Financial Performance - In the first half of 2019, BC Technology Group recorded a revenue growth of 29.1% or RMB 19.2 million compared to the same period in 2018[28]. - The company recorded total revenue of RMB 85 million for the six months ended June 30, 2019, an increase of approximately 29.1% or RMB 19.2 million compared to RMB 65.8 million for the same period in 2018[39]. - The digital asset and blockchain platform business generated revenue of RMB 41.6 million during the period, compared to zero revenue in the same period of 2018[40]. - The company reported a revenue of RMB 41,623,739 from digital asset business, surpassing its advertising and commercial management services revenue[53]. - The group experienced a net loss of RMB 131,756,582 for the six months ended June 30, 2019, compared to a loss of RMB 14,065,064 in the same period of 2018, indicating a significant increase in losses[54]. - The net loss for the period was RMB 131.8 million, an increase of RMB 121.7 million compared to a net loss of RMB 14.1 million in the same period of 2018[44]. - Basic and diluted loss per share from continuing operations was RMB (0.52), compared to RMB (0.06) in the previous year, reflecting a substantial decline in performance[56]. Revenue Breakdown - Revenue from advertising and commercial park management services was RMB 43.4 million, a decrease of 34.1% compared to the same period in 2018, primarily due to the slowdown in the automotive industry and reduced advertising budgets[28]. - Revenue from the advertising business was RMB 26.6 million, a decrease of RMB 20 million or 43.0% compared to the same period in 2018[41]. - Revenue from commercial park management services was RMB 16.8 million, down 12.5% year-on-year due to a decrease in occupancy rates[49]. - Digital asset trading revenue reached RMB 39.5 million during the period, compared to zero in the same period of 2018[51]. - Digital asset business revenue amounted to RMB 41,623,739, with RMB 40,262,961 generated from digital asset trading and RMB 2,053,233 from providing digital asset software as a service[115]. Expenses and Losses - The operating loss for the period was RMB 112.6 million, an increase of RMB 106.5 million compared to an operating loss of RMB 6.1 million in the same period of 2018[39]. - Administrative and other operating expenses increased by RMB 129 million to RMB 155 million, primarily due to the expansion of the digital asset and blockchain platform business[43]. - The company incurred a loss of RMB 131,752,213 for the six months ended June 30, 2019[102]. - The company reported a loss attributable to owners of the company from continuing operations of RMB 133,292,148 for the six months ended June 30, 2019, compared to a loss of RMB 14,309,285 for the same period in 2018[126]. Assets and Liabilities - The total assets of the group as of June 30, 2019, amounted to RMB 1.337 billion, an increase from RMB 1.026 billion as of December 31, 2018[45]. - Total liabilities reached RMB 1,305,292,858, up from RMB 967,951,879, indicating an increase of around 34.8%[60]. - The company reported a total equity of RMB 28,404,503, a decrease from RMB 34,627,291, indicating a decline of about 17.9%[60]. - The total customer payables related to digital assets liabilities reached RMB 463,180,239 as of June 30, 2019, compared to RMB 180,513,792 as of December 31, 2018, reflecting a significant increase[83]. - The total liabilities measured at fair value through profit or loss increased from RMB 401,321,753 as of December 31, 2018, to RMB 708,218,093 as of June 30, 2019[83]. Share Issuance and Financing - The company completed a share placement of HKD 114 million to strengthen its balance sheet and continue building its market-leading brands OSL and ANXONE in Asia[27]. - The company issued 22,091,860 shares, raising a net amount of approximately RMB 10.4 million to cover regular monthly expenses of approximately RMB 20 million[36]. - The group is actively seeking to enhance its operational capital base through debt and equity financing to support growth initiatives[52]. - The total number of ordinary shares issued increased to 283,699,413, with a total capital raised of HKD 114,381,800 (approximately RMB 100,560,733) from the issuance of 22,091,860 shares[175]. Business Strategy and Future Outlook - BC Technology Group aims to focus on increasing revenue and engaging with regulatory bodies to achieve long-term growth in the digital asset platform business[27]. - The company plans to continue expanding its digital asset platform business in the second half of 2019 while maintaining cost efficiency and revenue growth[32]. - The group aims to improve performance in the second half of 2019 by seeking new clients and expanding its industry scope[49]. - The group is optimistic about the future of its digital asset business, anticipating increased revenue and collaboration with regulatory bodies[51]. - The company plans to expand its digital asset trading platform and related SaaS products, focusing on diversifying revenue streams and increasing its customer base in Hong Kong and other major jurisdictions in Asia[52]. Employee and Operational Costs - The total employee cost for the group was RMB 10.13 million, up from RMB 7.7 million in the same period of 2018, reflecting an increase in workforce[47]. - The company incurred administrative and other operating expenses of RMB 101,305,159, a notable increase from RMB 7,704,248 in the previous period, primarily due to increased employee benefits[118]. Regulatory and Compliance - The group has seen increasing institutional interest in its services, positioning itself as one of the few market participants capable of complying with emerging regulations[52]. - The company has established policies to ensure sales to reputable customers with appropriate financial and credit records[138]. - The company has monitoring procedures in place to follow up on overdue debts[138]. Shareholder Information - The total number of ordinary shares held by executive director Gao Zhenshun is 187,536,194, representing 66.46% of the issued share capital[199]. - The company’s shareholding structure indicates a concentration of ownership among a few key executives[199]. - The company has implemented a share option scheme for its directors, which is reflected in the shareholdings[200].
BC科技集团(00863) - 2019 - 中期财报