Financial Performance - Total revenue for the six months ended June 30, 2023, decreased by approximately 38.3% to about HKD 41,012,000 compared to HKD 66,432,000 for the same period in 2022[32]. - Loss attributable to shareholders for the period was approximately HKD 39,284,000, a decrease from HKD 105,424,000 in the same period last year, mainly due to a reduction in losses from non-cash items[32]. - Revenue from the gaming publishing business decreased by approximately 35.5% to HKD 7,697,000, with a segment loss of HKD 28,857,000, primarily due to impairment losses recognized on game intellectual property and goodwill[33]. - Revenue from the home products business increased by 117.9% to approximately HKD 17,621,000, driven by increased market demand as the global economy recovered from the COVID-19 pandemic[41]. - Revenue from the esports business for the six months ended June 30, 2023, was approximately HKD 11,221,000, a decrease of about 67.4% year-on-year[48]. - Revenue from cloud computing and data storage business was approximately HKD 3,804,000, down 64.5% compared to HKD 10,722,000 for the same period in 2022[49]. - The company reported a net loss of approximately HKD 39,284,000 for the six months ended June 30, 2023, compared to a net loss of HKD 105,424,000 for the same period in 2022[124]. - Gross profit decreased to HKD 749,000, a significant drop from HKD 9,056,000 in the previous year, indicating a decline in profitability[109]. - Operating loss for the period was HKD 32,061,000, compared to an operating loss of HKD 100,046,000 in the prior year, showing a 68.0% reduction in operating losses[109]. - Total comprehensive loss for the period was HKD 43,379,000, down from HKD 113,471,000 in the previous year, indicating a 61.7% reduction[99]. Assets and Liabilities - The total accounts receivable from related parties amounted to HKD 290,000,000 as of June 30, 2023, with an interest rate between 0% to 2%[22]. - The total accounts payable as of June 30, 2023, was HKD 4,963,000, compared to HKD 10,180,000 as of December 31, 2022[21]. - The group’s net current liabilities amounted to HKD 114,256,000, compared to HKD 71,295,000 in the previous year, indicating a worsening liquidity position[109]. - The total equity of the group as of June 30, 2023, was HKD 180,413,000, a decrease from HKD 128,312,000 in the previous year, reflecting a decline of 40.7%[104]. - The group reported a significant reduction in trade receivables, which fell from HKD 33,998,000 to HKD 13,024,000 over the same period[90]. - The group’s debt-to-asset ratio decreased from 92.4% as of December 31, 2022, to 60.1% as of June 30, 2023[72]. - Cash and bank balances as of June 30, 2023, were approximately HKD 22,100,000, down from HKD 42,800,000 as of December 31, 2022[61]. - The group’s financing costs increased to HKD 7,223,000 from HKD 5,418,000, reflecting a rise of 33.3%[97]. Subsidiary and Investments - The group sold 100% of its issued share capital in Jiefeng Home Products (Asia) Limited for a total consideration of HKD 1[2]. - As of June 30, 2023, the net liabilities of the sold subsidiary amounted to HKD 4,430,000, with total proceeds from the sale being HKD 21,107,000[3]. - The group has significant capital commitments related to gaming intellectual property and licenses amounting to HKD 2,118,000 as of June 30, 2023[4]. - The company plans to launch several new games within the year, including two games incorporating blockchain and metaverse concepts[47]. - The company plans to develop a large-scale amusement park in the metaverse, featuring various themed planets and games utilizing blockchain technology[56]. Corporate Governance and Management - The group’s financial director is responsible for fair value measurements, reporting directly to the board at least twice a year[25]. - The company has established an audit committee responsible for reviewing interim and annual reports, consisting of three independent non-executive directors[181]. - The company is currently seeking suitable candidates for independent non-executive director positions, as all current independent non-executive directors have served for over nine years[171]. - The company has complied with the corporate governance code throughout the reporting period, with no changes to the structure of the roles of the chairman and CEO[171]. - The company will continue to review its corporate governance practices to ensure compliance with the corporate governance code[179]. Market and Economic Conditions - The global economic recovery is showing significant divergence due to geopolitical factors and high interest rates, impacting different economies differently[31]. - The global gaming market is projected to reach USD 211.2 billion by 2025, with an expected compound annual growth rate of 4.3% from 2020 to 2025[156]. - The estimated tax rate for the group’s subsidiaries in Malaysia is 24% for the current period, unchanged from 2022[129]. - The estimated corporate income tax rate for the group’s subsidiaries in China remains at 25% for the current period, consistent with the previous year[130]. Employee and Compensation - The group employed 208 staff members as of June 30, 2023, with total employee compensation (including directors' remuneration) amounting to approximately HKD 29,314,000[83]. - The company recognized a total expense of approximately HKD 6,276,000 for share options during the period, a decrease from HKD 32,325,000 in 2022[191]. - The share option plan aims to encourage and reward eligible participants for their contributions to the group, facilitating the retention of talented employees[177]. Future Outlook and Strategies - The company will actively expand its esports teams in China and implement cost-saving measures to enhance financial conditions and maximize shareholder returns[46]. - The company expects to continue exploring opportunities in the blockchain gaming and metaverse sectors, aiming to maximize returns for shareholders[32]. - The company is conducting closed beta testing for a new computer metaverse game, which allows players to create and interact in a 3D open world[160].
帝国科技集团(00776) - 2023 - 中期业绩