Revenue and Business Performance - The group reported total revenue of HKD 7,100,000 for the six months ended June 30, 2019, an increase of approximately HKD 3,800,000 compared to HKD 3,300,000 for the same period in 2018[10]. - Data center services generated revenue of approximately HKD 6,600,000, accounting for 93% of the group's total revenue during the reporting period[6]. - Online gaming business recorded revenue of approximately HKD 400,000 during the reporting period[12]. - Lottery business generated revenue of approximately HKD 100,000, a decrease of HKD 200,000 compared to HKD 300,000 for the same period in 2018[13]. - For the six months ended June 30, 2019, the company reported a revenue of HKD 7,105,000, which is an increase from HKD 3,251,000 in the same period of 2018, representing a growth of approximately 118%[33]. - Revenue from big data center services in the three-month period ended June 30, 2019, was HKD 5,514 thousand, compared to HKD 6,584 thousand in the same period of 2018, reflecting a decrease of approximately 16.3%[59]. - Lottery business revenue for the six-month period ended June 30, 2019, was HKD 77 thousand, down from HKD 3,251 thousand in the same period of 2018, indicating a significant decline[59]. Financial Losses and Costs - The group incurred a loss of HKD 14,900,000, an increase of 13% compared to a loss of HKD 13,200,000 in the same period of 2018[14]. - The company incurred a loss before tax of HKD 14,946,000 for the six months ended June 30, 2019, compared to a loss of HKD 13,196,000 in the same period of 2018, reflecting a deterioration of approximately 13%[33]. - The total comprehensive loss for the six months ended June 30, 2019, was HKD 15,324,000, compared to HKD 14,138,000 in the same period of 2018, indicating an increase in losses of about 8%[35]. - The company reported a net loss of HKD 14,946,000 for the six months ended June 30, 2019, compared to a loss of HKD 13,196,000 in the same period of 2018, representing an increase in loss of approximately 13.2%[46]. Employee and Operational Costs - Employee costs increased by HKD 3,200,000 due to a doubling of full-time employees from 18 to 36[14]. - The group’s employee benefit costs for the reporting period were HKD 12.3 million, compared to HKD 8.1 million for the same period in 2018[30]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2019, was HKD 8,243,000, an increase from HKD 6,521,000 in 2018[85]. - The company recognized share-based payment expenses of HKD 4,897,000, up from HKD 3,998,000 in the previous year, indicating a rise in employee compensation costs linked to equity[46]. Assets and Liabilities - The group's net current assets as of June 30, 2019, were HKD 229 million, down from HKD 341.6 million as of December 31, 2018[20]. - The company’s equity attributable to owners decreased to HKD 355,045,000 as of June 30, 2019, from HKD 364,873,000 as of December 31, 2018, reflecting a decline of about 3%[39]. - The company's total liabilities increased to HKD 132,211,000 as of June 30, 2019, from HKD 18,788,000 as of December 31, 2018, representing a significant rise of approximately 604%[37]. - Non-current assets increased significantly to HKD 134,209,000 as of June 30, 2019, from HKD 29,571,000 as of December 31, 2018, showing a growth of approximately 353%[37]. Cash Flow and Investments - As of June 30, 2019, the group's bank balance and cash amounted to HKD 182.1 million, a decrease from HKD 198.2 million as of December 31, 2018[18]. - The company reported cash and cash equivalents of HKD 182,098,000 as of June 30, 2019, down from HKD 198,221,000 as of December 31, 2018, indicating a decrease of approximately 8%[37]. - The cash flow from operating activities showed a net outflow of HKD 14,953,000, an improvement from a net outflow of HKD 20,949,000 in the previous year[46]. - The company reported a total cash outflow from investing activities of HKD 30,580,000, compared to HKD 22,375,000 in the previous year, reflecting increased capital expenditures[46]. - The group plans to utilize the majority of its cash and cash equivalents for new investment opportunities[18]. Strategic Initiatives and Future Plans - The group has established two data centers in Sichuan, China, which commenced operations in March and June 2019, contributing significantly to the company's growth[16]. - The group is actively seeking new business opportunities in the gaming and entertainment sectors to maximize long-term shareholder value[16]. - The group plans to continue leveraging its core expertise and resources to explore new markets and business areas[16]. Corporate Governance and Compliance - The company emphasizes the importance of good corporate governance to protect shareholder interests[115]. - The company has established an audit committee to review and monitor financial reporting processes and risk management[119]. - The management provides quarterly updates to the board regarding financial information and business conditions[115]. Share Capital and Transactions - The total number of issued shares increased from 3,145,935,836 to 3,158,599,836 due to the exercise of share options, representing an increase of approximately 0.4%[80]. - The company granted stock options in three tranches on January 5, 2018, with an exercise price of HKD 0.20 and an exercise period ending on January 4, 2028[105]. - The company also granted stock options on April 1, 2019, with an exercise price of HKD 0.11, and the exercise period ending on March 31, 2029[105]. - The total number of stock options granted was 168,000,000, with 84,000,000 options exercised[104]. - The company has a stock option plan approved in May 2012, which will expire on May 17, 2022[98].
加幂科技(08198) - 2019 - 中期财报