Financial Performance - For the six months ended December 31, 2023, the group's revenue was approximately HKD 50,674,000, a decrease of about HKD 15,877,000 or 23.9% compared to the same period last year [18]. - The gross profit for the six months ended December 31, 2023, decreased by approximately HKD 24,070,000 or 62.4% to about HKD 14,525,000 [18]. - The company reported a loss per share of approximately HKD 0.0184 for the six months ended December 31, 2023, compared to earnings of approximately HKD 0.0290 for the same period in 2022 [18]. - Revenue for the three months ended December 31, 2023, was HKD 25,625,000, a decrease of 21.6% compared to HKD 32,726,000 in the same period of 2022 [19]. - Gross profit for the six months ended December 31, 2023, was HKD 14,525,000, down 62.4% from HKD 38,595,000 in the same period of 2022 [19]. - The company reported a loss before tax of HKD 11,607,000 for the six months ended December 31, 2023, compared to a profit of HKD 16,897,000 in the same period of 2022 [19]. - Total comprehensive income for the six months ended December 31, 2023, was a loss of HKD 10,016,000, compared to a profit of HKD 19,096,000 in the same period of 2022 [19]. - The company reported a basic and diluted loss per share of HKD 1.45 cents for the three months ended December 31, 2023, compared to earnings of HKD 1.38 cents in the same period of 2022 [21]. - The company reported a pre-tax loss of HKD (11,607,000) for the six months ended December 31, 2023, compared to a profit of HKD 16,897,000 for the same period in 2022 [45]. - The company reported a loss of approximately HKD 11,019,000 for the six months ended December 31, 2023, compared to a profit of about HKD 17,397,000 for the same period in 2022, primarily due to reduced revenue and gross margin [103]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased to HKD 9,027,000 as of December 31, 2023, from HKD 22,000,000 as of June 30, 2023 [23]. - Cash and cash equivalents decreased to HKD 4,930 thousand at the end of the reporting period, down from HKD 31,643 thousand at the end of 2022, a decline of 84.4% [31]. - The company reported a net cash outflow from financing activities of HKD (1,662) thousand, compared to HKD (1,197) thousand in the previous year, indicating a 39.0% increase in cash outflow [29]. - The company’s cash balance at the beginning of the reporting period was HKD 16,844 thousand, down 62.2% from HKD 44,480 thousand in the previous year [31]. - The current ratio as of December 31, 2023, was approximately 1.9 times, down from about 2.5 times as of June 30, 2023 [105]. - The company's capital debt ratio increased to approximately 14.8% as of December 31, 2023, from about 12.8% as of June 30, 2023, mainly due to a decrease in total equity [107]. Segment Performance - For the six months ended December 31, 2023, the total reportable segment revenue was HKD 50,674,000, a decrease of 23.9% compared to HKD 66,551,000 for the same period in 2022 [44]. - The reportable segment loss for the six months ended December 31, 2023, was HKD (7,172,000), compared to a profit of HKD 19,373,000 for the same period in 2022 [45]. - In Malaysia, segment revenue increased to HKD 35,239,000 for the six months ended December 31, 2023, from HKD 33,058,000 in the same period of 2022, reflecting a growth of 6.6% [44]. - In China, segment revenue decreased significantly to HKD 15,435,000 for the six months ended December 31, 2023, from HKD 33,493,000 in the same period of 2022, representing a decline of 53.8% [44]. - Revenue from network support and connectivity services increased by approximately HKD 1,795,000 or 5.2% to about HKD 36,321,000 for the six months ended December 31, 2023 [81]. - Revenue from the Malaysian market slightly increased by approximately HKD 2,181,000 or 6.6% to about HKD 35,239,000 for the same period [81]. - New business in online game IP licensing management generated revenue of approximately HKD 6,215,000 for the six months ended December 31, 2023 [84]. Expenses and Costs - Sales and service costs increased by approximately HKD 8,193,000 or 29.3% to about HKD 36,149,000, primarily due to licensing costs from the online game IP management service [91]. - The gross margin decreased from approximately 58.0% to about 28.7% due to the suspension of the e-commerce paid membership plan and the lower margin from the new online game IP licensing management service [93]. - Employee costs for the six months ending December 31, 2023, were approximately HKD 14,634,000, compared to HKD 11,771,000 for the same period in 2022, reflecting an increase of about 24% [139]. - Sales expenses rose by approximately HKD 2,381,000 or 84.2% to about HKD 5,209,000 for the six months ended December 31, 2023, mainly due to increased employee costs in the China sales team by about HKD 3,277,000 or 280.6% [97]. Investments and Acquisitions - The company has committed to further capital injection of approximately HKD 41,131,000 to its subsidiaries as of December 31, 2023, an increase from approximately HKD 30,301,000 as of June 30, 2023 [128]. - The company acquired 100% equity of Guangyuan Holdings for HKD 50,000, which holds no assets or liabilities as of the acquisition date [124]. - The investment in Bitcoin World Technology Limited represents a 49% stake by the company's wholly-owned subsidiary, indicating a strategic move into the cryptocurrency sector [125]. Corporate Governance and Compliance - The audit committee consists of four members, including three independent non-executive directors and one non-executive director, ensuring a wealth of business experience in financial and legal matters [171]. - The company has adopted and complied with the corporate governance code as per GEM Listing Rules for the six months ended December 31, 2023 [174]. - The company acknowledges the importance of its employees' contributions to its ongoing success and expresses gratitude to shareholders, customers, and suppliers for their support [180]. - The company has implemented appropriate checks and balances through the board and independent non-executive directors [174]. Future Plans and Strategies - The company aims to capture opportunities in the virtual asset industry through a series of business plans established in 2022 [75]. - The company has been actively exploring different opportunities and adapting its business strategies to align with the evolving e-commerce landscape in China [74]. - The company plans to change its name to "Byte Metaverse Holdings Limited," which has been approved by shareholders [69]. - The company has initiated a new business in IP licensing for online games starting November 2023, following the stable development of its e-commerce business [74]. - The company plans to recruit additional staff, including two IT engineers, one service delivery manager, and two senior sales executives, to support its expansion plans [137]. Shareholder Information - As of December 31, 2023, Mr. Yu holds a controlling interest of approximately 69.39% in the company through Thrive Harvest Limited and Huitong Yingfu Investment Limited [141]. - The company has a significant concentration of ownership, with the top three shareholders holding over 88% of the total shares [146]. - The company has adopted a share incentive plan effective from April 21, 2023, allowing for the issuance of up to 60,000,000 shares, which is 10% of the total issued share capital [154].
比特元宇宙(08645) - 2024 - 中期业绩