火岩控股(01909) - 2024 - 中期业绩

Financial Performance - For the six months ending June 30, 2024, the group's revenue decreased from approximately HKD 64.5 million to approximately HKD 63.0 million, a decline of about 2.3%[1] - Gross profit for the same period decreased from approximately HKD 52.6 million to approximately HKD 52.2 million, a decline of about 0.8%[1] - Profit for the six months ending June 30, 2024, significantly dropped from approximately HKD 587.6 million to approximately HKD 14.1 million, a decline of about 97.6%[1] - The total comprehensive income for the period was HKD 9.482 million, down from HKD 592.704 million in the previous year[3] - Basic and diluted earnings per share decreased from HKD 15.15 to HKD 0.18[3] - The company's profit attributable to equity holders for the six months ended June 30, 2024, was approximately HKD 6.8 million, a significant decrease from HKD 581.7 million for the same period in 2023[35] - Total revenue for the six months ended June 30, 2024, was approximately HKD 63.0 million, down from HKD 64.5 million in the same period of 2023, representing a decrease of about HKD 1.5 million[36] - The gross profit for the six months ended June 30, 2024, was approximately HKD 52.2 million, compared to HKD 52.6 million for the same period in 2023, with a gross margin of approximately 82.9%[39] - Profit attributable to owners for the six months ended June 30, 2024, was approximately HKD 6.8 million, a drastic decrease of about 98.8% from HKD 581.7 million for the same period in 2023, primarily due to the aforementioned one-time non-recurring income[44] Dividend and Shareholder Returns - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2024[1] - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[22] - The company has not proposed any interim dividend for the six months ended June 30, 2024, consistent with the previous year[62] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to HKD 67.324 million, compared to HKD 51.364 million as of December 31, 2023[4] - Current assets included cash and cash equivalents of HKD 61.831 million, down from HKD 85.492 million[4] - The group's total assets less current liabilities increased to HKD 144.426 million from HKD 142.568 million[4] - The total assets for the reportable segments as of June 30, 2024, were HKD 134,521 thousand, down from HKD 145,967 thousand as of December 31, 2023[12] - The total liabilities for the reportable segments as of June 30, 2024, were HKD 9,954 thousand, a decrease from HKD 18,869 thousand as of December 31, 2023[12] - Trade receivables as of June 30, 2024, were HKD 16.2 million, down from HKD 20.6 million as of December 31, 2023[25] - As of June 30, 2024, the company's cash and cash equivalents were approximately HKD 61.8 million, down from HKD 85.5 million as of December 31, 2023[47] - The company had no short-term or long-term borrowings as of June 30, 2024, with a debt ratio of approximately 6.6%, down from 12.8% as of December 31, 2023[50] Revenue Sources and Customer Insights - For the six months ended June 30, 2024, the total external customer revenue was HKD 62,999 thousand, a decrease of 2.7% from HKD 64,540 thousand in the same period of 2023[11] - The company reported a decrease in customer revenue from the Asia-Pacific region, which was HKD 62,999 thousand for the six months ended June 30, 2024, down from HKD 64,540 thousand in the same period of 2023[15] - The company did not have any individual customer contributing more than 10% of total revenue for the six months ended June 30, 2024[17] Operational Costs and Expenses - Direct costs for the six months ended June 30, 2024, totaled HKD 10.8 million, a decrease from HKD 12.0 million in the same period of 2023, primarily due to a reduction in agency distribution costs[38] - Promotion costs increased to approximately HKD 26.6 million for the six months ended June 30, 2024, up about 6% from HKD 25.1 million in the same period of 2023, attributed to higher advertising and promotional expenses[41] - Administrative expenses decreased by approximately 12.9% to about HKD 14.2 million for the six months ended June 30, 2024, compared to HKD 16.3 million for the same period in 2023, mainly due to reduced professional fees[42] Investments and Future Plans - The company plans to strengthen its business in third-party licensed game publishing and expand its online marketing and digital support activities in overseas markets[35] - The company is actively seeking opportunities to acquire appropriate adaptation rights, with HKD 1.1 million (3.8%) of the proceeds remaining unutilized as of June 30, 2024[60] - The company plans to fund its expansion and operations through internal resources and continuous internal growth[45] - The company allocated HKD 7.2 million (25.0%) for the development of new web games and another HKD 7.2 million (25.0%) for new mobile games[60] Miscellaneous - The company has not recognized any significant credit loss provisions, as management believes there has been no significant change in credit quality[26] - The company sold its entire stake in Lord Metaverse Co., Ltd. for a cash consideration of approximately HKD 185,000[30] - The company incurred depreciation expenses of HKD 855 thousand for the six months ended June 30, 2024, compared to HKD 1,623 thousand in the same period of 2023[11] - Interest income for the six months ended June 30, 2024, was HKD 43 thousand, a decrease from HKD 62 thousand in the same period of 2023[11] - The company reported a net foreign exchange loss of HKD 65 thousand for the six months ended June 30, 2024, compared to a net gain of HKD 17,524 thousand in the same period of 2023[19] - Other income for the six months ended June 30, 2024, was approximately HKD 0.2 million, a significant decrease of about 99.9% compared to HKD 592.7 million for the same period in 2023, primarily due to a one-time non-recurring income disclosed in the previous year's announcement[40] - The company has not engaged in any buybacks, sales, or redemptions of its listed securities during the six months ended June 30, 2024[62] - The company has not implemented any foreign currency hedging policies but closely monitors foreign exchange risks[58] - The company’s management believes that it is prudent to adopt a cautious approach regarding the acquisition of adaptation rights due to the weak global economy and uncertainties in the mobile gaming industry[60] - The company’s audit committee has reviewed the unaudited financial statements for the six months ended June 30, 2024, confirming compliance with applicable accounting standards and listing rules[64] - The company has a weighted average of 3,840,000,000 ordinary shares in issue for the calculation of earnings per share[61]