Core Viewpoint - The company, Global Digital Creative (08271.HK), expects to turn a loss of HKD 22.69 million for the six months ending June 30, 2024, into a profit of at least HKD 23 million by mid-2025 [1] Financial Performance - The anticipated turnaround is primarily due to a reduction in net losses from ongoing operations by approximately HKD 17 million [1] - A one-time net gain of about HKD 33 million from the termination of the Guangdong Global Digital Creative Industry Co., Ltd. will also contribute to the profit [1] Business Operations - The bankruptcy liquidation application for Guangdong Global Digital has been accepted by the court, and a bankruptcy administrator was officially appointed on June 11, 2025 [1] - As a result of this development, the company will no longer have control over Guangdong Global Digital, and its financial performance will not be consolidated into the group's financial results [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致之任何損失承擔任何責任。 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） 正面盈利預告 -1- 本公司目前正在落實編制本集團 2025 年中期之業績，實際業績可能與此公告有 別。本集團之財務資料及其他詳情預計將於 2025 年 8 月中之 2025 年中期業績公 告中披露。 股東及潛在投資者於買賣本公司股份時務請審慎行事。 承董事會命 環球數碼創意控股有限公司 主席 徐量 本公告乃環球數碼創意控股有限公司（「本公司」，連同其附屬公司，「本集 團」）根據香港聯合交易所有限公司的GEM證券上市規則（「GEM上市規則」） 第17.10條及證券及期貨條例（香港法例第571章）（「證券及期貨條例」）第 XIVA部項下的內幕消息條文（定義見GEM上市規則）而作出。 本公司董事會（「董事會」）謹此知會本公司股東（「股東」）及潛 ...

（於百慕達註冊成立之有限公司） （股份代號：8271） 董事會會議通告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何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。 GLOBAL DIGITAL CREATIONS HOLDINGS LIMITED 環球數碼創意控股有限公司* 香港，2025年8月4日 於本公告日期，董事會包括執行董事徐量先生（主席）及馮先槐先生（董事總經理）及何鵬先生（副 董事總經理）；非執行董事陳征先生（副主席）；獨立非執行董事林耀堅先生、鄭晓東先生、吳春華 女士及楊思維女士。 本公告的資料乃遵照《香港聯合交易所有限公司的 GEM 證券上市規則》而刊載，旨在提供有關本公司 的資料；本公司的董事（「董事」）願就本公告的資料共同及個別地承擔全部責任。各董事在作出一 切合理查詢後，確認就其所知及所信，本公告所載資料在各重要方面均屬準確完備，沒有誤導或欺詐 成分，且並無遺漏任何事項，足以令致本公告或其所載任何陳述產生誤導。 本公告將由其刊登之日起，最少一連七日在香港聯合交易所有限公司網 ...

| 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08271 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,400,000,000 | HKD | | 0.01 | HKD | | 24,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,400,000,000 | HKD | | 0.01 | HKD | | 24,000,000 | 本月底法定/註冊股本總額： HKD 24,000,000 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 環球數碼創意控股有限公司 呈交日期: 20 ...

6月19日，截至港股收盘，恒生指数下跌1.99%，报23237.74点。环球数码创意（08271.HK）收报0.055 港元/股，上涨10.0%，成交量59万股，成交额2.94万港元，振幅12.0%。 最近一个月来，环球数码创意累计跌幅16.67%，今年来累计跌幅37.5%，跑输恒生指数18.2%的涨幅。 财务数据显示，截至2024年12月31日，环球数码创意实现营业总收入6522.28万元，同比增长0.35%；归 母净利润-5735.89万元，同比减少253.54%；毛利率-21.38%，资产负债率50.26%。 （以上内容为金融界基于公开消息，由程序或算法智能生成，不作为投资建议或交易依据。） 本文源自：金融界 作者：行情君 机构评级方面，目前暂无机构对该股做出投资评级建议。 行业估值方面，地产行业市盈率（TTM）平均值为4.87倍，行业中值-0.15倍。环球数码创意市盈 率-1.21倍，行业排名第170位；其他百仕达控股(旧)（02983.HK）为0.5倍、百仕达控股(新) （01168.HK）为0.51倍、恒达集团控股（03616.HK）为1.71倍、中国新城市（01321.HK）为2.29倍、瑞 森 ...

