GAMEONE(HK:08282)2025-03-21 13:20Company Overview - GAMEONE HOLDINGS LIMITED is listed on the GEM market, which carries higher investment risks compared to other companies listed on the main board[2]. - The company confirms that the information provided in the announcement is accurate and complete, with no misleading or fraudulent elements[3]. - Investors are advised to understand the potential risks associated with investing in GEM-listed companies[2]. Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 37,298,000 (approximately USD 4.77 million), compared to HKD 108,816,000 in 2023, representing a decrease of 65.7%[5]. - Gross profit for the year was HKD 10,081,000, down from HKD 14,088,000 in 2023, indicating a decline of 28.5%[5]. - The company reported a net loss of HKD 1,956,000 for the year, compared to a net loss of HKD 32,919,000 in the previous year, showing an improvement of 40.3%[5]. - Operating expenses totaled HKD 2,172,000, a decrease from HKD 33,075,000 in 2023, reflecting a significant reduction of 93.4%[5]. - The basic loss per share for the year was HKD 4.52, compared to HKD 128.40 in 2023, indicating a substantial improvement[5]. - Other income decreased to HKD 384,000 from HKD 5,027,000 in the previous year, a decline of 92.4%[5]. - Selling expenses were HKD 1,483,000, down from HKD 17,906,000 in 2023, representing a decrease of 91.7%[5]. - Administrative expenses were HKD 10,722,000, reduced from HKD 28,448,000 in the previous year, indicating a decrease of 62.3%[5]. - The company experienced a foreign exchange loss of HKD 216,000, compared to a loss of HKD 156,000 in 2023, reflecting a 38.5% increase in losses[5]. - The total comprehensive loss for the year was HKD 2,172,000, down from HKD 33,075,000 in 2023, showing a significant improvement of 93.4%[5]. Assets and Liabilities - Total assets increased from HKD 11,504 million in 2023 to HKD 22,877 million in 2024, representing a growth of 99.5%[6]. - Cash and cash equivalents rose from HKD 4,744 million in 2023 to HKD 5,888 million in 2024, an increase of 24.1%[6]. - Share capital increased from HKD 2,400 million in 2023 to HKD 3,800 million in 2024, reflecting a growth of 58.3%[6]. - Retained earnings grew from HKD 9,540 million in 2023 to HKD 19,862 million in 2024, a significant increase of 108.5%[6]. - Current assets net value surged from HKD 643 million in 2023 to HKD 11,108 million in 2024, marking a substantial increase of 1,628.5%[6]. - Total liabilities decreased from HKD 13,261 million in 2023 to HKD 4,310 million in 2024, a reduction of 67.5%[6]. - The company reported a net asset value of HKD 22,877 million in 2024, up from HKD 11,504 million in 2023, indicating an increase of 99.5%[6]. - The company’s total equity rose from HKD 11,504 million in 2023 to HKD 22,877 million in 2024, reflecting a growth of 99.5%[6]. - The company’s intangible assets increased from HKD 9,057 million in 2023 to HKD 10,168 million in 2024, a rise of 12.3%[6]. - The company’s lease liabilities were recorded at HKD 250 million in 2024, compared to zero in 2023, indicating the introduction of new lease obligations[6]. Revenue Segments - For the fiscal year ending December 31, 2024, the total revenue from the software services segment was HKD 28,461 thousand, while the gaming business generated HKD 8,837 thousand, totaling HKD 37,298 thousand[19]. - The total revenue for the fiscal year ending December 31, 2023, was HKD 108,816 thousand, with software services contributing HKD 67,374 thousand and gaming business contributing HKD 41,442 thousand[20]. - Revenue from China for the fiscal year ending December 31, 2024, was HKD 28,229 thousand, a significant decrease from HKD 67,374 thousand in 2023[24]. - Revenue from Hong Kong for the fiscal year ending December 31, 2024, was HKD 9,069 thousand, down from HKD 40,296 thousand in 2023[24]. - The company identified three main business segments: gaming business, software services, and trade agency services, with the latter being a new reportable segment as of December 31, 2024[19]. - The software services business generated revenue contributions from major clients, with Client A contributing HKD 34,328 thousand, Client B contributing HKD 16,493 thousand, and Client C contributing HKD 11,477 thousand for the fiscal year ending December 31, 2024[27]. - Revenue from gaming operations reached HKD 8,837 million in 2024, compared to HKD 40,170 million in 2023[29]. - Software services revenue was HKD 28,461 million in 2024, with a significant