GAMEONE(08282)2024-08-08 10:44Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 20,046,000, a decrease of 74.1% compared to HKD 77,359,000 for the same period in 2023[10] - The gross profit for the same period was HKD 7,547,000, down 51.6% from HKD 15,594,000 in 2023[10] - Operating profit for the period was HKD 142,000, a significant improvement from an operating loss of HKD 9,836,000 in the previous year[10] - The company recorded a net profit of HKD 142,000, compared to a net loss of HKD 9,861,000 in the same period last year[10] - Total comprehensive income for the period was HKD 988,000, recovering from a total comprehensive loss of HKD 10,255,000 in the previous year[10] - Basic and diluted earnings per share were HKD 0.41, a recovery from a loss per share of HKD 40.75 in the same period last year[10] - The company experienced a net loss of HKD (9,861,000) for the period, compared to a loss of HKD (200,000) in the previous period, indicating a significant increase in losses[15] - The group reported an operating profit of HKD 142,000 for the six months ended June 30, 2024, compared to an operating loss of HKD 9,836,000 for the same period in 2023[24] - The company recorded a net profit of approximately HKD 0.1 million for the six months ended June 30, 2024, compared to a net loss of approximately HKD 9.9 million in the same period of 2023, primarily due to an increase in overall gross margin from about 20.2% to approximately 37.5%[49] Revenue Breakdown - Software services revenue was HKD 11,097,000, down 79.7% from HKD 54,467,000 in the previous year, while gaming business revenue was HKD 8,949,000, down 60.9% from HKD 22,892,000[24] - The group recognized government grants of HKD 57,000 and interest income of HKD 14,000, totaling other income of HKD 175,000 for the six months ended June 30, 2024, down from HKD 1,223,000 in 2023[28] Assets and Liabilities - As of June 30, 2024, total assets amounted to HKD 25,201,000, compared to HKD 11,504,000 as of December 31, 2023, reflecting a significant increase of 119%[12] - The company reported a total equity of HKD 24,766,000 as of June 30, 2024, up from HKD 11,504,000 at the end of 2023, representing a growth of 115%[12] - The company’s total liabilities decreased significantly, with current liabilities dropping to HKD 961,000 from HKD 13,261,000, a reduction of 92.7%[12] - The company's debt-to-asset ratio as of June 30, 2024, is approximately 3.67%, a significant decrease from approximately 53.5% on December 31, 2023[69] Cash Flow and Investments - The company's cash and cash equivalents decreased to HKD 4,002,000 from HKD 4,744,000, a decline of 15.6%[17] - Net cash used in operating activities for the six months ended June 30, 2024, was HKD (6,744,000), compared to HKD (5,523,000) for the same period in 2023, indicating a worsening cash flow situation[17] - Cash used in investing activities increased to HKD (6,214,000) from HKD (3,336,000), indicating a higher investment outflow[17] - The company invested approximately HKD 514,000 in property, plant, and equipment during the six months ended June 30, 2024, compared to HKD 280,000 in the same period of 2023[34] Cost Management - The cost of services provided decreased by approximately 79.8% to HKD 12.5 million for the six months ended June 30, 2024, from HKD 61.8 million for the same period in 2023[45] - Administrative expenses decreased by approximately 68.6% to about HKD 6.1 million for the six months ended June 30, 2024, from HKD 19.4 million in the same period of 2023[48] - Sales expenses decreased by approximately 80.8% to HKD 1.4 million for the six months ended June 30, 2024, compared to HKD 7.3 million in the same period of 2023[47] - The total employee cost for the six months ended June 30, 2024, is approximately HKD 2.58 million, a decrease from approximately HKD 9.0 million for the same period in 2023[63] Corporate Governance - The company is committed to maintaining compliance with GEM listing rules and ensuring transparency in its financial reporting[2] - The company has complied with all applicable corporate governance codes and rules during the reporting period, with one exception regarding the separation of roles between the Chairman and CEO[74] - The audit committee, established on December 23, 2015, includes independent non-executive directors and has reviewed the unaudited consolidated results for the six months ending June 30, 2024[78] - The company has confirmed compliance with the GEM listing rules regarding the audit committee's composition and qualifications[78] Future Outlook - The company aims to enhance its market presence and is exploring new product development strategies[10] - Future outlook includes a focus on cost management and operational efficiency to improve profitability[10] Shareholder Information - The company did not declare or pay any dividends for the six months ended June 30, 2024, consistent with the same period in 2023[32] - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024, compared to no dividend for the same period in 2023[64] - The company completed a rights issue on January 24, 2024, raising approximately HKD 12.2 million net of expenses, with a total of 12,000,000 shares issued, representing about 33.3% of the enlarged issued share capital[52] Employee and Subsidiary Information - The company has a total of 30 employees in China and 47 in Hong Kong as of June 30, 2024[63] - The company has made investments in its subsidiaries, including approximately RMB 4.3 million (approximately HKD 5.0 million) in Zhejiang Zhi'ao and USD 1 million (approximately HKD 7.85 million) in Heilongjiang Zhi'ao as of June 30, 2024[61]