(Incorporated in Bermuda with limited liability) Global Digital Creations Holdings Limited 環球數碼創意控股有限公司* INTERIM REPORT 2021 （於百慕達註冊成立之有限公司） (Stock Code 股份代號: 8271) 中期報告 *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 other companies ...

(Incorporated in Bermuda with limited liability) Global Digital Creations Holdings Limited 環球數碼創意控股有限公司* FIRST QUARTERLY REPORT 2021 (Stock Code 股份代號: 8271) （於百慕達註冊成立之有限公司） 第一季度業績報告 *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 ...

| --- | --- | |---------------------|-------------| | | | | | | | 2020 ANNUAL REPORT | | | 年報 | | | | | | | | | | G·D·C | | | 環 球 數 碼 | Global Digital Creations Holdings Limited 環球數碼創意控股有限公司* (Incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) (Stock Code 股份代號: 8271) *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 a ...

2020 THIRD QUARTERLY REPORT 第三季度業績報告 G.D.C 環 球 數 碼 Global Digital Creations Holdings Limited 環球數碼創意控股有限公司* (Incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) (Stock Code 股份代號: 8271) ® For identification purpose only 登州黄別 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 at ...

2020 INTERIM REPORT 中期報告 G.D.C 環 球 數 碼 Global Digital Creations Holdings Limited 環球數碼創意控股有限公司* (Incorporated in Bermuda with limited liability) (於百慕達註冊成立之有限公司) (Stock Code 股份代號: 8271) ® For identification purpose only 登州黄別 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 ...

