FIRE ROCK(HK:01909)2025-08-29 11:51Financial Performance - For the six months ended June 30, 2025, the company reported a loss attributable to owners of approximately HKD 18.2 million, compared to a profit of HKD 6.8 million for the same period in 2024 [9]. - Revenue for the six months ended June 30, 2025, was approximately HKD 72.9 million, an increase of about HKD 9.9 million from HKD 63.0 million for the same period in 2024 [11]. - The company reported a loss attributable to owners of approximately HKD 18.2 million for the six months ended June 30, 2025, compared to a profit of HKD 6.8 million for the same period in 2024, mainly due to impairment losses and increased costs [23]. - The company reported a loss attributable to shareholders of approximately HKD 18,242,000 for the six months ended June 30, 2025, compared to a profit of approximately HKD 6,766,000 for the same period in 2024 [97]. - The total comprehensive loss for the period was HKD 3,508,000, compared to a total comprehensive income of HKD 9,482,000 in the previous year [61]. - The company incurred a loss of HKD 6,673,000 for the period, compared to a profit of HKD 14,063,000 in the previous year, reflecting a significant decline [61]. Revenue Sources - The increase in revenue was primarily driven by higher income from mobile games, including "Royal World" and the newly launched game "Gods War: Primordial" [11]. - The entire revenue for the six months ended June 30, 2025, was derived from the Asia-Pacific region, accounting for 100% of total revenue [12]. - For the six months ended June 30, 2025, external customer revenue from game operations and publishing reached HKD 72,919,000, a significant increase of 15.7% compared to HKD 62,999,000 for the same period in 2024 [78]. Costs and Expenses - For the six months ended June 30, 2025, the company's direct costs totaled approximately HKD 17.5 million, a significant increase from HKD 10.8 million for the same period in 2024, primarily due to the launch of the game "God War: Primordial" [13]. - Employee costs and benefits for the six months ended June 30, 2025, were approximately HKD 4.6 million, up from HKD 0.6 million in the same period in 2024, reflecting an increase of about HKD 4.0 million due to the new game launch [15]. - Administrative expenses increased to approximately HKD 23.1 million for the six months ended June 30, 2025, from HKD 14.2 million in the same period in 2024, primarily due to higher employee costs and other office expenses [21]. - Total employee compensation for the six months ended June 30, 2025, was approximately HKD 23.8 million, compared to HKD 8.3 million for the same period in 2024 [32]. - The company recognized an impairment loss on intangible assets of approximately HKD 10.8 million for the six months ended June 30, 2025, compared to zero for the same period in 2024 [19]. - Promotional costs decreased to approximately HKD 20.0 million for the six months ended June 30, 2025, down from HKD 26.6 million in the same period in 2024, due to reduced advertising and promotional expenses [20]. Cash Flow and Assets - As of June 30, 2025, the company's cash and cash equivalents were approximately HKD 49.9 million, down from HKD 53.6 million as of December 31, 2024 [26]. - The net cash generated from operating activities was HKD 6,906 thousand for the six months ended June 30, 2025, compared to a net cash used of HKD (2,989) thousand in the same period of 2024 [66]. - Non-current assets decreased to HKD 49,079 thousand as of June 30, 2025, from HKD 57,687 thousand at the end of 2024 [63]. - The company's total assets less current liabilities amounted to HKD 103,271 thousand as of June 30, 2025, down from HKD 114,811 thousand at the end of 2024 [63]. - The equity attributable to owners of the company decreased to HKD 96,929 thousand as of June 30, 2025, from HKD 112,299 thousand at the end of 2024 [64]. - The company experienced a significant decrease in trade receivables, which fell to HKD 12,823 thousand as of June 30, 2025, from HKD 18,218 thousand at the end of 2024 [63]. Shareholder Information - Major shareholders include Safron International Limited with 34.11% and Mr. Zhang Yan and Ms. Zheng Xin, each holding 40.80% through controlled entities [44]. - The board did not recommend the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous year [39]. - The company has not authorized any plans for significant investments or capital asset acquisitions as of the report date [35]. - The company has not issued any share options or rewards under the share incentive plan since its adoption in September 2018 [52][54]. - As of June 30, 2025, there were no outstanding or unexercised share options or rewards from the share incentive plan [54]. Future Plans and Strategies - The company plans to establish a research and development team and launch games in Indonesia to support business development and expansion [9]. - The company will consider acquisitions or investments in gaming and other online projects that align with its business interests when appropriate opportunities arise [9]. - The company plans to continue focusing on the Asia-Pacific region as its primary market for future growth [80].