游莱互动(02022) - 2025 - 中期财报

Definitions This chapter defines key terms and abbreviations used throughout the report for clarity Corporate Profile The company's board comprises executive and independent non-executive directors, with its registered office in the Cayman Islands and main operations in Guangzhou - The company's board of directors consists of four executive directors and three independent non-executive directors, with an audit committee, remuneration committee, and nomination committee[11] - The company's registered office is in the Cayman Islands, its headquarters and main operating location in China are in Guangzhou, and its main operating location in Hong Kong is in Kowloon[14] - The company's stock code is 2022, and its official website is www.gamehollywood.com/company/[17](index=17&type=chunk) Financial Highlights The financial highlights for the first half of 2025 show a slight revenue increase and a significant reduction in loss attributable to owners 2025 First Half Financial Highlights | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4.6 | 4.5 | +1.3% | | Gross Profit | 2.2 | 2.0 | +7.4% | | Loss Attributable to Owners of the Company | 0.7 | 1.9 | -63.3% | | Non-IFRS Adjusted Loss Attributable to Owners of the Company | 0.7 | 1.9 | -63.3% | Financial Summary The unaudited financial summary for the first half of 2025 details income statement and balance sheet figures, showing improved profitability and stable assets 2025 First Half Financial Summary (Unaudited) | Indicator | 2025 First Half (thousand USD) | 2024 First Half (thousand USD) | | :--- | :--- | :--- | | Income Statement: | | | | Revenue | 4,586 | 4,526 | | Gross Profit | 2,171 | 2,023 | | Loss Before Income Tax | (571) | (1,850) | | Income Tax Expense | 132 | 64 | | Loss for the Period | (703) | (1,914) | | Loss Attributable to Owners of the Company | (703) | (1,914) | | Non-IFRS Adjusted Loss Attributable to Owners of the Company | (703) | (1,914) | | Balance Sheet: | 2025 June 30 (thousand USD) | 2024 December 31 (thousand USD) | | Total Assets | 31,712 | 32,806 | | Total Liabilities | 7,345 | 7,765 | | Equity Attributable to Owners of the Company | 24,367 | 25,041 | Management Discussion and Analysis This section provides an overview of the group's operational performance, strategic initiatives, and future outlook, focusing on global expansion and platform optimization Business Review and Future Prospects The group strengthened its global platform operations in the first half of 2025, achieving significant breakthroughs in operating data, with a focus on Latin American markets - In Q1 2025, China's self-developed games generated $4.8 billion in overseas revenue, a 17.9% year-on-year increase, with full-year revenue projected to exceed $25 billion[24][26] - In the first half, the group adopted a "develop once, publish across multiple platforms" model, rapidly adapting 17 new game products for iOS, Android, and H5 channels[25][26] - The company focused on the Latin American market, launching 3 mobile games in Brazil, and increasing English mobile game products by 5 compared to the same period last year, setting new records for release speed and quantity[25][26] - In the second half, the company will continue to support Chinese small and medium-sized game developers in overseas expansion, steadily advance the "English mobile games + web games + Latin American mobile games" operating model, and accelerate Latin American market expansion[27][29] - The group will continue to increase investment in self-developed technology, cultural adaptation, and compliant operations, with technology-driven, platform-based operations, and localized deep cultivation as core competencies[28][29] Financial Review This section provides a detailed analysis of the group's financial performance, including revenue, costs, and profitability, for the reporting period Overview During the reporting period, loss attributable to owners significantly decreased by 63.3%, with non-IFRS adjusted loss showing a similar reduction, indicating improved financial health - Loss attributable to owners of the company decreased by approximately $1.2 million, or 63.3%, from approximately $1.9 million in the same period of 2024 to approximately $0.7 million in the 2025 reporting period[30][35] - Non-IFRS adjusted loss attributable to owners of the company also decreased by approximately 63.3% to approximately $0.7 million[30][35] Revenue During the reporting period, group revenue slightly increased by 1.3%, primarily driven by a modest rise in game revenue Revenue Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 4.6 | 4.5 | +1.3% | - Revenue growth was primarily due to a slight increase in game revenue[31][36] Cost of Revenue and Gross Profit Margin Cost of revenue decreased by 3.6%, leading to an increase in gross profit margin