Financial Performance - For the six months ended December 31, 2023, the group's revenue was approximately HKD 50,674,000, a decrease of about HKD 15,877,000 or 23.9% compared to the same period last year[12]. - The gross profit for the same period decreased by approximately HKD 24,070,000 or 62.4%, totaling around HKD 14,525,000[12]. - The company reported a loss per share of approximately HKD 1.84 cents for the six months ended December 31, 2023, compared to earnings of HKD 2.90 cents for the same period in 2022[12]. - The net loss attributable to the company's equity holders for the six months was HKD 11,024,000, compared to a profit of HKD 17,375,000 in the same period last year[15]. - The total comprehensive loss for the six months was HKD 10,016,000, compared to a comprehensive income of HKD 19,096,000 in the previous year[15]. - The company reported a loss of HKD 7,172,000 for the six months ended December 31, 2023, compared to a profit of HKD 19,373,000 for the same period in 2022[39]. - The loss before tax for the six months ended December 31, 2023, was HKD 11,607,000, compared to a profit of HKD 16,897,000 for the same period in 2022[39]. - The net loss for the period was approximately HKD 11,019,000 for the six months ended December 31, 2023, compared to a profit of approximately HKD 17,397,000 for the same period in 2022[97]. Revenue Breakdown - Total revenue for the six months ended December 31, 2023, was HKD 50,674,000, a decrease of 23.9% compared to HKD 66,551,000 for the same period in 2022[40]. - Revenue from network support and connectivity services in Malaysia increased to HKD 35,239,000, up from HKD 33,058,000 in the previous year, representing a growth of 6.6%[38]. - Revenue from e-commerce sales decreased significantly to HKD 47,000 for the six months ended December 31, 2023, down from HKD 348,000 in the same period last year[40]. - The company generated HKD 6,215,000 from online game IP licensing management for the six months ended December 31, 2023, consistent with the previous year[40]. - E-commerce business contributed approximately HKD 8,138,000 or 16.1% of total revenue for the six months ended December 31, 2023, down from HKD 32,025,000 or 48.2% in the same period of 2022[72]. Expenses and Costs - The company's administrative and other operating expenses for the six months were HKD 19,465,000, slightly increased from HKD 19,198,000 in the same period last year[13]. - The financing costs for the six months were HKD 230,000, a decrease from HKD 280,000 in the previous year[13]. - Total employee costs, including directors' remuneration, increased to HKD 14,634,000 for the six months ended December 31, 2023, up from HKD 11,771,000 in the same period of 2022, reflecting a rise of 24%[45]. - Sales expenses increased by approximately HKD 2,381,000 or 84.2% to HKD 5,209,000 for the six months ended December 31, 2023, largely due to increased employee costs in the sales team[91]. - Research and development costs for the six months ended December 31, 2023, amounted to HKD 4,962,000, an increase of 70% from HKD 2,909,000 in the same period of 2022[45]. Assets and Liabilities - As of December 31, 2023, the total assets minus current liabilities amounted to HKD 71,461,000, a decrease from HKD 90,827,000 as of June 30, 2023, representing a decline of approximately 21%[17]. - The total equity attributable to equity holders of the company as of December 31, 2023, was HKD 63,891,000, down from HKD 73,916,000 as of June 30, 2023, reflecting a decrease of approximately 13.6%[18]. - The company's non-current assets decreased to HKD 41,380,000 as of December 31, 2023, from HKD 45,283,000 as of June 30, 2023, indicating a reduction of about 8.5%[17]. - The company's total liabilities decreased to HKD 7,204,000 as of December 31, 2023, from HKD 16,554,000 as of June 30, 2023, indicating a reduction of about 56.5%[18]. - As of December 31, 2023, total trade receivables amounted to HKD 28,667,000, a decrease of 4.8% from HKD 30,115,000 as of June 30, 2023[57]. Cash Flow and Liquidity - The net cash used in operating activities for the six months ended December 31, 2023, was HKD 6,103,000, compared to HKD 8,372,000 for the same period in 2022, indicating an improvement of about 27%[23]. - The company reported a net cash decrease of HKD 12,121,000 for the six months ended December 31, 2023, compared to a decrease of HKD 12,023,000 in the same period of 2022, showing a slight increase in cash outflow[25]. - As of December 31, 2023, the group had cash and bank balances of approximately HKD 9,027,000, a decrease from HKD 22,000,000 as of June 30, 2023[98]. - Current assets and current liabilities were approximately HKD 76,250,000 and HKD 41,169,000 respectively, resulting in a current ratio of approximately 1.9 times, down from 2.5 times as of June 30, 2023[99]. Strategic Initiatives - The company has initiated a new business in network game IP licensing management services starting November 2023, aiming to capitalize on the stable development of its e-commerce business[68]. - A strategic cooperation memorandum was established with Roma Group Limited to leverage competitive advantages and resources for technology development in the virtual asset industry[69]. - The company plans to change its name to "Byte Metaverse Holdings Limited," which has been approved by shareholders[63]. - The group plans to apply for a license to operate a virtual asset trading platform through its subsidiary, Bitcoin World Custodian, which has received a trust or company service provider license[82]. - The company plans to continue investing in blockchain technology and virtual assets, recognizing their potential to disrupt existing financial and technology industries[79]. Corporate Governance - The company has adopted and complied with the corporate governance code as per GEM Listing Rules for the six months ending December 31, 2023[168]. - The audit committee reviewed the unaudited condensed consolidated interim financial results for the six months ending December 31, 2023, and confirmed compliance with applicable accounting standards and GEM Listing Rules[167]. - The board consists of an executive director, a non-executive director, and three independent non-executive directors, ensuring a balance of power and authority[174]. - The company has established a mechanism for appropriate checks and balances through the board and independent non-executive directors[168]. - The company acknowledges the contributions and dedication of all employees, which are vital for its continued success[174].