Financial Performance - Revenue for the first quarter of 2020 was HKD 19,191,000, an increase of 7% compared to HKD 17,937,000 in the same period of 2019[32] - Gross profit decreased to HKD 5,983,000, down 40.3% from HKD 10,014,000 year-over-year[32] - Operating loss for the quarter was HKD 3,005,000, compared to an operating profit of HKD 6,339,000 in Q1 2019[32] - Loss before tax was HKD 3,028,000, a significant decline from the profit of HKD 6,339,000 in the previous year[32] - The total comprehensive loss for the period was HKD 10,963,000, compared to a comprehensive income of HKD 8,112,000 in Q1 2019[32] - The company reported a loss per share of HKD 0.37, compared to earnings per share of HKD 0.10 in the same quarter last year[36] - The company incurred a loss from discontinued operations of HKD 4,580,000, compared to a loss of HKD 3,955,000 in Q1 2019[32] - Other income for the quarter was HKD 2,097,000, down from HKD 4,583,000 in the previous year[32] - Administrative expenses increased to HKD 8,623,000, compared to HKD 8,077,000 in Q1 2019[32] - The company reported a net loss attributable to equity holders of HKD 5,549,000 for the three months ended March 31, 2020, compared to a profit of HKD 1,564,000 in the same period of 2019[49] - Basic and diluted loss per share from continuing operations was HKD (0.16) for the first quarter of 2020, compared to earnings of HKD 0.28 in the same quarter of 2019[51] - Total other income decreased to HKD 2,097,000, down 54% from HKD 4,583,000 year-over-year, primarily due to a significant drop in government grants[42] - The company reported a loss from discontinued operations of HKD 4,580,000 for the three months ended March 31, 2020, compared to a loss of HKD 3,955,000 in the same period of 2019[47] - Interest income for the period was HKD 1,449,000, slightly down from HKD 1,482,000 in the previous year[42] - The company did not incur any Hong Kong profits tax due to no taxable profits generated in Hong Kong during the reporting period[45] Revenue Breakdown - Revenue from continuing operations for Q1 2020 was HKD 19,191,000, an increase of HKD 1,254,000 compared to HKD 17,937,000 in Q1 2019[58] - Revenue from computer-generated imagery increased significantly to HKD 3,583,000, up 88% from HKD 1,901,000 year-over-year[40] - Revenue from original TV series and films also rose to HKD 2,023,000, a 87% increase from HKD 1,084,000 in the previous year[40] - Cost of sales for continuing operations increased to HKD 13,208,000 from HKD 7,923,000, a rise of HKD 5,285,000 due to the costs associated with an original animated film released in January 2020[58] Operational Challenges - The company has not provided specific guidance for future performance but indicated ongoing challenges in the market[31] - Due to the ongoing COVID-19 pandemic, the animation outsourcing business and original projects are expected to be significantly negatively impacted, prompting a re-evaluation of development positioning and corporate culture[69] Strategic Initiatives - The group is actively negotiating new animation production projects, including a collaboration with Jiangxi Province for an animated film featuring the Yangtze River dolphin[63] - The production team at the Foshan Digital Animation Industry Base continues to collaborate with the Shenzhen team to enhance production efficiency and achieve target capacity[66] - The group plans to release the eighth installment of the "Submarine Commander" series in mainland China soon[63] - The animation division is focusing on technological innovation as a core competitive advantage, aiming to create new IP content products and expand online and offline interactive experiences[67] - The company is actively pursuing brand development and licensing, with plans for a second round of releases and licensing for certain animated films to maintain brand momentum[69] - The company is enhancing its competitiveness in digital virtual characters and digital visual content through collaborations with Tencent and other digital industry players[69] Property Management and Legal Issues - The vacancy rate for office buildings in Shenzhen has significantly increased, leading to a decline in rental prices and a competitive leasing market[70] - The company is implementing strict pandemic prevention measures in its property management operations, including disinfection and temperature checks[70] - The company is engaged in ongoing discussions regarding potential changes to leasing terms or rent adjustments due to the current economic conditions[70] - The company has acknowledged a potential financial impact from a legal dispute, with a judgment requiring the payment of approximately RMB 2,722,000 (around HKD 3,172,000) in overdue rent penalties[74] - The company recognized a full impairment loss of HKD 411,412,000 related to the investment property in the Zhu Ying Cultural Industry Park due to uncertainties in its operation terms[81] - As of March 31, 2020, the total deposits in the bank accounts related to the Zhu Ying Cultural Industry Park amounted to HKD 38,533,000[84] - The company recorded rental income and management service fees of HKD 3,849,000 related to the discontinued operations, fully accrued as payable rent[88] - As of March 31, 2020, the company's total payables for rent and settlement amounted to HKD 172,847,000, compared to HKD 170,208,000 as of December 31, 2019[88] Shareholder Information - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2020[89] - The company repurchased a total of 498,000 ordinary shares during the three months ended March 31, 2020, at a total cost of HKD 69,678[90] - As of March 31, 2020, the company’s directors and senior management held a total of 197,169,040 shares, representing approximately 12.99% of the issued share capital[93] - As of March 31, 2020, Shougang Group holds a 40.81% stake in the company, amounting to 619,168,023 shares[97] - The company has not granted any stock options under its stock option plan since its adoption on June 18, 2013[100] Audit and Compliance - The first quarter results for the period ending March 31, 2020, have not been audited but have been reviewed by the audit committee and management[106]