from 44.7% in 2024 to 47.4% in 2025 Cost of Revenue and Gross Profit Margin Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Cost of Revenue | 2.4 | 2.5 | -3.6% | | Gross Profit Margin | 47.4% | 44.7% | +2.7 percentage points | Other Gains, Net Other gains, net, increased significantly by 101.7% year-on-year, primarily due to foreign exchange gains from currency fluctuations in the current year Other Gains, Net Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Other Gains, Net | 0.4 | 0.2 | +101.7% | - Other gains primarily resulted from foreign exchange gains due to currency fluctuations this year[33][38] Selling and Marketing Expenses Selling and marketing expenses decreased by 18.8% year-on-year, mainly due to reduced advertising and promotion costs Selling and Marketing Expenses Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Selling and Marketing Expenses | 1.5 | 1.8 | -18.8% | - The decrease in expenses was primarily due to reduced advertising and promotion costs[34][39] Administrative Expenses Administrative expenses decreased by 8.8% year-on-year, mainly due to a reduction in impairment losses on financial assets Administrative Expenses Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 1.4 | 1.5 | -8.8% | - The decrease in expenses was primarily due to reduced impairment losses on financial assets[40][45] Research and Development Expenses Research and development expenses decreased by 10.6% year-on-year, primarily due to reduced labor costs Research and Development Expenses Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Research and Development Expenses | 0.6 | 0.7 | -10.6% | - The decrease in expenses was primarily due to reduced labor costs[41][46] Loss Attributable to Owners of the Company Due to the aforementioned factors, loss attributable to owners of the company significantly decreased by 63.3% to approximately $0.7 million for the reporting period Loss Attributable to Owners of the Company Comparison | Indicator | 2025 First Half (million USD) | 2024 First Half (million USD) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | 0.7 | 1.9 | -63.3% | Non-IFRS Accounting Standards Adjusted Loss Attributable to Owners of the Company Non-IFRS adjusted loss was consistent with IFRS loss at $0.7 million, a 63.3% year-on-year decrease, reflecting the removal of non-indicative performance items - Non-IFRS adjusted loss was $0.7 million, a 63.3% decrease compared to the same period in 2024[44][48] - This metric is used to eliminate the impact of items (such as share-based compensation) that we believe are not indicative of business performance[43][48] Liquidity, Treasury Policy and Source of Funding and Borrowing As of June 30, 2025, the group's total bank balances, cash, and short-term deposits were approximately $17.8 million, a 6.5% decrease, with a stable current ratio of 3.4 and no debt Liquidity Status | Indicator | 2025 June 30 (million USD) | 2024 December 31 (million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Bank Balances, Cash and Short-term Deposits | 17.8 | 19.1 | -6.5% | | Current Assets | 24.4 | 25.3 | -3.6% | | Current Liabilities | 7.3 | 7.5 | -2.7% | | Current Ratio | 3.4 | 3.4 | 0% | | Debt-to-Equity Ratio | 0 | 0 | 0% | - The decrease in bank balances, cash, and short-term deposits was primarily due to an increase in net cash used in operating activities[49][53] - The group has no bank borrowings or other debt financing obligations, a zero debt-to-equity ratio, and plans to fund expansion, investments, and business operations with internal resources[51][53] Significant Investments, Acquisitions and Disposals During the reporting period, the group did not undertake any significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - The group had no significant investments during the reporting period[52][54] - The group had no significant acquisitions of subsidiaries, associates, or joint ventures during the reporting period[55][61] - The group had no significant disposals of subsidiaries, associates, or joint ventures during the reporting period[56][62] Pledge of Assets, Contingent Liabilities and Capital Commitment As of June 30, 2025, the group had no pledged assets or significant contingent liabilities, with capital commitments of approximately $0.6 million, consistent with year-end 2024 - The group had no pledged assets as of June 30, 2025 (December 31, 2024: nil)[57][63] - The group had no significant contingent liabilities as of June 30, 2025 (December 31, 2024: nil)[58][64] Capital Commitments | Indicator | 2025 June 30 (million USD) | 2024 December 31 (million USD) | | :--- | :--- | :--- | | Capital Commitments | 0.6 | 0.6 | Foreign Exchange Exposure The group operates globally, with most transactions settled in USD, managing foreign exchange risk through regular monitoring, primarily involving RMB, EUR, and HKD, with