Financial Performance - For the six months ended December 31, 2023, the group's revenue was approximately HKD 50,674,000, a decrease of about HKD 15,877,000 or 23.9% compared to the same period last year [18]. - The gross profit for the six months ended December 31, 2023, decreased by approximately HKD 24,070,000 or 62.4% to about HKD 14,525,000 [18]. - The company reported a loss per share of approximately HKD 0.0184 for the six months ended December 31, 2023, compared to earnings of approximately HKD 0.0290 for the same period in 2022 [18]. - Revenue for the three months ended December 31, 2023, was HKD 25,625,000, a decrease of 21.6% compared to HKD 32,726,000 in the same period of 2022 [19]. - Gross profit for the six months ended December 31, 2023, was HKD 14,525,000, down 62.4% from HKD 38,595,000 in the same period of 2022 [19]. - The company reported a loss before tax of HKD 11,607,000 for the six months ended December 31, 2023, compared to a profit of HKD 16,897,000 in the same period of 2022 [19]. - Total comprehensive income for the six months ended December 31, 2023, was a loss of HKD 10,016,000, compared to a profit of HKD 19,096,000 in the same period of 2022 [19]. - The company reported a basic and diluted loss per share of HKD 1.45 cents for the three months ended December 31, 2023, compared to earnings of HKD 1.38 cents in the same period of 2022 [21]. - The company reported a pre-tax loss of HKD (11,607,000) for the six months ended December 31, 2023, compared to a profit of HKD 16,897,000 for the same period in 2022 [45]. - The company reported a loss of approximately HKD 11,019,000 for the six months ended December 31, 2023, compared to a profit of about HKD 17,397,000 for the same period in 2022, primarily due to reduced revenue and gross margin [103]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 9,027,000 as of December 31, 2023, from HKD 22,000,000 as of June 30, 2023 [23]. - Cash and cash equivalents decreased to HKD 4,930 thousand at the end of the reporting period, down from HKD 31,643 thousand at the end of 2022, a decline of 84.4% [31]. - The company reported a net cash outflow from financing activities of HKD (1,662) thousand, compared to HKD (1,197) thousand in the previous year, indicating a 39.0% increase in cash outflow [29]. - The company’s cash balance at the beginning of the reporting period was HKD 16,844 thousand, down 62.2% from HKD 44,480 thousand in the previous year [31]. - The current ratio as of December 31, 2023, was approximately 1.9 times, down from about 2.5 times as of June 30, 2023 [105]. - The company's capital debt ratio increased to approximately 14.8% as of December 31, 2023, from about 12.8% as of June 30, 2023, mainly due to a decrease in total equity [107]. Segment Performance - For the six months ended December 31, 2023, the total reportable segment revenue was HKD 50,674,000, a decrease of 23.9% compared to HKD 66,551,000 for the same period in 2022 [44]. - The reportable segment loss for the six months ended December 31, 2023, was HKD (7,172,000), compared to a profit of HKD 19,373,000 for the same period in 2022 [45]. - In Malaysia, segment revenue increased to HKD 35,239,000 for the six months ended December 31, 2023, from HKD 33,058,000 in the same period of 2022, reflecting a growth of 6.6% [44]. - In China, segment revenue decreased significantly to HKD 15,435,000 for the six months ended December 31, 2023, from HKD 33,493,000 in the same period of 2022, representing a decline of 53.8% [44]. - Revenue from network support and connectivity services increased by approximately HKD 1,795,000 or 5.2% to about HKD 36,321,000 for the six months ended December 31, 2023 [81]. - Revenue from the Malaysian market slightly increased by approximately HKD 2,181,000 or 6.6% to about HKD 35,239,000 for the same period [81]. - New business in online game IP licensing management generated revenue of approximately HKD 6,215,000 for the six months ended December 31, 2023 [84]. Expenses and Costs - Sales and service costs increased by approximately HKD 8,193,000 or 29.3% to about HKD 36,149,000, primarily due to licensing costs from the online game IP management service [91]. - The gross margin decreased from approximately 58.0% to about 28.7% due to the suspension of the e-commerce paid membership plan and the lower margin from the new online game IP licensing management service [93]. - Employee costs for the six months ending December 31, 2023, were approximately HKD 14,634,000, compared to HKD 11,771,000 for the same period in 2022, reflecting an increase of about 24% [139]. - Sales expenses rose by approximately HKD 2,381,000 or 84.2% to about HKD 5,209,000 for the six months ended December 31, 2023, mainly due to increased employee costs in the China sales team by about HKD 3,277,000 or 280.6% [97]. Investments and Acquisitions - The company has committed to further capital injection of approximately HKD 41,131,000 to its subsidiaries as of December 31, 2023, an increase from approximately HKD 30,301,000 as of June 30, 2023 [128]. - The company acquired 100% equity of Guangyuan Holdings for HKD 50,000, which holds no assets or liabilities as of the acquisition date [124]. - The investment in Bitcoin World Technology Limited represents a 49% stake by the company's wholly-owned subsidiary, indicating a strategic move into the cryptocurrency sector [125]. Corporate Governance and Compliance - The audit committee consists of four members, including three independent non-executive directors and one non-executive director, ensuring a wealth of business experience in financial and legal matters [171]. - The company has adopted and complied with the corporate governance code as per GEM Listing Rules for the six months ended December 31, 2023 [174]. - The company acknowledges the importance of its employees' contributions to its ongoing success and expresses gratitude to shareholders, customers, and suppliers for their support [180]. - The company has implemented appropriate checks and balances through the board and independent non-executive directors [174]. Future Plans and Strategies - The company aims to capture opportunities in the virtual asset industry through a series of business plans established in 2022 [75]. - The company has been actively exploring different opportunities and adapting its business strategies to align with the evolving e-commerce landscape in China [74]. - The company plans to change its name to "Byte Metaverse Holdings Limited," which has been approved by shareholders [69]. - The company has initiated a new business in IP licensing for online games starting November 2023, following the stable development of its e-commerce business [74]. - The company plans to recruit additional staff, including two IT engineers, one service delivery manager, and two senior sales executives, to support its expansion plans [137]. Shareholder Information - As of December 31, 2023, Mr. Yu holds a controlling interest of approximately 69.39% in the company through Thrive Harvest Limited and Huitong Yingfu Investment Limited [141]. - The company has a significant concentration of ownership, with the top three shareholders holding over 88% of the total shares [146]. - The company has adopted a share incentive plan effective from April 21, 2023, allowing for the issuance of up to 60,000,000 shares, which is 10% of the total issued share capital [154].