Financial Performance - Global Digital Creations Holdings Limited reported a significant increase in revenue, achieving a total of HKD 150 million, representing a growth of 25% year-over-year[3]. - The company reported a net profit margin of 10%, reflecting improved operational efficiency compared to 8% in the previous year[3]. - For the fiscal year ending December 31, 2019, the group recorded total revenue of HKD 96,771,000, a decrease of HKD 10,871,000 year-on-year[23]. - Profit attributable to shareholders from continuing operations was HKD 20,773,000, an increase of HKD 11,224,000 year-on-year[23]. - The group reported a total profit of HKD 4,430,000 for the year, recovering from a loss of HKD 446,537,000 in the previous year[51]. - The company aims to enhance production quality and focus on creative and technological development to achieve higher box office results for original animated films[30]. - The company is actively seeking new business opportunities to expand revenue sources and improve financial performance[30]. User Base and Market Expansion - The company has expanded its user base, reaching 1.2 million active users, which is a 30% increase compared to the previous year[3]. - Market expansion efforts include entering two new international markets, aiming for a 15% increase in market share within the next year[3]. - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[3]. Research and Development - The company is investing in the development of new technologies, with a budget allocation of HKD 20 million for R&D in AI visual technology[3]. - The company has completed three software copyright applications and obtained certificates from the National Copyright Administration of China in 2019, ensuring effective protection of intellectual property rights[33]. - The company has established a digital animation industry base in Foshan, enhancing collaborative production capabilities with the Shenzhen base, and has introduced three partner companies into its incubation center[31]. Corporate Governance and Leadership - The company emphasizes the importance of corporate governance and has established various committees, including audit and remuneration committees, to ensure compliance and oversight[16]. - The company has a strong leadership team with members holding significant positions in major shareholders, including Shougang Group, which is a key stakeholder[12]. - The board consists of nine members, including four executive directors and four independent non-executive directors, ensuring a balanced composition for independent judgment[68]. - The company has implemented a training program for all directors, ensuring they are updated on relevant regulations and developments[87]. - The company has established a risk management and internal control system to safeguard shareholder interests and ensure compliance with regulations[91]. Environmental Impact - Total greenhouse gas emissions decreased from 1,783.34 tons in 2018 to 1,530.73 tons in 2019, representing a reduction of approximately 14.1%[171]. - The company implemented energy-saving measures, including replacing old lighting with LED fixtures, which contributed to reduced energy consumption[168]. - The total paper consumption decreased from 13.60 tons in 2018 to 10.92 tons in 2019, reflecting a reduction of about 19.7%[172]. - The company continued to implement waste management practices, including recycling and encouraging the use of eco-friendly stationery[175]. Employee Management - The company employed 223 staff members as of December 31, 2019, down from 247 in 2018, indicating a reduction in workforce[185]. - Employee turnover in 2019 included 39 departures, a significant decrease from 95 in 2018, reflecting improved employee retention[186]. - The company has committed to regular reviews of its employee policies to ensure compliance with labor laws and enhance employee welfare[184]. - The company has maintained a focus on providing a safe and healthy work environment, with no significant violations of occupational health and safety standards reported in 2019[188].

