Revenue and Financial Performance - The Group's revenue decreased due to the delay in releasing several major films, with only one film produced by the Group launched during the year[17]. - For the year ended December 31, 2022, the Group recorded revenue of HK158,353,000 in 2021, and a net loss of HK235,557,000 in 2021[111]. - The decrease in revenue was primarily due to the postponement of screenings for several blockbuster films, as cinema operational rates in China were adversely affected by the pandemic[111]. - The Group implemented stringent cost control measures, resulting in reduced administrative expenses and a recognized income tax credit, contributing to a decrease in net loss[111]. - No final dividend is recommended for the year ended December 31, 2022, consistent with the previous year where no dividend was paid[175]. Film Production and Releases - The film "Full River Red," invested and controlled by the Group, is scheduled for release during the Spring Festival of 2023, with related income and costs to be accounted for in the interim results for the six months ending June 30, 2023[17]. - The Group has completed post-production for several blockbusters set to debut in 2023, including titles featuring well-known directors and actors, which are expected to attract audiences[20]. - The Group plans to release several blockbuster films in 2023, including "Papa" (學爸), "Something About Us" (紅毯先生), and "Li Na" (獨自•上場), aiming to achieve commendable revenues[32]. - The film "Full River Red" (滿江紅), produced by the Group, topped the box office chart during the Chinese New Year holiday of 2023 and is expected to significantly contribute to the Group's revenue and performance in 2023[31]. - The Group's strategy focuses on producing premium and diverse films and TV productions, collaborating with outstanding directors and professional creative teams[32]. Online Streaming and Content Development - The Group continues to source quality films and TV productions globally for release on its platform "huanxi.com," enhancing its content offerings[23]. - The Group aims to enhance its online video platform "huanxi.com" by including more quality films and TV productions, while also premiering "Full River Red" on the platform soon[37]. - The online video platform "huanxi.com" continued to develop, introducing more films and internet dramas to optimize content and attract more user groups[117]. - The Group is expanding its user base through collaborations with major channels to enhance the coverage of its platform "Huanxi Premier"[121]. - The Group's proactive approach in preparing for the next boom in the film industry is expected to yield high-quality films that will be well received when the market recovers[118]. Risk Management and Corporate Governance - The Company has established risk management and internal control systems to address significant business, operational, financial, compliance, and other risks[70]. - High-priority risks identified include strategic risks in the entertainment industry, operational risks related to media project quality, and compliance risks with various regulations[78]. - The Board, with the assistance of a Consultant, reviewed the effectiveness of the Group's risk management and internal control systems for 2022 and deemed them effective[77]. - The audit committee reviewed the company's corporate governance policies and compliance with legal and regulatory requirements, ensuring adherence to the Corporate Governance Code[127]. - The Company has adopted a whistle-blowing policy to allow employees to report irregularities[79]. Director and Management Information - The Company has independent non-executive directors with significant experience in finance and media, enhancing its governance structure[160][164]. - The Company is focused on developing new strategies for market expansion and enhancing its online video platform capabilities[172]. - The Company continues to strengthen its board with experienced professionals to navigate the evolving media landscape[171]. - All existing Directors received training on regulatory development and other relevant topics during the year ended 31 December 2022[1]. - The Company is committed to providing continuous professional development training for all Directors[87]. Market Trends and Industry Challenges - The pandemic has provided opportunities for the streaming media industry to thrive, with online viewing becoming a significant leisure activity for the public[24]. - The pandemic has significantly impacted the film industry, with a notable drop in the number of films produced and box office receipts in China[119]. - The film industry faced significant challenges due to the pandemic, with a notable decrease in domestic film releases and box office revenue hitting a near-record low[122]. - The company is committed to monitoring the ongoing impact of the pandemic on the media market and taking proactive measures to mitigate its effects on operations and financial performance[123]. - The Chinese government's policies to boost consumption, including tax concessions and lifting restrictions, are expected to foster recovery in the cultural industry, which is a key project for economic recovery[29].
欢喜传媒(01003) - 2022 - 年度财报