Financial Performance - Global Digital Creations Holdings Limited reported a significant increase in revenue, achieving a total of HKD 500 million for the fiscal year 2024, representing a 25% growth compared to the previous year[10] - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% year-over-year growth[1] - The company provided a positive outlook for the next quarter, projecting revenue growth of 15% to $575 million[3] - Future outlook indicates a projected revenue growth of 30% for the next fiscal year, driven by new product launches and market expansion strategies[10] - The company reported a net profit margin of 20% for the fiscal year 2024, an improvement from 15% in the previous year[10] - The company reported a net profit margin of 12%, up from 10% in the previous year, reflecting improved profitability[9] - The management has introduced a new digital asset management strategy, which is anticipated to contribute an additional HKD 100 million in revenue over the next three years[10] User Growth and Market Expansion - The company has expanded its user base, now serving over 1 million active users, which is a 40% increase year-on-year[10] - User data showed a growth in active users to 2 million, up from 1.5 million, indicating a 33% increase[2] - Global Digital Creations Holdings Limited plans to enter new markets in Southeast Asia, aiming for a 15% market share within the next two years[10] - Market expansion plans include entering two new countries, which are projected to add $30 million in revenue within the first year[6] Research and Development - The company is investing heavily in research and development, allocating HKD 50 million towards the development of AR/VR products and digital assets[10] - The company is investing $10 million in research and development for new technologies aimed at enhancing user experience[5] - The research and development team has completed the development of computer animation and digital virtual character all-in-one products, integrating new technologies like Unreal Engine and AI[121] Strategic Partnerships and Acquisitions - The company has successfully completed the acquisition of a local animation studio, which is expected to enhance its content production capabilities and increase revenue by an estimated 10%[10] - The company has established a strategic partnership with a leading tech firm to enhance its technological capabilities, which is expected to reduce operational costs by 10%[10] - The company is considering strategic acquisitions to bolster its market position, with a budget of $25 million allocated for potential deals[7] Operational Efficiency and Cost Management - The management emphasized a focus on improving operational efficiency, targeting a 10% reduction in costs over the next year[8] - The Group's current ratio decreased to 1.05 from 1.27 in 2023, based on current assets of HK$236,689,000 and current liabilities of HK$224,621,000[83] - Cost of sales from continuing operations increased to HK$85,488,000, up HK$20,396,000 from HK$65,092,000 in 2023, primarily due to impairment provisions and increased operating costs[63] Awards and Recognition - The company has won several enterprise qualification awards, including National High-Tech Enterprise and Shenzhen Science and Technology Small and Medium Enterprises[50] - The Group was recognized as a National High-Tech Enterprise and received multiple awards for its contributions to cultural tourism and animation[110] Corporate Governance - The Company has maintained high standards of corporate governance to safeguard shareholder interests and enhance accountability[134] - The Board comprises seven members, including two executive Directors and four Independent Non-executive Directors, meeting all GEM Listing Rules requirements[142] - The roles of the Chairman and the Managing Director are separate to enhance independence and accountability[157] Employee and Workforce Management - As of December 31, 2024, the Group employed 109 full-time employees, a decrease from 148 employees in 2023[93] - The Group employed 109 full-time employees as of December 31, 2024, down from 148 in the previous year[97] - The Group's recruitment practices adhere to diversity principles, including gender perspectives[186] Future Projects and Innovations - The ocean-themed animated film series is expected to be completed by the end of March 2025, with multiple urban cultural IPs created in 2024[105] - The film and television business plans to produce one to two animated films annually, focusing on unique local cultural content and various themes[126] - The Group aims to "unleash the potential of digital visual technology and present exciting Chinese stories," focusing on digital cultural content and exploring new industries[51]