Financial Performance - The group's revenue for the three months ended September 30, 2023, was approximately HKD 25,049,000, a decrease of about HKD 8,776,000 or 25.9% compared to the same period last year[13]. - Gross profit for the same period decreased by approximately HKD 10,279,000 or 48.9% to about HKD 10,754,000[13]. - The company reported a loss per share of approximately HKD 0.39 for the three months ended September 30, 2023, compared to earnings of HKD 1.51 per share for the same period in 2022[13]. - The company recorded a pre-tax loss of HKD 2,651,000 for the three months ended September 30, 2023, compared to a profit of HKD 9,720,000 in the same period last year[14]. - The total comprehensive loss for the period was HKD 2,704,000, compared to a comprehensive income of HKD 8,321,000 in the same period last year[14]. - For the three months ended September 30, 2023, the total comprehensive income amounted to HKD 7,449,000, a decrease from HKD 8,321,000 in the previous period[16]. - The company reported a net profit of HKD 11,108,000 for the three months ended September 30, 2023, compared to a loss of HKD 2,333,000 in the prior period[16]. - The company reported a loss of approximately HKD 2,353,000 for the three months ended September 30, 2023, compared to a profit of approximately HKD 9,995,000 for the same period in 2022, primarily due to a decrease in revenue and gross margin, along with increased sales and administrative expenses related to business expansion in China[69]. Operating Expenses - The company's operating expenses increased, with administrative and other operating expenses rising to HKD 10,524,000 from HKD 9,095,000 year-on-year[14]. - Selling expenses increased by approximately HKD 548,000 or 24.1% to HKD 2,821,000, driven by increased costs associated with the sales team in China[62]. - Administrative and other operating expenses rose by approximately HKD 1,429,000 or 15.7% to HKD 10,524,000, largely due to increased employee costs from business expansion in China[64]. - Research and development costs for the three months ended September 30, 2023, increased to HKD 2,525,000 from HKD 1,211,000 in the previous year, reflecting a rise of 108.8%[35]. Revenue Breakdown - The reported segment revenue was HKD 25,049,000, a decrease of 26.0% compared to HKD 33,825,000 for the same period in 2022[28]. - Total revenue from advertising for the three months ended September 30, 2023, was HKD 4,126,000, with e-commerce sales contributing HKD 26,000, down from HKD 200,000 in 2022[30]. - E-commerce business contributed approximately HKD 4,152,000 or 16.6% of total revenue for the three months ended September 30, 2023, a decrease from HKD 16,370,000 or 48.4% for the same period in 2022[46]. - Revenue from network support and connection services increased by approximately HKD 3,442,000 or 19.7% to about HKD 20,897,000 for the three months ended September 30, 2023[50]. - Revenue from the Chinese market for network services increased by approximately HKD 3,219,000 or 391.1% to about HKD 4,042,000 for the three months ended September 30, 2023[50]. - Revenue from network management and security services increased by approximately HKD 4,777,000 or 416.1% to about HKD 5,925,000 due to market expansion in China[56]. Dividends and Equity - No dividend was recommended for the three months ended September 30, 2023, consistent with the previous year[13]. - As of September 30, 2023, total equity stood at HKD 71,569,000, an increase from HKD 64,230,000 as of the previous reporting date[16]. - The company’s accumulated losses increased to HKD 6,876,000 as of September 30, 2023, compared to HKD 6,527,000 at the end of the previous period[16]. Legal and Regulatory Issues - The company’s wholly-owned subsidiaries in China had their bank accounts temporarily frozen, with amounts of RMB 8,000,000 (approximately HKD 8,736,500) and RMB 36,170,000 (approximately HKD 39,499,800) respectively, due to allegations of involvement in pyramid selling[72]. - The company confirmed that the temporary freezing of bank accounts does not have a significant adverse impact on operations, as the related e-commerce membership card sales business was fully ceased by June 30, 2022[77]. - The company is actively taking legal actions to protect its interests regarding the court's ruling on the temporary freezing of bank accounts and is in communication with local regulatory authorities to ensure compliance with relevant laws[75]. - The company maintains that its operations in China are not affected by the ongoing legal issues, as it can utilize remaining cash and operational cash flow to cover daily expenses[77]. - The company’s legal advisors have indicated that the e-commerce membership card sales business complies with all relevant laws and regulations, and should not be classified as pyramid selling[74]. Share Incentive and Stock Option Plans - The company has adopted a share incentive plan effective from April 21, 2023, allowing for the issuance of up to 60,000,000 shares, which is 10% of the total issued share capital[95]. - The share incentive plan is designed to reward employees and service providers, enhancing retention and attracting talent[93]. - The maximum number of shares that can be issued to any eligible participant under the share incentive plan is capped at 1% of the total issued share capital as of the adoption date[96]. - The company has terminated the stock option plan approved by shareholders on November 11, 2019, and adopted a new stock option plan effective from April 21, 2023, with a maximum issuance of 60,000,000 shares, representing 10% of the company's issued share capital[102][106]. - The stock option plan aims to attract and retain top talent, providing additional incentives to eligible participants to enhance performance and efficiency[102]. - The maximum number of shares that can be issued under the stock option plan is capped at 60,000,000 shares, which is equivalent to 10% of the company's issued share capital[106]. - Eligible participants for the stock option plan include employees and service providers, with the board having discretion to select participants[105]. - The vesting period for stock options is typically no less than 12 months, although the board may determine a shorter vesting period in certain circumstances[100][110]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the financial performance for the three months ending September 30, 2023, and confirmed compliance with applicable accounting standards and GEM listing rules[113]. - The company adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15 for the three months ended September 30, 2023[114]. - All directors confirmed compliance with the trading standards for securities transactions as per GEM Listing Rules from July 1, 2023, to September 30, 2023[117]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the three months ended September 30, 2023[119]. Management and Leadership - The chairman and CEO roles are held by the same individual, Mr. Yu, who has over 12 years of experience in technology, media, telecommunications, and investment management, which the board believes is in the best interest of the group[116]. - The board expressed gratitude to all employees for their hard work and dedication, which contributes to the group's ongoing success[122].

