Company Overview - Global Digital Creations Holdings Limited is incorporated in Bermuda and listed on the GEM of the Hong Kong Stock Exchange, which is designed for small and mid-sized companies[3]. - The company acknowledges the higher investment risks associated with securities traded on GEM compared to those on the main board of the Stock Exchange[4]. Financial Reporting - The report includes a review of interim financial information, which is essential for providing accurate and complete data to stakeholders[6]. - The interim results section of the report provides insights into the company's financial performance for the first half of 2022[9]. - The management discussion and analysis section will elaborate on the company's strategies and market conditions affecting performance[9]. - The report outlines the corporate governance structure, including the roles of the board of directors and various committees[12]. - The interim report emphasizes the importance of transparency and accuracy in financial reporting to maintain investor confidence[6]. - The company is committed to adhering to the GEM Listing Rules, which govern the conduct of listed companies[6]. - The report includes a section on the purchase, sale, or redemption of the company's listed securities, reflecting its active management of capital[9]. - The interim financial information for the Group as of June 30, 2022, has been reviewed and found to be in compliance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[24]. - The condensed consolidated interim statement of comprehensive income for the three-month periods ended June 30, 2022, and 2021 has not been audited or reviewed[24]. - The review conducted was in accordance with Hong Kong Standard on Review Engagements 2410, which involves inquiries and analytical procedures[23]. - The directors of the Company are responsible for the preparation and presentation of the interim financial information[24]. - No significant matters were identified that would lead to a belief that the interim financial information is not prepared in all material respects[24]. - The report does not express an audit opinion due to the limited scope of the review compared to a full audit[23]. - The Group's interim financial information for the six months ended June 30, 2022, has been prepared in accordance with HKAS 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2021[68]. Financial Performance - Revenue for the six months ended June 30, 2022, was HK$18,779,000, a decrease from HK$34,829,000 in the same period of 2021, representing a decline of 46%[27]. - Gross profit for the six months ended June 30, 2022, was HK$6,967,000, down from HK$14,245,000 in 2021, reflecting a decrease of 51%[27]. - Operating profit for the period was HK$2,369,000, compared to an operating loss of HK$964,000 in the same period of 2021[27]. - Profit for the period from continuing operations was HK$2,048,000, a significant improvement from a loss of HK$922,000 in 2021[31]. - Total comprehensive loss for the period was HK$19,976,000, compared to a loss of HK$1,390,000 in the same period of 2021[31]. - Other income increased to HK$4,999,000 for the six months ended June 30, 2022, from HK$2,315,000 in 2021, marking a growth of 116%[27]. - The company reported a loss from discontinued operations of HK$4,988,000 for the period, slightly higher than the loss of HK$4,886,000 in 2021[31]. - Basic and diluted earnings per share from continuing operations were HK$0.14, compared to a loss per share of HK$0.06 in the same period of 2021[37]. - The company experienced an exchange loss of HK$17,036,000 due to translation differences, impacting overall financial performance[30]. - The total comprehensive loss attributable to owners of the company for the period was HK$19,976,000, compared to a loss of HK$1,390,000 in 2021[31]. - The Company reported a loss for the period of HK$2,931,000, contributing to a total comprehensive loss of HK$23,494,000 for the six months ended June 30, 2022[53]. - For the six months ended June 30, 2022, the company reported a loss of HK$7,617,000, compared to a loss of HK$11,587,000 for the same period in 2021, indicating a 34% improvement in loss[60]. - The total comprehensive loss for the period was HK$2,352,000, compared to a loss of HK$7,917,000 in the previous year, reflecting a 70% reduction in comprehensive loss[60]. - Cash used in operating activities was HK$2,399,000, a decrease from HK$7,163,000 in the prior year, showing a 66% improvement in cash flow management[60]. - Net cash used in investing activities amounted to HK$10,072,000, compared to HK$1,607,000 in the previous year, indicating a significant increase in investment activities[60]. - Cash and cash equivalents at the end of the period were HK$293,686,000, down from HK$300,919,000 at the end of June 2021, representing a decrease of 2%[60]. - The company incurred HK$13,666,000 in additions on productions work in progress, which is a substantial increase from HK$4,825,000 in the previous year, indicating a focus on expanding production capabilities[60]. - Interest received during the period was HK$4,389,000, an increase from HK$3,823,000 in the prior year, reflecting a 15% growth in interest income[60]. - The principal element of lease liabilities paid was HK$343,000, slightly down from HK$440,000 in the previous year, showing a minor reduction in financing costs[60]. - The company reported a currency translation gain of HK$5,265,000 for the period, compared to a loss of HK$1,595,000 in the previous year, indicating a positive shift in foreign exchange impacts[60]. Assets and Liabilities - Total assets decreased to