Financial Performance - The company's revenue for the year ended December 31, 2024, was HKD 70,432,000, a slight increase from HKD 70,189,000 in 2023, representing a growth of 0.35%[5] - The cost of sales increased significantly to HKD 85,488,000 from HKD 65,092,000, resulting in a gross loss of HKD 15,056,000 compared to a gross profit of HKD 5,097,000 in the previous year[5] - Operating loss for the year was HKD 63,839,000, which is a substantial increase from the operating loss of HKD 29,890,000 in 2023, indicating a deterioration in operational performance[5] - The total comprehensive loss for the year amounted to HKD 72,238,000, compared to a total comprehensive loss of HKD 16,279,000 in 2023, reflecting a significant decline in overall financial health[6] - The company reported a basic and diluted loss per share of HKD 4.12 for the year, compared to a loss of HKD 1.17 per share in 2023, indicating a worsening loss per share situation[6] - The company reported a loss attributable to shareholders of HKD 61,940,000 for the year 2024, compared to a loss of HKD 17,520,000 in 2023, indicating a significant decline in performance[22] - The basic and diluted loss per share for continuing operations was HKD (3.86) in 2024, compared to HKD (2.21) in 2023, reflecting a worsening financial situation[22] - The net loss from continuing operations was HKD 57,960,000, an increase of HKD 24,762,000 compared to the loss of HKD 33,198,000 in 2023[41] Assets and Liabilities - The company's total assets decreased to HKD 474,324,000 from HKD 545,081,000, indicating a reduction of approximately 12.97% year-over-year[7] - Current assets also saw a decline, totaling HKD 236,689,000 compared to HKD 273,435,000 in 2023, a decrease of about 13.43%[7] - The total liabilities remained relatively stable at HKD 238,374,000, slightly increasing from HKD 236,893,000 in the previous year[8] - The equity attributable to the company's owners decreased to HKD 358,266,000 from HKD 432,883,000, a decline of approximately 17.2%[7] Revenue Sources - For the year ending December 31, 2024, total revenue from external customers amounted to HKD 70,432,000, with HKD 25,677,000 from Interactive Entertainment and Digital Assets, and HKD 44,755,000 from Sports New Space[16] - Revenue from continuing operations for the year ended December 31, 2024, was HKD 70,432,000, a slight increase from HKD 70,189,000 in 2023, primarily due to a decrease in rental income and currency exchange rate fluctuations[33] Expenses - The company reported a total of HKD 46,727,000 in employee benefit expenses for the year ending December 31, 2024[19] - Distribution and selling expenses increased to HKD 16,967,000 in 2024, up from HKD 8,863,000 in 2023, mainly due to higher marketing costs for animated film releases[36] - Administrative expenses decreased to HKD 31,017,000 in 2024 from HKD 33,064,000 in 2023, attributed to reduced professional service fees and office operating costs[37] - The company continues to incur costs related to discontinued operations, with a reported loss of HKD 5,852,000 from discontinued operations in 2024[26] Government Grants and Tax - The company recognized a tax credit of HKD 6,381,000 for the year, contrasting with a tax expense of HKD 3,303,000 in the previous year, which may provide some relief in the overall loss[5] - The company reported a total of HKD 5,942,000 in government grants for the year ending December 31, 2024, an increase from HKD 2,049,000 in 2023[20] Legal and Compliance - The company has ongoing legal disputes related to the cultural industry park, with provisions for rental and settlement amounts totaling HKD 138,225,000 as of December 31, 2024[30] - The company has adopted corporate governance codes in compliance with GEM listing rules, with some deviations noted[63] Future Plans and Developments - The original marine-themed animated film series is in mid-production, expected to be completed by the end of March 2025[52] - The company aims to enhance its AIGC production technology to achieve more efficient, precise, and low-cost video content production, solidifying its leading position in the industry[58] - The company plans to produce one to two animated films annually, focusing on themes like marine exploration and local cultural stories[58] - The company is committed to becoming a leading digital asset management group in China through continuous technological and scenario enhancements[58] Shareholder Actions - The company has repurchased and canceled 260,000 shares, aimed at increasing net asset value and earnings per share for shareholders[62] - The company did not declare any dividends for the years ended December 31, 2024, and 2023, indicating a focus on retaining cash[24][32] Market Position and Partnerships - The company has become a supplier for leading industry players such as Qualcomm, Huawei, and Tencent, enhancing its presence in the interactive entertainment and digital asset sectors[51] - The company continues to optimize talent and technology to enhance business quality while actively expanding its market presence[58] Miscellaneous - The company is currently assessing the impact of new accounting standards and interpretations but has not identified any significant effects on its financial performance or position[12] - The company has not engaged in any significant acquisitions, disposals, or investments during the fiscal year ending December 31, 2024[46] - Cash and cash equivalents as of December 31, 2024, were HKD 223,713,000, down from HKD 248,039,000 in 2023, with a current ratio of 1.05 compared to 1.27 in 2023[43] - The company has no significant foreign exchange risks, with a 3.5% decline in the RMB settlement rate compared to the end of 2023, resulting in an additional exchange loss of HKD 8,426,000[48] - The company has developed a digital virtual human product based on advanced technologies such as AI voice recognition and high-precision motion capture systems[56] - The company has submitted 26 government project applications and completed 20 software copyright registrations, receiving multiple awards for its technological innovations[54] - The occupancy rate of the Shenzhen Global Digital Building remains high, providing financial support for the company's business transformation[55] - The annual general meeting is scheduled for May 23, 2025, with a suspension of share transfer registration from May 20 to May 23, 2025[68][69] - The company will publish its 2024 annual report at an appropriate time, following the announcement of its 2024 year-end results[70]

