中国国家文化产业(00745) - 2021 - 年度财报

Company Information This section details the board of directors, committee members, company secretary, auditor, registered and principal offices, share registrar, and listing information for China National Culture Group Limited - The Board of Directors includes Mr. Shi Junfeng (Chairman), Ms. Sun Wei, Ms. Man Qiaozhen (Executive Directors), and Mr. Liao Guangsheng, Ms. Wang Miaojun, Ms. Wang Yujie (Independent Non-Executive Directors)[4] - The Audit Committee, Remuneration Committee, and Nomination Committee are composed of independent non-executive directors and some executive directors[4] - The Company Secretary is Mr. Leung Cho Yi, and the auditor is Kaiyuan Xinde Certified Public Accountants Limited[4] - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, with stock code 745[5] Chairman's Statement This statement reviews the Group's annual operating and financial performance, noting a net loss due to COVID-19 and economic downturn impacts on advertising and e-commerce, and outlines future strategies for business diversification and strategic content investments - The Group continued to focus on its existing advertising and e-commerce businesses, but consumer and client spending power was affected by the COVID-19 pandemic and global economic downturn[8] - The Group recorded a net loss for the year, primarily due to reduced gross profit, net realized and unrealized losses on financial assets held for trading, and impairment losses on goodwill and intangible assets[8] - The Group is committed to developing its film segment, including investing in, acquiring, and distributing film, web series, and TV drama content, expecting positive contributions in the future[8] - Future plans include continuous development of advertising and e-commerce businesses, expansion through acquisitions/collaborations, strategic investments in local and overseas film/TV content production, and diversification into media and culture-related industries[12] Management Discussion and Analysis This section details the Group's business and financial performance for the year ended March 31, 2021, noting slight revenue growth, improved gross margin, and a net loss due to intangible asset impairment, alongside a stable liquidity position and diversified investments Business Review For the year ended March 31, 2021, the Group's revenue slightly increased by 1.3% to HK$78,095 thousand, primarily driven by the film segment. Gross profit margin improved from 19.5% to 29.6%, mainly due to service upgrades in the advertising business. Loss attributable to owners of the company was approximately HK$56,317 thousand, a reduction from HK$92,227 thousand last year, but a net loss was still recorded due to impairment losses on intangible assets FY2021 Business Performance | Metric | 2021 (HK$ thousand) | 2020 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 78,095 | 77,116 | +1.3% | | Gross Profit | 23,125 | 15,076 | +53.4% | | Gross Profit Margin | 29.6% | 19.5% | +10.1pp | | Loss Attributable to Owners of the Company | (56,317) | (92,227) | -38.8% | - Revenue increase was primarily contributed by the film segment[13] - Gross profit margin improvement was mainly due to service upgrades in the advertising business segment for existing clients to enhance market competitiveness[13] - The net loss recorded was primarily due to the recognition of impairment losses on intangible assets[13] Financial Review At year-end, non-current assets significantly decreased to approximately HK$35,365 thousand (2020: HK$87,385 thousand) due to impairment losses on intangible assets. Total current assets and liabilities also decreased due to reductions in trade and other receivables, prepayments, deposits, and trade payables Non-current Assets Movement | Metric | 2021 (HK$ thousand) | 2020 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current Assets | 35,365 | 87,385 | -59.6% | - The decrease in non-current assets was mainly due to the recognition of impairment losses on intangible assets during the year[14] - Current assets decreased due to reductions in trade receivables, prepayments, deposits, and other receivables[14] - Total current liabilities decreased due to a reduction in trade payables[14] Material Investments As of March 31, 2021, the Group's financial assets held for trading totaled HK$20,185 thousand, with significant investments in Capital VC Limited and Asia Grocery Distribution Limited. Equity instruments at fair value through other comprehensive income totaled HK$4,400 thousand, including investment in Lisi Group Holdings Limited. The Group will continue to maintain a diversified investment portfolio and closely monitor market trends Financial Assets Held for Trading (As of March 31, 2021) | Investee Company Name | April 1, 2020 (HK$ thousand) | Fair Value Gain/(Loss) (HK$ thousand) | March 31, 2021 (HK$ thousand) | Percentage of Group's Total Assets (%) | | :--- | :--- | :--- | :--- | :--- | | Capital VC Limited | 2,400 | 450 | 2,850 | 2.8% | | Asia Grocery Distribution Limited | 4,032 | (1,512) | 2,520 | 2.5% | | Subtotal | 6,432 | (1,062) | 5,370 | 5.3% | | Other Listed Securities | 7,172 | 2,726 | 14,815 | 14.5% | | Total | 13,604 | 1,664 | 20,185 | 19.8% | Equity Instruments at Fair Value Through Other Comprehensive Income (As of March 31, 2021) | Investee Company Name | April 1, 2020 (HK$ thousand) | Fair Value Loss (HK$ thousand) | March 31, 2021 (HK$ thousand) | Percentage of Group's Total Assets (%) | | :--- | :--- | :--- | :--- | :--- | | Lisi Group Holdings Limited | 2,229 | (258) | 1,971 | 1.9% | | Other Listed Securities | 1,181 | 1,248 | 2,429 | 2.4% | | Total | 3,410 | 990 | 4,400 | 4.3% | - The Group will continue to maintain a diversified investment portfolio and closely monitor its investment performance and market trends to adjust its investment strategy[18] Capital Structure As of March 31, 2021, the company's authorized share capital was HK$1,000,000 thousand, divided into 25,000,000,000 shares of HK$0.04 each and 3,500,000,000 non-voting convertible preference shares of HK$0.14 each. The number of issued shares was 588,864,600 shares of HK$0.04 each, with changes during the year due to share consolidation, subdivision, and placement - As of March 31, 2021, the authorized share capital was HK$1,000,000 thousand, divided into 25,000,000,000 shares of HK$0.04 each and 3,500,000,000 non-voting convertible preference shares of HK$0.14 each[22][24] - The number of issued shares was 588,864,600 shares of HK$0.04 each[25] - Changes in issued share capital during the year included share consolidation (effective May 21, 2020) and share subdivision (effective July 28, 2020)[26][24] Use of Proceeds The placement completed on August 19, 2020, successfully placed 98,144,100 ordinary shares, with net proceeds of approximately HK$6,200 thousand fully utilized for the Group's general working capital and to improve its cash position, facilitating existing and future business development - A placement was completed on August 19, 2020, successfully placing 98,144,100 ordinary shares at a placement price of HK$0.065 per share[27] Net Proceeds from Placement and Their Use | Metric | Amount (HK$) | | :--- | :--- | | Net Proceeds |