GAMEONE(08282)2023-08-14 08:43Financial Performance - For the six months ended June 30, 2023, the company reported revenue of HKD 77,359,000, a 93.5% increase from HKD 39,922,000 in the same period of 2022[8] - The cost of services provided for the same period was HKD 61,765,000, up from HKD 21,327,000, resulting in a gross profit of HKD 15,594,000, down 16.1% from HKD 18,595,000[8] - Operating loss for the six months was HKD 9,836,000, compared to a loss of HKD 1,756,000 in the previous year, indicating a significant increase in operational challenges[8] - The company reported a net loss of HKD 9,861,000 for the six months, compared to a loss of HKD 1,765,000 in the same period last year[8] - The company’s basic and diluted loss per share for the six months was HKD 4.11, compared to HKD 1.10 in the same period of 2022[8] - The group reported a loss before tax of HKD 6,773,000 for the six months ended June 30, 2023, compared to a loss of HKD 5,235,000 in the same period of 2022[33] - The net loss for the six months ended June 30, 2023, was approximately HKD 9.9 million, compared to a net loss of HKD 1.8 million for the same period in 2022[56] Assets and Liquidity - As of June 30, 2023, total assets were HKD 36,143,000, down from HKD 45,758,000 at the end of 2022, reflecting a decrease in liquidity[9] - The company's cash and cash equivalents decreased to HKD 17,894,000 from HKD 27,306,000, indicating a cash flow challenge[9] - Total equity as of June 30, 2023, was HKD 34,324,000, down from HKD 44,579,000 at the end of 2022, showing a decline in shareholder value[9] - Cash and cash equivalents decreased to HKD 17,894,000 at the end of the period, down from HKD 27,851,000 at the end of June 2022, reflecting a net decrease of HKD 9,523,000[12] - The net cash used in operating activities was HKD 5,523,000 for the six months ended June 30, 2023, compared to HKD 3,583,000 in the same period of 2022, indicating increased cash outflow[12] - As of June 30, 2023, accounts receivable amounted to HKD 4,604,000, slightly up from HKD 4,349,000 as of December 31, 2022[39] Revenue Segmentation - Software services revenue surged to HKD 54,467,000, up 450.5% from HKD 9,888,000 year-on-year, while gaming revenue decreased to HKD 22,892,000, down 23.6% from HKD 30,034,000[25] - Revenue from mainland China accounted for HKD 54,467,000, representing 70.4% of total revenue, while Hong Kong contributed HKD 21,686,000, or 28.0%[28] - The company experienced a significant increase in software service revenue, which reflects a strategic focus on internet security technology and big data analysis services in mainland China[24] - Two major customers contributed over 10% of total revenue for the group in the six months ended June 30, 2023, with Customer A generating HKD 34,910,000 and Customer B generating HKD 11,672,000[29] Operational Challenges - The company identified two operating segments: software services and gaming, with the software services segment showing a loss of HKD 1,183,000 for the six months ended June 30, 2023[25] - The company's administrative expenses increased by approximately 142.5% to HKD 19.4 million for the six months ended June 30, 2023, compared to HKD 8.0 million for the same period in 2022[55] - The total employee costs for the six months ended June 30, 2023, were approximately HKD 9.0 million, an increase from HKD 7.3 million for the same period in 2022[74] - The company employed 47 employees as of June 30, 2023, down from 52 employees as of June 30, 2022[74] Corporate Governance - The company has adhered to the corporate governance code as per GEM listing rules, with a noted deviation regarding the roles of Chairman and CEO being held by the same individual[87] - No competition or conflict of interest was reported among directors or major shareholders during the six months ended June 30, 2023[85] - The company confirmed that all directors complied with the securities trading code during the reporting period[86] - The audit committee was established on December 23, 2015, and complies with GEM listing rules, ensuring at least one independent non-executive director has appropriate professional qualifications or accounting expertise[93] Future Outlook - The company plans to continue expanding its software services and gaming operations, focusing on enhancing product offerings and market reach[24] - The company has no significant investments or acquisition plans as of June 30, 2023[65] - No significant acquisitions or disposals occurred during the six months ended June 30, 2023[84] Dividends and Shareholder Information - No dividends were declared or paid by the company or any of its subsidiaries for the six months ended June 30, 2023[35] - No interim dividend was recommended for the six months ended June 30, 2023, consistent with the previous year[75] - Liu Yi holds 39.69% of the company's shares through Topliu Limited, while Huang Jianying holds 16.87%[77] - Nineyou International Limited and its controlled entities collectively hold 7.65% of the company's shares[80] Stock Options - The company has a stock option plan approved by shareholders on December 23, 2015, which is effective for 10 years from the listing date[90] - The total number of shares that can be issued upon full exercise of stock options granted under the plan and any other plans shall not exceed 30% of the issued shares at any time[91] - As of June 30, 2023, there were no stock options granted, exercised, expired, or lapsed under the plan, and no unexercised stock options remain[91] Events After Reporting Period - No significant events occurred after June 30, 2023, up to the report date[94] - The interim results announcement and report for the six months ended June 30, 2023, will be published on the Hong Kong Stock Exchange and the company's website[95]