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[1]. - The company acknowledges the higher investment risks associated with securities traded on GEM compared to those on the main board of the Stock Exchange[2]. - The directors of Global Digital Creations Holdings Limited confirm that the information in the report is accurate and complete in all material respects[3]. - The Group's primary listing is on GEM of The Stock Exchange of Hong Kong Limited since 4 August 2003, reflecting its established presence in the market[36]. Financial Performance - Revenue for the six months ended June 30, 2024, was HK$37,173,000, an increase from HK$29,292,000 in the same period of 2023, representing a growth of 27.0%[17]. - Gross profit decreased to HK$2,189,000 from HK$12,196,000, indicating a decline of 82.0% year-over-year[17]. - Operating loss for the period was HK$22,668,000 compared to an operating profit of HK$597,000 in the previous year, reflecting a significant downturn[17]. - Loss for the period from continuing operations was HK$22,220,000, a decrease from a profit of HK$230,000 in the same period last year[17]. - Total loss for the period amounted to HK$22,692,000, compared to a loss of HK$4,883,000 in the same period of 2023[17]. - For the six months ended June 30, 2024, the total comprehensive loss attributable to owners of the Company was HK$29,112,000, compared to a loss of HK$15,893,000 for the same period in 2023[21]. - The company reported a loss before income tax from continuing operations of HK$22,833 for the six months ended June 30, 2024[52]. - The company incurred a loss for the period of HK$22,541,000, compared to a loss of HK$3,247,000 in the prior year, marking a significant increase in losses[29]. Shareholder Returns - The interim dividend details are included, indicating the company's approach to shareholder returns[5]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[72]. - The basic and diluted loss per share attributable to owners of the Company was HK$1.50, compared to a loss of HK$0.21 in the previous year[21]. Assets and Liabilities - Total assets decreased from HK$545,081,000 as of December 31, 2023, to HK$520,503,000 as of June 30, 2024[25]. - Current assets decreased from HK$273,435,000 to HK$254,561,000 during the same period[25]. - Total liabilities increased from HK$236,893,000 to HK$241,427,000[25]. - The equity attributable to owners of the Company decreased from HK$432,883,000 to HK$400,994,000[25]. Cash Flow and Financial Management - The net cash used in operating activities for the first half of 2024 was HK$6,658,000, a decrease from HK$8,373,000 in the same period of 2023, reflecting improved cash flow management[34]. - The company reported cash and cash equivalents of HK$233,846,000, down from HK$248,039,000[24]. - The Group's current ratio as of June 30, 2024, was 1.22, compared to 1.27 as of December 31, 2023[132]. Corporate Governance - The report emphasizes the importance of compliance with corporate governance codes and securities transaction conduct by directors[5]. - The company confirmed compliance with the code of conduct regarding securities transactions by directors throughout the six months ended June 30, 2024[159]. - The company has maintained a rigorous code of conduct for securities transactions, meeting the standards set by GEM Listing Rules[159]. Management Changes - The report outlines the changes in the board of directors, including the appointment of Mr. Feng Xianhuai as Managing Director on August 3, 2024[6]. - The company has experienced changes in its executive committee, with several resignations and appointments in 2024[6]. - Mr. Wang Hongpeng resigned as managing director effective August 3, 2024, but remains an executive director[160]. Risk Management - The Group's activities expose it to a variety of financial risks, including market risk, credit risk, and liquidity risk[38]. - There have been no significant changes in the risk management policies since 31 December 2023, indicating stability in financial risk management[38]. Legal Matters - Guangdong GDC was ordered to pay property occupation fees totaling RMB157,353,781 for the Pearl River Film Cultural Park, covering the period from March 23, 2016, until the return of the property[144]. - The Supreme People's Court rejected Guangdong GDC's application for a re-trial on February 26, 2024[146]. Segment Performance - Revenue from the Interactive Entertainment and Digital Assets segment was HK$14,575, while the New Cultural and Sports Space segment generated HK$22,598 for the six months ended June 30, 2024[52]. - Revenue from CG production was HK$5,178, while box office receipts and licensing income from television programs and movies to online platforms totaled HK$8,784[52][58]. Future Outlook - The Group aims to strengthen two core technologies: digital virtual characters and AIGC production technology, to enhance efficiency and maintain industry leadership[141]. - GDC plans to produce one to two animated films annually, focusing on unique local cultural content and various themes such as ocean exploration and Chinese mythology[142].