no significant exposure - The group primarily operates in global markets, with most transactions settled in USD[60][66] - The group manages foreign exchange risk through regular monitoring, primarily involving RMB, EUR, and HKD[60][66] - As of June 30, 2025, the group did not face significant foreign currency risk from its operations[60][66] Supplementary Information This section provides additional details on human resources, dividends, legal matters, post-reporting events, and corporate governance practices Human Resources As of June 30, 2025, the group had 101 employees, with total staff costs (excluding share-based compensation) of approximately $1.4 million, a 10.8% year-on-year decrease Human Resources Overview | Indicator | 2025 June 30 | 2024 December 31 | Change (%) | | :--- | :--- | :--- | :--- | | Total Employees | 101 | 107 | -5.6% | | Total Staff Costs (million USD) | 1.4 | 1.6 | -10.8% | - Employees are primarily distributed across game development and maintenance (45), game operations and offline event coordination (30), and administration and corporate management (26)[67][71] Interim Dividend The Board has resolved not to declare any interim dividend for the reporting period, consistent with the prior year - The Board has resolved not to declare any interim dividend for the reporting period (six months ended June 30, 2025) (same period in 2024: nil)[69][72] Material Legal Proceedings During the reporting period, the group was not involved in any material legal proceedings - During the reporting period, the group was not involved in any material legal proceedings[70][73] Significant Events Occurred Since the End of the Reporting Period After the reporting period, Hollywood HK and a joint venture partner entered into an agreement on September 8, 2025, to establish a joint venture company with HK$28.5 million capital for game product development - On September 8, 2025, Hollywood HK (an indirect wholly-owned subsidiary of the company) entered into a joint venture agreement with Shaw Brothers Studio Hong Kong Limited[74][80] - Both parties agreed to establish a joint venture company with a share capital of HK$28.5 million to engage in game product development[74][80] Corporate Governance Practices The company adopted the Corporate Governance Code and complied with its provisions during the reporting period, with a deviation where Mr. Lu Yuanfeng holds both Chairman and CEO roles - The company has adopted the principles and code provisions set out in the Corporate Governance Code[76][82] - During the reporting period, the company complied with the Corporate Governance Code, with a deviation where Mr. Lu Yuanfeng concurrently holds the roles of Chairman and Chief Executive Officer[77][78][82] - The Board believes that combining the roles of Chairman and Chief Executive Officer is beneficial for the group's management, and the Board's composition has strong independence[78][82] Model Code for Securities Transactions The company adopted the Model Code for securities transactions by directors and senior management, with all directors confirming compliance during the reporting period - The company has adopted the Model Code as the code of conduct for directors and senior management dealing in the company's securities[84][88] - All directors confirmed compliance with the Model Code during the reporting period, and the company is not aware of any non-compliance by senior management[85][88] Purchase, Sale or Redemption of the Company's Listed Shares During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, and no treasury shares were held as of June 30, 2025 - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[86][89] - As of June 30, 2025, the company did not hold any treasury shares[86][89] Review of Financial Information The Board's audit committee reviewed the group's unaudited interim condensed consolidated financial information, confirming compliance with accounting principles and proper disclosure - The Board's audit committee discussed with management and reviewed the group's unaudited interim condensed consolidated financial information for the reporting period[87][90] - The committee confirmed compliance with applicable accounting principles, standards, and requirements, and that appropriate disclosures were made[87][90] Update on Directors' Information Pursuant to Rule 13.51B(1) of the Listing Rules During the reporting period, there were no updates to directors' information pursuant to Rule 13.51B(1) of the Listing Rules - During the reporting period, there were no updates to directors' information pursuant to Rule 13.51B(1) of the Listing Rules[91][94] Continuing Disclosure Obligations Pursuant to the Listing Rules The company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules - The company has no other disclosure obligations under Rules 13.20, 