Financial Performance - The total box office of the film market in the PRC in 2023 was RMB 54.9 billion, representing a year-over-year increase of 82.6%[6] - Revenue from film distribution and exhibition, licensing, and sub-licensing of film rights increased by approximately 122.8% compared to the previous year[6] - The Group recorded a revenue of approximately HK$ 365.3 million during the year, representing a year-over-year increase of 84.1% compared to approximately HK$ 198.4 million in the last year[7] - The Group's loss for the year reduced significantly by approximately 66.6% to approximately HK$ 31.2 million, compared to a loss of approximately HK$ 93.4 million in the last year[7] - The narrowed loss is primarily attributable to the significant increase in revenue from video distribution and a decrease in total impairment loss of film rights[7] - For the year ended June 30, 2024, the Group recorded a revenue of approximately HK$365.3 million, a 84.1% increase from approximately HK$198.4 million in the previous year[12] - The Group's loss for the year was approximately HK$31.2 million, a significant reduction from a loss of approximately HK$93.4 million in the previous year, primarily due to increased revenue from film distribution and licensing[12] - Segment revenue from film distribution and exhibition, licensing, and sub-licensing of film rights was approximately HK$310.2 million, representing a 122.8% increase compared to approximately HK$139.2 million in the previous year[13] Market Challenges - The economic recovery pace will be affected by trade barriers and weak consumer sentiment, which will continue to pressure the Group's business[8] - The retail market in the PRC and Hong Kong faces challenges from global geopolitical conflicts, high interest rates, and a sluggish property market, impacting post-pandemic recovery efforts[22] - The total box office in the PRC for the first half of 2024 was RMB23.9 billion, a year-over-year decrease of 9.0%, but the market showed strong momentum with record box office performances during major holidays[18] Business Strategy - The Group will continue to operate prudently and explore new business and investment opportunities despite global geopolitical conflicts and economic uncertainties[8] - The Group plans to continue investing in original film production in the PRC and Hong Kong, with upcoming releases including "High Forces," "The Gilded Game," and "Shock Wave 3"[20] Financial Printing Segment - Revenue from the financial printing segment was approximately HK$33.4 million, representing an increase of approximately 23.2% compared to HK$27.1 million in the previous year[26] - The financial printing segment accounted for approximately 9.2% of the Group's revenue during the year, down from approximately 13.6% in the previous year[26] - Segmental loss from the financial printing segment decreased to approximately HK$361,000 from approximately HK$2.0 million in the previous year, mainly due to revenue and gross profit growth[26] Asset Management - As of June 30, 2024, the Group had cash and cash equivalents of approximately HK$132.3 million, an increase from approximately HK$80.9 million in 2023[40] - The Group's total assets as of June 30, 2024, were approximately HK$737.4 million, down from approximately HK$951.6 million in 2023[40] - The Group's gearing ratio increased to approximately 3.7% as of June 30, 2024, compared to approximately 3.1% in the previous year[40] - The current ratio improved to approximately 0.5 as of June 30, 2024, from approximately 0.3 in 2023[40] Corporate Governance - The Company has complied with the corporate governance code provisions throughout the year, except for the separation of roles between the Chairman and CEO, which is currently held by Mr. Lam Shiu Ming, Daneil[50] - The Board is collectively responsible for overseeing the management of business, strategic decisions, and financial performance for the best interests of shareholders[51] - The Board has delegated day-to-day management powers to executive Directors and senior management, regularly reviewing the delegation of responsibilities[54] - Financial controls include the approval of annual operating and capital expenditure budgets, consolidated financial statements, and internal control systems[55] - The Company has adopted corporate governance principles emphasizing a quality board, effective risk management, and stringent disclosure practices[49] Risk Management - The Group's risk management and internal control systems are based on the COSO framework, ensuring effective monitoring of risks associated with different business units[96] - An external consultant was engaged to evaluate the Group's risk management and internal control systems, leading to the identification of strategic, operational, financial, and compliance risks[99] - The Board reviews and approves the effectiveness and adequacy of the Group's risk management and internal control systems on an annual basis[97] Environmental, Social, and Governance (ESG) - The ESG Report covers the Group's entire range of business activities, including video distribution, film distribution and exhibition, retailing of optical products, and financial printing services for the year ended June 30, 2024[136] - The management intends to drive ESG initiatives throughout the Group and communicate ESG performance results with stakeholders[137] - The Group's ESG governance is prioritized by senior management, with the Board responsible for overall ESG policies and risk management[139] - An ESG working group has been established to implement strategies and assess risks related to environmental, social, and governance matters[139] Employee Management - The Group recognizes its employees as valuable assets and emphasizes the importance of teamwork in achieving success[169] - The Group is committed to equal opportunity employment, ensuring no discrimination against employees based on race, gender, or other protected characteristics[170] - The total workforce decreased from 128 employees in 2023 to 107 employees in 2024, resulting in a turnover rate of 54.5% for 2024 compared to 39.4% in 2023[181] - The Group provides appropriate safety guidelines and equipment, including Personal Protection Equipment (PPE), to workers exposed to safety risks[187] Sustainability Efforts - The Group aims to minimize non-hazardous waste generation and has implemented recycling initiatives, including placing recycling bins in accessible locations[156] - The Group has identified climate change risks, such as rising sea levels and extreme weather events, and is committed to monitoring relevant environmental issues[148] - The Group will continue to monitor climate change risks and adopt appropriate environmental protection measures as necessary[167]
寰宇娱乐文化(01046) - 2025 - 年度财报