Financial Performance - Total revenue for Q3 2019 was HKD 20,722,000, a decrease of 6.0% from HKD 22,055,000 in Q3 2018[41] - Gross profit for Q3 2019 was HKD 11,325,000, compared to HKD 8,392,000 in Q3 2018, reflecting a significant increase of 34.5%[41] - The net profit from continuing operations for Q3 2019 was HKD 602,000, a decrease of 94.2% from HKD 10,345,000 in Q3 2018[41] - Total comprehensive income for Q3 2019 was a loss of HKD 8,899,000, compared to a loss of HKD 13,516,000 in Q3 2018, indicating an improvement[41] - For the nine months ended September 30, 2019, total revenue was HKD 66,355,000, down 22.5% from HKD 85,633,000 in the same period of 2018[41] - The company reported a profit attributable to shareholders from continuing operations of HKD 1,730,000 for the three months ended September 30, 2019, down from HKD 10,128,000 in the same period of 2018, representing a decrease of approximately 83.9%[43] - The company reported a profit attributable to shareholders of HKD 1,226,000 for the nine months ended September 30, 2019, a decrease of HKD 20,103,000 compared to HKD 21,329,000 in the same period of 2018[73] Revenue Breakdown - Revenue from computer graphics production decreased to HKD 6,199,000 for the three months ended September 30, 2019, from HKD 6,433,000 in 2018, a decrease of 3.6%[48] - Revenue from television series and films dropped significantly to HKD 129,000 for the three months ended September 30, 2019, compared to HKD 1,113,000 in the same period of 2018, a decrease of approximately 88.4%[48] - Revenue from continuing operations was HKD 66,355,000, down HKD 19,278,000 from HKD 85,633,000 in the same period of 2018, primarily due to a decrease in income from animated films and television series[73] Cost and Expenses - The cost of sales for Q3 2019 was HKD 9,397,000, down 31.8% from HKD 13,663,000 in Q3 2018[41] - The cost of sales and services from continuing operations was HKD 37,094,000, a reduction of HKD 19,072,000 compared to HKD 56,166,000 in the same period of 2018[74] - Administrative expenses from continuing operations were HKD 25,940,000, down HKD 2,903,000 from HKD 28,843,000 in the same period of 2018[78] Foreign Exchange and Other Income - The company experienced a significant foreign exchange loss of HKD 9,501,000 in Q3 2019, compared to a loss of HKD 27,692,000 in Q3 2018[41] - Other income from continuing operations decreased to HKD 14,373,000 from HKD 23,494,000, a decline of HKD 9,121,000, mainly due to a reduction in government subsidies[74] Market Strategy and Future Plans - The company plans to focus on expanding its market presence and enhancing its product offerings in the upcoming quarters[41] - The board of directors expressed confidence in the company's long-term growth strategy despite the current financial challenges[41] - The company is expanding its production team in Foshan to enhance competitive advantages and plans to establish an incubation center for collaboration within the animation industry[82] Legal and Governance Issues - The company is involved in ongoing litigation with Zhuying Film Production, claiming compensation of RMB 10,000,000 for losses incurred during the November 2018 incident[107] - The total amount claimed by Zhuying Film Production for property and economic losses is approximately RMB 143,076,000 (equivalent to about HKD 169,521,000)[96] - The company has complied with the corporate governance code as per GEM Listing Rules, except for a deviation regarding the separation of roles between the Chairman and CEO[120] Shareholder Information - As of September 30, 2019, the company's payable rent and settlement amount was HKD 156,974,000, an increase from HKD 128,800,000 as of December 31, 2018[100] - The company has not declared an interim dividend for the nine months ended September 30, 2019, compared to no dividend declared for the same period in 2018[108] - As of September 30, 2019, the company had significant shareholdings, with Shougang Group holding 619,168,023 shares, representing approximately 40.78% of the total issued share capital[115]