13.21, and 13.22 of the Listing Rules[92][95] Interests of Directors and Chief Executive in Securities As of June 30, 2025, the company's directors and chief executive held interests in the company's shares and associated corporations, with Mr. Lu Yuanfeng and related parties holding 47.40% Interests of Directors in Company Shares or Related Shares | Director Name | Nature of Interest | Number of Ordinary Shares Interested | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Lu Yuanfeng | Controlled Corporation Interest; Spouse's Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Mr. Huang Guozhan | Controlled Corporation Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Mr. Huang Deqiang | Controlled Corporation Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Ms. Luo Simin | Controlled Corporation Interest; Spouse's Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | Interests of Directors in Associated Corporations | Director Name | Associated Corporation | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Lu Yuanfeng | LYF Digital Holdings Limited | Beneficial Owner | 100 | 100% | | Mr. Huang Guozhan | LXT Digital Holdings Limited | Beneficial Owner | 100 | 100% | | Mr. Huang Deqiang | HDQ Digital Holdings Limited | Beneficial Owner | 100 | 100% | | Ms. Luo Simin | Angel Age Limited | Beneficial Owner | 100 | 100% | Substantial Shareholders' Interests in Securities As of June 30, 2025, several substantial shareholders and related entities held 5% or more of the company's issued shares, with Mr. Lu Yuanfeng and parties acting in concert holding 47.40% Substantial Shareholders' Long Positions in Ordinary Shares | Shareholder Name/Designation | Nature of Interest | Number of Ordinary Shares Interested | Approximate Percentage of Total Issued Share Capital | | :--- | :--- | :--- | :--- | | Mr. Lu Yuanfeng | Controlled Corporation Interest; Spouse's Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | LYF Digital Holdings Limited | Beneficial Owner; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Ms. Luo Simin | Controlled Corporation Interest; Spouse's Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Angel Age Limited | Beneficial Owner; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Mr. Huang Guozhan | Controlled Corporation Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | LXT Digital Holdings Limited | Beneficial Owner; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | Mr. Huang Deqiang | Controlled Corporation Interest; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | HDQ Digital Holdings Limited | Beneficial Owner; Jointly Held Interest with Another Person | 947,958,387 (L) | 47.40% | | 7Road Holdings | Beneficial Owner | 294,144,901 (L) | 14.71% | | The Core Trust Company Limited | Trustee | 140,951,189 (L) | 7.04% | | Epic City Limited | Nominee of Another Person | 140,951,189 (L) | 7.04% | Post-IPO Share Option Scheme The Post-IPO Share Option Scheme, adopted on May 27, 2017, aims to attract and incentivize employees and directors, with 100,501,363 options available for grant and 23,649,722 outstanding as of June 30, 2025 - The Post-IPO Share Option Scheme was adopted on May 27, 2017, to attract, retain, and incentivize employees, directors, and other participants[111][114] - As of January 1, 2025, and June 30, 2025, the number of share options available for grant was 100,501,363[117][120] Overview of Share Option Movements | Name | Date of Grant | Period During Which Rights are Exercisable | Number of Options Granted | Outstanding as at 2025 January 1 | Outstanding as at 2025 June 30 | Exercise Price | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Company Employees | 2018 February 15 | 10 years from grant date | 21,419,696 | 6,543,874 | 6,543,874 | HK$0.0074 | | Company Employees | 2018 February 15 | 10 years from grant date | 28,078,914 | 17,105,848 | 17,105,848 | USD0.0074 | | Total | | | 49,498,610 | 23,649,722 | 23,649,722 | | - Share options vest over three years in three tranches, with an exercise price no less than the highest of the closing price on the grant date, the average closing price for the preceding five business days, and the nominal value of the shares[122][125][131] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income This statement presents the group's unaudited financial performance for the first half of 2025, detailing revenues, expenses, and comprehensive income 2025 First Half Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Unaudited) | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Revenue | 4,585,679 | 4,525,877 | | Cost | (2,414,218) | (2,503,097) | | Gross Profit | 2,171,461 | 2,022,780 | | Selling and Marketing Expenses | (1,468,992) | (1,809,231) | | Administrative Expenses | (1,353,369) | (1,484,598) | | Research and Development Expenses | (625,906) | (699,854) | | Other