环球数码创意(08271) - 2024 - 中期业绩

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