Financial Performance - The company's revenue for the fiscal year 2020 decreased by approximately 51% to about HKD 40.5 million from approximately HKD 82.0 million in 2019[14]. - The gross profit fell by about 63% to approximately HKD 10.5 million compared to approximately HKD 28.6 million in the previous year[14]. - The net loss after tax for the fiscal year 2020 was approximately HKD 32.0 million, a significant increase from a net loss of about HKD 3.0 million in 2019[14]. - The total revenue for the fiscal year was approximately HKD 40.5 million, a decrease of about 51% compared to approximately HKD 82.0 million for the fiscal year ended December 31, 2019[30]. - The net loss after tax for the fiscal year was approximately HKD 32.0 million, compared to a net loss of approximately HKD 3.0 million for the fiscal year 2019[30]. - Revenue from technical sales and distribution of electronic gaming equipment was approximately HKD 36.9 million, down about 51% from approximately HKD 75.0 million in the previous fiscal year[30]. - Revenue from consulting and technical services was approximately HKD 2.5 million, a decrease of about 42% from approximately HKD 4.3 million in the previous fiscal year[30]. - Revenue from maintenance services was approximately HKD 1.1 million, down about 61% from approximately HKD 2.7 million in the previous fiscal year[30]. - The overall gross profit for the fiscal year was approximately HKD 10.5 million, with a gross margin of about 26.0%, compared to a gross profit of approximately HKD 28.6 million and a gross margin of about 34.8% in the previous fiscal year[30]. - Operating expenses were reduced by approximately 37.1% to about HKD 20.8 million in 2020, compared to about HKD 33.0 million in 2019, primarily due to voluntary salary reductions and a 56% decrease in professional fees[58]. - The net loss after tax for the fiscal year 2020 was approximately HKD 32.0 million, compared to a net loss of about HKD 3.0 million in 2019, largely due to a one-time impairment of approximately HKD 22.9 million and a decline in electronic gaming equipment sales[59]. Business Strategy and Future Outlook - The company is optimistic about the vaccination program and believes that business activities can return to pre-pandemic levels in 2021[18]. - The company is actively exploring new business opportunities that align with its core electronic gaming equipment business[18]. - The company decided not to pursue further development of Asia Pioneer Sports Entertainment Limited announced on June 24, 2020, due to the ongoing impact of COVID-19 on travel and entertainment activities[18]. - The company plans to launch a smart vending machine business targeting tourists and local residents in Macau, with initial offerings including soft drinks and snacks, and aims to test the machines in the first half of 2021[47]. - The company is optimistic about the future demand for electronic gaming equipment, anticipating a recovery in core business operations within 2 to 3 years[52]. - The company is currently in discussions to operate an arcade gaming area within a major shopping center in Macau, which will feature electronic games and skill-based games[52]. - The company has ordered 15 smart vending machines for trial and testing in Macau, aiming to launch the smart vending business in the first half of 2021[19]. - The company has signed agreements with local suppliers for the smart vending machine initiative and is currently scouting locations in Macau for deployment[47]. Cash Management and Financial Position - The cash and cash equivalents increased by approximately 11% to about HKD 48.2 million as of December 31, 2020, from approximately HKD 43.6 million as of December 31, 2019[20]. - The company has no debt or borrowings as of December 31, 2020[20]. - The company achieved a reduction of about 37% in operating expenses through cost-cutting measures, resulting in a healthy cash position with no debt as of the report date[49]. - The total assets as of December 31, 2020, were approximately HKD 66.7 million, down from approximately HKD 112.2 million in 2019[54]. - The group maintained a prudent cash management policy, ensuring cash reserves are held in licensed financial institutions in Hong Kong and Macau as of December 31, 2020[70]. Governance and Compliance - The company has adopted and complied with all applicable provisions of the Corporate Governance Code as per the GEM Listing Rules during the year ended December 31, 2020[105]. - The board of directors is responsible for overseeing the management of the group's business affairs and overall performance[107]. - The board consists of six directors, with independent non-executive directors making up 50% of the board members[112]. - The company has established four committees under the Board: Audit Committee, Nomination Committee, Remuneration Committee, and Risk Management Committee, to oversee specific areas of governance[128]. - The Audit Committee consists of all independent non-executive directors, ensuring independence and objectivity in the audit process[130]. - The company has adopted a nomination policy that outlines the standards and procedures for appointing or reappointing candidates as directors, ensuring a diverse and qualified Board[138]. - The company has made appropriate insurance arrangements to protect directors against liabilities incurred in the performance of their duties[115]. - The independent non-executive directors have confirmed their independence in accordance with the GEM Listing Rules[113]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[118]. - The board has implemented a diversity policy, ensuring a mix of skills, experience, and perspectives among its members[124]. Market Conditions and Industry Impact - Macau's total gaming revenue for the fiscal year 2020 decreased by 79.3% to MOP 60.44 billion (USD 7.56 billion) from MOP 292.46 billion (USD 36.6 billion) in 2019, marking the lowest revenue in 14 years[35]. - The number of visitors to Macau dropped by 85% from 39.4 million in 2019 to 5.9 million in 2020 due to the COVID-19 pandemic[37]. - Most clients experienced revenue declines of up to 50% and reported losses during the fiscal year 2020[38]. - The company estimates that up to 15% of 2020 orders from long-term clients were delayed due to the COVID-19 pandemic, with an additional 12% of orders canceled[45]. - The company believes that the gaming industry will recover rapidly in 2022 as most affected countries introduce government-supported vaccination programs[45]. Employee and Operational Management - The company has maintained a consistent employee count of 40, with total employee costs decreasing to approximately HKD 13.5 million in 2020 from about HKD 18.3 million in 2019[67]. - The company received a government cash subsidy of MOP 200,000 and implemented voluntary salary reductions and unpaid leave policies, reducing employee costs by approximately 15%[44].
亚洲先锋娱乐(08400) - 2020 - 年度财报