EMPEROR CULTURE-英皇文化产业(00491) - 2024 - 年度财报

Revenue Performance - The Group's revenue increased by 8.4% to HK $494.5 million for the year ended June 30, 2024, compared to HK$ 456.2 million in 2023[4]. - Box office takings amounted to HK $401.9 million, accounting for 81.3% of cinema operation revenue, up from HK$ 389.1 million in 2023[6]. - Revenue from the Mainland China market surged by 55.0% to HK $207.7 million, representing 42.0% of cinema operation revenue[6]. - Revenue from the Hong Kong market decreased to HK$ 264.3 million, accounting for 53.4% of cinema operation revenue, down from 64.8% in 2023[6]. - The Group's revenue for 2023 was HK $494.5 million, representing an increase of 8.4% compared to HK$ 456.2 million in 2022[8]. - The Group's revenue for 2024 is projected to be HK $977 million, up from HK$ 685.9 million in 2023, indicating a growth of approximately 42.5%[19]. Profit and Loss - The Group recorded a net loss of HK $715.1 million, significantly higher than the net loss of HK$ 317.0 million in 2023, primarily due to impairment allowances[6]. - Basic loss per share was HK $0.22, compared to HK$ 0.10 in the previous year[6]. - The Group's net profit for 2023 was HK $207.7 million, a significant increase of 55.0% from HK$ 134.0 million in 2022[8]. - The Group's net profit for 2024 is expected to reach HK $889.7 million, compared to HK$ 595.6 million in 2023, representing an increase of about 49.4%[19]. Impairment and Financial Health - Impairment allowances for the year were HK $430.5 million, up from HK$ 144.6 million in the previous year[4]. - As of June 30, 2024, the Group's current liabilities exceeded its current assets by HK $231.7 million, indicating financial distress[179]. - Current liabilities amounted to HK$ 386.3 million, while cash and cash equivalents, along with pledged bank deposits, totaled HK $86.6 million[179]. - The independent auditor confirmed that the consolidated financial statements provide a true and fair view of the Group's financial position as of June 30, 2024[177]. Operational Developments - The increase in total number of cinemas contributed to the revenue growth during the year[6]. - As of June 30, 2024, the Group operated a total of 25 cinemas across Mainland China, Hong Kong, and Macau, with 187 screens and over 27,000 seats[9]. - The Group opened two new Emperor Cinemas in Chongqing and Chengdu, and two Emperor Cinemas Plus+ in Hong Kong during the year[9]. Market Outlook - The film exhibition industry is expected to see growth in China, with the country's share of global film market revenues projected to reach 27.0% by 2027[13]. - The Group is confident in the long-term development of the film industry in Mainland China due to rising disposable income and living standards[13]. - The Group's financial performance is expected to improve significantly in the coming years, with a target of achieving a 27.0% growth rate by 2027[19]. Corporate Governance and Management - The company emphasizes its commitment to corporate governance through the establishment of various committees, including the Audit and Remuneration Committees[26]. - The independent non-executive directors bring over 20 years of experience in corporate governance and legal expertise, enhancing the company's oversight capabilities[25]. - The Board currently consists of six Directors, with three Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a balanced governance structure[89]. - The Board's corporate goals and objectives guide the remuneration decisions for Directors[78]. Employee and Staff Management - The number of employees increased to 776 as of June 30, 2024, compared to 743 in 2023[19]. - Total staff costs rose to HK$ 127.3 million in 2024 from HK$115.1 million in 2023, reflecting an increase of approximately 10.2%[19]. - Employee remuneration is based on individual responsibility, competence, skills, experience, and performance, including various benefits[80]. Risk Management and Compliance - The Group's internal control measures and procedures have been reviewed, covering governance, operational, financial, and compliance controls[128]. - The management is responsible for identifying, analyzing, evaluating, and communicating risks associated with activities within its scope[145]. - The Group has established a whistle-blowing policy to allow employees and third parties to report concerns confidentially[142]. - The company is committed to staying alert to changes in government policies and regulations, ensuring compliance to avoid operational disruptions[157]. Strategic Initiatives - The Group's strategic focus includes integrating digital technologies with premium services to enhance its position in high-end markets[21]. - The company is focused on expanding its market presence through strategic partnerships and acquisitions in the entertainment and hospitality sectors[22]. - The company is actively pursuing new strategies for growth and market expansion in the entertainment sector[56]. Shareholder Communication - The company maintains ongoing communication with shareholders through various channels, including AGMs, reports, and press releases[162]. - The Board is satisfied with the effectiveness of the Shareholders' Communication Policy, which is reviewed annually[163]. - Shareholders holding at least one-tenth of the paid-up capital can requisition a Special General Meeting (SGM) to be called by the Board[166].