Revenue Performance - In the first half of 2024, the group's revenue decreased by 23.7% to HKD 208.3 million compared to the same period in 2023, primarily due to adjustments in the business model and industry uncertainties [6]. - Total revenue for the first half of 2024 was HKD 208.3 million, a decrease of 23.7% compared to HKD 272.9 million in the same period of 2023 [18]. - Revenue from the sports and leisure gaming segment was HKD 76.7 million, down 42.9% or HKD 57.7 million from HKD 134.4 million in 2023 [19]. - The sports knowledge subscription platform generated revenue of HKD 125.0 million, an increase of HKD 10.3 million or 8.9% from HKD 114.7 million in 2023, accounting for 60.0% of total revenue [18]. - Revenue for the digital sports entertainment business reached HKD 208,311,000 for the six months ended June 30, 2024, a decrease of 23.7% from HKD 272,890,000 in the same period of 2023 [92]. User Engagement and Growth - The sports knowledge paid platform recorded an increase in revenue of HKD 10.3 million or 8.9% compared to the same period in 2023, with average monthly active users growing by 4.0% [5]. - The total user base of the platform increased by 10.1% to 96.06 million compared to the end of 2023 [5]. - The average monthly active users increased by approximately 4.0% in the first half of 2024, with a significant 89.0% growth in June during the UEFA Euro 2024 compared to the same month in 2023 [11]. Financial Performance and Losses - The group narrowed its loss to HKD 5.7 million, a reduction of 40.1% compared to a loss of HKD 9.5 million in the same period of 2023, attributed to improved gross margins and reduced marketing expenses [6]. - The net loss for the period was HKD 5.7 million, an improvement from a loss of HKD 9.5 million in 2023, attributed to increased gross margin and reduced sales and marketing expenses [25]. - The company reported a loss before tax of HKD 10,810,000 for the six months ended June 30, 2024, compared to HKD 9,541,000 in the same period of 2023 [95]. - The company reported a loss attributable to owners of approximately HKD 5,662,000 for the six months ended June 30, 2024, compared to a loss of HKD 9,462,000 for the same period in 2023, representing a 40% improvement in loss [99]. Cost Management and Efficiency - Sales and marketing expenses decreased by 26.5% to HKD 61.5 million from HKD 83.7 million in 2023, aligning with the decline in sports and leisure gaming revenue [22]. - Administrative expenses slightly decreased by 1.6% to HKD 21.5 million from HKD 21.8 million in 2023, reflecting the company's focus on cost efficiency [23]. - The company is focusing on product innovation by integrating AI technology with user data to provide personalized betting suggestions and event predictions [8]. Strategic Initiatives and Investments - The group continues to invest in artificial intelligence technology to create and distribute content for its sports knowledge paid services [5]. - The adjustment of the business model focuses on optimizing the sports and leisure gaming business while reducing investment in lower-return gaming operations [5]. - The company is actively exploring diversified cooperation models in the "Sports Lottery +" sector, including partnerships with coffee, IP, and esports [12]. - The company plans to continue developing its core products while exploring new opportunities in the sports entertainment sector [5]. Market Presence and Brand Development - The group successfully hosted the WBC Professional Boxing Championship in Foshan, China, attracting over 300 million views, significantly enhancing brand awareness and influence [5]. - The company achieved a strategic partnership with major broadcasting platforms for the UEFA Euro 2024, enhancing market influence and revenue through complementary services [10]. - The company aims to create a vibrant digital sports entertainment community, aligning its strategy with national policies on sports and health consumption [7]. Asset Management and Financial Position - As of June 30, 2024, the group's investment portfolio amounted to HKD 250.4 million, a decrease from HKD 275.5 million as of December 31, 2023 [26]. - The total assets of the group as of June 30, 2024, were HKD 1,012.2 million, down from HKD 1,077.0 million as of December 31, 2023 [35]. - The company reported a total bank borrowing of HKD 10,744,000 as of June 30, 2024, down from HKD 19,853,000 as of December 31, 2023 [128]. - The company’s total liabilities decreased from HKD 294,651 thousand to HKD 280,607 thousand, indicating a reduction of about 5% [76]. Shareholder Information and Equity - The board decided not to declare any interim dividends for the period [40]. - As of June 30, 2024, Dr. Zhang Lijun held 1,034,563,113 shares, representing approximately 22.86% of the issued share capital [44]. - The company has a total of 55,000,000 unexercised share options granted under the 2012 plan as of June 30, 2024 [48]. Research and Development Focus - The company continues to focus on research and development, particularly in artificial intelligence and related technologies [151].
疯狂体育(00082) - 2024 - 中期财报