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8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: 比特元宇宙控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 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) | 08645 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 1 ...

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: 比特元宇宙控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 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) | 08645 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本 ...

Financial Performance - For the six months ended December 31, 2024, the group's revenue was approximately HKD 63,889,000, an increase of about HKD 13,215,000 or 26.1% compared to the same period last year[12]. - The gross profit for the same period decreased by approximately HKD 7,312,000 or 50.3% to about HKD 7,213,000[12]. - The loss per share for the six months ended December 31, 2024, was approximately HKD 1.03 cents, compared to HKD 1.84 cents for the same period in 2023[12]. - The company reported a pre-tax loss of approximately HKD 7,663,000 for the six months ended December 31, 2024, compared to HKD 11,607,000 for the same period last year[13]. - The company recorded a net loss of approximately HKD 7,320,000 for the six months ended December 31, 2024, compared to HKD 11,019,000 for the same period in 2023[13]. - The group reported a loss of HKD 2,871,000 for the six months ended December 31, 2024, compared to a loss of HKD 7,172,000 in the same period of 2023, indicating an improvement in performance[42]. - The group recorded a net loss of approximately HKD 7,320,000, a decrease of HKD 3,699,000 or 33.6% compared to the previous period[117]. Assets and Liabilities - Non-current assets as of December 31, 2024, totaled approximately HKD 33,576,000, down from HKD 39,766,000 as of June 30, 2024[18]. - Current assets increased to approximately HKD 124,966,000 as of December 31, 2024, compared to HKD 93,542,000 as of June 30, 2024[18]. - Total assets decreased from 75,958 thousand HKD to 72,041 thousand HKD, indicating a decline of approximately 3.8%[19]. - The net asset value decreased from 70,391 thousand HKD to 65,632 thousand HKD, representing a reduction of about 6.5%[21]. - The company’s total liabilities decreased to HKD 80,770,000 as of December 31, 2024, from HKD 37,872,000 as of June 30, 2024, indicating a significant increase in financial stability[63]. Cash Flow and Financial Stability - Operating cash flow improved to 4,625 thousand HKD from a negative 6,103 thousand HKD year-over-year, showing a significant turnaround[26]. - The company reported a net cash decrease of 375 thousand HKD compared to a much larger decrease of 12,121 thousand HKD in the previous year[28]. - Cash and cash equivalents at the end of the period increased to 27,502 thousand HKD from 4,930 thousand HKD, marking a substantial improvement[28]. - The company has maintained a prudent treasury policy and closely monitored its liquidity position throughout the reporting period[122]. Revenue Sources - Revenue from network support and connectivity services in Malaysia was HKD 36,554,000, while in China, e-commerce revenue was HKD 8,960,000 and IP licensing for online games was HKD 18,375,000[42]. - E-commerce sales surged by approximately HKD 3,415,000 or 7,266.0% to about HKD 3,462,000, driven by collaboration with OPPO Guangdong Mobile Communications[104]. - Revenue from online game IP licensing management services rose by approximately HKD 12,160,000 or 195.7% to about HKD 18,375,000[104]. - The network service provider license expiration will significantly reduce network connectivity services in Malaysia, with related revenue and gross profit for the six months ending December 31, 2024, being approximately HKD 14,893,000 and HKD 2,112,000, respectively, accounting for about 23.3% and 29.3% of the group's total revenue and gross profit[92]. Employee and Operational Changes - Employee costs decreased to HKD 10,065,000 in 2024 from HKD 14,634,000 in 2023, a reduction of approximately 31.5%[7]. - The company employed 69 staff members as of December 31, 2024, down from 128 employees a year earlier[150]. - The company plans to hire additional e-commerce market developers in 2025 to explore more product categories and online sales channels[88]. Strategic Initiatives - The company plans to continue focusing on network support services and e-commerce, aiming for market expansion in these areas[31]. - The company has initiated a new business in online gaming IP licensing management starting November 2023[80]. - The company is exploring opportunities in the Chinese market for network support and connectivity services, with a potential partnership with a leading Chinese network service provider expected to be finalized in Q1 2025, aiming to generate revenue in Q2 2025[94]. - The company aims to streamline operations by divesting underperforming assets, focusing on more competitive business areas to improve overall performance[87]. Shareholder and Governance Matters - The company has adopted a share incentive plan on April 14, 2023, which was approved by shareholders and became effective on April 21, 2023, allowing for a maximum issuance of 60,000,000 shares, representing 10% of the total issued share capital[160][165]. - The company has appointed Oriental Fortune Securities Limited as the initial trustee for the share incentive plan, ensuring independence from the company[162]. - The company has confirmed compliance with the trading standards for directors as per GEM Listing Rules for the six months ending December 31, 2024[187]. - The audit committee consists of four members, including three independent non-executive directors, ensuring a wealth of experience in business, finance, and legal matters[183].

