GAMEONE(08282)2024-03-28 09:56Financial Performance - The company recorded a net loss of approximately HKD 33.0 million for the fiscal year ending December 31, 2023, compared to a net loss of HKD 11.1 million in the same period of 2022, indicating a significant increase in losses[9]. - The decrease in operating revenue from licensed mobile games contributed to a reduction in gross profit by HKD 9.4 million in 2023[9]. - Gross profit decreased by approximately 40.0% to about HKD 14.1 million in 2023, with a gross margin of approximately 12.9%, down from 25.7% in 2022[20]. - The company recorded a loss of approximately HKD 33.0 million in 2023, compared to a loss of about HKD 11.1 million in 2022, attributed to decreased gross profit and increased administrative expenses[24]. - The company's revenue increased by approximately 19.2% from about HKD 91.3 million in 2022 to approximately HKD 108.8 million in 2023, primarily due to increased income from software and technology services in mainland China[18]. Expenses and Costs - Administrative expenses increased by HKD 11.7 million in 2023 due to rising employee costs and office supplies[9]. - Administrative expenses increased by approximately 69.0% to about HKD 28.4 million in 2023, primarily due to rising employee costs and office supplies[23]. - The cost of services provided increased by approximately 39.7% to about HKD 94.7 million in 2023, mainly due to increased costs related to software services in mainland China[19]. - The total employee cost for the year ending December 31, 2023, reached approximately HKD 24.3 million, an increase from approximately HKD 15.6 million for the year ending December 31, 2022[44]. Corporate Governance - The company has adhered to the corporate governance code and principles as per GEM listing rules, ensuring accountability and transparency[67]. - The company has implemented anti-corruption policies since 2019, including guidelines on gifts, hospitality, and reporting mechanisms for suspected corruption[67]. - The board is responsible for fostering a healthy corporate culture aligned with the company's vision, values, and business strategy[67]. - The company has been recognized for its high-level corporate governance practices, which are crucial for maintaining stakeholder trust[66]. - The board includes independent non-executive directors who provide independent opinions and oversight[60][62][63]. Risk Management - The company faces significant risks including intense competition in the mobile gaming industry and the rapid technological changes that may render its games outdated[15]. - The company is actively working to manage operational and financial risks to mitigate potential challenges in the market[15]. - The company has established a framework for internal controls and risk management, which is regularly assessed by the audit committee[103]. - The group has established a corporate risk management framework since 2016, following the COSO framework to effectively manage risks faced by the company[141]. Market and Business Development - The company aims to expand its market share in mainland China by leveraging its headquarters in Hangzhou[10]. - The company has signed contracts with multiple banks in mainland China for its cybersecurity technology services, generating revenue[10]. - The company’s main business includes providing software services, internet security technology services, and big data analysis services to customers in China[154]. Shareholder Information - The total reserves available for distribution to shareholders as of December 31, 2023, amounted to approximately HKD 8,796,000, down from HKD 11,186,000 in 2022[167]. - The group did not declare a final dividend for the year ending December 31, 2023, consistent with the previous year where no dividend was paid[156]. - The company has established a dividend policy that considers various factors, including financial performance, shareholder equity, and future capital requirements, ensuring a balanced approach to dividend distribution[127]. Employee and Management - The total number of employees decreased to 27 as of December 31, 2023, from 50 on December 31, 2022[44]. - Liu Yi was appointed as Executive Director and CEO on January 7, 2022, overseeing overall strategic planning and management[58]. - Huang Jianying joined as Executive Director on December 16, 2021, with extensive experience in management and the apparel industry[59]. Compliance and Legal Matters - The company confirmed it has maintained the public float required by GEM listing rules as of the report date[193]. - The independent auditor, Hua Pu (Hong Kong) CPA Limited, was appointed on November 30, 2022, following the resignation of another firm[196]. - The group recognizes the importance of compliance with relevant laws and regulations, with no significant non-compliance issues reported for the year ending December 31, 2023[150]. Environmental and Social Responsibility - The group has implemented green initiatives and measures in its daily operations, adhering to all relevant environmental laws and regulations for the year ending December 31, 2023[149]. - The company has not made any charitable donations during the year ending December 31, 2023, remaining at zero as in the previous year[161].