Financial Performance - For the fiscal year 2022/2023, Michong Metaverse (China) Holdings Group Limited reported revenue of approximately HKD 131,737,000, an increase of HKD 19,339,000 or 17.2% from the previous fiscal year[12]. - The company achieved a profit of approximately HKD 20,282,000 for the fiscal year 2022/2023, compared to a loss of HKD 38,193,000 in the fiscal year 2021/2022[12]. - Revenue from the e-commerce business contributed approximately HKD 55,491,000, accounting for 42.1% of total revenue, compared to HKD 18,108,000 or 16.1% in 2022[26]. - Revenue increased from approximately HKD 112,398,000 to HKD 131,737,000, representing a growth of 17.2% for the year ended June 30, 2023[43]. - The group reported that the sales from its top five customers accounted for approximately 35.7% of total revenue for the year ended June 30, 2023, down from 49.0% in 2022[124]. - The largest customer contributed about 14.4% of total revenue for the year ended June 30, 2023, compared to 15.6% in 2022[124]. Revenue Sources - Revenue from network support and connection services decreased by approximately HKD 18,044,000 or 19.1% to about HKD 76,246,000 due to the completion of a significant one-time hardware sales project in the previous fiscal year[15]. - Revenue from the Malaysian market decreased by approximately HKD 20,547,000 or 22.4% to about HKD 71,221,000 for the year ended June 30, 2023, primarily due to the completion of significant one-time hardware sales in previous years and currency effects[29]. - Revenue from the Chinese market increased by approximately HKD 2,503,000 or 99.2% to about HKD 5,025,000 for the year ended June 30, 2023, up from HKD 2,522,000 in 2022[30]. Operational Developments - The company upgraded its mobile application "Michong Short Video" to enhance user experience and explore advertising business opportunities within its e-commerce operations[13]. - The company plans to allocate more internal resources towards the research and development of its e-commerce business to capitalize on the shift towards online shopping post-COVID-19[13]. - The company aims to diversify its market and expand revenue sources by entering the Chinese market for network support and connection services[15]. - The company’s main operational bases are located in China and Malaysia, focusing on network support services, network connection services, and e-commerce[11]. Blockchain and Virtual Assets - The company plans to allocate more time and resources to develop blockchain technology services to meet global demand[17]. - The company has initiated a strategic cooperation memorandum with 羅馬 (元宇宙) to integrate blockchain technology into their business and explore cryptocurrency opportunities[23]. - The company established a wholly-owned subsidiary, 魔文區塊鏈科技有限公司, in April 2023 to provide customized solutions for virtual asset exchanges and NFT technology[17]. - The board believes that blockchain technology and virtual assets have the potential to disrupt existing financial and technology industries, with the virtual asset market value increasing from approximately USD 10.3 billion in 2013 to about USD 1,076.6 billion in January 2023[31]. Cost Management - Cost of sales decreased by 12.7% from approximately HKD 72,075,000 to HKD 62,889,000, primarily due to a reduction in inventory costs[44]. - Selling expenses decreased significantly by 86.5% from approximately HKD 44,073,000 to HKD 5,969,000, mainly due to reduced initial marketing costs for the e-commerce business[49]. - Administrative and other operating expenses increased by 15.9% from approximately HKD 35,648,000 to HKD 41,326,000, primarily due to business expansion in China[50]. Corporate Governance - The company is committed to maintaining robust corporate governance through its independent directors and audit committee[95][97]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[193]. - The company has adopted the corporate governance code as the basis for its governance practices, with compliance noted except for one specific provision[186]. Shareholder Information - The company did not recommend a final dividend for the year ended June 30, 2023, consistent with the previous year[69]. - As of June 30, 2023, Mr. Yu holds 416,364,000 shares, representing approximately 69.39% of the company's ordinary shares[139]. - Thrive Harvest Limited owns 303,864,000 shares, accounting for about 50.64% of the issued share capital[139]. Future Plans and Investments - The company plans to utilize part of the funds for promoting business to gain more market share through online marketing strategies, including LinkedIn, Facebook, and Google ads[85]. - The company has capital commitments of approximately HKD 30,301,000 as of June 30, 2023, compared to approximately HKD 17,523,000 in 2022, indicating planned future investments[72]. - The company has established a disaster recovery center and aims to become a licensed network service provider, with an allocation of 22.5% of the net proceeds (approximately HKD 6.3 million) for this purpose[80]. Compliance and Legal Matters - The company has maintained compliance with all significant laws and regulations affecting its business operations as of June 30, 2023[110]. - Legal advisors have indicated that Wuhan MiChong's e-commerce membership card sales model does not constitute pyramid selling under Chinese law[74]. - The company has taken appropriate measures to prevent similar incidents, including maintaining ongoing communication with local regulatory bodies[77].