Financial Performance - For the six months ended December 31, 2024, the group's revenue was approximately HKD 63,889,000, an increase of about HKD 13,215,000 or 26.1% compared to the same period last year[17]. - The gross profit for the same period decreased by approximately HKD 7,312,000 or 50.3% to about HKD 7,213,000[17]. - The company's loss per share for the six months ended December 31, 2024, was approximately HKD 0.0103, compared to HKD 0.0184 for the same period in 2023[17]. - The board of directors did not recommend any dividend payment for the six months ended December 31, 2024[17]. - The net loss before tax for the period was HKD 7,663,000, an improvement from HKD 11,607,000 in the prior year[18]. - The total comprehensive loss for the period was HKD 4,759,000, compared to HKD 10,016,000 in the previous year[18]. - The company reported a loss attributable to equity holders of HKD 7,442,000 for the six months ended December 31, 2024, compared to a loss of HKD 11,024,000 in the same period of 2023, representing a 32.5% improvement[21]. - Total comprehensive income attributable to equity holders was a loss of HKD 4,900,000 for the six months ended December 31, 2024, compared to a loss of HKD 10,025,000 in 2023, indicating a 51.1% reduction in losses[21]. - The basic and diluted loss per share for equity holders was HKD 1.03 cents, an improvement from HKD 1.84 cents in the previous year, reflecting a 44.1% decrease in loss per share[21]. Income and Expenses - Other income for the period was HKD 630,000, up from HKD 337,000 in the previous year[18]. - The company recorded a tax credit of HKD 343,000 for the period, compared to HKD 588,000 in the previous year[18]. - The company reported a foreign exchange gain of HKD 2,620,000 due to the translation of overseas operations[18]. - Total other income for the six months ended December 31, 2024, was HKD 630,000, compared to HKD 337,000 for the same period in 2023, representing an increase of 87%[48]. - The net gain from other income and losses for the six months ended December 31, 2024, was HKD 5,496,000, significantly up from HKD 186,000 in 2023[49]. - Research and development costs for the six months ended December 31, 2024, were HKD 1,163,000, a decrease of 76.6% from HKD 4,962,000 in 2023[51]. - Selling expenses decreased by HKD 3,858,000 or 74.1% to approximately HKD 1,351,000, mainly due to reduced employee costs in the sales team[114]. - Financing costs decreased by HKD 55,000 or 23.9% to approximately HKD 175,000, with a significant reduction in lease liabilities interest expenses[116]. Assets and Liabilities - Non-current assets decreased to HKD 33,576,000 as of December 31, 2024, down from HKD 39,766,000 as of June 30, 2024, a decline of 15.6%[23]. - Current assets increased significantly to HKD 124,966,000 as of December 31, 2024, compared to HKD 93,542,000 as of June 30, 2024, representing a 33.5% increase[23]. - The company’s total equity decreased to HKD 65,632,000 as of December 31, 2024, down from HKD 70,391,000 as of June 30, 2024, a decline of 6.5%[25]. - The total liabilities increased to HKD 87,615,000 as of December 31, 2024, from HKD 54,991,000 as of June 30, 2024, representing an increase of approximately 59.2%[73]. - The company’s trade payables increased to HKD 11,957,000 as of December 31, 2024, from HKD 8,863,000 as of June 30, 2024, reflecting a growth of approximately 34.5%[73]. - The company’s prepaid expenses rose to HKD 16,689,000 as of December 31, 2024, compared to HKD 3,425,000 as of June 30, 2024, indicating a significant increase of approximately 387.5%[66]. Business Operations and Strategy - The company continues to focus on expanding its market presence and enhancing its product offerings[17]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[26]. - The group plans to continue expanding its network support and connection services in Malaysia and China, focusing on enhancing service offerings[44]. - The company plans to expand its e-commerce operations by exploring partnerships with well-known brands and e-commerce platforms, both domestically and internationally[91]. - The company has initiated a new business in network game IP licensing management services starting from November 2023[83]. - The group is exploring opportunities in the Chinese market for network support and connectivity services, with a potential