[Financial Highlights](index=2&type=section&id=Financial%20Highlights) This section provides an overview of the Group's financial performance and position, highlighting key income statement and balance sheet figures [Consolidated Statement of Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total loss significantly expanded to **HKD 22.692 million**, primarily due to substantial increases in cost of sales and distribution expenses, despite a **26.9% revenue growth** from new film releases Consolidated Statement of Comprehensive Income Highlights | Indicator (HKD Thousands) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Year-on-year Change | | :--- | :--- | :--- | :--- | | **Revenue from continuing operations** | 37,173 | 29,292 | +26.9% | | Cost of sales | (34,984) | (17,096) | +104.6% | | Gross profit | 2,189 | 12,196 | -82.1% | | Operating (loss)/profit | (22,668) | 597 | N/A | | **Loss for the period** | (22,692) | (4,883) | +364.7% | | Loss attributable to owners of the Company | (22,541) | (3,247) | +594.2% | (Loss)/Earnings Per Share | (Loss)/Earnings Per Share (HK Cents) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | **From continuing operations** | (1.48) | 0.02 | | From discontinued operations | (0.02) | (0.23) | | **Total** | **(1.50)** | **(0.21)** | [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets decreased by **4.5% to HKD 520.5 million**, total liabilities slightly increased to **HKD 241.4 million**, and equity attributable to owners decreased by **7.4% to HKD 401 million** Consolidated Statement of Financial Position Highlights | Indicator (HKD Thousands) | June 30, 2024 (Unaudited) | Dec 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total non-current assets | 265,942 | 271,646 | -2.1% | | Total current assets | 254,561 | 273,435 | -6.9% | | **Total assets** | **520,503** | **545,081** | **-4.5%** | | Total current liabilities | 209,098 | 215,410 | -2.9% | | Total non-current liabilities | 32,329 | 21,483 | +50.5% | | **Total liabilities** | **241,427** | **236,893** | **+1.9%** | | **Total equity attributable to owners of the Company** | **400,994** | **432,883** | **-7.4%** | [Notes to the Financial Information](index=7&type=section&id=Notes%20to%20the%20Financial%20Information) This section provides detailed explanations and breakdowns of the Group's financial information, including segment performance, dividend policy, discontinued operations, and litigation provisions [Segment Information](index=7&type=section&id=Segment%20Information) The Group's operations are divided into "Interactive Entertainment and Digital Assets" and "Cultural and Sports New Space" segments, with the former experiencing significant revenue growth but shifting to a loss due to increased film-related costs, while the latter maintained profitability Segment Performance for H1 2024 | H1 2024 Segment Results (HKD Thousands) | Interactive Entertainment and Digital Assets | Cultural and Sports New Space | Total | | :--- | :--- | :--- | :--- | | **Revenue from external customers** | 14,575 | 22,598 | 37,173 | | **Segment (loss)/profit** | (25,061) | 9,556 | (15,505) | Segment Performance for H1 2023 | H1 2023 Segment Results (HKD Thousands) | Interactive Entertainment and Digital Assets | Cultural and Sports New Space | Total | | :--- | :--- | :--- | :--- | | **Revenue from external customers** | 4,649 | 24,643 | 29,292 | | **Segment (loss)/profit** | (3,053) | 10,707 | 7,654 | - Revenue for the Interactive Entertainment and Digital Assets segment primarily derives from computer graphics production, box office, copyrights, and royalties; the Cultural and Sports New Space segment's revenue mainly comes from management service fees and rental income[9](index=9&type=chunk) [Dividends](index=12&type=section&id=Dividends) The Board does not recommend an interim dividend for the six months ended June 30, 2024, aligning with the policy from the prior corresponding period - The Board does not recommend an interim dividend for the six months ended June 30, 2024 (six months ended June 30, 2023: nil)[17](index=17&type=chunk)[24](index=24&type=chunk) [Discontinued Operations](index=12&type=section&id=Discontinued%20Operations) The loss from discontinued operations related to Zhuying Cultural Industrial Park significantly narrowed from **HKD 5.113 million** to **HKD 0.472 million**, primarily due to reduced provisions for rental and settlement expenses Discontinued Operations Performance | Discontinued Operations (HKD Thousands) | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Loss before income tax | (472) | (5,113) | | **Loss for the period** | **(472)** | **(5,113)** | [Provision for Rental and