Financial Performance - Revenue and gross profit from the media and culture business for 2024 were approximately HK$40.4 million, compared to HK$80.3 million and HK$15.1 million in 2023, indicating a significant decline[14]. - The Group reported a net loss attributable to owners of the Company of approximately HK$28.4 million for the year ended December 31, 2024, an improvement from a net loss of approximately HK$45.7 million in 2023[14]. - Basic loss per share for the year amounted to approximately 28.89 HK$ cents, down from approximately 55.51 HK$ cents in 2023[15]. - The net deficit of the Group was approximately HK$382.0 million, slightly increased from approximately HK$378.3 million in 2023[15]. - The ongoing impact of the COVID-19 pandemic and the 2023 strikes by the Writers Guild of America and Screen Actors Guild have negatively affected the Group's financial performance and project timelines[38][41]. - The Group's revenue from media and culture business for the year ended December 31, 2024, was approximately HK$40.4 million, a decrease from approximately HK$80.3 million in 2023[79]. - The gross profit for the media and culture business was approximately HK$40.4 million in 2024, compared to approximately HK$15.1 million in 2023[79]. - The company reported a net loss of approximately HK$382.0 million for the year ended December 31, 2024, compared to a net loss of approximately HK$378.3 million in 2023[113]. Strategic Initiatives - The Company plans to utilize its existing Hollywood intellectual property resources to develop metaverse businesses and expand cross-border e-commerce operations, with expected commencement around 2025[24][25]. - A strategic cooperation framework agreement was signed with Greenland Digital Technology Co., Ltd to enhance development in metaverse business and digital product platform construction[25][26]. - The Group aims to diversify its business in new energy and energy storage technology through the recent cooperation agreements, which are expected to broaden the revenue base and increase shareholder returns[31][34]. - The Group entered into a strategic cooperation framework agreement with Green Digital Technology Limited to enhance its metaverse business and expand its cross-border e-commerce operations, expected to commence around 2025[27][28]. - Another strategic cooperation framework agreement was signed with a high-tech enterprise in China focused on developing energy storage systems using artificial intelligence, with business expected to start in or around 2025[30][34]. - The Group is actively reviewing the future prospects of its other business segments while exploring new market opportunities in Mainland China[32][35]. - The Group's projects will explore financing through international sales, tax refunds, and derivative applications in the metaverse[77]. - The Group's strategy includes retaining copyright to establish a new ecosystem for monetization[78]. Film and Media Projects - The film "Scary Stories to Tell in the Dark" was produced for $25 million and earned $21 million at the domestic box office in its opening weekend, with a worldwide gross of $104,545,505 to date[52][55]. - "Midway" had a total investment budget of nearly $100 million and achieved over $30 million in overseas pre-sales, excluding the Greater China region[50]. - "Malignant" received a 76% rating on the Tomatometer and an IMDb rating of 6.3/10, indicating a mixed reception from critics and audiences[59][61]. - "Malignant" won the ReFrame Stamp for Best Feature at ReFrame 2022 and was nominated for several awards, showcasing its recognition in the industry[60]. - "Midway" grossed $126,696,475 globally, achieving box office success as it debuted at number one in North America[51]. - "Scary Stories to Tell in the Dark" was co-financed by CBS Films, eOne, and Rolling Hills, indicating a collaborative investment strategy[52]. - The film "Malignant" was released simultaneously in theaters and on HBO Max, reflecting a dual distribution strategy[53]. - "Malignant" was directed by James Wan, known for his expertise in horror films, which may have contributed to its marketing appeal[59]. - "Scary Stories to Tell in the Dark" was adapted from a bestselling series, leveraging existing intellectual property for audience engagement[52]. - "Midway" is based on a true story from World War II, which may enhance its historical significance and audience interest[50]. Corporate Governance - The Company complied with all applicable provisions of the Corporate Governance Code for the year ended December 31, 2024[136]. - The Board is comprised of five Executive Directors and three Independent Non-executive Directors, ensuring a balanced governance structure[144]. - Regular Board meetings are held at least four times annually, with additional meetings as necessary, ensuring effective oversight[146]. - Independent Non-executive Directors provide strong support and confirm their independence annually, aligning with regulatory requirements[145]. - Directors are encouraged to participate in continuous professional development activities, confirming compliance with training provisions[156]. - The Board has reserved decision-making on corporate strategy, annual results, and major acquisitions, ensuring strategic oversight[152]. - Directors are subject to retirement by rotation and re-election at the annual general meeting, promoting accountability[154]. - The Company Secretary is responsible for maintaining minutes of all Board meetings, ensuring transparency and accountability[146]. - The Board met at least once without the presence of executive Directors to discuss governance matters, enhancing independence[150]. - The Company has adopted a comprehensive approach to corporate governance, focusing on compliance with legal and regulatory requirements[138]. - The Board comprises eight Directors, including one female Director, achieving a gender diversity ratio of 12.5% on the Board[172]. - The Company has set a target of having at least one female Director and 20% female employees, which was achieved during the year ended 31 December 2024[176]. - The gender ratio in the workforce is 40% female and 60% male, with 58.3% female employees[176]. - The Nomination Committee held two meetings during the year ended December 31, 2024[169]. - The Company has adopted a board diversity policy to promote diversity in terms of skills, experience, knowledge, and gender[171]. - The Remuneration Committee is responsible for determining the remuneration packages of all executive Directors and senior management[180]. - The Company has complied with the code of conduct regarding Directors' securities transactions throughout the year ended December 31, 2024[162]. - The Board is satisfied with the implementation and effectiveness of the board diversity policy during the year ended December 31, 2024[179]. - The Nomination Committee assesses the independence of independent non-executive Directors and makes recommendations on appointments[164]. - The Company encourages Directors to engage in continuous professional development to fulfill their responsibilities[161]. Audit and Risk Management - The auditor's remuneration for the year ended December 31, 2024, is HK$1,330,000[190]. - The Audit Committee held four meetings during the year ended December 31, 2024[192]. - The Remuneration Committee has reviewed the existing terms of employment contracts of executive Directors and non-executive Directors, considering factors such as salaries paid by comparable companies and performance[189]. - The Audit Committee is satisfied with the adequacy and effectiveness of the risk management and internal control systems for the year ended December 31, 2024[197]. - The Audit Committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2024, and the audited consolidated financial statements for the year ended December 31, 2023[197]. - The Audit Committee discussed the accounting principles and practices adopted by the Group and is of the opinion that the consolidated results comply with applicable accounting standards[198]. Employee and Workforce Development - The Group employed 20 employees as of December 31, 2024, an increase from 13 employees in 2023[129]. - The Group is committed to providing career development opportunities to its female staff, deploying resources for training senior female staff since listing[184]. - The Group has implemented appropriate recruitment practices to ensure a diverse range of candidates are considered[184].
星光文化(01159) - 2024 - 年度财报