SINO-ENTERTAIN(HK:06933)2021-04-22 08:56Financial Performance - Total revenue for the year ended December 31, 2020, was approximately RMB 240,426,000, an increase of 28.1% compared to RMB 187,710,000 for the year ended December 31, 2019[6]. - Revenue from self-developed games was approximately RMB 87,723,000, up from RMB 45,536,000 in the previous year[12]. - Revenue from third-party game publishing was approximately RMB 123,458,000, down from RMB 142,174,000 in the previous year[13]. - Gross profit for the year was approximately RMB 111,868,000, an increase of 47.6% from RMB 75,813,000 in the previous year, with a gross margin of 46.5%[15]. - The group's annual profit for the year was approximately RMB 56,285,000, an increase from RMB 50,500,000 for the year ended December 31, 2019, primarily due to revenue growth from self-developed games and customized software and game sales[28]. Expenses and Investments - Research and development expenses increased by 117.7% to approximately RMB 21,074,000 compared to the previous year[6]. - Administrative expenses rose to approximately RMB 20,775,000 from RMB 5,972,000 in the previous year, primarily due to increased professional fees and brand promotion costs[20]. - Listing expenses for the year were approximately RMB 9,680,000, a decrease from RMB 11,145,000 in the previous year[21]. - Other income for the year was approximately RMB 1,901,000, an increase of 166.6% from RMB 713,000 in the previous year[16]. Assets and Liabilities - As of December 31, 2020, the group's current assets net value was approximately RMB 253,230,000, up from RMB 114,727,000 as of December 31, 2019, with cash and cash equivalents amounting to RMB 106,196,000 compared to RMB 48,969,000 in the previous year[29]. - The group had no bank loans as of December 31, 2020, maintaining a debt-free status[30]. - The group did not have any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the year[38]. Shareholder Information - The company does not recommend the distribution of any final dividend for the year (2019: none)[52]. - As of December 31, 2020, the distributable reserves of the company amounted to approximately RMB 104 million (2019: RMB 0)[53]. - As of December 31, 2020, the company had a total of 400 million shares issued[66]. - Mr. Sui Jia Heng holds 162 million shares, representing 40.50% of the company's issued share capital[66]. - Mr. Huang Zhi Gang holds 22.74 million shares, representing 5.68% of the company's issued share capital[66]. - Mr. Li Hai Jun holds 3.24 million shares, representing 0.81% of the company's issued share capital[66]. Corporate Governance - The board of directors consists of seven members, including three executive directors and three independent non-executive directors, complying with listing rules[126][130]. - The company has established service contracts with executive directors for an initial term of three years starting from July 15, 2020[60]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to enhance corporate governance[148]. - The board is responsible for strategy formulation, business development, corporate governance, and risk management[136]. - The company has implemented a training program for directors to ensure they understand their roles and responsibilities under listing rules[143][144]. Risk Management and Internal Control - The board is responsible for establishing and maintaining a sound risk management and internal control system, with annual risk assessments conducted to identify and evaluate key risks[188]. - The company has engaged an independent consultant, GRC Chamber Limited, to review its internal control systems and risk management processes, providing an independent report with findings and recommendations[194]. - The company has no internal audit department but considers appointing external professionals for independent reviews of its internal control systems[194]. Future Plans and Developments - The company aims to leverage its listing platform to enhance game publishing and development capabilities for better shareholder returns[7]. - The group plans to fully utilize the remaining proceeds for enhancing game development capabilities and expanding the game portfolio by the end of 2021[44]. - The group is designing a cloud gaming platform based on 5G networks, expected to launch in 2022, allowing players to run games directly without downloads[45]. - The group anticipates that the remaining proceeds allocated for establishing a comprehensive game distribution platform will be fully utilized by the end of 2022[44]. - The group expects to accelerate business development and game development capabilities due to the funding support from its successful listing on the main board of the stock exchange[45]. Related Party Transactions - The company has complied with the disclosure requirements under the listing rules regarding related party transactions[85]. - The auditor issued an unqualified opinion letter regarding the disclosed continuing connected transactions[95]. - The independent non-executive directors confirmed that the transactions conducted during the year were established according to the relevant terms of the contractual arrangements[94]. - The company received a waiver from the Stock Exchange regarding strict compliance with the related party transaction rules under Chapter 14A of the Listing Rules[93].