Company Overview - The company aims to provide comprehensive professional lottery products and services for the Chinese lottery market, enhancing lottery sales through engaging game offerings [5]. - The company is a comprehensive technology and service provider focused on the lottery, mobile gaming, and entertainment markets in China and selected international markets [16]. - The company is committed to supporting a healthy Chinese lottery industry by developing legal and regulated lottery channels while combating illegal gambling markets [7]. - The company holds a 51% stake in AGT, which is registered in Hong Kong, indicating a significant ownership structure [9]. - The company is listed on the GEM, which is known for higher investment risks associated with smaller companies compared to the main board [2]. Financial Performance - The company’s financial summary and performance analysis are detailed in the report, highlighting key metrics and trends [3]. - The company reported a total capital raise of HKD 712,582,483 through the issuance of convertible bonds, completed on August 10, 2016 [13]. - The group’s revenue for the year was approximately HKD 161.6 million, a decrease of about 7.7% compared to HKD 175.1 million in 2019 [161]. - The operating loss for the year was approximately HKD 131.1 million, a reduction of about 32.7% from HKD 194.9 million in 2019, due to cost control measures [161]. - The group reported a net loss of approximately HKD 109.5 million for the year, a decrease of about 3.6% from HKD 113.6 million in 2019 [162]. Risk Management and Corporate Governance - The company has established a risk management and internal control committee to oversee its operations and ensure compliance [8]. - The company emphasizes the importance of risk management and internal controls in its operational and financial matters [35]. - The company has adopted corporate governance practices to enhance transparency and protect shareholder interests, including the establishment of various committees [30]. - The board is responsible for formulating corporate policies, business strategies, risk management, and significant acquisitions, with a focus on internal controls and compliance with legal regulations [35]. - The company has implemented measures to enhance its risk management and internal control systems, including appointing a senior internal audit manager and establishing a fraud disclosure mechanism [67]. Employee Engagement and Development - The company employs approximately 292 staff with expertise in lottery, mobile gaming, information technology, and other professional fields, establishing a solid business foundation for future breakthroughs [21]. - The company emphasizes the importance of employee engagement and creativity through competitive compensation and incentive programs [21]. - Employee training programs include topics such as information security, human resource management, and advanced project management systems to enhance professional skills [122]. - The company has a strict recruitment policy that prohibits hiring individuals under the age of 18, ensuring compliance with labor laws [123]. - Employees are entitled to paid annual leave after one year of continuous service, in accordance with Chinese regulations [116]. Market Strategy and Expansion - The company is focused on expanding its market presence and enhancing its product offerings to drive growth in the lottery sector [5]. - Future strategies include evaluating overseas opportunities and forming strategic partnerships with local leaders in Asia to globalize its business [17]. - The company aims to expand its lottery products and services in China, leveraging its extensive industry experience to assist lottery authorities in product innovation and market expansion [17]. - The group plans to continue exploring overseas opportunities and strategic partnerships with local leaders in Asia to globalize its business [151]. - The group aims to enhance the attractiveness of its products to local lottery players by customizing offerings to meet local regulations [89]. Social Responsibility and Community Engagement - The company is committed to developing a diversified gaming and entertainment platform, integrating unique social gaming and sports entertainment content to create innovative business models [17]. - The group emphasizes the importance of community involvement through sports sponsorships and charitable activities [93]. - The company donated HKD 197,000 for charitable purposes during the review year [149]. - During the COVID-19 pandemic, the group donated 33,000 masks to sports authorities in Jiangsu, Hunan, Hubei, and Tianjin [127]. - The company is committed to maintaining a low-carbon office environment and encourages employees to adopt energy-saving practices [97]. Compliance and Legal Matters - The company adheres to strict user data privacy regulations, including the Cybersecurity Law of the People's Republic of China and the General Data Protection Regulation (GDPR) [147]. - The company has established comprehensive data security management practices, including encryption protection and systematic access management [147]. - The company has a dedicated email account for reporting potential corruption activities, ensuring confidentiality for employees [148]. - The company actively provides anti-corruption training to its directors and employees, covering the significance of anti-corruption policies and reporting channels [149]. - The company has not experienced any work-related fatalities in the past three years, ensuring a safe working environment [139]. Environmental Sustainability - The company has set targets for paper and electricity consumption starting from the fiscal year ending December 31, 2020, as part of its commitment to environmental sustainability [106]. - The total electricity consumption of the group was approximately 212,502 kWh, a decrease of about 16.9% compared to 255,835 kWh in 2019 [129]. - The company has implemented policies to reduce paper usage by promoting electronic documents and communication, significantly decreasing office paper consumption [110]. - The company promotes the use of public transportation among employees to reduce commuting costs and improve urban air quality [110]. - The company has adopted several new key performance indicators related to environmental and social aspects in compliance with revised GEM listing rules [107].
亚博科技控股(08279) - 2020 - 年度财报