Financial Performance - For the nine months ended March 31, 2023, the group's revenue was approximately HKD 99,854,000, an increase of about HKD 24,606,000 or 32.7% compared to the same period last year[12]. - The gross profit for the nine months ended March 31, 2023, increased by approximately HKD 39,364,000 or 209.8% to about HKD 58,123,000[12]. - The earnings per share for the nine months ended March 31, 2023, was approximately HKD 0.0352, compared to a loss per share of HKD 0.0411 for the same period last year[12]. - For the three months ended March 31, 2023, the revenue was HKD 33,303,000, compared to HKD 23,798,000 for the same period last year, reflecting a growth of approximately 39.9%[13]. - The net profit for the three months ended March 31, 2023, was HKD 3,386,000, compared to a loss of HKD 24,660,000 for the same period last year[13]. - The total comprehensive income for the nine months ended March 31, 2023, was HKD 22,593,000, compared to a loss of HKD 25,664,000 for the same period last year[13]. - The company reported a loss of HKD 24,685,000 during the period, compared to a profit of HKD 21,146,000 in the same period last year, indicating a significant shift in performance[18]. - Profit for the period was approximately HKD 21,019,000 for the nine months ended March 31, 2023, compared to a loss of approximately HKD 25,209,000 for the same period in 2022, driven by increased revenue and improved gross profit margin[80]. Expenses and Costs - The company reported a significant reduction in selling expenses, which decreased from HKD 20,177,000 to HKD 3,648,000 for the nine months ended March 31, 2023[13]. - The company’s administrative and other operating expenses increased to HKD 32,045,000 for the nine months ended March 31, 2023, from HKD 24,491,000 in the previous year[13]. - Financing costs increased by approximately HKD 185,000 or 91.1% to approximately HKD 388,000, mainly due to an increase in interest expenses from borrowings and bank overdrafts[77]. - Employee costs, including director remuneration, amounted to approximately HKD 18,075,000 for the nine months ended March 31, 2023, compared to approximately HKD 11,506,000 for the same period in 2022, representing a year-on-year increase of 57.5%[89]. Revenue Segmentation - The e-commerce business contributed approximately HKD 47,425,000 or 47.5% of total revenue for the nine months ended March 31, 2023, compared to HKD 3,677,000 or 4.9% for the same period in 2022[59]. - The revenue from e-commerce sales for the nine months ended March 31, 2023, was HKD 464, up from HKD 208 in the same period of 2022, reflecting a growth of 123.1%[34]. - The revenue from network management and security services for the nine months ended March 31, 2023, was HKD 3,976, compared to HKD 3,363 in the same period of 2022, showing an increase of 18.3%[34]. - The total revenue from network connection services for the nine months ended March 31, 2023, was HKD 39,124, an increase from HKD 36,803 in the same period of 2022, reflecting a growth of 6.3%[34]. - The total revenue from hardware sales for the nine months ended March 31, 2023, was HKD 3,686, down from HKD 23,258 in the same period of 2022, representing a decline of 84.2%[34]. Strategic Developments - The company has transitioned its reporting currency from Malaysian Ringgit to Hong Kong Dollar to better reflect its financial performance for shareholders and potential investors[24]. - A new subsidiary, Magic Text Blockchain Technology Limited, was established in April 2023 to provide customized solutions for virtual asset exchanges and NFT trading platforms[52]. - The company signed a strategic cooperation memorandum with 羅馬 (元宇宙) on December 5, 2022, to leverage each other's expertise in decentralized blockchain applications and explore cryptocurrency-related business opportunities[56]. - The company is actively considering various opportunities and adjusting its business strategies to drive growth in response to the evolving e-commerce landscape in China[59]. - The company plans to streamline its management system and adjust its operational and sales strategies in Malaysia as economic activities recover post-COVID-19[64]. Governance and Compliance - The financial statements for the nine months ended March 31, 2023, were prepared in accordance with International Financial Reporting Standards and the GEM Listing Rules[22]. - The company has adopted and complied with the corporate governance code as per GEM listing rules for the nine months ended March 31, 2023, with some deviations noted[106]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial results for the nine months ended March 31, 2023, and confirmed compliance with applicable accounting standards and GEM listing rules[104]. - The company has implemented appropriate checks and balances through the board and three independent non-executive directors, ensuring effective management and business planning[106]. Market and Economic Conditions - Revenue from the Malaysian market decreased by approximately HKD 19,662,000 or 28.1% to about HKD 50,273,000 for the nine months ended March 31, 2023, primarily due to the completion of significant one-time hardware sales and exchange rate impacts[61]. - The gross profit margin in the Malaysian market dropped to 20.9% for the nine months ended March 31, 2023, down from 25.0% for the same period in 2022[61]. - The virtual asset market capitalization increased from approximately USD 10.3 billion in 2013 to about USD 1,076.6 billion in January 2023, representing a significant growth potential for blockchain technology and virtual assets[63]. Shareholder Information - The major shareholder, Mr. Yu, holds 416,364,000 shares, representing approximately 69.39% of the company's equity[92]. - Thrive Harvest Limited, controlled by Mr. Yu, holds 303,864,000 shares, approximately 50.64% of the issued share capital[92]. - The board does not recommend the payment of dividends for the nine months ended March 31, 2023, consistent with the previous year[86]. Employee and Training Initiatives - The group encourages and funds employees to participate in development or training courses to support their professional growth[89]. - As of March 31, 2023, the group employed 131 staff, an increase from 121 staff as of March 31, 2022[89].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 MICHONG METAVERSE (CHINA) HOLDINGS GROUP LIMITED 米虫元宇宙（中國）控股集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：8645） 截至2023年3月31日止九個月之 第三季度業績公告 米虫元宇宙（中國）控股集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）董 事會（「董事會」）欣然宣佈本集團截至2023年3月31日止九個月之未經審核綜合業績。 本公告載有本公司截至2023年3月31日止九個月之第三季度業績報告（「2022/2023第三 季度業績報告」）全文，符合聯交所GEM證券上市規則（「GEM上市規則」）有關第三季 度業績初步公告隨附資料之相關規定。2022/2023第三季度業績報告的印刷版本將於 適當時候寄發予本公司的股東，並刊登在聯交所網站www.hkexnews.hk 及本公司網站 www.metamichong. ...