Settlement Payables](index=14&type=section&id=Litigation%20Provision) Following the Supreme People's Court's rejection of its retrial application, the Group confirmed its loss in the commercial dispute with Zhuying Film Studio, leading to a **HKD 135.088 million** provision for rental and settlement payables as of June 30, 2024, with partial funds already seized by the court - The Supreme People's Court rejected the Company's application for retrial in the lawsuit with Zhuying Film Studio on February 26, 2024[23](index=23&type=chunk) - As of June 30, 2024, a provision of **HKD 135,088,000** for rental and settlement payables has been made, which management deems sufficient[23](index=23&type=chunk) - The court has executed the deduction of approximately **HKD 42.485 million** in restricted deposits and **HKD 2.554 million** in rental receivables to Zhuying Film Studio[23](index=23&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the Group's financial performance, liquidity, business operations, and future outlook, including detailed reviews of key segments and strategic plans [Financial Review](index=16&type=section&id=Financial%20Review) The Group's loss expanded to **HKD 22.692 million** during the period, primarily due to significantly increased film amortization costs, impairment provisions, and marketing expenses, despite revenue growth from two animated film releases, with one film incurring a **HKD 14.75 million** loss - Revenue from continuing operations increased by **HKD 7.881 million** to **HKD 37.173 million**, primarily driven by **HKD 8.524 million** in original project income from two animated film releases[24](index=24&type=chunk) - Cost of sales increased by **HKD 17.888 million**, mainly due to **HKD 14.41 million** in amortization costs for original films and **HKD 1.807 million** in impairment provisions[24](index=24&type=chunk) - Distribution and selling expenses increased by **HKD 11.142 million**, primarily due to higher marketing and sales expenses for animated film releases[24](index=24&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintains a robust financial position with no borrowings or overdrafts, holding **HKD 233.846 million** in cash and cash equivalents and a current ratio of **1.22**, indicating ample liquidity for daily operations Liquidity and Financial Resources Overview | Indicator | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents (HKD Thousands) | 233,846 | 248,039 | | Borrowings or overdrafts | Nil | Nil | | Current ratio | 1.22 | 1.27 | [Business Review and Outlook](index=19&type=section&id=Business%20Review%20and%20Outlook) The Group achieved technological breakthroughs in AIGC and virtual human businesses within interactive entertainment, despite animated film box office performance falling below expectations, while the cultural and sports new space business remained stable, with future plans to focus on digital virtual humans and AIGC for interactive entertainment and digital cultural tourism [Interactive Entertainment and Digital Assets](index=19&type=section&id=Interactive%20Entertainment%20and%20Digital%20Assets) This segment achieved technological advancements, providing digital video content to Tencent and successfully producing AIGC-powered samples, while expanding virtual human business into North Africa with new orders, though animated film box office revenue was impacted by intense market competition - Successfully produced a sample of "Lin'an • Fanghao" using Generative AI (AIGC) technology, laying the foundation for low-cost, high-quality production[28](index=28&type=chunk) - Virtual human business entered the North African market for the first time and successfully developed the "Magic Mirror Platform" to secure orders[28](index=28&type=chunk) - Animated films released in the first half, such as "River Dolphin • Wind Dance," received positive reviews but their box office revenue was affected by intense scheduling competition[28](index=28&type=chunk) [Cultural and Sports New Space](index=20&type=section&id=Cultural%20and%20Sports%20New%20Space) The core asset, Shenzhen Global Digital Building, maintained a high occupancy rate, providing stable financial support for the Group's transformation, while the company successfully launched multiple new projects in Chengdu, Suzhou, and Shangrao - The occupancy rate of Shenzhen Global Digital Building remained high, providing fundamental financial support for the Group's business transformation[29](index=29&type=chunk) [Technology R&D](index=20&type=section&id=Technology%20R%26D) The Group continues to invest in metaverse infrastructure technology, focusing on AI-based voice recognition and large model