Financial Performance - Revenue for the six months ended June 30, 2022, was HK$66,432,000, a decrease of 7.1% compared to HK$71,993,000 in the same period of 2021[9]. - Gross profit for the same period was HK$9,056,000, slightly down from HK$9,189,000, resulting in a gross margin of approximately 13.6%[9]. - Loss from operations increased significantly to HK$100,046,000, compared to a loss of HK$30,096,000 in the prior year, indicating a deterioration in operational performance[9]. - Loss before tax for the period was HK$105,464,000, compared to HK$34,058,000 in the previous year, reflecting increased financial pressures[9]. - The total comprehensive loss for the period was HK$113,471,000, a substantial increase from HK$34,410,000 in the same period of 2021[11]. - Basic and diluted loss per share for the period was HK$0.35, compared to HK$0.11 in the previous year, indicating a significant decline in shareholder value[9]. - The company reported a loss for the period attributable to owners of the company amounting to HK$108,348,000, compared to HK$34,131,000 in the previous year[9]. - The Group incurred a net loss of approximately HK$105,424,000 during the six months period ended 30 June 2022, with net current liabilities and net liabilities of approximately HK$195,235,000 and HK$91,622,000 respectively[23]. - The consolidated loss for the period was HK$105,424,000, compared to a loss of HK$34,097,000 in the same period of 2021, reflecting a worsening financial position[35]. - The loss attributable to shareholders for the Period was approximately HK$105,424,000, significantly higher than the loss of HK$34,097,000 in the same period of 2021, primarily due to non-cash items incurred[136][139]. Assets and Liabilities - Non-current assets decreased from HK$152,346,000 at December 31, 2021, to HK$127,570,000 at June 30, 2022, representing a decline of approximately 16.3%[13]. - Current liabilities increased significantly from HK$194,527,000 at December 31, 2021, to HK$333,223,000 at June 30, 2022, an increase of about 71.4%[13]. - Total equity decreased from HK$37,572,000 at June 30, 2021, to a negative equity of HK$91,622,000 at June 30, 2022, indicating a significant decline in financial health[17]. - The total liabilities of the company increased from HK$12,441,000 at December 31, 2021, to HK$91,622,000 at June 30, 2022, indicating a rise of approximately 638.5%[15]. - Cash and cash equivalents at June 30, 2022, were HK$55,407,000, a decrease from HK$115,867,000 at June 30, 2021, reflecting a decline of approximately 52.2%[19]. - The company’s trade receivables decreased from HK$6,949,000 at December 31, 2021, to HK$4,171,000 at June 30, 2022, a decline of approximately 40.2%[13]. - The total amount due to related companies increased to approximately HK$218,424,000 as of 30 June 2022, compared to HK$194,527,000 in 2021, with interest rates ranging from 0% to 2% per annum[127][128]. Operational Strategies - The company is focusing on cost management strategies to mitigate losses and improve future performance[8]. - Future outlook includes potential market expansion and new product development initiatives to drive revenue growth[8]. - The Group plans to invest resources in exploring the blockchain game and metaverse market, aiming to build a large-scale universe park with various themed planets[184]. - The Group will actively seek collaboration for IP licensing in different games to expand its business into various markets, particularly the fast-growing game market[185]. - The Group intends to expand its esports team in China and implement cost-saving measures to enhance financial performance and maximize shareholder returns[189]. Segment Performance - The segment loss for the reportable segments was HK$59,774,000 for the first half of 2022, compared to a loss of HK$26,795,000 in the same period of 2021, indicating a significant increase in losses[35]. - Revenue from the game publishing business increased year-on-year by approximately 10.6% to HK$11,930,000, compared to HK$10,787,000 for the six months ended 30 June 2021[142]. - The esports business generated revenue of approximately HK$34,460,000, representing a year-on-year increase of approximately 86.0%, with segment profit of approximately HK$671,000 compared to a loss of HK$4,691,000 in the previous year[152]. - Revenue from the cloud computing and data storage business increased by approximately 198.2% year-on-year to HK$10,722,000, despite a segment loss of approximately HK$41,637,000 due to impairment losses on mining machines[163]. - Revenue from the household products business decreased by 78.3% to approximately HK$8,085,000 compared to HK$37,325,000 in the previous year[165]. - Revenue from the property investment business was approximately HK$686,000, a slight decrease from HK$707,000 in the previous year[170]. - Revenue from the money lending business decreased to approximately HK$549,000 from HK$1,053,000 in the previous year, resulting in a segment loss of approximately HK$1,643,000[171]. Future Developments - The Group aims to explore opportunities in the blockchain games and metaverse sectors, focusing on game publishing and esports to maximize shareholder returns[135][138]. - The Group's Metasens project has made good progress and will continue to diversify its business, particularly in game publishing and esports[136][139]. - The Group plans to launch an additional 2,000 NFT ancestral equipment in four phases, with the first phase selling all 500 NFTs for approximately HK$1,495,000[144]. - The second game "PetaRush" is expected to launch in the second half of 2022, incorporating elements of collection, raising, and breeding[148]. - The third game, a PC-based metaverse sandbox game, is currently in closed beta testing, allowing players to create and edit their own virtual worlds[149]. Accounting and Compliance - The application of new and amended HKFRSs in the current period has had no material impact on the Group's financial performance and position[25]. - The Group's financial statements have been prepared on a going concern basis despite the existing material uncertainties[23]. - Adjustments may be required to restate asset values and classify noncurrent assets and liabilities as current if the Group cannot continue as a going concern[23]. - The Group's financial statements reflect the historical cost basis, except for certain properties and financial instruments measured at fair value[25]. - The Group's financial performance and position for the current and prior periods remain unaffected by the new accounting standards adopted[25].
帝国科技集团(00776) - 2022 - 中期财报