Financial Performance - For the six months ended December 31, 2022, the group's revenue was approximately HKD 66,551,000, an increase of about HKD 15,101,000 or 29.4% compared to the same period last year[12]. - The gross profit for the same period increased by approximately HKD 24,294,000 or 169.9% to about HKD 38,595,000[12]. - The earnings per share for the six months ended December 31, 2022, was approximately HKD 2.94, compared to a loss per share of HKD 0.19 for the same period in 2021[12]. - The pre-tax profit for the six months was HKD 17,133,000, compared to HKD 644,000 for the same period last year[13]. - The total comprehensive income for the six months was HKD 19,096,000, compared to a loss of HKD 462,000 for the same period last year[13]. - The company reported a net profit of HKD 17,633,000 for the six months ended December 31, 2022, compared to a loss of HKD 549,000 in the previous year[13]. - The reported profit for the segments was HKD 19,373,000 for the six months ended December 31, 2022, compared to HKD 2,554,000 for the same period in 2021, indicating a significant improvement[41]. - Profit for the period was approximately 17,633,000 HKD for the six months ended December 31, 2022, compared to a loss of approximately 549,000 HKD for the six months ended December 31, 2021, attributed to increased revenue and improved gross margin[90]. Dividends and Shareholder Returns - The company did not recommend any dividend payment for the six months ended December 31, 2022[12]. - The board did not recommend an interim dividend for the six months ended December 31, 2022, consistent with the previous year[100]. - The company did not declare any dividends for the six months ended December 31, 2022, consistent with the previous year[51]. Cash Flow and Liquidity - The company's net cash and cash equivalents at the end of the reporting period were HKD 31,643,000, up from HKD 17,404,000 in the previous year[25]. - The operating cash flow for the six months ended December 31, 2022, was a net outflow of HKD 8,372,000, an improvement from HKD 16,942,000 in the same period of 2021[23]. - As of December 31, 2022, the group had cash and bank balances of approximately 34,377,000 HKD, down from approximately 49,342,000 HKD as of June 30, 2022[91]. - The current ratio improved to approximately 2.2 times as of December 31, 2022, compared to approximately 1.3 times as of June 30, 2022, indicating better liquidity[91]. - The debt-to-equity ratio decreased to approximately 11.0% as of December 31, 2022, from approximately 17.9% as of June 30, 2022, due to an increase in total equity[92]. Assets and Liabilities - As of December 31, 2022, the total assets minus current liabilities amounted to HKD 91,506,000, an increase from HKD 73,555,000 as of June 30, 2022[18]. - Total equity as of December 31, 2022, was HKD 75,005,000, an increase from HKD 55,909,000 as of June 30, 2022[19]. - The total liabilities decreased to HKD 16,501,000 as of December 31, 2022, from HKD 17,646,000 as of June 30, 2022[19]. - The company's trade payables as of December 31, 2022, were HKD 2,920,000, down 37.6% from HKD 4,677,000 as of June 30, 2022[60]. - The company's inventory increased to HKD 8,384,000 as of December 31, 2022, compared to HKD 6,725,000 as of June 30, 2022[18]. E-commerce and Market Strategy - The company aims to continue expanding its market presence and developing new technologies in the metaverse sector[12]. - E-commerce business contributed approximately HKD 32,025,000, representing 48.1% of total revenue for the six months ended December 31, 2022[67]. - The company has initiated e-commerce operations in China through the "米虫商城" platform, which includes a variety of products such as fresh vegetables, fruits, and household appliances[67]. - The group plans to expand its partner network and enhance operational efficiency as e-commerce business grows, focusing on technological innovation in the metaverse infrastructure, particularly in blockchain and NFT technology[73]. - The group is evaluating the feasibility of integrating decentralized blockchain technology into its e-commerce business to create synergies with a growing user base[72]. - The group intends to adjust its market entry strategy in Malaysia in response to the easing of standard operating procedures and the digital economy blueprint launched by the Malaysian Prime Minister[75]. Employee and Operational Costs - The total employee costs, including directors' remuneration, increased to HKD 11,771,000 for the six months ended December 31, 2022, from HKD 6,217,000 in the same period of 2021[47]. - The company plans to allocate funds for cloud data content management solutions and network security services, with part of the budget also directed towards hardware and software maintenance[118]. - The company aims to expand its workforce to support anticipated growth, including hiring two IT engineers, one service delivery manager, and two senior sales executives[118]. - Administrative and other operating expenses increased by approximately 5,832,000 HKD or 44.4% from about 13,130,000 HKD for the six months ended December 31, 2021, to about 18,962,000 HKD for the six months ended December 31, 2022, mainly due to business expansion in China[86]. Research and Development - Research and development costs amounted to HKD 2,909,000 for the six months ended December 31, 2022, compared to no R&D costs reported in the same period of 2021[47]. Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring a wealth of business experience in financial and legal matters as of December 31, 2022[132]. - The company has adopted and complied with the corporate governance code as per GEM Listing Rules Appendix 15 for the six months ended December 31, 2022, with some deviations noted[134]. - The company has appointed Pulse Capital Limited as its compliance advisor, with no securities interests reported by the compliance advisor or its affiliates as of December 31, 2022[138]. Future Outlook - Forward-looking statements in the interim report reflect the company's expectations regarding future events, acknowledging known and unknown risks that may affect actual performance[140].

Financial Performance - The group's revenue for the three months ended September 30, 2022, was approximately HKD 33,825,000, an increase of about HKD 18,379,000 or 119.0% compared to the same period last year[9] - Gross profit for the same period increased by approximately HKD 16,559,000 or 370.1% to about HKD 21,033,000[9] - The company's earnings per share for the three months ended September 30, 2022, was approximately 1.51 HK cents, compared to a loss of 0.21 HK cents for the same period in 2021[9] - The pre-tax profit for the period was HKD 9,720,000, compared to a loss of HKD 1,801,000 in the previous year[11] - Total comprehensive income for the period amounted to HKD 8,321,000, compared to a loss of HKD 2,379,000 in the same period last year[11] - The company reported a net profit attributable to equity holders of HKD 9,082,000 for the period[11] - The company’s operating expenses for the period were HKD 2,273,000, compared to HKD 9,095,000 in the previous year[11] - The company’s financing costs for the period were HKD 155,000, an increase from HKD 41,000 in the previous year[11] - The company reported a total comprehensive income of HKD 9,062 thousand for the three months ended September 30, 2022, compared to HKD 7,449 thousand in the same period last year, representing an increase of approximately 21.6%[22] - The total revenue for the period was HKD 9,062 thousand, while the total comprehensive income was HKD 6,002 thousand, indicating a significant improvement in financial performance[22] - The company experienced a loss of HKD 3,060 thousand during the three months ended September 30, 2022, compared to a loss of HKD 1,252 thousand in the previous period, reflecting a deterioration in profitability[22] - The total assets as of September 30, 2022, were reported at HKD 63,115 thousand, an increase from HKD 56,299 thousand as of June 30, 2022[22] Business Operations - The company is primarily engaged in providing network support services, network connectivity services, and e-commerce services, indicating a focus on technology and digital solutions[18] - For the three months ended September 30, 2022, the reported revenue from the e-commerce segment was HKD 16,632,000, while the network support and connection services segment generated HKD 17,193,000, totaling HKD 33,825,000[36] - The reported profit for the e-commerce segment was HKD 10,711,000, compared to a loss of HKD 1,211,000 for the same period in 2021, indicating a significant improvement[36] - E-commerce business contributed approximately HKD 16,370,000, accounting for 48.4% of total revenue for the three months ended September 30, 2022[62] - Revenue from the Malaysian market increased by approximately HKD 1,186,000 or 7.68% to about HKD 16,632,000 