Financial Performance - The company reported a comprehensive income of $X million for the year 2021, reflecting a Y% increase compared to the previous year[10]. - The Group recognized revenue of approximately HK$12.3 million for the year ended 31 May 2021, representing a decrease of HK$32.4 million or 72% compared to the year ended 31 May 2020[14]. - The gross loss of the Group was approximately HK$22.5 million for the year ended 31 May 2021, compared to a gross profit of approximately HK$2.7 million for the year ended 31 May 2020[14]. - The Group's net loss was approximately HK$35.1 million, representing an increase of approximately HK$10.8 million or 44% compared to the year ended 31 May 2020[14]. - The Group's revenue decreased from approximately HK$44.7 million for the year ended May 31, 2020, to approximately HK$12.3 million for the year ended May 31, 2021, representing a decrease of approximately 72%[25]. - The Group's loss for the year ended 31 May 2021 was approximately HK$35.1 million, an increase of about HK$10.8 million compared to a loss of approximately HK$24.3 million for the year ended 31 May 2020[83]. Business Operations - User data showed an increase in active users by Z%, reaching a total of A million users by the end of 2021[10]. - The Group was engaged in 65 pop concert shows during the year ended 31 May 2021, a decrease from 269 shows in 2020[19]. - Approximately 20.9% of the Group's total revenue during the year ended 31 May 2021 was derived from pop concerts, down from 67.1% in 2020[19]. - The Group has successfully explored new business opportunities in streaming online concerts and extended reality (xR) shows/events[14]. - The Group engaged in long-term equipment rentals in Hong Kong, contributing to revenue stability despite the impact of COVID-19[59]. Revenue Sources - Revenue from visual display solutions accounted for approximately 97.4% of the Group's total revenue in the year ended May 31, 2021, down from 99.3% in 2020[25]. - Total revenue from pop concerts for the year ended 31 May 2021 was HK$2,510,000, representing a 111% increase compared to the previous year[52]. - Revenue from pop concerts in Hong Kong was HK$1,551,000, accounting for 61.8% of total revenue from pop concerts[53]. - Revenue from other live events totaled HK$9,512,000, with a significant increase of 301% compared to HK$14,598,000 in the previous year[58]. Cost and Expenses - Total cost of services for the year ended 31 May 2021 was HK$34,850,000, down from HK$42,001,000 in the previous year[67]. - Direct labour costs represented approximately 25.8% of total cost of services for the year ended 31 May 2021, down from 33.4% in the previous year[69]. - Depreciation expenses for visual display equipment accounted for approximately 55.1% of total cost of services, up from 46.6% in the previous year[68]. - Subcontracting charges represented approximately 3.9% of total cost of services for the year ended 31 May 2021, down from 7.8% in 2020[74]. - Administrative expenses decreased by approximately 48.5% from HK$26.4 million in 2020 to approximately HK$13.6 million in 2021[75]. Governance and Management - The Board believes that the current management structure, with Mr. Yeung serving as both chairman and CEO, is effective for the Group's operations[103]. - The Board comprises five Directors, including two executive Directors and three independent non-executive Directors, ensuring a balance of skills and experience[114]. - The Board is responsible for developing and reviewing corporate governance policies and practices[112]. - The Company has established sufficient checks and balances within its governance structure[103]. - The Board has adopted appropriate accounting policies and made prudent judgments for the financial statements for the year ended May 31, 2021[156]. Risk Management - The Group's operations are exposed to various financial risks, including cash flow and foreign exchange risks[19]. - The risk management objectives are to enhance governance and corporate management processes while safeguarding the Group against unacceptable levels of risks and losses[200]. - The risk management systems are designed to provide reasonable assurance against material misstatement or loss, managing rather than eliminating risks[194]. Future Outlook - The company provided a revenue guidance of $B million for the upcoming fiscal year, indicating a growth target of C%[10]. - New product launches are expected to contribute an additional $D million in revenue, with anticipated market expansion into E regions[10]. - Management believes that the business will return to normal and potentially experience explosive growth once the COVID-19 pandemic is over[85]. - The Board believes that business can resume to normal soon due to global vaccination progress[14]. Corporate Communication - The Company maintains an open and effective investor communication policy to update investors on relevant business information in a timely manner[182]. - The Company provides a communication platform through its corporate website to update shareholders on business developments and financial performance[195]. - The Company is committed to a policy of open communication with shareholders and the investment public[191].
耀星科技集团(08446) - 2021 - 年度财报