Company Overview - Global Digital Creations Holdings Limited is incorporated in Bermuda and listed on the GEM of the Hong Kong Stock Exchange, which is designed for small and mid-sized companies[1]. - The company acknowledges the higher investment risks associated with securities traded on GEM compared to those on the main board of the Stock Exchange[2]. - The directors of Global Digital Creations Holdings Limited confirm that the information in the report is accurate and complete in all material respects[3]. - The Group's primary listing is on GEM of The Stock Exchange of Hong Kong Limited since 4 August 2003, reflecting its established presence in the market[36]. Financial Performance - Revenue for the six months ended June 30, 2024, was HK$37,173,000, an increase from HK$29,292,000 in the same period of 2023, representing a growth of 27.0%[17]. - Gross profit decreased to HK$2,189,000 from HK$12,196,000, indicating a decline of 82.0% year-over-year[17]. - Operating loss for the period was HK$22,668,000 compared to an operating profit of HK$597,000 in the previous year, reflecting a significant downturn[17]. - Loss for the period from continuing operations was HK$22,220,000, a decrease from a profit of HK$230,000 in the same period last year[17]. - Total loss for the period amounted to HK$22,692,000, compared to a loss of HK$4,883,000 in the same period of 2023[17]. - For the six months ended June 30, 2024, the total comprehensive loss attributable to owners of the Company was HK$29,112,000, compared to a loss of HK$15,893,000 for the same period in 2023[21]. - The company reported a loss before income tax from continuing operations of HK$22,833 for the six months ended June 30, 2024[52]. - The company incurred a loss for the period of HK$22,541,000, compared to a loss of HK$3,247,000 in the prior year, marking a significant increase in losses[29]. Shareholder Returns - The interim dividend details are included, indicating the company's approach to shareholder returns[5]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[72]. - The basic and diluted loss per share attributable to owners of the Company was HK$1.50, compared to a loss of HK$0.21 in the previous year[21]. Assets and Liabilities - Total assets decreased from HK$545,081,000 as of December 31, 2023, to HK$520,503,000 as of June 30, 2024[25]. - Current assets decreased from HK$273,435,000 to HK$254,561,000 during the same period[25]. - Total liabilities increased from HK$236,893,000 to HK$241,427,000[25]. - The equity attributable to owners of the Company decreased from HK$432,883,000 to HK$400,994,000[25]. Cash Flow and Financial Management - The net cash used in operating activities for the first half of 2024 was HK$6,658,000, a decrease from HK$8,373,000 in the same period of 2023, reflecting improved cash flow management[34]. - The company reported cash and cash equivalents of HK$233,846,000, down from HK$248,039,000[24]. - The Group's current ratio as of June 30, 2024, was 1.22, compared to 1.27 as of December 31, 2023[132]. Corporate Governance - The report emphasizes the importance of compliance with corporate governance codes and securities transaction conduct by directors[5]. - The company confirmed compliance with the code of conduct regarding securities transactions by directors throughout the six months ended June 30, 2024[159]. - The company has maintained a rigorous code of conduct for securities transactions, meeting the standards set by GEM Listing Rules[159]. Management Changes - The report outlines the changes in the board of directors, including the appointment of Mr. Feng Xianhuai as Managing Director on August 3, 2024[6]. - The company has experienced changes in its executive committee, with several resignations and appointments in 2024[6]. - Mr. Wang Hongpeng resigned as managing director effective August 3, 2024, but remains an executive director[160]. Risk Management - The Group's activities expose it to a variety of financial risks, including market risk, credit risk, and liquidity risk[38]. - There have been no significant changes in the risk management policies since 31 December 2023, indicating stability in financial risk management[38]. Legal Matters - Guangdong GDC was ordered to pay property occupation fees totaling RMB157,353,781 for the Pearl River Film Cultural Park, covering the period from March 23, 2016, until the return of the property[144]. - The Supreme People's Court rejected Guangdong GDC's application for a re-trial on February 26, 2024[146]. Segment Performance - Revenue from the Interactive Entertainment and Digital Assets segment was HK$14,575, while the New Cultural and Sports Space segment generated HK$22,598 for the six months ended June 30, 2024[52]. - Revenue from CG production was HK$5,178, while box office receipts and licensing income from television programs and movies to online platforms totaled HK$8,784[52][58]. Future Outlook - The Group aims to strengthen two core technologies: digital virtual characters and AIGC production technology, to enhance efficiency and maintain industry leadership[141]. - GDC plans to produce one to two animated films annually, focusing on unique local cultural content and various themes such as ocean exploration and Chinese mythology[142].
环球数码创意(08271) - 2024 - 中期财报