Financial Performance - The Group recorded a revenue of approximately HK$228.07 million for the year ended 30 June 2021, representing a decrease of approximately 58.62% compared to HK$551.11 million for the prior year[12]. - The loss for the Reporting Year was approximately HK$5.45 million, a significant decline from a profit of approximately HK$142.17 million in the previous year, representing a decrease of approximately 103.83%[12]. - Total comprehensive income for the Reporting Year was approximately HK$46.54 million, down approximately 60.91% from HK$119.06 million in the prior year[12]. - Revenue decreased by approximately HK$323.04 million, or approximately 58.62%, from approximately HK$551.11 million in the prior year to approximately HK$228.07 million in the reporting year[66]. - Operating profit decreased by approximately HK$191.46 million, or approximately 77.14%, from approximately HK$248.21 million in the prior year to approximately HK$56.75 million in the reporting year[77]. - The Group's loss for the year attributable to the owners increased by approximately HK$137.92 million, or approximately 100.60%, from profit of approximately HK$137.10 million for the Prior Year to loss of approximately HK$0.82 million for the Reporting Year[83]. Revenue Breakdown - Revenue from exhibitions and events decreased by approximately HK$46.18 million, or approximately 99.74%, from approximately HK$46.30 million for the Prior Year to approximately HK$0.12 million for the Reporting Year, representing 0.05% of total revenue[30]. - Revenue from cultural and entertainment business decreased by approximately HK$271.68 million, or approximately 60.78%, from approximately HK$447.01 million for the Prior Year to approximately HK$175.33 million for the Reporting Year, representing 76.88% of total revenue[33]. - Brand management and related services revenue decreased from HK$19.79 million in the Prior Year to HK$10.39 million in the Reporting Year[41]. - Promotion and consulting services revenue decreased from HK$195.66 million in the Prior Year to HK$60.37 million in the Reporting Year[41]. - Trading of goods revenue was approximately HK$104.56 million in the Reporting Year, down from HK$136.56 million in the Prior Year[41]. - The Group's financing segment revenue decreased from HK$57.81 million in the Prior Year to HK$52.62 million in the Reporting Year[27]. Impact of COVID-19 - The Group did not organize any large-scale exhibitions during the Reporting Year due to the ongoing challenges posed by the COVID-19 pandemic[13]. - The cultural and entertainment business was significantly impacted by temporary store closures and lower customer traffic, leading to some clients closing their stores to mitigate losses[14]. - The overall performance of the cultural and entertainment business was significantly impacted by COVID-19 pandemic prevention measures and social distancing policies[31]. - The development of the Group's e-platform has been postponed due to uncertainties surrounding the COVID-19 pandemic[15]. - If the current market conditions persist, the Group may be forced to abandon its exhibitions and events business[13]. - The ongoing COVID-19 pandemic is expected to continue challenging the business environment, particularly in the exhibitions and events industry, although revenue is anticipated to improve once the pandemic is under control[120][123]. Cost Management - The Group plans to manage revenue sources more prudently and implement stringent cost control measures to minimize risk exposure in the uncertain economic environment[20]. - Selling expenses decreased by approximately HK$11.27 million, or approximately 43.63%, from approximately HK$25.83 million in the prior year to approximately HK$14.56 million in the reporting year[70]. - Administrative expenses decreased by approximately HK$17.12 million, or approximately 28.15%, from approximately HK$60.82 million in the prior year to approximately HK$43.70 million in the reporting year[70]. Assets and Liabilities - Total assets as of 30 June 2021 were HK$882.12 million, a decrease from HK$1,157.37 million in the previous year[9]. - Total liabilities decreased to HK$99.21 million from HK$459.72 million in the prior year[9]. - As of June 30, 2021, the Group's total current assets were approximately HK$569.59 million, down from HK$692.42 million in 2020, while current liabilities decreased to approximately HK$95.78 million from HK$447.97 million, resulting in a current ratio of about 5.95 times compared to 1.55 times in 2020[95][101]. - The Group's cash and cash equivalents as of June 30, 2021, were approximately HK$69.06 million, a decrease from HK$137.43 million in 2020[96][101]. - Borrowings as of June 30, 2021, were approximately HK$66.77 million, significantly reduced from HK$312.27 million in 2020, with a gearing ratio of 7.57% compared to 26.98% in the previous year[107][110]. Employee and Management - As of June 30, 2021, the Group had 97 full-time employees, a decrease from 154 employees in 2020, indicating a reduction of about 37%[129][133]. - The remuneration policy includes salaries, discretionary bonuses, and commissions, with additional medical benefits and training provided to employees[129][133]. - The Group's chairman and CEO, Mr. Deng, has over 21 years of experience in corporate management and strategic planning[135][139]. - Ms. Huang, a non-executive Director, has over 21 years of experience in managing real estate agency business in the PRC[143][144]. - Mr. Choi has over 12 years of experience in securities trading, fundraising activities, corporate finance, and project investments[148]. - Mr. Tsang has over 26 years of experience in finance, accounting, and auditing[150]. Strategic Focus and Future Outlook - The Group plans to closely monitor the development of the COVID-19 pandemic and implement measures to mitigate its operational impact[121][124]. - The Group's strategic focus includes managing foreign exchange risks and optimizing employee remuneration structures[128][130]. - The Group has established a team to monitor developments in the PRC to adjust business strategies accordingly[190]. - The Group's business and profitability growth during the Reporting Year was impacted by increased competition and macroeconomic volatility in Hong Kong and the PRC[187]. Dividend Policy - The Group did not recommend the payment of a final dividend for the Reporting Year, consistent with the previous year where no dividend was paid[113][117]. - The Company has adopted a dividend policy aimed at allowing shareholders to participate in profits while retaining reserves for future growth[200].
诺发集团(01360) - 2021 - 年度财报