training, developing integrated digital virtual human products, and maintaining a leading position in AIGC and UE5 engine applications - Continuously developing cutting-edge technologies such as AI-based speech and semantic recognition and large model database training, resulting in integrated digital virtual human products[30](index=30&type=chunk) [Outlook](index=21&type=section&id=Outlook) The Group will strengthen digital virtual human and AIGC core technologies, focusing on interactive entertainment and digital cultural tourism scenarios, aiming to produce one to two animated films annually, while expanding cultural and sports new space business to become a leading metaverse digital asset management group in China - Business will focus on strengthening two core technologies (digital virtual humans, AIGC production technology) and two core scenarios (interactive entertainment, digital cultural tourism)[32](index=32&type=chunk) - The film and television business aims to produce one to two animated films annually through original and co-production models[32](index=32&type=chunk) [Litigation](index=21&type=section&id=Litigation) This section details the final judgments in the lawsuits with Zhujiang Film Studio, including the Company's counter-suit, where both cases resulted in losses for the Company, with the Supreme People's Court rejecting retrial applications, and related financial impacts reflected in the statements - The Supreme People's Court rejected the Company's application for retrial on February 26, 2024, upholding the original judgment in the lawsuit with Zhuying Film Studio regarding cultural industrial park usage fees[32](index=32&type=chunk)[33](index=33&type=chunk) - The Supreme People's Court rejected the Company's application for retrial on June 27, 2024, upholding the original judgment in the Company's counter-suit against Zhuying Film Studio (seeking claims for construction funds and interest)[33](index=33&type=chunk) [Corporate Governance and Other Information](index=23&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section outlines the Group's adherence to corporate governance principles, changes in director information, and the review process for interim results [Corporate Governance](index=23&type=section&id=Corporate%20Governance) During the reporting period, the Company complied with the Corporate Governance Code, with one deviation noted for a former independent non-executive director's absence from the Annual General Meeting on May 24, 2024 - The Company complied with the GEM Listing Rules' Corporate Governance Code, except for Professor Lo Man Yu, a former independent non-executive director, who was unable to attend the Annual General Meeting due to other commitments[35](index=35&type=chunk) [Changes in Director Information](index=23&type=section&id=Changes%20in%20Director%20Information) Executive Director Mr. Wang Hongpeng resigned as the Company's Managing Director, effective August 3, 2024, but continues to serve as an Executive Director and Executive Committee member - Executive Director Mr. Wang Hongpeng resigned as the Company's Managing Director, effective August 3, 2024, but continues to serve as an Executive Director[36](index=36&type=chunk) [Audit Committee](index=24&type=section&id=Audit%20Committee) The Group's interim results are unaudited but have been reviewed by the Audit Committee with assistance from the auditors, PricewaterhouseCoopers - The interim results for the six months ended June 30, 2024, are unaudited but have been reviewed by the Audit Committee with the auditors[37](index=37&type=chunk)

Company Vision and Strategy - Global Digital Creations Holdings Limited aims to position itself as a metaverse digital assets management group, focusing on digital and visual technology, virtual reality, and metaverse digital assets[13]. - The strategic steps outlined by the company include transitioning from digital visual technology to virtual reality and ultimately to managing metaverse digital assets[14]. - GDC has fully upgraded its business model from a product provider to a solution provider, focusing on three core products: interactive entertainment, digital virtual characters, and digital twin[52]. - The company aims to expand its market presence through innovative digital solutions and strategic partnerships in the animation sector[29]. - GDC aims to become China's leading digital asset management group in the Metaverse by gradually expanding its Metaverse products across various industries[172]. Leadership and Governance - The board of directors includes key figures such as Mr. Xu Liang as Chairman and Mr. Wang Hongpeng as Managing Director, ensuring