数字王国(00547) - 2024 - 中期财报

Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group's revenue fell 36% YoY to HK$265 million, while the loss for the period narrowed significantly to HK$115 million Key Financial Performance for H1 2024 (HK$'000) | Metric | 2024 H1 | 2023 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 264,888 | 414,577 | -36.1% | | Gross Profit | 38,511 | 71,831 | -46.4% | | Loss Before Tax | (113,299) | (268,574) | Loss narrowed 57.8% | | Loss for the Period | (115,011) | (271,683) | Loss narrowed 57.7% | | Loss Attributable to Owners of the Company | (109,428) | (197,557) | Loss narrowed 44.6% | | Basic Loss Per Share (HK cents) | (1.378) | (3.691) | Loss narrowed 62.7% | Condensed Consolidated Statement of Comprehensive Income The Group recorded a total comprehensive loss of HK$113 million for the period, a significant reduction from the HK$267 million loss in the prior year Total Comprehensive Income (HK$'000) | Metric | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Loss for the period | (115,011) | (271,683) | | Other comprehensive income | 1,827 | 5,124 | | Total comprehensive income for the period | (113,184) | (266,559) | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets remained stable at HK$1.23 billion, while net current assets decreased and the current ratio fell to 1.4 Summary of Financial Position (HK$'000) | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Assets | 1,234,580 | 1,253,923 | | Total Liabilities | 715,406 | 746,590 | | Net Assets | 519,174 | 507,333 | | Net Current Assets | 171,251 | 322,793 | | Cash and Cash Equivalents | 528,678 | 635,854 | - The Group's current ratio (current assets / current liabilities) decreased from 1.8 times at the end of 2023 to 1.4 times at the period end, indicating a weakening of short-term solvency[3][80] Condensed Consolidated Statement of Changes in Equity Equity attributable to the Company's owners increased to HK$687 million, mainly due to the issuance of new shares from a subscription during the period - During the period, the issuance of new shares from a subscription (net of expenses) increased the company's equity by HK$124 million[4] Condensed Consolidated Statement of Cash Flows The period saw a net cash outflow from operating activities of HK$144 million and a net decrease in cash and cash equivalents of HK$177 million Summary of Cash Flows (HK$'000) | Activity | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Net cash used in operating activities | (143,577) | (29,349) | | Net cash used in investing activities | (161,555) | (47,991) | | Net cash from financing activities | 128,467 | 408,411 | | Net (decrease)/increase in cash and cash equivalents | (176,665) | 331,071 | | Cash and cash equivalents at end of period | 286,624 | 366,883 | Notes to the Financial Statements Note 4. Revenue and Segment Reporting Total revenue of HK$265 million was generated from the Media & Entertainment and Trading segments, with Canada and the US as the main markets Segment Revenue and Results (HK$'000) | Segment | 2024 H1 Revenue | 2023 H1 Revenue | 2024 H1 (Loss)/Profit | 2023 H1 (Loss)/Profit | | :--- | :--- | :--- | :--- | :--- | | Media and Entertainment | 208,279 | 414,577 | (79,879) | (195,872) | | Trading | 56,609 | – | 3,389 | – | | Consolidated | 264,888 | 414,577 | (76,490) | (195,872) | Revenue by Geographical Market (HK$'000) | Region | 2024 H1 | 2023 H1 | YoY Change | | :--- | :--- | :--- | :--- | | Canada | 87,958 | 225,375 | -61.0% | | United States of America | 85,650 | 144,836 | -40.9% | | Hong Kong | 56,609 | – | N/A | | People's Republic of China | 26,229 | 39,855 | -34.2% | Note 8. Loss Per Share Basic loss per share narrowed to 1.378 HK cents from 3.691 HK cents (restated) in the prior period, with diluted loss per share being the same Calculation of Loss Per Share | Metric | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$'000) | (109,428) | (197,557) | | Weighted average number of ordinary shares (shares) | 7,940,726,146 | 5,352,103,350 | | Basic loss per share (HK cents) | (1.378) | (3.691) | Note 11. Financial Assets at Fair Value Through Profit or Loss The fair value of these assets increased to HK$129 million, mainly due to a new investment in Swiss-listed Youngtimers AG (YTME) - In June 2024, the Group acquired 14,000,000 bearer shares of Swiss-listed YTME through subscription and exchange, representing approximately 22.576% of its issued share capital[29][30] Movement of Financial Assets (HK$'000) | Item | Amount | | :--- | :--- | | At January 1, 2024 | 31,719 | | Additions | 106,195 | | Fair value gain recognised in profit or loss | 13,150 | | Disposals | (19,645) | | At June 30, 2024 | 129,382 | Note 16. Share Capital During the period, the company issued 600 million ordinary shares via a subscription, increasing issued and fully paid-up shares to 7.98 billion Changes in Share Capital | Item | Number of Ordinary Shares | Amount (HK$'000) | | :--- | :--- | :--- | | At December 31, 2023 | 7,379,248,625 | 73,792 | | Issue of shares on subscription | 600,000,000 | 6,000 | | At June 30, 2024 | 7,979,248,625 | 79,792 | Management Discussion and Analysis Financial and Business Review Group revenue fell 36% YoY to HK$265 million, but net loss attributable to owners narrowed to HK$109 million due to reduced non-cash expenses - The narrowed loss was mainly due to the absence of film rights amortization (vs. HK$130 million in prior period) and a fair value gain on financial assets of HK$13.15 million (vs. a loss of HK$12.07 million)[45] Media and Entertainment Segment Segment revenue fell 50% to HK$208 million, but its loss narrowed significantly to HK$80 million, with business covering VFX, virtual humans, and investments Media and Entertainment Segment Performance (HK$'000) | Metric | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Revenue | 208,279 | 414,577 | | Segment Loss | (79,879) | (195,872) | | EBITDA | (33,322) | 6,382 | - The visual effects business continued to service major films (e.g., The Electric State, Captain America: Brave New World) and series (e.g., Echo, Agatha: All Along)[51] - Advances in virtual human technology include the launch of Masquerade3, a proprietary tool that revolutionizes facial capture without using markers on performers[60] - Potential indemnification litigation regarding intellectual property is ongoing; while the trial court ruled the claimant was not entitled to any relief, an appeal has been filed[53][54][55] Trading Segment The new DRAM trading business, launched to supplement revenue, generated HK$56.6 million in turnover and a profit of HK$3.4 million in H1 2024 - The Group launched a new DRAM trading business to capture demand from generative AI development and supplement Group revenue[70] Trading Segment Performance (HK$'000) | Metric | 2024 H1 | 2023 H1 | | :--- | :--- | :--- | | Turnover | 56,609 | – | | Profit | 3,389 | – | Liquidity and Capital Resources The Group's liquidity is supported by diverse funding channels, with a current ratio of 1.4 and a gearing ratio of 66% at period end Key Financial Ratios | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Ratio | 1.4 | 1.8 | | Gearing Ratio | 66% | 67% | - As of June 30, 2024, the Group had total cash and bank balances of HK$529 million and total borrowings (bank and other loans) of approximately HK$378 million[17][80] Outlook The Group will adopt a prudent strategy focusing on cost control and business portfolio adjustments to navigate market instability and industry recovery - In response to market uncertainty, the company is adopting a prudent strategy, including cost control and adjustments to its business direction and product mix[84] - In its core business, the Group will continue to explore new projects in film, games, series, and advertising, and evaluate the cost structures of its global studios to enhance efficiency[84] - The virtual human business will expand into the hospitality sector (with Plaza Premium Group) and explore applications in gaming hardware (with ADATA Technology)[85] - The company will continue to invest in R&D for new technologies like AIGC and actively seek financing and collaboration opportunities with strategic partners and universities[85] Other Disclosures Changes in Share Capital The company completed a significant share capital expansion by issuing 600 million new shares, raising net proceeds of approximately HK$124 million - On January 24, 2024, the company completed the issuance of 600 million new shares to 宏享投资开发股份有限公司 at HK$0.207 per share, raising net proceeds of approximately HK$124 million[74] Share Option Schemes During the period, 79.3 million share options under the 2012 scheme lapsed, and 220 million new options were granted under the 2022 scheme post-period - During the reporting period, 79,273,000 share options granted in 2014 lapsed upon expiry[40][87] - Subsequent to the reporting period, on July 26, 2024, the company granted 220 million share options at an exercise price of HK$0.245 per share[43][73] Substantial Shareholders' Interests As of June 30, 2024, the company had multiple substantial shareholders with holdings ranging from 5.95% to 9.54% Substantial Shareholders with over 5% Interest | Shareholder Name | Shareholding Percentage | | :--- | :--- | | 一音投资股份有限公司 | 9.54% | | 美音投资股份有限公司 | 7.27% | | 宏享投資開發股份有限公司 | 7.52% | | 华采国际股份有限公司 | 7.09% | | 威剛科技股份有限公司 | 7.03% | | 保利文化集團股份有限公司 | 6.67% | | 联颖环球有限公司 | 6.63% | | Wang Xiaohu | 6.64% | | 捷联控股有限公司 | 6.31% | | 乐安集团有限公司 | 5.95% | Corporate Governance The company complied with most Corporate Governance Code provisions but deviated in areas such as the combined Chairman/CEO role and director attendance - The company had three deviations from the Corporate Governance Code: (a) combined Chairman and CEO roles; (b) the Chairman is not subject to retirement by rotation; and (c) absence of some directors from the AGM[100]