Financial Performance - The company reported a revenue of HK$6.9 million for the year, primarily generated from its filmed entertainment and new media development business[21]. - The Group recorded a total turnover of approximately HK$6.9 million for the year, a decrease of approximately 69.9% compared to HK$22.9 million in the previous year[48]. - Gross profit declined from approximately HK$13.5 million last year to approximately HK$3.9 million this year, a decrease of approximately HK$9.6 million[48]. - The net loss of the Group decreased significantly from approximately HK$54.9 million last year to approximately HK$24.9 million this year, despite the substantial revenue decline[51]. - As of March 31, 2021, the Group's total assets were approximately HK$43.9 million, down from HK$82.3 million in 2020, with cash and cash equivalents of approximately HK$15.3 million[53]. - The debt ratio as of March 31, 2021, was approximately 0.80, compared to 0.62 in 2020, indicating an increase in leverage despite a decrease in total assets[53]. - Total staff costs, including directors' remuneration, were approximately HK$10.7 million during the year, down from HK$14.9 million in 2020, with a reduction in staff from 78 to 65[54]. - The Group did not have any pledged bank deposits or bank overdrafts as of March 31, 2021, maintaining a stable financial position[53]. - There were no significant contingent liabilities or capital commitments as of March 31, 2021, indicating a conservative financial strategy[57][58]. Corporate Governance - The board of directors collectively accepts full responsibility for the accuracy and completeness of the information provided in the report[3]. - The Company emphasizes high standards of corporate governance to effectively monitor business activities and protect shareholder interests[111]. - The Company has complied with the mandatory provisions of the Corporate Governance Code, with some deviations noted in specific sections[112]. - The Board is responsible for directing and supervising the Company's business, with day-to-day management delegated to executive Directors and senior management[111]. - The Company has a diverse Board composition, which is crucial for promoting its success and overseeing major transactions[111]. - The Company has maintained a focus on legal and compliance matters, with experienced professionals in key positions[95]. - The Company has a structured approach to decision-making, requiring Board approval for significant transactions[111]. - The Company has a history of strong corporate governance practices, which it continues to uphold[112]. - The Company is committed to transparency and accountability in its operations and governance practices[112]. - The Board consists of ten Directors, including six executive Directors and three independent non-executive Directors, ensuring a balanced structure for effective oversight[117]. - Independent non-executive Directors have confirmed their independence in accordance with GEM Listing Rules, ensuring governance integrity[117]. - The Company has established a Remuneration Committee comprising all independent non-executive Directors and one executive Director, with responsibilities including reviewing and approving management's remuneration proposals[179]. - The Nomination Committee is responsible for reviewing the structure, size, and composition of the Board, and making recommendations for the appointment or reappointment of Directors[184]. - The Company has a corporate governance function carried out by the Board, which includes developing and reviewing policies and practices on corporate governance[170]. - The Company is committed to compliance with legal and regulatory requirements as part of its corporate governance practices[170]. Business Strategy and Development - The company aims to expand its market presence through new media and entertainment ventures[19]. - The Group is exploring investment opportunities in the virtual reality and mixed reality sectors, recognizing growth potential in these areas[75]. - The Group is focusing on identifying new business opportunities with significant potential, including consultancy services, online game development, and investments in the Chinese cultural industry[79]. - The Group believes that its existing businesses can create synergistic effects with the new ventures, benefiting future growth[81]. - The Group's strategic focus includes enhancing its online presence and expanding into new markets through innovative business models[79]. - The Group has entered into a joint venture with Lechuang Holdings to develop VR and MR projects, granting a loan of RMB 16 million (approximately HK$ 18.9 million) to the joint venture in September 2019[81]. - The Group aims to leverage its experience in interactive content provision alongside Lechuang's expertise in VR and MR development[81]. Operational Challenges - The Group's cinemas in Shanghai and Hangzhou reopened in August 2020, but generated minimal turnover during the year due to COVID-19 restrictions[48]. - The Group's cinema in Linan was closed in September 2020 due to unresolved business plans with the shopping mall owner[48]. - The COVID-19 pandemic has resulted in nearly 4 million deaths and over 180 million infections globally, impacting the economy in China to some extent[78]. - The cinemas in China were allowed to reopen in late July 2020 after being closed since early 2020 due to the pandemic, indicating a gradual recovery in the market[11]. Management and Board Activities - All Directors participated in continuous professional development activities during the year, enhancing their knowledge and skills relevant to the Company's business[119]. - The Company encourages Directors to attend external forums or training courses to support their continuous professional development[119]. - The attendance record for Board and Committee Meetings shows that Ms. CHOW Man Ki Kelly attended 12 out of 12 Board Meetings, indicating strong engagement[124]. - The Company Secretary, Mr. CHAN Ka Yin, undertook over 15 hours of professional training during the year to update his skills and knowledge[172]. - The Board has reviewed and discussed the corporate governance policy of the Group and is satisfied with its effectiveness[170]. - The Board practices good corporate governance by ensuring timely discussions on appropriate issues[140]. - The Board is currently seeking suitable candidates for the positions of Chairman and Chief Executive Officer, with existing members sharing responsibilities in the interim[135]. - The roles of Chairman and Chief Executive Officer should be separate, as per Code A.2.1, ensuring clear delineation of responsibilities[136].
比高集团(08220) - 2021 - 年度财报