Financial Performance - The group recorded a revenue of approximately HKD 700,000, a decrease of 98.4% compared to HKD 45,900,000 in the previous year due to the impact of COVID-19 and the temporary closure of all casinos in Cambodia since April 1, 2020[15]. - The net loss for the year was approximately HKD 43,000,000, an increase of 12.8% from the previous year's loss of approximately HKD 38,100,000, primarily due to reduced revenue and the termination of the VIP gaming business[15]. - The company reported a total comprehensive loss for the year of HKD 42,999,000, compared to HKD 38,108,000 in 2020, indicating a decline of approximately 12.3%[200]. - The company reported a loss from continuing operations of HKD 42,999,000 for the year, compared to a loss of HKD 63,088,000 in 2020, indicating an improvement of about 31.9%[198]. - The company's main business, gaming operations, recorded no revenue for the year ended March 31, 2021, compared to HKD 43,942,000 in 2020, due to severe disruptions from the COVID-19 pandemic[190]. - Total revenue for the year was HKD 727,000, a significant decrease from HKD 45,922,000 in the previous year, reflecting a decline of approximately 98.4%[198]. - The impairment loss on goodwill was HKD 14,257,000, a decrease from HKD 27,504,000 in the previous year, showing a reduction of approximately 48.1%[198]. - The company incurred financing costs of HKD 13,998,000, which increased from HKD 8,862,000 in the previous year, representing a rise of about 58.5%[198]. - The group experienced a net cash outflow from operations of approximately HKD 13,953,000 during the same period[188]. - The group has a net current liability of approximately HKD 47,359,000 as of March 31, 2021[188]. Business Strategy and Operations - The company plans to explore opportunities in other industry sectors to diversify existing business risks and enhance long-term sustainable development[11]. - The company is preparing to reopen casinos as soon as the COVID-19 situation improves and travel restrictions are lifted, aiming to capitalize on the rapid growth of Cambodia's tourism industry[7]. - The group is focused on maintaining its leading position in the Southeast Asian entertainment and gaming industry despite the challenges posed by the pandemic[6]. - The company aims to explore other business opportunities, such as intermediary services, to generate revenue amidst the ongoing challenges[24]. - The group is focusing on the gaming business and strategically relocating casino operations to Dara Sakor, one of the fastest-growing areas in Cambodia, to capitalize on local growth opportunities post-COVID-19[48]. - The company has entered into a transfer agreement for the casino business rights for HKD 120,000,000, with profit guarantees of HKD 28,000,000 and HKD 32,000,000 for the first two years[25]. - The new casino location in Dara Sakor, Koh Kong Province has a lease agreement with a term from October 1, 2020, to September 30, 2035, with a fixed cost of HKD 120,000,000[27]. - The new gaming rights will be valid for five years from the reopening date of the new casino, with a profit guarantee period covering 24 consecutive months to mitigate operational risks[27]. - The reopening of the new casino was initially scheduled for January 31, 2021, but has been delayed due to a resurgence of COVID-19 cases and strict lockdown measures in Cambodia[159]. Financial Position and Liabilities - The group's net liabilities amounted to approximately HKD 23,000,000, a decrease of about HKD 33,100,000 from the net asset value of approximately HKD 10,100,000 as of March 31, 2020[16]. - As of March 31, 2021, the total assets and net liabilities of the group were approximately HKD 114,400,000 and HKD 23,000,000, respectively[22]. - The group's asset-liability ratio was approximately 120.1% as of March 31, 2021, compared to 93.5% in the previous year[22]. - The company has a net debt of approximately HKD 23 million, primarily due to other borrowings from independent third parties amounting to HKD 60.6 million, including principal of HKD 58 million and interest of HKD 2.6 million, as well as convertible bonds with a face value of HKD 50 million[44]. - The company plans to negotiate with creditors for debt restructuring to reduce overall liabilities[45]. Corporate Governance - The board emphasizes transparency and accountability in corporate governance to enhance shareholder value and stakeholder interests[50]. - The company has adopted the corporate governance code and complies with all applicable provisions, with regular reviews to ensure adherence[51]. - The board believes that the dual role of the chairman and CEO provides strong and consistent leadership beneficial for strategic planning and implementation[52]. - The board has established a diversity policy to enhance corporate governance, considering various factors such as gender, age, and professional experience in board member selection[59]. - The board consists of five members, including two executive directors and three independent non-executive directors, ensuring a diverse skill set and experience[62]. - The independent non-executive directors account for over one-third of the board, with one possessing appropriate accounting qualifications or relevant financial management expertise[64]. - The company has made appropriate insurance arrangements for its directors and senior officers against potential legal actions[68]. - The company has established procedures to ensure compliance with applicable rules and regulations, allowing directors to seek independent professional advice when necessary[65]. - The company has adopted a nomination policy to ensure a balanced diversity of skills, experience, and perspectives on the board[60]. - The company encourages all directors to participate in continuous professional development to enhance their knowledge and skills[72]. Risk Management - The company has implemented risk management strategies based on internal and external factors affecting its business[88]. - The company is sensitive to economic downturns and changes in consumer spending, which may significantly impact demand for gaming services and financial performance[35]. - The company has established procedures to address significant risks related to its business environment[86]. - The company is facing significant uncertainties regarding its ability to continue as a going concern, primarily due to the ongoing impact of the COVID-19 pandemic on its operations[190]. - The company has a robust internal control system and risk management framework, which was reviewed by the Audit Committee[74]. Employee and Customer Relations - The company emphasizes effective communication and transparency with investors, having engaged a professional public relations firm to maintain ongoing communication with investors[95]. - The group emphasizes the importance of human resources and offers competitive compensation to retain talented employees, participating in mandatory provident fund schemes and providing medical insurance[168]. - The company actively manages relationships with employees, providing internal training and encouraging feedback to enhance skills and knowledge[106]. - The company maintains strong relationships with customers, utilizing various communication channels to gather feedback and understand expectations[107]. Impact of COVID-19 - The impact of COVID-19 continues to hinder the group's business and economic activities, making it difficult to estimate the related effects on operational performance, cash flow, and financial position as of September 30, 2021[109]. - The international tourist arrivals in Cambodia decreased by 80.2% to 1.3 million in 2020 due to COVID-19, significantly impacting the tourism and gaming sectors[24]. - The gaming operations were temporarily suspended due to COVID-19, with all casinos in Cambodia closed from April 1, 2020, to prevent the spread of the virus[155].
世纪娱乐国际(00959) - 2021 - 年度财报