GAMEONE(08282)2025-04-03 09:14Financial Performance - For the fiscal year ending December 31, 2024, the company recorded a net loss of approximately HKD 2.0 million, a significant reduction from a net loss of approximately HKD 32.9 million in the same period of 2023[8]. - The group's revenue decreased by approximately 65.7% from about HKD 108.8 million for the year ended December 31, 2023, to about HKD 37.3 million for the year ended December 31, 2024[16]. - Revenue from game operations and publishing dropped from approximately HKD 40.5 million (37.3%) in 2023 to about HKD 8.8 million (23.7%) in 2024, a decrease of about 78.7%[17]. - Software service revenue fell from approximately HKD 67.4 million (61.9%) in 2023 to about HKD 28.5 million (76.3%) in 2024, a reduction of about 57.7%[18]. - The company recorded a loss of approximately HKD 2.0 million for the year ended December 31, 2024, compared to a loss of about HKD 32.9 million in 2023[25]. - Total revenue for the year ended December 31, 2024, was HKD 37.298 million, a decrease of 65.7% compared to HKD 108.816 million in 2023[192]. - The company reported a loss before tax of HKD 1.813 million for the year ended December 31, 2024, compared to a loss of HKD 32.919 million in 2023[192]. Cost Management - Sales expenses decreased by approximately 91.7%, from about HKD 17.9 million for the fiscal year ending December 31, 2023, to approximately HKD 1.5 million for the fiscal year ending December 31, 2024[8]. - Administrative expenses were reduced by approximately 62.3%, from about HKD 28.4 million for the fiscal year ending December 31, 2023, to approximately HKD 10.7 million for the fiscal year ending December 31, 2024[8]. - The cost of services provided decreased by approximately 71.3% from about HKD 94.7 million in 2023 to about HKD 27.2 million in 2024[19]. - Other losses decreased by approximately 99.3% from about HKD 5.6 million in 2023 to about HKD 0.04 million in 2024[22]. - Total employee cost for the year ended December 31, 2024, was approximately HKD 1.0 million, a decrease from approximately HKD 24.3 million for the year ended December 31, 2023[50]. Corporate Governance - The board of directors emphasizes the importance of maintaining high levels of corporate governance to build trust with shareholders and stakeholders[68]. - The company has adopted anti-bribery and anti-corruption policies since 2019, which include guidelines on gifts, hospitality, and reporting mechanisms for suspected corruption[69]. - The board conducts annual assessments of the independence of non-executive directors to ensure independent opinions and recommendations[70]. - The company has established a corporate culture aligned with its vision, values, and business strategy, which is crucial for sustainable development[75]. - The company has adopted a shareholder communication policy since 2019 to maintain effective dialogue with shareholders[70]. - The board's diversity policy has been in place since 2019 and is reviewed annually by the nomination committee[72]. - The company complies with the GEM listing rules and has implemented most of the new corporate governance regulations introduced in 2022[69]. - The board of directors is responsible for overseeing the company's business management and ensuring alignment with shareholder interests, while also monitoring business performance and approving financial statements[79]. Risk Management - The company faces significant risks including intense competition in the mobile gaming industry and rapid technological changes that could render its games outdated[14]. - The company emphasizes the importance of risk management to effectively mitigate operational and financial risks[14]. - The risk management framework established in 2016 is regularly reviewed to ensure effective internal controls and risk management[135]. - The group maintains a risk register to track identified major risks and actions taken to mitigate them, updated at least annually[136]. - The internal audit department reviews key operational processes to ensure compliance with risk management policies[137]. Shareholder and Board Matters - The company will propose the re-election of Dr. Liu Yi and Mr. Jin Baoting at the upcoming annual general meeting, ensuring continuity in leadership[90]. - The company has appointed three independent non-executive directors, meeting the GEM listing rules requirements for independence and qualifications[83]. - The service contracts for executive directors are set for an initial term of three years starting December 16, 2024, with independent non-executive directors' appointments also set for three years starting January 7, 2025[87]. - The board believes that having the same individual serve as both chairman and CEO provides strong and consistent leadership, facilitating the execution of the company's business strategy[91]. - The company has established three committees: Remuneration Committee, Nomination Committee, and Audit Committee, each with clear written terms of reference[94]. Future Plans and Developments - The company plans to leverage its headquarters in Hangzhou to develop AI models for the gaming sector, aiming for trial operations by 2025 to enhance efficiency and reduce costs in game development[9]. - The company has expanded its trade business related to game IP peripheral production, which is expected to further increase revenue[9]. - Management anticipates that the new business segment related to the clothing manufacturing service will reflect revenue and expenses in the consolidated financial statements for the year ending December 31, 2025[188]. Compliance and Legal Matters - The company has complied with all relevant environmental laws and regulations during the fiscal year ending December 31, 2024[145]. - The independent auditor, Hua Pu (Hong Kong) CPA Limited, was appointed on November 30, 2022, and will be proposed for reappointment at the upcoming annual general meeting[186]. - The group has established internal control procedures for handling and disclosing inside information, complying with GEM listing rules[130]. Share Capital and Financial Position - The company's debt-to-asset ratio as of December 31, 2024, was approximately 16.7%, a significant decrease from 53.5% as of December 31, 2023[45]. - The total liabilities as of December 31, 2024, were HKD 4.571 million, a significant decrease of 65.5% from HKD 13.261 million in 2023[192]. - The total distributable reserves available to the company's shareholders amounted to approximately HKD 12,943,000, compared to HKD 6,396,000 in 2023[160].