partnership expected to be finalized in Q1 2025[97]. Shareholder and Corporate Governance - The company adopted a share incentive plan on April 14, 2023, which was approved by shareholders and became effective on April 21, 2023[163]. - The total number of shares that can be issued under the share incentive plan is capped at 10% of the company's total issued share capital as of the adoption date, equating to 60,000,000 shares[168]. - The company has appointed Oriental Fortune Securities Limited as the initial trustee for the share incentive plan[165]. - The audit committee consists of four members, including three independent non-executive directors, ensuring a wealth of experience in business, finance, and legal matters[186]. - The company has adopted and complied with the corporate governance code as per GEM listing rules, ensuring proper regulation of business activities and decision-making processes[187]. Market and Competitive Landscape - The group anticipates not renewing its network service provider license, which will expire in January 2030, due to foreign investment restrictions in Malaysia[94]. - The company sold its subsidiary, 米虫科技信息（深圳）有限公司, for approximately RMB 1 (equivalent to about HKD 1), and will no longer consolidate its financial results[79]. - The company sold MiChong (Shenzhen) Group for RMB 1 (approximately HKD 1) due to declining financial performance and market competitiveness[90].

Financial Position and Fundraising - The company successfully raised approximately HKD 25.62 million from the placement of 120,000,000 new shares on April 11, 2024, enhancing its financial position and shareholder base[6] - The placement of new shares is expected to provide operational funds to meet financial obligations without incurring interest burdens, compared to other fundraising methods[6] - A total of 120,000,000 new shares were successfully placed at a price of HKD 0.218 per share, raising approximately HKD 25,624,000 for general operating funds and licensing[50] - The estimated cost for the proposed acquisition of HUOBI Co. Ltd. is approximately HKD 39,000,000, which will be funded through cash or shares[16] - The company plans to acquire equity in HUOBI for an estimated cost of HKD 39,000,000, with the acquisition expected to be completed by November 16, 2024[51] Business Development and Strategy - The company has made significant progress in developing its blockchain technology business, obtaining a trust or company service provider license for its subsidiary, Bitcoin World Custodian Limited[7] - Bitcoin World Technology Limited has submitted an application for necessary licenses to operate regulated activities under the Securities and Futures Ordinance, which has been accepted by the Securities and Futures Commission[7] - The company aims to provide more diversified services to investors through the operation of a virtual asset trading platform once the license is granted[7] - The company is focused on creating synergies between its various business lines to open new revenue sources[7] - The company is committed to exploring potential business developments to achieve growth and maximize shareholder value[6] Revenue and Performance - The e-commerce business contributed approximately HKD 11,191,000 or 10.4% of total revenue for the fiscal year ending June 30, 2024, down from HKD 55,491,000 or 42.1% in the previous year[11] - The group recorded revenue of approximately HKD 71,606,000 from network support and connectivity services for the year ending June 30, 2024, a decrease of about 6.5% from HKD 76,246,000 in 2023[13] - Revenue from the Malaysian market slightly decreased by approximately HKD 700,000 or 1.0% to about HKD 70,521,000 for the year ending June 30, 2024, compared to HKD 71,221,000 in 2023[13] - Revenue from the Chinese market fell to approximately HKD 1,085,000 for the year ending June 30, 2024, down from HKD 5,025,000 in 2023, attributed to a smaller scale of services completed[13] - The company’s revenue decreased by approximately HKD 24,334,000 or 18.5%, from HKD 131,737,000 for the year ended June 30, 2023, to HKD 107,403,000 for the year ended June 30, 2024[23] Operational Efficiency and Cost Management - The group aims to enhance its competitive advantage and operational efficiency through blockchain technology services, following a successful placement of approximately HKD 