DIGITAL DOMAIN : INTERIM REPORT 2022

For the six months ended 30 June

2022

2021

Notes

HK$'000

HK$'000

Revenue

4

482,726

414,663

Cost of sales and services rendered

(412,125)

(350,807)

Gross profit

70,601

63,856

Other income and gains

4,882

55,520

Selling and distribution expenses

(1,794)

(2,719)

Administrative expenses and other net operating expenses

(175,782)

(182,560)

Finance costs

5

(12,196)

(12,913)

Impairment loss on trade receivables and contract assets

(389)

(5,164)

Impairment loss on amounts due from associates

(4,731)

(3,949)

Share of losses of associates

(1)

(17,743)

Fair value loss on financial assets measured at fair value through profit or loss

11

(7,854)

(16,394)

Loss before taxation

6

(127,264)

(122,066)

Taxation

7

811

275

Loss for the period

(126,453)

(121,791)

Loss attributable to:

- Owners of the Company

(118,458)

(103,796)

- Non-controlling interest

(7,995)

(17,995)

(126,453)

(121,791)

Loss per share attributable to the owners of the Company:

(Re-presented)

- Basic and diluted

8

HK cents (2.736)

HK cents (2.563)

For the six months ended 30 June

2022

2021

HK$'000

HK$'000

Loss for the period

(126,453)

(121,791)

Other comprehensive income

Items that may be reclassified subsequently to profit or loss:

Currency translation differences

(17,576)

(3,436)

Share of other comprehensive income of associates

4

(537)

Share of other comprehensive income of a joint venture

(34)

10

Other comprehensive income for the period, net of tax

(17,606)

(3,963)

Total comprehensive income for the period

(144,059)

(125,754)

Total comprehensive income attributable to:

- Owners of the Company

(136,169)

(108,377)

- Non-controlling interest

(7,890)

(17,377)

(144,059)

(125,754)

Unaudited

Audited

30 June

31 December

Notes

2022

2021

HK$'000

HK$'000

Non-current assets

Property, plant and equipment

70,828

83,791

Right-of-use assets

9

90,819

56,314

Intangible assets

532,458

533,994

Interests in associates

31,497

34,730

Interest in a joint venture

10

37

71

Financial asset measured at fair value through other comprehensive income ("FVOCI")

-

-

Financial assets measured at fair value through profit or loss ("FVTPL")

11

57,532

70,151

Deposits

13

8,832

7,344

Deferred tax assets

647

681

792,650

787,076

Current assets

13

Trade receivables, other receivables and prepayments

140,705

140,710

Contract assets

29,290

24,558

Tax recoverable

348

-

Bank balances and cash

160,701

247,755

331,044

413,023

Current liabilities

14

Trade payables, other payables and accruals

198,529

170,845

Lease liabilities

25,885

26,567

Contract liabilities

103,967

86,707

Borrowings

71,494

49,646

Tax payable

5,113

7,604

404,988

341,369

Net current (liabilities)/assets

(73,944)

71,654

Total assets less current liabilities

718,706

858,730

Non-current liabilities

14

Other payable

6,324

10,304

Borrowings

215,375

238,758

Lease liabilities

84,246

52,352

Deferred tax liabilities

45,986

46,530

351,931

347,944

NET ASSETS

366,775

510,786

Capital and reserves

15

Share capital

43,290

43,290

Reserves

406,461

542,582

Equity attributable to owners of the Company

449,751

585,872

Non-controlling interest

(82,976)

(75,086)

TOTAL EQUITY

366,775

510,786

Attributable to owners of the Company

Share

Exchange

Non-

Share

Share

FVOCI

Contributed

options

fluctuation

Accumulated

controlling

capital

premium

reserve

surplus

reserve

reserve

Other reserve

losses

Total

interest

Total equity

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

As at 1 January 2022

43,290

131,996

(196,213)

984,302

183,805

(12,529)

3,868

(552,647)

585,872

(75,086)

510,786

Recognition of equity-settled

share-based payment expenses

-

-

-

-

48

-

-

-

48

-

48

Loss for the period

-

-

-

-

-

-

-

(118,458)

(118,458)

(7,995)

(126,453)

Currency translation differences

-

-

-

-

-

(17,681)

-

-

(17,681)

105

(17,576)

Share of other comprehensive income

of associates

-

-

-

-

-

4

-

-

4

-

4

Share of other comprehensive income

of a joint venture

-

-

-

-

-

(34)

-

-

(34)

-

(34)

Total comprehensive income for the

period

-

-

-

-

-

(17,711)

-

(118,458)

(136,169)

(7,890)

(144,059)

As at 30 June 2022

43,290

131,996

(196,213)

984,302

183,853

(30,240)

3,868

(671,105)

449,751

(82,976)

366,775

Attributable to owners of the Company

(Accumulated

Non-

Share

Exchange

losses)/

Share

Share

FVOCI

Contributed

options

fluctuation

retained

controlling

capital

premium

reserve

surplus

reserve

reserve

Other reserve

profits

Total

interest

Total equity

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

HK$'000

As at 1 January 2021

340,754

1,984,773

(196,213)

594,690

181,949

4,482

3,868

(2,072,872)

841,431

(28,560)

812,871

Recognition of equity-settled

share-based payment expenses

-

-

-

-

1,235

-

-

-

1,235

-

1,235

Issue of shares on subscription, net of

expenses

68,148

272,287

-

-

-

-

-

-

340,435

-

340,435

Capital contribution from

non-controlling interest

-

-

-

-

-

-

-

-

-

122,757

122,757

Transfer of share premium to

contributed surplus

-

(2,257,060)

-

2,257,060

-

-

-

-

-

-

-

Set-off of contributed surplus against

accumulated losses

-

-

-

(2,257,060)

-

-

-

2,257,060

-

-

-

Loss for the period

-

-

-

-

-

-

-

(103,796)

(103,796)

(17,995)

(121,791)

Currency translation differences

-

-

-

-

-

(4,054)

-

-

(4,054)

618

(3,436)

Share of other comprehensive income

of associates

-

-

-

-

-

(537)

-

-

(537)

-

(537)

Share of other comprehensive income

of a joint venture

-

-

-

-

-

10

-

-

10

-

10

Total comprehensive income for the

period

-

-

-

-

-

(4,581)

-

(103,796)

(108,377)

(17,377)

(125,754)

As at 30 June 2021

408,902

-

(196,213)

594,690

183,184

(99)

3,868

80,392

1,074,724

76,820

1,151,544

DIGITAL DOMAIN HOLDINGS LIMITED INTERIM REPORT 2022