Financial Performance - For the fiscal year 2022/2023, Michong Metaverse (China) Holdings Group Limited reported revenue of approximately HKD 131,737,000, an increase of HKD 19,339,000 or 17.2% from the previous fiscal year[12]. - The company achieved a profit of approximately HKD 20,282,000 for the fiscal year 2022/2023, compared to a loss of HKD 38,193,000 in the fiscal year 2021/2022[12]. - Revenue from the e-commerce business contributed approximately HKD 55,491,000, accounting for 42.1% of total revenue, compared to HKD 18,108,000 or 16.1% in 2022[26]. - Revenue increased from approximately HKD 112,398,000 to HKD 131,737,000, representing a growth of 17.2% for the year ended June 30, 2023[43]. - The group reported that the sales from its top five customers accounted for approximately 35.7% of total revenue for the year ended June 30, 2023, down from 49.0% in 2022[124]. - The largest customer contributed about 14.4% of total revenue for the year ended June 30, 2023, compared to 15.6% in 2022[124]. Revenue Sources - Revenue from network support and connection services decreased by approximately HKD 18,044,000 or 19.1% to about HKD 76,246,000 due to the completion of a significant one-time hardware sales project in the previous fiscal year[15]. - Revenue from the Malaysian market decreased by approximately HKD 20,547,000 or 22.4% to about HKD 71,221,000 for the year ended June 30, 2023, primarily due to the completion of significant one-time hardware sales in previous years and currency effects[29]. - Revenue from the Chinese market increased by approximately HKD 2,503,000 or 99.2% to about HKD 5,025,000 for the year ended June 30, 2023, up from HKD 2,522,000 in 2022[30]. Operational Developments - The company upgraded its mobile application "Michong Short Video" to enhance user experience and explore advertising business opportunities within its e-commerce operations[13]. - The company plans to allocate more internal resources towards the research and development of its e-commerce business to capitalize on the shift towards online shopping post-COVID-19[13]. - The company aims to diversify its market and expand revenue sources by entering the Chinese market for network support and connection services[15]. - The company’s main operational bases are located in China and Malaysia, focusing on network support services, network connection services, and e-commerce[11]. Blockchain and Virtual Assets - The company plans to allocate more time and resources to develop blockchain technology services to meet global demand[17]. - The company has initiated a strategic cooperation memorandum with 羅馬 (元宇宙) to integrate blockchain technology into their business and explore cryptocurrency opportunities[23]. - The company established a wholly-owned subsidiary, 魔文區塊鏈科技有限公司, in April 2023 to provide customized solutions for virtual asset exchanges and NFT technology[17]. - The board believes that blockchain technology and virtual assets have the potential to disrupt existing financial and technology industries, with the virtual asset market value increasing from approximately USD 10.3 billion in 2013 to about USD 1,076.6 billion in January 2023[31]. Cost Management - Cost of sales decreased by 12.7% from approximately HKD 72,075,000 to HKD 62,889,000, primarily due to a reduction in inventory costs[44]. - Selling expenses decreased significantly by 86.5% from approximately HKD 44,073,000 to HKD 5,969,000, mainly due to reduced initial marketing costs for the e-commerce business[49]. - Administrative and other operating expenses increased by 15.9% from approximately HKD 35,648,000 to HKD 41,326,000, primarily due to business expansion in China[50]. Corporate Governance - The company is committed to maintaining robust corporate governance through its independent directors and audit committee[95][97]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[193]. - The company has adopted the corporate governance code as the basis for its governance practices, with compliance noted except for one specific provision[186]. Shareholder Information - The company did not recommend a final dividend for the year ended June 30, 2023, consistent with the previous year[69]. - As of June 30, 2023, Mr. Yu holds 416,364,000 shares, representing approximately 69.39% of the company's ordinary shares[139]. - Thrive Harvest Limited owns 303,864,000 shares, accounting for about 50.64% of the issued share capital[139]. Future Plans and Investments - The company plans to utilize part of the funds for promoting business to gain more market share through online marketing strategies, including LinkedIn, Facebook, and Google ads[85]. - The company has capital commitments of approximately HKD 30,301,000 as of June 30, 2023, compared to approximately HKD 17,523,000 in 2022, indicating planned future investments[72]. - The company has established a disaster recovery center and aims to become a licensed network service provider, with an allocation of 22.5% of the net proceeds (approximately HKD 6.3 million) for this purpose[80]. Compliance and Legal Matters - The company has maintained compliance with all significant laws and regulations affecting its business operations as of June 30, 2023[110]. - Legal advisors have indicated that Wuhan MiChong's e-commerce membership card sales model does not constitute pyramid selling under Chinese law[74]. - The company has taken appropriate measures to prevent similar incidents, including maintaining ongoing communication with local regulatory bodies[77].
比特元宇宙(08645) - 2023 - 年度财报