Gains, Net | 428,218 | 212,331 | | Operating Loss | (848,588) | (1,758,572) | | Finance Income | 278,983 | 37,668 | | Finance Costs | (16,562) | (133,558) | | Share of Profit of Associates | 15,228 | 4,647 | | Loss Before Income Tax | (570,939) | (1,849,815) | | Income Tax Expense | (132,198) | (64,159) | | Loss for the Period | (703,137) | (1,913,974) | | Total Comprehensive Expense for the Period | (673,965) | (2,059,580) | | Basic Loss Per Share (USD) | (0.04) | (0.10) | | Diluted Loss Per Share (USD) | (0.04) | (0.10) | Interim Condensed Consolidated Statement of Financial Position This statement provides an unaudited snapshot of the group's financial position as of June 30, 2025, outlining assets, equity, and liabilities 2025 June 30 Interim Condensed Consolidated Statement of Financial Position (Unaudited) | Indicator | 2025 June 30 (USD) | 2024 December 31 (USD) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 7,316,903 | 7,481,633 | | Current Assets | 24,394,715 | 25,324,019 | | Total Assets | 31,711,618 | 32,805,652 | | Equity and Liabilities | | | | Share Capital | 2,000,000 | 2,000,000 | | Reserves | 22,366,497 | 23,040,462 | | Total Equity | 24,366,497 | 25,040,462 | | Current Liabilities | 7,267,192 | 7,497,936 | | Non-current Liabilities | 77,929 | 267,254 | | Total Liabilities | 7,345,121 | 7,765,190 | | Total Equity and Liabilities | 31,711,618 | 32,805,652 | Interim Condensed Consolidated Statement of Changes in Equity This statement details the changes in the group's equity for the first half of 2025, reflecting movements in share capital, reserves, and accumulated losses 2025 First Half Interim Condensed Consolidated Statement of Changes in Equity (Unaudited) | Indicator | Share Capital (USD) | Shares Held for Share Option Scheme (USD) | Reserves (USD) | Accumulated Losses (USD) | Total (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | | As at 2024 January 1 | 2,000,000 | (138,978) | 36,767,719 | (10,443,924) | 28,184,817 | | Total Comprehensive Expense for the Period | – | – | (145,606) | (1,913,974) | (2,059,580) | | As at 2024 June 30 | 2,000,000 | (138,978) | 36,622,113 | (12,357,898) | 26,125,237 | | As at 2025 January 1 | 2,000,000 | (138,978) | 36,831,475 | (13,652,035) | 25,040,462 | | Total Comprehensive Expense for the Period | – | – | 29,172 | (703,137) | (673,965) | | As at 2025 June 30 | 2,000,000 | (138,978) | 36,860,647 | (14,355,172) | 24,366,497 | Interim Condensed Consolidated Statement of Cash Flows This statement presents the group's unaudited cash flows for the first half of 2025, categorized into operating, investing, and financing activities 2025 First Half Interim Condensed Consolidated Statement of Cash Flows (Unaudited) | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (1,446,118) | 1,624,811 | | Net Cash Used in Investing Activities | (61,585) | (264,621) | | Net Cash Used in Financing Activities | (203,150) | (203,518) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (1,710,853) | 1,156,672 | | Effect of Foreign Exchange Rate Changes | 463,100 | (257,734) | | Cash and Cash Equivalents at Beginning of Period | 19,077,802 | 22,258,994 | | Cash and Cash Equivalents at End of Period | 17,830,049 | 23,157,932 | Notes to the Interim Condensed Consolidated Financial Information This section provides explanatory notes and additional details to the interim condensed consolidated financial information, enhancing understanding of the financial statements 1 General Information The company was incorporated in the Cayman Islands on November 24, 2014, primarily engaging in the development, operation, and publishing of web and mobile games globally - The company was incorporated as an exempted company in the Cayman Islands on November 24, 2014[143][147] - The group primarily engages in the development, operation, and publishing of web games and mobile games in North America, Europe, China, and other regions[144][147] 2 Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read with the annual financial statements - The interim condensed consolidated financial information is prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting"[146][148] - This information should be read in conjunction with the annual financial statements for the year ended December 31, 2024, which were prepared in accordance with International Financial Reporting Standards[146][148] 3 Adoption of New and Revised IFRS Accounting Standards The group adopted all relevant new and revised IFRS standards, which had no significant impact on accounting policies or financial reporting, and is assessing future standards - The group has adopted all new and revised International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board that are relevant to the group's operations and effective for the accounting period beginning January 1, 2025[149][151] - The adoption