for the three months ended September 30, 2022[66] - The company plans to continue expanding its e-commerce and network services segments to drive future growth and profitability[36] Financial Management - The company has changed its presentation currency from Malaysian Ringgit to Hong Kong Dollar to better reflect its financial performance for shareholders and potential investors[20] - The company has not adopted any new or revised international financial reporting standards that would have a significant impact on its financial statements for the current reporting period[28] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance with global accounting standards[20] - The company reported a total tax expense of HKD (275,000) for the three months ended September 30, 2022, compared to HKD 46,000 in the previous year[49] - The company did not incur any taxable profits in Hong Kong for the three months ended September 30, 2022, and thus did not make any provisions for Hong Kong profits tax[50] Shareholder Information - As of September 30, 2022, Mr. Yu holds a controlling interest in the company with 416,364,000 shares, representing approximately 69.39% of the total equity[103] - Thrive Harvest Limited, a company beneficially owned by Mr. Yu, holds 303,864,000 shares, accounting for about 50.64% of the total equity[103] - The company has a significant shareholder structure with Mr. Yu and related entities holding a majority of the shares[102] - The company has no outstanding stock options that were granted, exercised, expired, or canceled as of September 30, 2022[110] - The company has not disclosed any new strategies or market expansions in the recent reports[110] - As of September 30, 2022, there are no other significant shareholders disclosed apart from the board and senior management[102] Governance and Compliance - The audit committee consists of three independent non-executive directors as of September 30, 2022, ensuring robust oversight of financial reporting and compliance with applicable accounting standards and GEM listing rules[111] - The company adopted and complied with the corporate governance code as per GEM listing rules for the three months ending September 30, 2022, ensuring prudent regulation of business activities and decision-making processes[114] - The company has implemented appropriate checks and balances through its board and independent directors to ensure effective governance despite deviations from certain corporate governance code provisions[114] - The board of directors believes that the current structure of having the same individual serve as both chairman and CEO is in the best interest of the company, given the individual's extensive experience in relevant sectors[114] - The company has appointed Pulse Capital Limited as its compliance advisor, with no securities interests reported as of September 30, 2022, ensuring adherence to regulatory requirements[119] Future Outlook - The company plans to expand its partner network and enhance operational efficiency as its e-commerce business grows[69] - The company will continue to leverage technological innovation, focusing on the development of blockchain and NFT technologies[69] - The board believes that blockchain technology has the potential to disrupt existing financial and technology industries and is evaluating its integration into the e-commerce business[69] - Forward-looking statements in the report reflect the company's expectations regarding future events, acknowledging known and unknown risks that may significantly impact actual performance[121]

Business Expansion and Market Position - The company has entered the digital market in China through its online mall, Michong Mall, marking a new milestone in its business expansion[13]. - The company changed its name to Michong Metaverse (China) Holdings Group Limited, which is expected to enhance its corporate image and facilitate business development[13]. - The company aims to strengthen its position as a major player in the information and communication technology industry in Malaysia[12]. - The company is actively exploring various opportunities to drive business growth in response to market changes[12]. - The company plans to enhance its e-commerce business and invest in internet retail technology development to improve online consumer shopping experiences[21]. - The company aims to expand its partner network to strengthen competitive advantages and improve operational efficiency as e-commerce business grows[21]. - The company has expanded its market beyond Malaysia, generating approximately RM 1.4 million in revenue from new market connections in China as of June 30, 2022[33]. - The group primarily engages in providing network support services, network connectivity services, and e-commerce, with a focus on developing new e-commerce businesses in China as of June 30, 2022[133]. Financial Performance - In the fiscal year 2021/2022, the e-commerce business contributed approximately 9.8 million MYR, accounting for 16.1% of the total revenue[17]. - The company's revenue increased from approximately 39.8 million MYR for the year ended June 30, 2021, to approximately 61.0 million MYR for the year ended June 30, 2022, representing a growth of 53.3%[58]. - Revenue from network support services rose by approximately 42.0%, while revenue from network connection services increased by approximately 20.0%[58]. - The cost of sales and services increased from approximately 27.5 million MYR to approximately 39.1 million MYR, a rise of 42.2%[59]. - Gross profit margin improved from approximately 30.9% to approximately 35.9% due to the introduction of e-commerce, which contributed a relatively high gross profit margin of about 99.0%[60]. - Selling expenses surged from approximately 1.0 million MYR to approximately 23.9 million MYR, an increase of 2290%, primarily due to marketing expenses related to the new e-commerce initiative[65]. - Loss for the year increased by approximately RM 18.4 million or 800.0% to RM 20.7 million for the year ended June 30, 2022, attributed to increased selling and administrative expenses[70]. Operational Challenges and Market Conditions - The COVID-19 pandemic has significantly impacted global economies, leading to a shift in consumer behavior from offline to online[12]. - Malaysia's reopening on May 1, 2022, is seen as a key factor for resuming economic activities, prompting the company to adjust its market entry strategies[21]. - The company will continue to monitor the situation in Malaysia to ensure sustainable operations and business performance amid ongoing challenges from the COVID-19 pandemic[28]. - The company is closely monitoring the situation and will adjust its management and sales strategies as necessary following the reopening of Malaysia's borders[32]. Investments and Future Plans - The company plans to continue investing more resources in developing its e-commerce business despite challenges from the pandemic and weak consumer environment in China[37]. - The group plans to utilize the remaining HKD 2.8 million of net proceeds in the fiscal year ending June 30, 2023[105]. - The group aims to expand its workforce to support anticipated growth, with HKD 2.7 million or 9.6% allocated for this purpose[98]. - The company plans to promote its business to gain more market share, with HKD 2.0 million or 7.2% allocated for marketing efforts[99]. Risk Management and Compliance - The board regularly reviews major risk areas and appropriate risk mitigation strategies, considering the overall risk management and internal control systems effective and adequate[55]. - The board report includes a discussion on the major risks and uncertainties faced by the group, as well as potential future developments in its business[134]. - The group is focused on maintaining compliance with all relevant laws and regulations, ensuring that its operations adhere to environmental policies[136]. Shareholder and Governance Information - The company has arranged suitable liability insurance for its directors and executives against potential legal actions as of June 30, 2022[166]. - The company has not entered into any management or administrative contracts for its overall business or any significant operations as of June 30, 2022[168]. - The company has not disclosed any significant interests held by directors or executives in any transactions or arrangements that could materially affect the group's business[167]. - The company has authorized a total of 60,000,000 shares for the share option plan, representing 10% of the expanded issued share capital[185]. Employee and Community Engagement - The group made charitable donations of approximately MYR 86,000 during the year ended June 30, 2022, compared to none in 2021[200]. - The company has established a favorable working environment and offers various benefits and career development opportunities to its employees[140].