increase from HKD 67,374 million in 2023[29]. Cost and Expenses - The cost of services provided decreased by approximately 71.3% from about HKD 94.7 million to about HKD 27.2 million, mainly due to a reduction in software service-related costs and channel expenses[82]. - Gross profit decreased by approximately 28.4% from about HKD 14.1 million to about HKD 10.1 million, with a gross margin of approximately 27.0%, an increase of about 14.1 percentage points from 12.9%[83]. - Other losses decreased by approximately 99.3% from about HKD 5.6 million to approximately HKD 0.04 million, primarily due to the absence of impairment losses on intangible assets in the current year[84]. - Selling expenses decreased by approximately 91.7% from about HKD 17.9 million to about HKD 1.5 million, mainly due to reduced advertising expenses[85]. - Administrative expenses decreased by approximately 62.3% from about HKD 28.4 million to about HKD 10.7 million, primarily due to reductions in employee costs and legal and professional fees[87]. Taxation and Losses - The estimated taxable profit generated in Hong Kong for the group is subject to a tax rate of 16.5%, but no taxable profit was generated in both years, resulting in no provision for Hong Kong profits tax[56]. - As of December 31, 2024, the group has tax losses of approximately HKD 8,678,000 in China, compared to HKD 1,543,000 in 2023, which can be utilized to offset future taxable profits within one to five years[59]. - The group has unutilized tax losses of approximately HKD 72,000,000 as of December 31, 2024, compared to HKD 67,024,000 in 2023, which can be carried forward indefinitely[59]. - The group recorded a pre-tax loss of HKD 32,919,000 for 2023, with a tax expense of HKD 143,000 for 2024[57]. Share Capital and Financing - The company's issued share capital increased to 38,000,000 shares with a par value of HKD 0.1 per share as of December 31, 2024, following a rights issue and a general placement of new shares[92]. - The company completed a rights issue on January 24, 2024, raising approximately HKD 12.2 million net of expenses, by issuing 12,000,000 shares at HKD 1.10 each, representing about 33.3% of the enlarged issued share capital[97]. - The company completed a placement on November 26, 2024, raising approximately HKD 1.0 million net of expenses, by issuing 2,000,000 shares at HKD 0.55 each, which accounted for about 5.3% of the enlarged issued share capital[94][100]. - The net proceeds from the rights issue were allocated as follows: HKD 6.1 million for developing and operating network security business, HKD 2.0 million for general working capital, and HKD 2.4 million for expanding workforce to support business development[98]. - The net proceeds from the placement were fully allocated to general working capital, amounting to HKD 1.0 million[99][100]. - The company had no bank borrowings as of December 31, 2024, and did not arrange any bank financing during the fiscal year[93]. - There were no significant acquisitions or disposals of subsidiaries, joint ventures, or associates during the fiscal year ending December 31, 2024[101]. Corporate Governance - The company believes that having the same individual serve as both Chairman and CEO ensures consistency and continuity in strategic planning and execution[128]. - The company has adopted strict guidelines for directors' securities trading, in compliance with GEM Listing Rules, with no violations reported during the review period[130]. - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries for the fiscal year ending December 31, 2024[131]. - The board does not recommend a final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[132]. - The audit committee, established on December 23, 2015, has reviewed the consolidated financial statements for the fiscal year ending December 31, 2024, and found them compliant with applicable accounting standards[137]. Future Plans and Developments - The company plans to develop a large AI model platform by 2025 to enhance the efficiency and cost-effectiveness of game product development[126]. - The company has expanded its trading business related to game IP peripherals, aiming to further increase group revenue[126]. - The management anticipates launching a new business segment following the signing of the garment manufacturing service framework agreement, with related revenues and expenses expected to be reflected in the consolidated financial statements for the fiscal year ending December 31, 2025[140].