HK$660,511,000 as of June 30, 2022, down from HK$690,083,000 at December 31, 2021, representing a decline of approximately 4.3%[42]. - Current assets totaled HK$355,777,000, a decrease of 7.1% from HK$383,056,000 at the end of 2021[42]. - Total equity attributable to owners of the Company was HK$483,002,000, down from HK$506,496,000, reflecting a decrease of about 4.6%[42]. - Cash and cash equivalents decreased to HK$293,686,000 from HK$318,845,000, a decline of approximately 7.9%[42]. - Trade receivables increased to HK$10,819,000, up from HK$9,578,000, indicating a growth of about 12.9%[42]. - Total liabilities decreased to HK$316,539,000 from HK$326,268,000, a reduction of approximately 3.0%[48]. - Non-current assets totaled HK$304,734,000, slightly down from HK$307,027,000, a decrease of about 0.8%[42]. - Retained earnings decreased to HK$83,660,000 from HK$86,591,000, reflecting a decline of approximately 3.4%[42]. - The Company’s other reserves decreased to HK$384,259,000 from HK$404,822,000, a reduction of about 5.1%[53]. - The balance at June 30, 2021, was HK$484,629,000, compared to HK$345,355,000 at the end of the previous period, reflecting a 40% increase in total equity attributable to owners[60]. Segment Performance - The management has identified two reportable segments: CG creation and production, and new cultural and sports space[113]. - Revenue from CG production for the three months ended June 30, 2022, was HK$3,053,000, a decrease from HK$4,788,000 in the same period of 2021, representing a decline of 36.3%[118]. - Total revenue from external customers for the six months ended June 30, 2022, was HK$34,829,000, compared to HK$29,020,000 for the same period in 2021, reflecting an increase of 20.0%[118]. - Management service fee income for the six months ended June 30, 2022, was HK$6,288,000, down from HK$11,321,000 in the same period of 2021, indicating a decrease of 44.8%[118]. - Total segment assets as of June 30, 2022, amounted to HK$660,511,000, compared to HK$690,083,000 as of December 31, 2021, showing a reduction of 4.3%[153]. - Segment liabilities as of June 30, 2022, were HK$316,539,000, an increase from HK$326,268,000 as of December 31, 2021, indicating a decrease of 2.2%[153]. - Unallocated income for the three months ended June 30, 2022, was HK$138,000, compared to HK$150,000 in the same period of 2021, reflecting a decline of 8.0%[118]. - Profit before income tax from continuing operations for the six months ended June 30, 2022, was HK$3,073,000, compared to HK$2,363,000 in the same period of 2021, representing an increase of 30.0%[118]. - Licensing income from television programmes and movies to online platforms for the three months ended June 30, 2022, was HK$311,000, down from HK$347,000 in the same period of 2021, a decrease of 10.4%[118]. - Patent fee income from granting the right to access of trademark for the six months ended June 30, 2022, was HK$674,000, compared to HK$394,000 in the same period of 2021, reflecting an increase of 70.9%[118]. - Rental income for the six months ended June 30, 2022, was HK$22,281,000, compared to HK$23,962,000 in the same period of 2021, indicating a decrease of 7.0%[118]. - For the six months ended June 30, 2022, the group recognized revenue of HK$34,232,000 from Mainland China, a decrease of 24.5% compared to HK$45,017,000 for the same period in 2021[166]. - The group reported total revenue of HK$34,829,000 for the six months ended June 30, 2022, compared to HK$45,017,000 for the same period in 2021, reflecting a decline of 22.6%[166]. - Government grants received during the six months ended June 30, 2022, amounted to HK$3,421,000, an increase of 176.5% from HK$1,238,000 in the same period of 2021[177]. Employee and Operational Costs - Employee benefit expenses for the six months ended June 30, 2022, were HK$21,731,000, up 6.2% from HK$20,458,000 in the same period of 2021[180]. - The group incurred amortization expenses of HK$1,804,000 for movie and television programme rights for the six months ended June 30, 2022, compared to HK$4,699,000 in the same period of 2021, indicating a decrease of 61.6%[180]. - Profit before income tax for the six months ended June 30, 2022, was impacted by employee benefit expenses and amortization costs, reflecting the company's ongoing operational challenges[180]. - Research and development costs for the six months ended June 30, 2022, amounted to HK$6,732,000, a decrease of 16.1% from HK$8,024,000 for the same period in 2021[182]. - Of the total R&D costs, HK$3,678,000 was capitalized in movies and television programmes rights and productions work in progress, down from HK$5,335,000 in the prior year, representing a 30.9% decrease[182]. - The group reported a net exchange gain of HK$35,000 for the six months ended June 30, 2022, compared to a loss of HK$75,000 in the same period of 2021[180]. - The group’s total other income for the six months ended June 30, 2022, was HK$8,203,000, an increase of 50.7% from HK$5,454,000 in the same period of 2021[180]. Taxation and Dividends - Provision for PRC corporate income tax amounted to HK$915,000 for the six months ended June 30, 2022, an increase from HK$697,000 in the same period of 2021[188]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[200]. - Finance cost on lease liabilities for the six months ended June 30, 2022, was HK$13,000, compared to HK$5,000 in the previous year, indicating a significant increase[185]. - Employee benefit expenses for the six months ended June 30, 2022, were HK$2,510,000, up from HK$2,139,000 in the same period of 2021, reflecting a 17.4% increase[185].
环球数码创意(08271) - 2022 - 中期财报