Financial Performance - The Group reported unaudited consolidated revenue of HKD 10 million for the first quarter ended March 31, 2023, compared to HKD 8 million in the same period of 2022, representing a growth of 25%[16]. - The net profit for the first quarter of 2023 was HKD 2 million, an increase from HKD 1.5 million in the first quarter of 2022, reflecting a growth of 33.33%[16]. - Revenue for the three months ended March 31, 2023, was HK$14,445,000, a decrease of 9.9% from HK$16,050,000 in the same period of 2022[19]. - Gross profit for the period was HK$6,177,000, down 15.1% from HK$7,278,000 year-over-year[19]. - Operating profit increased to HK$1,237,000, compared to HK$717,000 in the previous year, reflecting a growth of 72.8%[19]. - Profit for the period from continuing operations was HK$553,000, significantly higher than HK$110,000 in the same period last year[21]. - Total comprehensive income for the period was HK$4,208,000, a substantial increase from HK$133,000 in the prior year[21]. - The basic and diluted earnings per share for continuing operations was HK$0.04, up from HK$0.01 in the previous year[21]. - The total comprehensive loss for the period ended March 31, 2023, was HK$1,427,000, compared to a loss of HK$1,588,000 in the same period of 2022, reflecting a decrease in loss of 10.1%[50]. Revenue Sources - Revenue from computer graphic production decreased to HK$1,410,000 from HK$1,735,000, a decline of 18.7%[30]. - Management service fee revenue was HK$2,798,000, down from HK$3,039,000, representing a decrease of 7.9%[30]. - Rental income decreased to HK$9,922,000 from HK$10,960,000, a decline of 9.5%[30]. - Revenue from continuing operations for the three months ended March 31, 2023, amounted to HK$14,445,000, a decrease of HK$1,605,000 compared to HK$16,050,000 for the same period in 2022, primarily due to an approximately 8% decline in the average exchange rate of RMB to HK$[56]. User Engagement and Market Strategy - User engagement metrics showed a 15% increase in active users compared to the previous quarter, indicating a positive trend in user retention and acquisition[16]. - The Company plans to launch two new digital products in Q2 2023, aiming to capture a larger market share in the digital content creation sector[16]. - Future guidance estimates a revenue growth of 20% for the fiscal year 2023, driven by new product launches and market expansion strategies[16]. - The Company aims to expand its market presence in Southeast Asia, targeting a 15% market share by the end of 2024[16]. - The management highlighted a strategic focus on enhancing digital marketing efforts to improve brand visibility and customer engagement[16]. Research and Development - Research and development expenses increased by 10% in Q1 2023, reflecting the Company's commitment to innovation and product development[16]. - The Group has introduced a hyperparameter artificial intelligence machine learning model to enhance the efficiency and controllability of virtual characters, successfully applied in the Kiehl's virtual character project[85][87]. - The Group's cloud platform technology supports the upgrade of new teaching technologies in collaboration with vocational colleges[80][82]. Legal and Compliance Matters - The Group is involved in ongoing litigations regarding property occupation fees related to the Pearl River Film Cultural Park, with appeals filed in higher courts[98][106]. - The Group's litigation with Pearl River Film Production includes a claim for RMB 26,457,900 for the car park of the Pearl River Film Cultural Park[106]. - The Board does not recommend the payment of an interim dividend for the three months ended March 31, 2023, consistent with the previous year where no dividend was declared[116][119]. - The company complied with all provisions of the Corporate Governance Code throughout the three months ended March 31, 2023[135]. Future Plans and Projects - The Group plans to produce one to two animated films annually, exploring themes such as ocean exploration and Chinese mythology, utilizing cutting-edge computer animation technology[91]. - The Group aims to enhance urban-level Metaverse solutions, focusing on cultural tourism products to empower local digital economy and promote traditional Chinese culture[93]. - The Group aims to become China's leading digital asset management group in the Metaverse by gradually expanding Metaverse products across various industries[96]. - The Group plans to leverage the Chengdu Sports Park project to create a new cultural and sports space, integrating culture, technology, and sports[93]. Shareholder Information - As of March 31, 2023, Mr. Chen Zheng holds 185,988,200 shares, representing approximately 12.36% of the total issued share capital of the Company[123]. - Shougang Group Co., Ltd. and its controlled corporations hold a total of 619,168,023 shares, accounting for approximately 41.16% of the total issued share capital of the Company[129]. - The company has adopted a Share Option Scheme effective for 10 years, but no options have been granted since its adoption on June 18, 2013[133].
环球数码创意(08271) - 2023 Q1 - 季度财报