of these new and revised IFRS has not resulted in significant changes to the group's accounting policies, the presentation of the group's consolidated financial statements, or the reported figures for the current and prior periods[149][151] - The group has begun assessing the impact of new and revised IFRS that have been issued but are not yet effective, but is not yet able to state whether they will have a significant impact[150][151] 4 Fair Value Measurements This section outlines the three-level fair value hierarchy and discloses equity investments (Hong Kong listed securities) measured at fair value through other comprehensive income as $248,592 as of June 30, 2025 - Fair value measurements use a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs), and Level 3 (unobservable inputs)[152][154] Fair Value Measurements (Level 1) | Description | 2025 June 30 (USD) | 2024 December 31 (USD) | | :--- | :--- | :--- | | Equity investments measured at fair value through other comprehensive income - Hong Kong listed securities | 248,592 | 185,977 | 5 Revenue and Segment Information The group's revenue primarily derives from online game services, totaling $4,585,677 in the first half of 2025, with management identifying only one operating segment Revenue Details | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Online Game Revenue | 4,585,677 | 4,525,866 | | Advertising Revenue | 2 | 11 | | Total Revenue | 4,585,679 | 4,525,877 | - Revenue recognition for all items is "over time"[158] - For management purposes, the company's executive directors consider the group to have only one segment, which is the provision of online game services[160][162] 6 Other Gains, Net Other gains, net, for the first half of 2025 were $428,218, primarily from net foreign exchange gains, contrasting with other gains in the prior year Other Gains, Net Details | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Net Foreign Exchange Gains/(Losses) | 421,741 | (86,699) | | Government Grants | 7,399 | 7,550 | | Others | (922) | 291,480 | | Total | 428,218 | 212,331 | 7 Finance Income Finance income significantly increased to $278,983 in the first half of 2025, mainly from net foreign exchange gains, compared to bank interest income in the prior year Finance Income Details | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Interest Income from Bank Balances | 8,532 | 37,668 | | Net Foreign Exchange Gains | 270,451 | – | | Total | 278,983 | 37,668 | 8 Finance Costs Finance costs significantly decreased to $16,562 in the first half of 2025, primarily due to a substantial reduction in net foreign exchange losses, while lease interest remained stable Finance Costs Details | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Lease Interest | 16,263 | 26,740 | | Net Foreign Exchange Losses | – | 106,818 | | Others | 299 | – | | Total | 16,562 | 133,558 | 9 Income Tax Expense Income tax expense for the first half of 2025 was $132,198, mainly from overseas withholding tax, with certain Chinese subsidiaries enjoying preferential tax rates Income Tax Expense | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Overseas Withholding Income Tax | 132,198 | 64,159 | - The company is exempt from or has not generated taxable profits in the Cayman Islands, British Virgin Islands, and Hong Kong[170] - Chinese subsidiaries enjoy preferential income tax rates, such as Guangzhou Youlai Information Technology Co., Ltd. at 15%, and Guangzhou Suiyue Niandai Software Technology Co., Ltd. and Guangzhou Dingzhang Information Technology Co., Ltd. as small and micro-profit enterprises, taxed at 5% on the first RMB3 million of profit[170] - The group's operations in Vietnam and Brazil are subject to 10% withholding tax and 10% remittance tax plus 15% income tax, respectively[174][175] 10 Loss for the Period The group's loss for the period is accounted for after deducting expenses such as amortization of intangible assets, depreciation of property, plant, and equipment, and directors' remuneration Loss for the Period Deductions | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Amortization of Intangible Assets | 67,399 | 63,864 | | Depreciation of Property, Plant and Equipment | 135,473 | 139,390 | | Directors' Remuneration | 145,939 | 111,341 | 11 Dividend The Board does not recommend the payment of any dividend for the six months ended June 30, 2025, consistent with the prior year - The Board does not recommend the payment of any dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[179][180] 12 Loss Per Share Basic and diluted loss per share for the six months ended June 30, 2025, was $0.04, an improvement from $0.10 in the prior year, with all potential shares having an anti-dilutive effect Loss Per Share | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Loss for the purpose of calculating basic and diluted loss