Financial Performance - For the year ended March 31, 2020, Bingo Group Holdings Limited generated revenue of HK$22.9 million, a decline from HK$38.0 million in the previous year, primarily due to the COVID-19 outbreak[13]. - The gross profit for the year was HK$13.5 million, down from HK$22.4 million in the prior year, reflecting the impact of cinema closures during the peak season[13]. - The Group recorded a total turnover of approximately HK$22.9 million for the year, representing a decrease of approximately 39.8% compared to HK$38.0 million in the previous year[24]. - The cinema business generated revenue of HK$22.9 million, down from HK$38.0 million in the previous year, primarily due to the impact of COVID-19[24]. - The net loss increased significantly from approximately HK$26.5 million in the previous year to approximately HK$54.8 million for the year, driven by decreased revenue and impairment losses[26]. - Impairment losses on fixed assets and lease assets totaled approximately HK$11.6 million, which were one-off in nature[25]. - As of March 31, 2020, the Group's total assets were approximately HK$82.3 million, down from HK$115.3 million in the previous year[27]. - The Group's cash and cash equivalents amounted to approximately HK$38.1 million, compared to HK$60.9 million in the previous year[27]. - The debt ratio increased to approximately 0.62 as of March 31, 2020, from 0.32 in the previous year[29]. Business Operations - All cinemas in Hangzhou and Shanghai were closed since late January 2020, affecting revenue generation during the traditional peak season of Chinese New Year[13]. - No revenue was generated in the Filmed Entertainment, New Media Exploitations, and Licensing Businesses segment during the year, as no suitable business opportunities were identified[14]. - The Cinema Business has become the prime revenue generator for the Group during the year, despite the significant decline in performance due to external factors[12]. - The Group's cinemas are exclusively located in Hangzhou and Shanghai, with no confirmed schedule for reopening as of the report date[13]. - The ongoing focus remains on movie production, licensing, and interactive content provision, despite the challenges faced in the Cinema Business[12]. - The Group continues to seek suitable business opportunities in the entertainment sector, although no appropriate targets were found during the year[14]. - The financial performance reflects the broader impact of the pandemic on the entertainment industry, particularly in cinema operations[13]. - The Group's strategic direction includes a commitment to adapt to market conditions and explore new avenues for revenue generation[12]. - The Group plans to focus on identifying new business opportunities, including consultancy services and online game development, despite the challenges posed by the COVID-19 pandemic[43]. Employee and Corporate Governance - The Group had 78 employees as of March 31, 2020, down from 115 in the previous year, with total staff costs of approximately HK$14.9 million[36]. - The Group employed 78 staff in China and Hong Kong, a decrease from 115 in 2019, with total employee costs amounting to approximately HK$14.9 million, down from HK$17.0 million in 2019[38]. - The Group's employee benefits include contributions to a statutory mandatory provident fund scheme, reflecting its commitment to employee welfare[38]. - The Company is committed to high standards of corporate governance, ensuring effective monitoring of business activities to protect shareholder interests[64]. - The Board of Directors is responsible for major decision-making and must approve significant transactions, delegating day-to-day management to executive directors and senior management[67]. - The Company has complied with the Corporate Governance Code, with no reported non-compliance in securities transactions by directors[65][66]. - The Company has appointed independent non-executive directors to ensure diverse perspectives in governance[57][60]. - The Company has established a Remuneration Committee comprising all independent non-executive Directors and one executive Director, responsible for making recommendations on remuneration policies[125]. - The primary goal of the executive remuneration packages is to motivate executive Directors and senior management by linking their remuneration to the Group's operational results[128]. Risk Management and Internal Controls - The Company has implemented a phased improvement plan to enhance its internal controls and risk management system, focusing on a risk-based approach[162]. - The internal controls model is based on the COSO framework, which includes five components: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring[161]. - The Board is responsible for overseeing the risk management system and internal controls, setting strategic objectives, and monitoring risk exposure[167]. - Management is tasked with designing, implementing, and monitoring risk management and internal control systems across the Company[167]. - The Company aims to further integrate internal controls and risk management into its business processes, including annual budgeting and planning[163]. - The internal audit functions are performed independently to assess the adequacy and effectiveness of the Group's risk management systems[169]. - The Company has engaged independent professional advisors to conduct an annual review of its risk management and internal control systems, which were deemed effective and adequate[169]. - No significant areas of concern affecting financial, operational, compliance controls, and risk management functions were identified during the review[169]. Transparency and Communication - The Company emphasizes the importance of transparency and maintains open communication with shareholders through various reports and its website[179]. - The Board is committed to timely disclosure of corporate information to enhance investor relations[179]. - The Company has established procedures for shareholders to direct inquiries to the Board, ensuring effective communication[178]. - The Company has a policy for the nomination of Directors, ensuring a structured approach to Board composition[132]. - The Company has established an Audit Committee to review financial reporting, risk management, and internal control systems[143]. Future Outlook - The Group is optimistic about the growth potential in the VR and MR industry, having granted a loan of RMB16.0 million (approximately HK$17.5 million) to a joint venture company in September 2019[45]. - The Group's existing businesses are expected to create synergistic effects with new ventures, benefiting future operations[47]. - The Company’s business review indicates a fair assessment of its operations and potential future developments[189].
比高集团(08220) - 2020 - 年度财报