Financial Performance - The company's revenue for the fiscal year ending March 31, 2024, was approximately HKD 55.2 million, an increase of about 39% compared to HKD 39.6 million in the previous fiscal year[6]. - The digital media services segment accounted for approximately 87.7% of total revenue, with revenue increasing from approximately HKD 36.0 million to HKD 48.4 million, representing a growth of about 34%[14]. - The company recorded a loss before tax of approximately HKD 9.3 million for the fiscal year, a reduction from a loss of approximately HKD 20.9 million in the previous year[6]. - The loss before tax for the digital media services segment decreased from approximately HKD 13.0 million to HKD 9.0 million, a reduction of about 31%[14]. - Other media services revenue increased from approximately HKD 2.5 million to HKD 6.3 million, resulting in a profit before tax of approximately HKD 0.5 million for the current year[16]. - Gross profit rose from approximately HKD 9.5 million to about HKD 20.0 million, an increase of approximately HKD 10.5 million or 111%, primarily driven by the digital media services segment[21]. - Loss before tax decreased from approximately HKD 20.9 million to HKD 9.3 million, influenced by a gross profit increase of approximately HKD 10.5 million and a reduction in losses from associated companies by approximately HKD 4.3 million[26]. Expenses and Costs - The group's sales cost increased from approximately HKD 30.1 million to about HKD 35.2 million, representing a rise of HKD 5.1 million or 17% due to increased revenue[20]. - Selling and distribution expenses increased from approximately HKD 8.2 million to about HKD 11.5 million, an increase of approximately HKD 3.3 million or 40%, aligned with the rise in revenue[22]. - Administrative expenses rose from approximately HKD 17.2 million to about HKD 19.8 million, an increase of approximately HKD 2.6 million or 15%, mainly due to the absence of government subsidies received in the previous year[25]. - Total employee benefits expenses increased from approximately HKD 26.5 million to about HKD 31.3 million, reflecting the growth in the number of full-time employees from 73 to 81[40]. Strategic Plans and Market Position - The company plans to diversify its marketing channels by expanding to various online and offline platforms by the fiscal year ending March 31, 2025[7]. - The company aims to enhance brand awareness and diversify the types and content of its future activities[13]. - The company will continue to develop its core business while seeking suitable opportunities to maintain a competitive edge in a changing business environment[18]. - The company is considering strategic acquisitions to bolster its market position, with a budget of up to HKD 300 million allocated for potential deals[67]. - Market expansion plans include entering two new regional markets, which are projected to increase user base by 30%[67]. Governance and Corporate Structure - The management emphasized the importance of maintaining high corporate governance standards to protect shareholder interests[73]. - The board of directors will continue to review and enhance corporate governance practices in line with the latest developments[74]. - The company has established three committees: audit, remuneration, and nomination, each with defined responsibilities[99]. - The board has adopted a diversity policy to enhance performance quality, recognizing the importance of gender, social, and racial diversity[91]. - The company maintains a balanced composition of executive and independent non-executive directors to ensure independence and effective management[81]. Shareholder Relations and Dividends - The board of directors does not recommend the payment of a final dividend for the year, maintaining a zero dividend for 2023[51]. - The company has a dividend policy that allows dividends to be paid from profits or share premium, subject to board approval based on various factors, with no predetermined payout ratio[129]. - The company has established a shareholder communication policy to ensure timely and transparent information dissemination[131]. - The board emphasizes effective communication with shareholders through various channels, including printed or electronic communications and annual general meetings[131]. Risks and Challenges - The company identified several key risks, including reliance on social media platforms for advertising, which could significantly impact operational performance if usage declines[147]. - The company’s business model is project-based, and failure to retain existing clients or attract new ones could have a major adverse effect on operational performance[150]. - The company faces potential operational risks from reliance on technology systems, which, if they fail, could severely impact business operations[150]. Compliance and Internal Controls - The company has implemented a risk management and internal control system, which is deemed effective and adequate for the year[121]. - The company has a zero-tolerance policy towards bribery, fraud, and corruption, ensuring ethical conduct across all operations[124]. - The company conducts systematic fraud risk assessments to mitigate identified fraud risks[125]. - The company has established a whistleblowing policy to report any levels of bribery and corruption[125]. Employee and Director Information - The company has provided comprehensive benefits and career development opportunities for all employees, including retirement plans and medical insurance[170]. - The remuneration committee regularly reviews the compensation levels of key executives based on the company's performance and contributions[170]. - The company has purchased appropriate insurance for directors and senior officers to cover legal liabilities arising from their roles[171].
毛记葵涌(01716) - 2024 - 年度财报