15,600,000 for licensing applications[16] - The gross profit margin in the Malaysian market declined to approximately 22.2% due to increased costs and competition[13] - Gross profit margin decreased from approximately 52.3% for the year ended June 30, 2023, to about 22.7% for the year ended June 30, 2024, primarily due to the suspension of the e-commerce membership program and the lower margin of the new gaming service[25] - Sales and service costs increased by approximately HKD 20,118,000 or 32.0%, from HKD 62,889,000 for the year ended June 30, 2023, to HKD 83,007,000 for the year ended June 30, 2024, mainly due to the new gaming service's licensing costs[24] Leadership and Governance - The company has a strong leadership team with diverse backgrounds in finance, accounting, and technology, enhancing its strategic decision-making capabilities[64] - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic leadership appointments[61][62][63][64][65] - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[120] - The board meets at least four times a year to discuss business development, operations, and financial performance[126] - The board is collectively responsible for overseeing the company's affairs and ensuring effective internal controls and risk management systems[125] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental policies and has implemented various green measures to reduce its environmental impact[71] - The report highlights the group's commitment to improving ESG performance and transparency to benefit stakeholders in the long term[162] - The company has implemented energy-saving measures, including regular maintenance of electrical equipment and encouraging employees to turn off devices when not in use[172] - The company has fully complied with relevant environmental laws and regulations in Malaysia and China during the reporting period[170] - The company has not produced any hazardous waste during the reporting period, and the amount of non-hazardous waste generated is negligible[172] Employee Relations and Development - The company is committed to promoting equal opportunities and diversity in the workplace, ensuring that employment decisions are free from discrimination based on non-work-related factors[193] - Continuous training and development opportunities are provided to employees to enhance their skills and capabilities, with performance evaluations conducted annually[195] - The company has established strict health and safety policies to maintain a safe working environment, complying with relevant laws and regulations[194] - The percentage of trained employees increased to 82% in 2024 from 76% in 2023[196] - The company provides mandatory employee provident funds and social security benefits to support employees in need, including retirement savings and unemployment insurance[192]

Company Overview - The company reported its annual results for the year ending June 30, 2024, in accordance with GEM listing rules[1]. - The board confirmed that the information provided in the announcement is accurate and complete, with no misleading elements[2]. - The company is listed under stock code 8645 on the Hong Kong Stock Exchange[6]. - The annual report will be available on the company's website and the Hong Kong Stock Exchange website for shareholders[1]. - The company has undergone a name change from 米虫元宇宙（中國）控股集團有限公司 to 比特元宇宙控股有限公司[1]. Governance and Management - The board includes executive directors and independent non-executive directors, ensuring a diverse governance structure[5]. - The company aims to enhance its corporate governance and compliance with environmental, social, and governance (ESG) standards[4]. - The management team is committed to enhancing corporate governance and compliance through the establishment of various committees[61][63]. - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[122]. - The board is responsible for overseeing the company's operations and financial performance, ensuring effective internal controls and risk management systems are in place[127]. Financial Performance - The company raised approximately HKD 25.62 million from the placement of 120,000,000 new shares on April 11, 2024, enhancing its financial position and operational funding[8]. - Revenue decreased by approximately HKD 24,334,000 or 18.5% from HKD 131,737,000 for the year ended