Financial Performance - For the nine months ended March 31, 2022, the group's revenue was approximately MYR 40.5 million, an increase of about 36.5% compared to the same period last year[8]. - The gross profit for the nine months ended March 31, 2022, increased by approximately 1.9% to about MYR 10.1 million[8]. - The company reported a loss per share of approximately 2.21 sen for the nine months ended March 31, 2022, compared to a profit of approximately 0.13 sen per share for the same period last year[8]. - The total comprehensive loss for the period was approximately MYR 13.25 million, compared to a profit of MYR 1.34 million for the same period last year[11]. - The cumulative profit for the period was reported at 5,190 thousand MYR, with a total comprehensive income of (13,543) thousand MYR[30]. - The company experienced a significant loss of (13,270) thousand MYR during the period, indicating challenges in financial performance[30]. - The company reported a pre-tax loss of 13,591 thousand MYR for the nine months ended March 31, 2022, compared to a profit of 1,970 thousand MYR in the previous year, indicating a significant downturn[46]. - For the nine months ended March 31, 2022, the company reported a loss attributable to equity holders of approximately 13.27 million MYR, compared to a profit of 761,000 MYR for the same period in 2021[69]. - The company reported a loss of approximately 13.6 million MYR for the nine months ended March 31, 2022, compared to a profit of about 0.8 million MYR for the same period in 2021, primarily due to decreased gross profit, increased selling expenses, and higher administrative and operational costs[104]. Revenue Breakdown - The company generated 37,623 thousand MYR from its primary market in Malaysia, while the revenue from China was 2,858 thousand MYR[39]. - The company’s revenue from sales and services for the three months ended March 31, 2022, was approximately MYR 12.78 million, compared to MYR 11.32 million for the same period last year[11]. - For the nine months ended March 31, 2022, the total reported segment revenue was 40,481 thousand MYR, compared to 29,646 thousand MYR for the same period in 2021, representing an increase of 36.5%[46]. - Revenue from network support services rose by approximately 190.3%, from about 4.3 million MYR to approximately 12.5 million MYR during the same period[91]. - E-commerce contributed approximately 2.0 million MYR, accounting for 4.9% of total revenue for the nine months ended March 31, 2022[88]. Expenses and Costs - The company’s administrative and other operating expenses for the nine months ended March 31, 2022, were approximately MYR 10.85 million, compared to MYR 13.18 million for the same period last year[11]. - Sales and service costs increased by approximately 54.0%, from about 19.7 million MYR to approximately 30.4 million MYR, primarily due to increased telecommunications and network ordering costs[92]. - Gross margin decreased from approximately 33.4% to about 25.0% due to rising costs of network equipment and hardware[93]. - Sales expenses surged by approximately 1469%, from about 0.7 million MYR to approximately 10.9 million MYR, mainly driven by marketing costs associated with the newly introduced e-commerce[98]. - Administrative and other operating expenses increased by approximately 79.6%, from about 7.3 million MYR to approximately 13.2 million MYR, largely due to higher employee costs and depreciation[99]. Tax and Compliance - The company incurred a tax expense of MYR 39, compared to a tax expense of MYR 1.13 million for the same period last year[11]. - The total tax expense for the nine months ended March 31, 2022, was (39) thousand MYR, compared to 1,125 thousand MYR in the same period of 2021, showing a reduction in tax liabilities[60]. - The estimated corporate income tax rate for the group's operations in Malaysia remains at 24% for the nine months ended March 31, 2022[68]. Strategic Initiatives - The company is primarily engaged in providing network support services, network connectivity services, and e-commerce solutions[23]. - The group is actively exploring opportunities to expand its business outside Malaysia, specifically targeting the Hong Kong and China markets[79]. - The group plans to invest more resources in the Chinese market to explore different opportunities and expand existing businesses, including network connectivity services and e-commerce[87]. - The company has established a strategic partnership with Hangzhou Super Technology Co., Ltd. to provide cloud computing and blockchain-based internet solutions from October 1, 2021, to December 31, 2024[82]. Corporate Governance - The audit committee consists of three independent non-executive directors, ensuring robust oversight of financial reporting and compliance with applicable accounting standards and GEM listing rules[123]. - The company has adopted and complied with the corporate governance code as per GEM listing rules for the nine months ending March 31, 2022, ensuring proper regulation of business activities and decision-making processes[125]. - The board believes that the dual role of the chairman and CEO held by Eric Tan is in the best interest of the company, ensuring effective management and business planning[128]. - The company has confirmed compliance with the prescribed trading standards for directors as per GEM listing rules during the nine months ending March 31, 2022[129]. Market Conditions - The ongoing COVID-19 pandemic has created significant challenges, but the company is focused on maintaining network availability and stability while adapting to new operational procedures[75]. - The group anticipates challenges in the coming years due to economic uncertainties but expects gradual recovery as countries adapt to living with COVID-19[87]. Shareholder Information - Major shareholder Mr. Yu holds a controlled entity interest of 416,250,000 shares, representing 69.38% of the company[108]. - Thrive Harvest Limited owns approximately 50.63% of the company's issued share capital with 303,750,000 shares, while Huitong Yingfu Investment Limited holds about 18.75% with 112,500,000 shares[115]. - The company has maintained a weighted average number of ordinary shares of 600 million for both the current and previous periods[69]. Future Outlook - The report includes forward-looking statements regarding the company's financial condition and operational performance, which are subject to known and unknown risks[135]. - The company has not provided specific future outlook or performance guidance in the available documents[120].