Financial Performance - In the first half of 2025, the group's revenue decreased by 26.8% to HKD 152.5 million compared to the same period in 2024, primarily due to the non-sporting event year cycle and adjustments in the sports and leisure gaming business model [11]. - The sports knowledge subscription platform generated total revenue of HKD 97.9 million in the first half of 2025, a decrease of 21.7% compared to the same period in 2024 [13]. - The gaming business generated revenue of HKD 46.6 million in the first half of 2025, a decline of 39.3% year-on-year, primarily due to a strategic shift away from lower-return games [20]. - The company reported revenue of HKD 152,547,000 for the six months ended June 30, 2025, a decrease of 26.8% compared to HKD 208,311,000 in the same period of 2024 [30]. - Gross profit for the same period was HKD 37,899,000, down 53.0% from HKD 80,550,000 year-over-year [30]. - The company reported a net loss of approximately HKD 12.1 million for the period, an improvement from a loss of HKD 16.6 million in the same period of 2024 [40]. - The company reported a net loss attributable to owners of HKD 12,129,000 for the six months ended June 30, 2025, compared to a loss of HKD 16,602,000 in the same period of 2024, representing a 27.5% improvement [114]. User Engagement and Market Expansion - The total user base of the platform increased by 7.5% to 114.0 million compared to 2024, despite challenges in the sports knowledge payment industry [9]. - The core sports product "Football Superstar" achieved an average of over 100,000 daily active users in the Vietnamese market, demonstrating its revenue potential in overseas markets [10]. - "Football Big Player" has over 100,000 daily active users in Vietnam, demonstrating strong market performance and revenue potential [20]. - The company plans to expand the overseas market for "Football Big Player" in regions such as South America, Africa, Indonesia, and Malaysia in the second half of 2025 [21]. Strategic Initiatives and Technology Development - The group launched the "Foretell" sports prediction model test version, enhancing its platform's predictive capabilities [9]. - The group is focusing on AI technology breakthroughs and improving platform content quality to enhance user experience and operational efficiency [9]. - The group's strategy includes leveraging a large sports user and event database, utilizing big data and AI technology to empower the traditional sports industry [12]. - The flagship game "Football Player" incorporates advanced AI technologies, enhancing player intelligence and game realism, and is positioned as a cornerstone for the company's future esports strategy [22]. - The company is focusing on AI technology development to accelerate commercialization and improve product offerings [14]. Events and Brand Influence - The group successfully hosted the "Hongyu Ceramics · WBC Professional Boxing Championship," achieving over 600 million views, setting a new record for professional boxing events in China [10]. - The WBC boxing event hosted by the company achieved over 600 million views, setting a new record for professional boxing events in China and enhancing the company's brand influence [27][28]. Cost Management and Operational Efficiency - Sales and marketing expenses decreased by 43.5% to approximately HKD 34.7 million, reflecting reduced promotional efforts due to intensified market competition [36]. - Administrative expenses decreased by 10.4% to approximately HKD 19.3 million, indicating a focus on cost efficiency [37]. - The strategic adjustment in the gaming business is expected to enhance long-term competitiveness despite short-term revenue impacts [20]. Investment and Financial Position - The investment portfolio as of June 30, 2025, was approximately HKD 245.1 million, up from HKD 234.3 million at the end of 2024 [41]. - The company aims to enhance its strategic investments in emerging industries such as AI and blockchain to maximize corporate value [41]. - The group invested a total of HKD 129.0 million in New Rock Capital Fund, holding a 91.05% limited partnership interest as of June 30, 2025 [43]. - The fair value of the investment in New Rock Capital Fund was HKD 75.8 million, representing 7.4% of the group's total assets [43]. Cash Flow and Assets - The net cash generated from operating activities was HKD 23.4 million for the six months ended June 30, 2025, compared to a net cash used of HKD 14.9 million in the same period of 2024 [46]. - The total assets of the group as of June 30, 2025, amounted to HKD 1,018.1 million, an increase from HKD 967.7 million as of December 31, 2024 [49]. - The company’s cash and cash equivalents at the end of the period were HKD 23,882,000 as of June 30, 2025, compared to HKD 35,864,000 at the end of June 30, 2024 [94]. Corporate Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code during the six months ending June 30, 2025 [74]. - The board will continue to monitor and review the company's corporate governance practices to ensure compliance [75]. - The company is subject to the Securities and Futures Ordinance (Cap. 571) in Hong Kong [176]. Stock Options and Shareholder Information - The company has a plan to issue stock options not exceeding 10% of the total issued Easy Prime shares as approved by shareholders [176]. - The total number of unexercised options as of June 30, 2025, is 97,180,000, with various exercise prices ranging from HKD 0.180 to HKD 1.120 [68]. - No options have been granted under the Easy Prime share option plan since its adoption [73].
疯狂体育(00082) - 2025 - 中期财报