Financial Performance - Overall revenue increased by 6% year-on-year, marking the first positive adjusted EBITDA in four years[4] - Net loss decreased by 31% year-on-year to RMB 91 million, down from RMB 132 million in the first half of 2019[6] - Total revenue for the six months ended June 30, 2020, was RMB 90 million, an increase of approximately 5.9% from RMB 85 million in the same period of 2019[27] - The company's net loss for the period was RMB 90.8 million, a decrease of RMB 41 million compared to RMB 131.8 million in the same period of 2019, primarily due to significant revenue growth from digital assets and blockchain platform business[35] - The company reported a net loss of RMB 90,751,244 for the six months ended June 30, 2020, compared to a profit from continuing operations of RMB 1,235,777 in the same period of 2019[107] - The company reported a loss attributable to owners of the company from continuing operations of RMB 92,954,028 for the six months ended June 30, 2020, compared to RMB 133,292,148 for the same period in 2019, indicating a decrease in losses by approximately 30.3%[126] Digital Asset Business - OSL digital asset platform revenue grew by 47% compared to the same period last year, accounting for 68% of total revenue[5] - The digital asset platform business is expected to grow significantly due to regulatory pressures forcing other players out of the market[9] - OSL's monthly annualized trading volume reached record levels in four out of the first six months of the year, continuing growth for six consecutive quarters[6] - The group’s digital asset income increased sevenfold, becoming the main source of revenue, with a significant rise in institutional and professional investors as clients[56] - Revenue from digital asset and blockchain platform business reached RMB 56,547,360 for the six months ended June 30, 2020[107] - The digital asset and blockchain platform business now accounts for 68% of the company's total revenue and earnings[48] Cost Management and Expenses - The administrative and other operating expenses decreased by RMB 18 million to RMB 137 million compared to the same period in 2019, mainly due to strict cost control[34] - The company incurred a total employee benefit expense of RMB 91,762,690 for the six months ended June 30, 2020, down from RMB 101,305,159 in the same period of 2019, a decrease of about 9.5%[10] - The total costs related to advertising services decreased to RMB 9,589,688 for the six months ended June 30, 2020, from RMB 23,416,057 in the same period of 2019, a reduction of approximately 59%[10] Strategic Initiatives and Growth Plans - The company is focused on expanding its digital asset revenue through its exchange and SaaS products during the reporting period[8] - The company aims to diversify its digital asset revenue sources and expects revenue growth from its digital asset trading platform and SaaS products to exceed existing advertising and commercial property management services[14] - The company plans to maintain financial discipline while expanding its market share in digital asset business across multiple jurisdictions[14] - The company plans to continue its expansion in the digital asset industry, despite challenges in its other businesses due to the COVID-19 pandemic[50] - The company aims to expand its customer base in Hong Kong and other major jurisdictions in Asia, focusing on providing digital asset trading platforms and related SaaS services[64] Regulatory and Compliance - OSL received preliminary approval from the Hong Kong Securities and Futures Commission for licenses to conduct regulated activities, becoming the first company to apply under the new regulatory framework[11] - The group is actively pursuing digital asset financial service licenses in Hong Kong and Singapore to support regulatory developments[63] - The group expects to enhance its banking relationships and increase trading frequency with licensed securities firms and asset management companies[11] Shareholder and Equity Information - The company issued 43,100,000 new shares at a subscription price of HKD 6.5 per share, raising approximately RMB 387,761 in capital[155] - As of June 30, 2020, Mr. Gao Zhenshun holds a total of 191,736,194 shares, representing 58.53% of the issued share capital[182] - East Harvest Global Limited owns 187,536,194 shares, accounting for 57.25% of the issued share capital[186] Financial Position and Assets - Total assets as of June 30, 2020, were RMB 1.8652 billion, up from RMB 1.1447 billion as of December 31, 2019, while total liabilities increased to RMB 1.7259 billion from RMB 1.211 billion, resulting in a total equity of RMB 139.3 million compared to a loss of RMB 66.3 million in the previous year[37] - The company reported cash and cash equivalents of RMB 470,234,529, a substantial increase from RMB 191,852,375 at the end of 2019[73] - The total liabilities increased to RMB 1,725,906,106 as of June 30, 2020, from RMB 1,210,953,032 as of December 31, 2019, reflecting a growth of approximately 42.4%[74] Employee and Management Changes - The company appointed three senior executives to enhance performance and flexibility, including a former CEO of Saxo Bank Hong Kong[6] - The workforce was reduced to 130 employees as of June 30, 2020, down from 177 employees in the previous year, with total employee costs amounting to RMB 99.6 million[46] Advertising Business Performance - The advertising business declined by 56% due to COVID-19 policies and ongoing trade tensions, impacting major advertising clients[8] - Advertising business revenue decreased by RMB 14.8 million or 55.7% to RMB 11.8 million due to reduced client budgets amid economic challenges[30] - Advertising revenue for the six months ended June 30, 2020, was RMB 11,783,668, a decrease of 55.7% compared to RMB 26,603,023 for the same period in 2019[112] Acquisitions and Investments - The group acquired core intellectual property assets from Enuma Technologies and hired its CEO Antoine Cote, enhancing its engineering capabilities in blockchain technology[12] - The acquisition of Enuma Technologies includes a SaaS-based digital asset portfolio management system, which will broaden the product offerings available to regulated asset management firms[12] Risk Management - The company maintains a cautious approach to financial risk management and has not used any significant financial instruments for hedging purposes during the period[39] - The company has established policies to ensure sales to reputable customers with appropriate financial and credit records, enhancing credit risk management[136]
BC科技集团(00863) - 2020 - 中期财报