Financial Performance - TOM Group's total revenue for 2020 decreased by 5% to HKD 867.97 million compared to HKD 916.12 million in 2019[7] - Revenue from the technology platform and investment segment was HKD 62.48 million, while media business revenue was HKD 805.49 million[7] - E-commerce revenue dropped to HKD 5.65 million from HKD 9.04 million in 2019, a decline of approximately 37.5%[6] - Mobile internet revenue decreased to HKD 9.42 million, down 42% from HKD 16.22 million in 2019[6] - Social network revenue fell to HKD 47.41 million, a decrease of 33.6% from HKD 71.49 million in 2019[6] - The company reported a non-cash impairment loss of approximately HKD 1.016 billion related to its investment in Postal Joy[7] - Loss before financing costs and taxes was HKD 1.072 billion, compared to a loss of HKD 91.03 million in 2019[6] - Shareholders' loss attributable to the company was HKD 1.064 billion, significantly higher than HKD 197.28 million in 2019[6] - The group's revenue decreased by 5% to HKD 868 million, with a gross profit margin of 41%[13] - The group's loss attributable to shareholders was HKD 1.064 billion, compared to HKD 197 million in the previous year[21] Business Segments - The media business recorded total revenue of HKD 806 million, with operating segment profit increasing by 10% to HKD 60 million[10] - The publishing business, Chengbang, maintained its leadership in the Taiwan market with total revenue of HKD 772 million, and segment profit increased by 6% to HKD 62 million[9] - The social network business, Pixnet, experienced a 33% decrease in total revenue to HKD 48 million, resulting in a segment loss of HKD 2 million[10] - The outdoor media advertising business generated total revenue of HKD 10 million, with a segment loss of HKD 0.5 million[9] - The traditional advertising business in mainland China continued to integrate, with losses narrowing by 44%[10] Investments and Strategic Focus - The company continues to focus on high-growth potential areas such as e-commerce/new retail, fintech, and advanced big data analytics[7] - The group invested in Miaoying Technology, holding a 9.26% stake, focusing on AI solutions for financial institutions[11] - WeLab, a fintech company, serves over 47 million users and has a market-leading online consumer credit platform, with TOM holding an 8.25% stake[12] - The group plans to accelerate digital project development and diversify revenue sources to seize post-pandemic growth opportunities[9] - The group continues to focus on high-growth sectors such as e-commerce/new retail and fintech, aligning with its investment strategy[32] Financial Position - Total assets amounted to HKD 3.03 billion, while total liabilities were HKD 3.94 billion, resulting in a total equity deficit of HKD 916.16 million[6] - As of December 31, 2020, the group's cash and bank balance was approximately HKD 453 million[22] - The total loan principal amounted to approximately HKD 3.288 billion, with a capital debt ratio of 139%[24] - As of December 31, 2020, the group's net current assets were approximately HKD 176 million, down from HKD 320 million as of December 31, 2019[25] - The current ratio decreased to 1.25 as of December 31, 2020, compared to 1.49 as of December 31, 2019, primarily due to reclassification of receivables from current to non-current assets[25] Corporate Governance - The company has complied with all provisions of the corporate governance code, except for the nomination committee[109] - The board consists of seven members, including the chairman, CEO, two non-executive directors, and three independent non-executive directors[112] - The board of directors is set to rotate at the upcoming annual general meeting, with eligible members willing to stand for re-election[63] - The company has established a succession plan for directors and has assessed the independence of all independent non-executive directors, confirming their independence[125] - The board will seek suitable candidates for additional or replacement directors through various channels, including recommendations from existing directors and external headhunters[125] Risk Management - The risk management and internal control system is crucial for the group's operations, aimed at identifying and managing various types of risks, including strategic, operational, compliance, and financial risks[151] - The board of directors is fully responsible for the group's risk management and internal control, continuously reviewing the effectiveness of these systems[152] - The audit committee evaluates the risk management and internal control systems based on internal and external auditor assessments[159] - The internal audit department provides independent assurance on the effectiveness of the risk management and internal control activities across different jurisdictions[158] - A risk register has been established to document significant risks identified by each core business unit, along with mitigation measures and plans for tracking progress[154] Employee and Social Responsibility - The company emphasizes the importance of employee ethics and has distributed an employee handbook outlining the highest standards of conduct[167] - The company is committed to diversity and equal opportunity in its hiring, compensation, training, and promotion processes[199] - Employee demographics show that 66% are male, with 30% under 30 years old, 24% aged 30-49, and 10% aged 50 or above[200] - The company is planning to adopt a more proactive approach towards environmental, social, and governance (ESG) responsibilities, including the establishment of a committee to enhance efforts in these areas[172] - In 2020, the company conducted a materiality assessment to identify key sustainability issues relevant to its business and stakeholders[181] Customer Relations and Data Security - The company emphasizes the importance of customer feedback and has established a customer service policy to ensure consistent service quality[190] - The company established an online customer service platform to respond to inquiries within 24 working hours and resolve issues within 7 working days[192] - The company has implemented a data security plan to control data usage and protect customer privacy, with regular cybersecurity training for employees[188] - All personal data collected through online platforms is processed securely in compliance with local regulations, accessible only by authorized personnel[191] - The company recognizes the increasing demand for privacy protection from stakeholders and is committed to safeguarding customer data privacy[189]
TOM集团(02383) - 2020 - 年度财报