per share | (703,137) | (1,913,974) | | Basic Loss Per Share | (0.04) | (0.10) | | Diluted Loss Per Share | (0.04) | (0.10) | - For the six months ended June 30, 2025 and 2024, all potential shares had an anti-dilutive effect[183][185] 13 Property, Plant and Equipment For the six months ended June 30, 2025, the group purchased $2,139 in property and equipment, a slight increase from the prior year Property, Plant and Equipment Acquisitions | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Acquisitions of Property, Plant and Equipment | 2,139 | 1,827 | 14 Trade Receivables As of June 30, 2025, total trade receivables were $1,116,602, an increase from year-end 2024, with the largest portion aged 0-30 days Trade Receivables Aging Analysis | Aging | 2025 June 30 (USD) | 2024 December 31 (USD) | | :--- | :--- | :--- | | 0 to 30 days | 571,332 | 473,849 | | 31 to 90 days | 122,372 | 263,730 | | 91 to 180 days | 197,196 | 78,861 | | Over 180 days | 225,702 | 77,235 | | Total | 1,116,602 | 893,675 | 15 Trade Payables As of June 30, 2025, total trade payables were $2,406,353, a significant increase from year-end 2024, primarily concentrated in the 0-90 day aging category Trade Payables Aging Analysis | Aging | 2025 June 30 (USD) | 2024 December 31 (USD) | | :--- | :--- | :--- | | 0 to 90 days | 2,100,096 | 317,928 | | 91 to 180 days | 30,012 | 111,098 | | 181 to 360 days | 107,543 | 47,945 | | Over 360 days | 168,702 | 155,959 | | Total | 2,406,353 | 632,930 | 16 Share Capital and Shares Held for the Share Option Scheme As of June 30, 2025, the company's authorized share capital was 4,000,000,000 shares at $0.001 par value each, with 2,000,000,000 shares issued, totaling $2,000,000 in share capital Share Capital and Shares Held for Share Option Scheme | Indicator | Number of Ordinary Shares | Amount (USD) | | :--- | :--- | :--- | | Authorized Share Capital (US$0.001 per share) | 4,000,000,000 | 4,000,000 | | Number of Issued Shares | 2,000,000,000 | 2,000,000 | | Shares Held for Share Option Scheme | | (138,978) | 17 Reserves As of June 30, 2025, the group's total reserves were $36,860,647, including share premium, currency translation reserve, and other reserves Reserves Details | Indicator | Share Premium (USD) | Share-based Payment Reserve (USD) | Statutory Reserve (USD) | Currency Translation Reserve (USD) | Other Reserves (USD) | Total (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | As at 2024 January 1 | 36,924,962 | 3,365,342 | 945,312 | (1,287,481) | (3,180,416) | 36,767,719 | | As at 2024 June 30 | 36,924,962 | 3,365,342 | 945,312 | (1,431,587) | (3,181,916) | 36,622,113 | | As at 2025 January 1 | 36,924,962 | 3,365,342 | 945,312 | (1,288,179) | (3,115,962) | 36,831,475 | | As at 2025 June 30 | 36,924,962 | 3,365,342 | 945,312 | (1,324,762) | (3,050,207) | 36,860,647 | - In the first half of 2025, changes in fair value of financial assets measured at fair value through other comprehensive income resulted in a gain of $65,755, and currency translation differences resulted in a loss of $36,583[194] 18 Contingent Liabilities As of June 30, 2025, the group had no significant contingent liabilities - The group had no significant contingent liabilities as of June 30, 2025 (December 31, 2024: nil)[195][196] 19 Related Party Transactions In the first half of 2025, total compensation for key management personnel (including directors and the chief executive) was $145,939, an increase from the prior year Key Management Personnel Compensation | Indicator | 2025 First Half (USD) | 2024 First Half (USD) | | :--- | :--- | :--- | | Wages, Salaries and Bonuses | 135,362 | 101,135 | | Pension Costs - Defined Contribution Plans | 6,169 | 5,603 | | Other Social Security Costs, Housing Benefits and Other Employee Benefits | 4,408 | 4,603 | | Total | 145,939 | 111,341 | 20 Capital Commitments As of June 30, 2025, the group's capital commitments primarily related to intangible assets, with $552,000 contracted but not paid, consistent with year-end 2024 Capital Commitments | Indicator | 2025 June 30 (USD) | 2024 December 31 (USD) | | :--- | :--- | :--- | | Intangible Assets - Contracted but not paid | 552,000 | 552,000 | 21 Events After the Reporting Period No significant post-reporting events occurred between July 1, 2025, and August 29, 2025, the date the Board approved the condensed consolidated financial report - No significant post-reporting events occurred between July 1, 2025, and August 29, 2025, the date the Board approved the condensed consolidated financial report[201] 22 Approval of the Condensed Consolidated Financial Statements The condensed consolidated financial statements were approved and authorized for issue by the Board on August 29, 2025 - The condensed consolidated financial statements were approved and authorized for issue by the Board on August 29, 2025[203]