Revenue Performance - Total revenue for the year ended June 30, 2024, was HKD 365,257,000, a significant increase of 84.2% compared to HKD 198,439,000 for the year ended June 30, 2023[1]. - Revenue from film distribution and screening, as well as licensing and sublicensing of film rights, surged to HKD 309,579,000, up from HKD 138,891,000, representing a growth of 122.4%[1]. - Total revenue for the year ending June 30, 2024, was HKD 365,257,000, with significant contributions from video distribution (HKD 310,176,000) and eyewear products (HKD 18,993,000) [11]. - Total revenue from major customers contributing 10% or more reached approximately HKD 88,450,000 for the year ending June 30, 2024, compared to HKD 77,788,000 in 2023, reflecting a growth of 8.5%[18]. - Total revenue for the year ended June 30, 2023, was HKD 198,439,000, with video distribution contributing HKD 139,201,000 and eyewear and watch products contributing HKD 21,891,000[13]. Financial Performance - The company reported a net loss of HKD 31,196,000 for the year, a reduction in loss compared to HKD 93,405,000 in the previous year, indicating an improvement of 66.7%[2]. - The company reported a pre-tax loss of HKD 26,009,000 for the year, with individual segment losses of HKD 17,226,000 from video distribution and HKD 5,647,000 from eyewear products [11]. - The company reported a basic loss per share of HKD (0.0336) for the year ending June 30, 2024, improving from a loss of HKD (0.1023) in 2023, indicating a reduction in losses by approximately 67%[22]. - The company recorded a total tax expense of HKD 5,187,000 for the year ending June 30, 2024, compared to a tax credit of HKD (2,450,000) in 2023, indicating a significant shift in tax position[20]. Assets and Liabilities - The total assets decreased to HKD 737,412,000 from HKD 951,565,000, reflecting a decline of 22.5%[4]. - The total liabilities decreased to HKD 435,024,000 from HKD 617,410,000, a reduction of 29.5%[5]. - The company’s accumulated losses rose to HKD 281,783,000 from HKD 251,342,000, indicating an increase of 12.1%[5]. - The company’s film rights and films in production decreased to HKD 409,116,000 from HKD 607,878,000, a decline of 32.7%[4]. Cash Flow and Financial Position - Cash and cash equivalents increased significantly to HKD 132,324,000 from HKD 80,854,000, marking a growth of 63.7%[4]. - The company’s financial income for the year was HKD 2,507,000, while financial costs amounted to HKD 535,000 [11]. - The debt-to-equity ratio was approximately 3.7% as of June 30, 2024, compared to 3.1% in the previous year[45]. Operational Changes and Strategies - The group plans to continue investing in the production of original quality films in China and Hong Kong to respond to the growing and challenging market environment[36]. - The group will cease its watch trading, wholesale, and retail business in China and gradually close unprofitable eyewear stores in Hong Kong to control operational expenses and cash outflow[37]. - The company has implemented policies to ensure sales on credit are made to customers with good credit records, conducting regular credit assessments[25]. Legal Matters - The company has a pending lawsuit from Starshine Overseas Limited, claiming a total of $935,872 (equivalent to HKD 7,299,799) related to the film "Shaolin Soccer" [27]. - The company is involved in another lawsuit with Koninklijke Philips Electronics N.V. regarding alleged patent infringement related to optical discs, but the outcome is currently uncertain [28]. - The company faced a civil claim from Chengdu Global Bona for approximately RMB 99.99 million (about HKD 110 million) regarding alleged copyright infringement, which was ultimately dismissed by the court[33]. Corporate Governance and Risk Management - The company has established a risk management and internal control system to protect shareholder interests and assets, ensuring effective monitoring of business risks[63]. - An external consultant has been hired to assist the board in evaluating the risk management and internal control system, identifying strategic, operational, financial, and compliance risks[64]. - The audit committee was established on October 11, 1999, and is composed of three independent non-executive directors[67]. Employee and Shareholder Matters - The number of employees decreased to 107 from 128 in the previous year, with annual salary reviews and additional benefits[48]. - The company has adopted a dividend policy effective from September 27, 2019, allowing shareholders to participate in profits while preserving liquidity for future growth opportunities[60]. - The board will periodically review the dividend policy and may adopt appropriate changes, but there is no guarantee of dividend payments for any specific period[61].
寰宇娱乐文化(01046) - 2024 - 年度业绩