Hongpeng as Managing Director[176]. - The Executive Committee, established in September 2007, consists of three Executive Directors as of December 31, 2021, including Mr. Xu Liang, Mr. Wang Hongpeng, and Mr. Xiao Yong[187]. - The Company has appointed four Independent Non-executive Directors, ensuring compliance with GEM Listing Rules, with Mr. Lam Yiu Kin possessing relevant financial management expertise[183]. - All Directors participated in continuous professional development during the period from January 1, 2021, to December 31, 2021, focusing on the latest developments in GEM Listing Rules and regulatory requirements[172]. - Appropriate insurance coverage is in place to protect Directors and officers from risks associated with the Group's business operations[175]. - The Audit Committee was established in July 2003 with specific written terms of reference outlining its authorities and duties[187]. - The Company ensures that all Directors receive complete and reliable information in a timely manner to facilitate informed decision-making[177]. - The Non-executive Directors provide expertise and experience, serving as checks and balances to safeguard the interests of the Group and its shareholders[182]. - The division of responsibilities between the Chairman and the Managing Director is clearly established and documented[176]. - The Company considers all Independent Non-executive Directors to be independent for the year ended December 31, 2021, based on annual confirmations received[183]. - The Audit Committee held four meetings in 2021, with all members attending all meetings[192]. - The Audit Committee reviewed the Group's internal control system and risk management[192]. - The Nomination Committee recommended the appointment of new Directors and the change of Chairman of the Board for the year ended 31 December 2021[200]. - The Nomination Committee assessed the independence of Independent Non-executive Directors[200]. - The Nomination Committee reviewed the structure of the Board considering the Board Diversity Policy[200]. - The Audit Committee had no disagreement with the Board regarding the external auditor's selection or dismissal for the year ended 31 December 2021[194]. - The Audit Committee reviewed the final results of the Group for the year ended 31 December 2020[192]. - The Audit Committee reviewed the quarterly results of the Group for the three months ended 31 March 2021[192]. - The Audit Committee reviewed the interim results of the Group for the six months ended 30 June 2021[192]. - The Audit Committee reviewed the quarterly results of the Group for the nine months ended 30 September 2021[192].

(Incorporated in Bermuda with limited liability) Global Digital Creations Holdings Limited 環球數碼創意控股有限公司* THIRD QUARTERLY REPORT 2021 (Stock Code 股份代號: 8271) （於百慕達註冊成立之有限公司） 第三季度業績報告 *For identification purpose only 僅供識別 Global Digital Creations Holdings Limited 環球數碼創意控股有限公司 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than oth ...