experienced leadership[17]. - The leadership team has a combined experience of over 100 years in various industries, providing a solid foundation for future growth[34]. - The company has a diverse board with members holding significant expertise in finance, marketing, and human resources, enhancing its strategic decision-making capabilities[39]. - The Board of Directors consists of 9 members, including 3 executive directors and 5 independent non-executive directors, complying with GEM listing rules[191]. - The independent non-executive directors have confirmed their independence according to GEM listing rules, ensuring compliance with governance standards[191]. Financial Performance - For the year ended December 31, 2023, revenue from continuing operations amounted to HK$70,189,000, representing a decrease of HK$2,106,000 compared to HK$72,295,000 in 2022, primarily due to a 5% decrease in the average exchange rate of Renminbi against Hong Kong dollars[68]. - Cost of sales from continuing operations increased to HK$65,092,000, up HK$21,574,000 or 49.5% from HK$43,518,000 in 2022, primarily due to the release of an original animated film and the write-off of an original co-produced animated film[75][81]. - Loss from continuing operations amounted to HK$33,198,000, a decrease of HK$35,076,000 compared to a profit of HK$1,878,000 in 2022[89][95]. - The Group reported an additional foreign exchange loss of HKD 6,137,000 due to a 1.8% decline in the RMB settlement rate compared to the end of 2022[107]. - Revenue from the Interactive Entertainment and Digital Assets division is driven by production services, box office receipts, and licensing income from original animated films and television series[114]. Technology and Innovation - The company is at the forefront of technologies such as 3D laser scanning and AIGC character expression restoration, indicating its leadership in digital content creation[151]. - The AI Holographic Virtual BOX developed by GDC has achieved comprehensive functionalities including consultation, navigation, Q&A, interaction, and traffic attraction, becoming the most popular virtual character product[57]. - The AIGC Virtual Character Performance System uses deep learning to generate complex virtual character movements and expressions without motion capture systems[143]. - GDC has partnered with the Himalayan Everest Laboratory to enhance emotion recognition and speech generation technology for virtual characters, improving human-computer interactions[147]. - The Group's use of artificial intelligence generative content (AIGC) technology has significantly increased revenue through various digital economy projects, including collaborations with major companies like Qualcomm and Huawei[118]. Community Engagement and Corporate Responsibility - The company is actively involved in public services and community engagement, reflecting its commitment to corporate social responsibility[34]. - GDC has established deep collaborations with vocational colleges to create a new business model in its training business[124]. - The company aims to provide digital twin products and solutions for smart city construction, having built a high-standard global twin database through three-dimensional modeling[61]. - The Chengdu Sports Park project will integrate "Cultural IP + Technology + Sports" to create an innovative sports park, contributing to the development of smart cities[168]. - GDC will continue to optimize city-level Metaverse solutions and adopt an S2G+S2B model to provide digital content solutions to government departments and large enterprises[166]. Awards and Recognition - GDC received multiple awards in 2023, including recognition as a national high-tech enterprise and the "Outstanding Enterprise Award" at the World Metaverse Ecology Conference[149]. - In 2023, the company was awarded multiple honors, including the key laboratory project from the Ministry of Culture and Tourism and the 2023 Funding for the Cultivation of High-tech Enterprises from the Shenzhen Municipality[152][157]. - The original IP "Around the Earth in 80 Days" was shortlisted for the "Chasing Light Project" and recognized at various forums, highlighting its market relevance and anticipated success[160][162]. - The military virtual character "Shunliu Telling the Party's History" was designated as a national culture metaverse demonstration case for 2023, showcasing the company's innovative contributions to cultural projects[160]. - The original IP "Journey to the Center of the Earth" won the first China Children's Literature and Animation Outstanding Award, further establishing the company's reputation in the animation sector[160][162].