Empire Technology Group expects an annual post-tax loss of no less than HKD 95 million
Empire Technology Group expects an annual post-tax loss of not less than HKD 95 million, a decrease from 2022. The reasons for the decrease include reduced administrative expenses, reduced distribution expenses due to delayed launch of online games, increased income from the sale of subsidiary companies, reduced losses from depreciation of mining machines and cryptocurrencies, and increased losses from impairment of intangible assets
According to the news from Wise Finance APP, Empire Technology Group (00776) announced that the group expects a post-tax loss of not less than HKD 95 million for the year ending December 31, 2023, while the net loss for the year ending December 31, 2022, was approximately HKD 180.4 million.
The decrease in the aforementioned loss is mainly due to the combined impact of the following factors: 1. Administrative expenses (including share-based payments) decreased from HKD 56.1 million in 2022 to approximately HKD 6.3 million in 2023;
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Distribution expenses decreased from HKD 13.2 million in 2022 to approximately HKD 3.3 million in 2023 due to the delayed launch of online games;
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The profit from the sale of subsidiary companies in 2023 was HKD 21.1 million (December 31, 2022: zero HKD), while other income or losses increased;
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In 2022, there was a depreciation loss of approximately HKD 43.9 million related to Filecoin and Chia mining machines, cryptocurrency deposits and receivables, and cryptocurrency (December 31, 2023: zero HKD);
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In 2023, the impairment loss on intangible assets (including discontinued games and games under development) increased by approximately HKD 44.1 million (December 31, 2022: HKD 2.5 million)