Financial Performance - For the year ended December 31, 2020, the Group recorded total revenue of approximately HK$31,420,000, representing a decrease of approximately HK$8,653,000 or 21.6% compared to approximately HK$40,073,000 in 2019[17]. - The decrease in revenue was primarily due to a reduction in interest income from the Money Lending Business, which recorded segment revenue of approximately HK$10,690,000 for 2020, down from approximately HK$17,040,000 in 2019, a decline of approximately HK$6,350,000[18]. - Revenue from the Mobile Games and Applications Business decreased by approximately HK$2,599,000, recording segment revenue of approximately HK$327,000 for 2020 compared to approximately HK$2,926,000 in 2019[19]. - The Software Platform Business saw a slight increase in segment revenue of approximately HK$296,000, totaling approximately HK$20,403,000 for 2020, compared to approximately HK$20,107,000 in 2019[20]. - The Group's overall financial performance reflects the challenges faced in 2020, with a focus on adapting to market conditions and managing risks associated with the pandemic[18]. - The Group's gross profit decreased by approximately 44.4% to approximately HK$19,721,000, with the profit margin dropping from approximately 88.5% in 2019 to approximately 62.8% in 2020[24]. - The consolidated net loss attributable to owners of the Company for the year ended December 31, 2020, was approximately HK$71,611,000, an increase of approximately 16.5% compared to HK$61,470,000 in 2019[32]. - Administrative and other operating expenses rose to approximately HK$75,411,000, up from approximately HK$58,257,000 in 2019, largely due to impairment losses totaling approximately HK$27,616,000[25]. - The Money Lending Business segment revenue decreased by approximately 37.3%, contributing approximately 34.0% to the Group's total revenue for the year ended December 31, 2020[41]. - The Mobile Games and Applications Business segment revenue decreased by approximately 88.8%, contributing only approximately 1.0% to the Group's total revenue for the year ended December 31, 2020[42]. - Impairment losses on loans and interest receivables increased to approximately HK$17,159,000 for the year ended December 31, 2020, compared to approximately HK$4,850,000 in 2019[41]. - The additional impairment loss on goodwill and intangible assets for the mobile games and applications business reached approximately HK$38,558,000, compared to approximately HK$44,975,000 in 2019[44]. Economic Impact - The COVID-19 pandemic significantly impacted the Hong Kong economy, increasing risks and uncertainties in the lending market, leading to a prudent credit policy and fewer new loans being approved during the year[18]. - The financial review indicates a need for strategic adjustments in response to market volatility and changing consumer behaviors due to the pandemic[18]. Strategic Initiatives - Management is currently developing new mobile games, as existing titles are nearing the end of their life-cycles, contributing to lower revenue in the Mobile Games and Applications Business[19]. - The Group's management has expressed a commitment to exploring new strategies and technologies to enhance future growth and revenue streams[19]. - The Group aims to leverage its existing technology and software capabilities to improve service offerings and expand market reach in the coming years[20]. Corporate Governance - The Company has complied with most provisions of the Corporate Governance Code throughout the year ended December 31, 2020, with exceptions explained in the report[78]. - The Company had no Chairman during the year ended December 31, 2020, which affected compliance with certain corporate governance provisions[79]. - The Board comprises six Directors, including four executive Directors and two independent non-executive Directors, ensuring a balanced composition[88]. - The Company has measures in place to ensure corporate governance practices meet or exceed regulatory standards[104]. - The Company adopted a code of conduct for securities transactions by Directors, with no non-compliance reported for the year ended December 31, 2020[190]. Board and Committees - The Board of Directors held 7 meetings during the year ended December 31, 2020, to discuss overall strategy and financial performance[92]. - The Remuneration Committee held two meetings during the year ended December 31, 2020, with full attendance from the INEDs[124]. - The Audit Committee held four meetings during the year ended December 31, 2020, with full attendance from its members[158]. - The Nomination Committee held two meetings in the year ended December 31, 2020, with full attendance from its members[134]. Financial Position - As of December 31, 2020, the Group's cash and cash equivalents were approximately HK$3,415,000, a decrease from approximately HK$9,610,000 in 2019[48]. - The Group's total assets were approximately HK$159,519,000, down from approximately HK$260,698,000 in 2019, while total liabilities decreased to approximately HK$44,688,000 from approximately HK$57,979,000[49]. - The gearing ratio increased to approximately 28.0% as of December 31, 2020, compared to approximately 22.2% in 2019[49]. - The Company had three Independent Non-Executive Directors (INEDs) during the financial year ended December 31, 2020, with at least one possessing appropriate professional accounting or financial management expertise[110]. Risk Management - The Board is responsible for evaluating risks and ensuring effective risk management and internal control systems to safeguard shareholder interests[174]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement[175]. - Related party transactions were periodically reviewed and approved by the Audit Committee for the year ended December 31, 2020[192].
悟喜生活(08148) - 2020 - 年度财报