June 30, 2023, to HKD 107,403,000 for the year ended June 30, 2024[25]. - The company reported a net loss of approximately HKD 28,783,000 for the year ending June 30, 2024, compared to a profit of about HKD 20,282,000 in 2023, primarily due to decreased revenue and increased administrative expenses[36]. - The gross profit margin decreased from approximately 52.3% for the year ended June 30, 2023, to approximately 22.7% for the year ended June 30, 2024[27]. - The company’s available distributable reserves as of June 30, 2024, are approximately HKD 60,887,000, an increase from HKD 47,610,000 in 2023[76]. Business Development and Strategy - The company is focused on expanding its market presence and developing new technologies[1]. - The company aims to invest more resources in blockchain technology services to meet global demand and drive business growth[10]. - The company is exploring investment and collaboration opportunities in the blockchain technology market to enhance its operational efficiency[18]. - The company is developing a multi-chain wallet to support various cryptocurrencies, which is currently in the initial assessment phase[11]. - The company plans to acquire a stake in HUOBI Co. Ltd. for an estimated cost of HKD 39,000,000, which will enhance its capabilities in virtual asset trading services[18]. Revenue Sources and Market Performance - E-commerce business contributed approximately HKD 11,191,000 or 10.4% of total revenue for the year ending June 30, 2024, down from HKD 55,491,000 or 42.1% in 2023[13]. - The new business of online game IP licensing generated approximately HKD 24,606,000 in revenue for the year ending June 30, 2024, with no revenue reported in 2023[17]. - Advertising revenue from the application reached approximately HKD 10,600,000 for the year ending June 30, 2024, up from HKD 7,462,000 in 2023[13]. - Revenue from network support and connectivity services was approximately HKD 71,606,000 for the year ending June 30, 2024, down from HKD 76,246,000 in 2023[15]. - The company will not renew its network service provider license in Malaysia, which is expected to significantly reduce network connectivity service revenue in that market[15]. Employee and Talent Management - The group employed 116 staff members, a decrease from 146 in 2023, with total employee costs amounting to approximately HKD 29,677,000, up from HKD 26,028,000 in 2023[43]. - The percentage of trained employees increased to 82% in 2024 from 76% in 2023[198]. - The group offers various employee benefits, including mandatory employee provident funds and social security for work-related injuries[194]. - The company has implemented skills development and training programs to address the shortage of technical talent[22]. - The overall employee turnover rate decreased to 31% in 2024 from 37% in 2023[188]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental policies and compliance with relevant laws and regulations, ensuring minimal adverse impact on the environment[73]. - The company has implemented energy-saving measures to reduce greenhouse gas emissions, including vehicle maintenance and encouraging employees to turn off electrical appliances[174]. - The total greenhouse gas emissions for 2024 amounted to 502.26 tons of CO2 equivalent, an increase from 377.80 tons in 2023, representing a 33% rise[173]. - The company has complied with relevant environmental laws and regulations in Malaysia and China, with no significant violations reported during the reporting period[172]. - The report highlights the group's commitment to improving ESG performance and disclosing relevant policies and risk management mechanisms[164]. Shareholder and Stakeholder Engagement - The board is committed to maintaining dialogue with shareholders, particularly during annual general meetings[129]. - The company has established a mechanism for the annual re-election of directors, ensuring accountability and governance compliance[125]. - The company has confirmed compliance with the GEM Listing Rules regarding sufficient public float, maintaining 25% of issued shares held by the public as of June 30, 2024[113]. - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[148]. - The company has mechanisms in place to ensure that insider information is accessed only by authorized personnel[151].

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].