Financial Performance - Revenue increased by approximately HKD 3.7 million or about 1.0% to HKD 364.0 million for the year ended March 31, 2024, primarily due to an increase in revenue from operating indoor theme parks by HKD 29.8 million[31]. - The number of visitors calculated based on ticket sales decreased significantly by 41.7% from 1.2 million to 0.7 million for the year ended March 31, 2024[32]. - Loss attributable to owners of the company decreased by approximately HKD 862.9 million or about 83.5% to HKD 170.7 million for the year ended March 31, 2024[37]. - The group's gross profit increased significantly from approximately HKD 19.9 million for the year ended March 31, 2023, to approximately HKD 55.4 million for the year ended March 31, 2024, representing a growth of about 178.4%[47]. - The gross profit margin improved from approximately 5.5% for the year ended March 31, 2023, to approximately 15.2% for the year ended March 31, 2024[47]. - Other income decreased from approximately HKD 16.4 million for the year ended March 31, 2023, to approximately HKD 0.6 million for the year ended March 31, 2024, primarily due to the absence of rental income exemptions[48]. - The group recorded a net loss of approximately HKD 170,311,000 for the year ending March 31, 2024[178]. Research and Development - R&D expenses decreased from approximately HKD 262.6 million to HKD 14.9 million for the year ended March 31, 2024, a reduction of about 94.3%[36]. - Research and development expenses were significantly reduced as the group focused on developing online businesses, including Meta JOYPOLIS and virtual theme parks[50]. - The company plans to continue investing in VR technology to establish a global user database and better understand consumer preferences in the VR esports market[41]. Business Strategy and Expansion - The company is focusing on expanding its multimedia anime entertainment business centered around anime IP and VR, including esports[7]. - The company has resumed IP project collaborations and is exploring various peripheral fields, including theme parks and virtual platforms[28]. - The group plans to leverage its quality anime IP and collaborate with well-known online and offline sales platforms to sell licensed and premium anime derivative products[53]. - The board believes that continuous promotion of the group's anime cultural technology business will create more profitable opportunities in the "culture + real estate" projects in collaboration with the Chinese government and other property developers[54]. - The company aims to enhance its innovation capabilities and operational levels to navigate the complex and changing market environment[17]. Employee and Governance - As of March 31, 2024, the group had 203 employees, a decrease from 301 employees as of March 31, 2023[60]. - Employee compensation and benefits for the year ended March 31, 2024, amounted to approximately HKD 75.5 million, an increase from approximately HKD 72.5 million for the previous year[60]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending March 31, 2024, except for specific provisions detailed in the report[99]. - The board consists of six directors, including three executive directors and three independent non-executive directors, with a commitment to gender diversity[103]. - The employee gender ratio as of March 31, 2024, is 47.83% male to 52.17% female, reflecting the company's efforts towards diversity[109]. - The company has established a dividend policy that considers financial performance, retained earnings, and future expansion plans when declaring dividends[100]. - The board has established various committees to handle different aspects of the company's affairs, enhancing operational efficiency[112]. - The company emphasizes board diversity as a key element for achieving strategic goals and sustainable development, considering factors such as gender, age, and professional experience[150]. Risk Management - The company has established a comprehensive risk management system that incorporates risk identification, assessment, and response into daily operations, demonstrating its capability to address challenges from both internal and external environments[191]. - The audit committee has reviewed the effectiveness of the internal control system for the year ending March 31, 2024, ensuring that it meets operational efficiency and compliance with applicable laws and regulations[193]. - The company established a cross-departmental risk management task force to systematically build a risk management framework[179]. Corporate Governance - The board has reviewed the audited consolidated financial statements and approved the risk management and internal control systems for the year ended March 31, 2024[73]. - All directors received training on their responsibilities and relevant laws during the year ending March 31, 2024[114]. - The board has established mechanisms to ensure independent viewpoints and opinions are available, with independent non-executive directors providing support and independent perspectives[120]. - The board is responsible for overseeing the company's affairs, adopting long-term strategies, and appointing and supervising senior management to ensure operations align with the group's objectives[121]. - A total of 40 board meetings were held during the year ending March 31, 2024, with formal notifications and meeting documents sent to all directors in accordance with corporate governance codes[137]. - The Remuneration Committee is tasked with recommending remuneration policies for all directors and senior management, including compensation for loss of office[149].
华夏文化科技(01566) - 2024 - 年度财报