Financial Performance - For the six months ended June 30, 2019, total revenue was HKD 15,926,000, a decrease of 53.5% compared to HKD 34,192,000 for the same period in 2018[74]. - Gross profit for the six months ended June 30, 2019, was HKD 7,922,000, down 65.0% from HKD 22,617,000 in the previous year[74]. - The loss from continuing operations for the six months ended June 30, 2019, was HKD 3,677,000, compared to a profit of HKD 8,801,000 in the same period of 2018[74]. - The company reported a total comprehensive loss of HKD 8,222,000 for the six months ended June 30, 2019, compared to a total comprehensive loss of HKD 11,899,000 in the previous year[74]. - The company reported a loss attributable to shareholders of HKD (504) thousand for the six months ended June 30, 2019, compared to a profit of HKD 4,014 thousand in the same period of 2018, representing a decline of approximately 112.5%[77]. - The basic loss per share from continuing and discontinued operations was HKD (0.03) for the six months ended June 30, 2019, compared to HKD 0.57 for the same period in 2018, indicating a decrease of approximately 105.3%[77]. - Total comprehensive income attributable to shareholders was HKD (1,005) thousand for the six months ended June 30, 2019, compared to HKD 2,013 thousand in the same period of 2018, reflecting a decline of approximately 149.8%[77]. Expenses and Costs - The cost of sales for the six months ended June 30, 2019, was HKD 19,774,000, a decrease from HKD 27,697,000 in the same period of 2018[74]. - Administrative expenses for the six months ended June 30, 2019, were HKD 9,370,000, compared to HKD 9,510,000 in the previous year[74]. - The company aims to improve operational efficiency and reduce costs in response to the current financial performance[79]. Assets and Liabilities - Non-current assets increased to HKD 254,662 thousand as of June 30, 2019, from HKD 242,068 thousand as of December 31, 2018, marking an increase of approximately 5.2%[80]. - Current assets totaled HKD 301,762 thousand as of June 30, 2019, compared to HKD 292,214 thousand as of December 31, 2018, representing an increase of approximately 3.2%[80]. - The company reported a net current asset position of HKD 69,540 thousand as of June 30, 2019[80]. - Total liabilities increased to HKD 232,222 thousand as of June 30, 2019, from HKD 207,130 thousand as of December 31, 2018, indicating an increase of approximately 12.1%[80]. - The company’s total liabilities increased, impacting the overall financial position[121]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 58,406,000[120]. - The cash and cash equivalents at the end of the period decreased to HKD 255,723,000 from HKD 273,133,000 at the beginning of the period[120]. - The company incurred a net cash outflow of HKD 22,509,000 from investing activities during the same period[120]. - The company reported a significant increase in trade receivables, which rose by HKD 47,333,000[120]. - The company’s financing activities included a repayment of lease liabilities amounting to HKD 805,000[120]. - The company acquired additional interests in a Chinese subsidiary, resulting in cash outflows of HKD 114,000[120]. Strategic Focus and Future Outlook - The company is focusing on expanding its market presence and enhancing its product offerings in the digital creative sector[74]. - Future outlook includes potential new product launches and technology advancements to drive growth[74]. - The company is exploring strategic partnerships and acquisitions to strengthen its market position[74]. - Future outlook includes plans for market expansion and potential mergers and acquisitions to enhance growth opportunities[79]. - The company is focusing on restructuring and optimizing its business operations to improve financial performance[121]. Lease Accounting - The company recognized a lease liability of HKD 3,746,000 upon the initial application of HKFRS 16 on January 1, 2019, with the corresponding right-of-use asset amounting to the same value[149]. - The lease liability is broken down into current liabilities of HKD 1,629,000 and non-current liabilities of HKD 2,117,000[159][160]. - The right-of-use asset includes HKD 3,716,000 for land and buildings and HKD 30,000 for office equipment[165][167]. - The company applied an incremental borrowing rate of 4.5% for the measurement of lease liabilities classified as operating leases prior to the adoption of HKFRS 16[168]. - The initial direct costs related to the acquisition of the right-of-use assets are excluded from the measurement of the right-of-use asset at the transition date[148]. - The company has chosen to apply the modified retrospective approach for the transition to HKFRS 16, without reassessing contracts identified as leases under previous standards[145]. - The fair value adjustments of refundable lease deposits are considered additional lease payments and included in the cost of the right-of-use asset[136]. - The company will not restate comparative information for the prior periods upon the initial application of HKFRS 16[146]. - The right-of-use assets are measured at cost less accumulated depreciation and impairment losses over the shorter of the lease term or the estimated useful life[134]. - The company recognizes lease liabilities at the present value of future lease payments not yet paid at the lease commencement date[137]. - The group applied HKFRS 16 from January 1, 2019, with no significant impact on the consolidated financial statements[170]. - The refundable lease deposits received from tenants amounted to HKD 8,067,000, with adjustments reflecting HKD 1,785,000 as prepaid lease payments[170]. - The total liabilities related to lease payments were recorded as HKD 1,629,000[170]. - The group recognized a right-of-use asset valued at HKD 3,746,000[170]. - The adjustments made under HKFRS 15 for contract costs did not have a significant impact on the financial statements for the period[170]. Dividend Declaration - The company did not declare any interim dividend for the period[74].

G·D·C 環球 數 碼 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) 2019 -季度樂績報告 * 僅供識別 環球數碼創意控股有限公司 2019年第一季度業績報告 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。 1 香港聯合交易所有限公司（「聯交所」）GEM的特色 本報告的資料乃遵照《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」 ...