HMVOD视频(08103) - 2025 - 年度业绩

Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income The company's revenue declined by 20.6% to HKD 17.55 million, leading to an expanded annual loss of HKD 15.22 million due to reduced other income and goodwill impairment | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 17,551 | 22,110 | -20.6% | | Other income and gains | 83 | 8,620 | -99.0% | | Goodwill impairment loss | (6,270) | (2,264) | +176.9% | | Loss before income tax | (15,224) | (5,928) | +156.8% | | Loss for the year | (15,224) | (5,928) | +156.8% | | Loss attributable to owners of the Company | (14,876) | (6,763) | +120.0% | | Basic loss per share (HK cents) | (11.49) | (5.77) | +99.1% | Consolidated Statement of Financial Position The company's financial position deteriorated significantly with net current liabilities expanding to HKD 56.52 million and cash and cash equivalents sharply declining to HKD 0.325 million | Balance Sheet Item | 2025 (HKD thousands) | 2024 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Assets | | | | | Cash and cash equivalents | 325 | 13,860 | -97.7% | | Total current assets | 2,964 | 18,444 | -83.9% | | Goodwill | – | 6,270 | -100% | | Total non-current assets | 575 | 6,541 | -91.2% | | Liabilities and Equity | | | | | Total current liabilities | 59,483 | 42,342 | +40.5% | | Net current liabilities | (56,519) | (23,898) | +136.5% | | Accumulated deficit | (70,068) | (54,850) | +27.7% | Consolidated Statement of Changes in Equity The accumulated deficit attributable to owners of the Company increased to HKD 65.73 million due to a HKD 14.88 million loss for the year - The accumulated deficit attributable to owners of the Company worsened from approximately HKD 50,856 thousand to approximately HKD 65,726 thousand, primarily due to a loss of HKD 14,876 thousand recorded for the year[8] Notes to the Consolidated Financial Statements Going Concern Assessment The company faces severe going concern risks due to significant losses, net current liabilities, loan defaults, and a winding-up petition, with management's mitigation plans subject to uncertainty - Material uncertainties exist that may cast significant doubt on the Group's ability to continue as a going concern, primarily evidenced by[15] - An annual net loss of approximately HKD 15.22 million - Current liabilities exceeding current assets by approximately HKD 56.52 million - Total liabilities exceeding total assets by approximately HKD 70.07 million - Approximately HKD 9.98 million in borrowings defaulted and repayable on demand - A winding-up petition filed against the company on June 13, 2025, due to failure to settle a judgment sum of approximately HKD 11.60 million - Management's measures to address liquidity pressure include[17][21] - Negotiating repayment extensions with existing lenders - Seeking alternative financing and bank borrowings - Seeking financial support from Mr. Lui Yu Kin, a major shareholder - Implementing stringent cost control measures Revenue and Segment Information All Group revenue is from OTT services, which saw a 20.6% decline to HKD 17.55 million this year Revenue Sources | Revenue Source | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | OTT services | 17,551 | 22,110 | - The Group has only one operating segment, which is the provision of OTT services[23] Goodwill Impairment A goodwill impairment loss of HKD 6.27 million was recognized due to reduced OTT service revenue, bringing goodwill's carrying value to zero - For the year ended March 31, 2025, a further goodwill impairment of HKD 6,270,000 was recognized due to reduced expected revenue in cash flow forecasts resulting from decreased OTT service revenue[33] Goodwill Carrying Value | Goodwill Carrying Value | Amount (HKD thousands) | | :--- | :--- | | As at March 31, 2024 | 6,270 | | Impairment loss for the year | (6,270) | | As at March 31, 2025 | – | Borrowings and Litigation The company faces severe debt and legal issues, including HKD 10 million in defaulted borrowings and a winding-up petition from a lost lawsuit, while another petition was settled Borrowings As of March 31, 2025, the Group's total borrowings were HKD 23.98 million, with approximately HKD 9.98 million in default, leading to a winding-up petition Borrowings Summary | Borrowings | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Repayable within one year | 9,980 | 13,343 | | Repayable after one year | 14,000 | 17,822 | | Total | 23,980 | 31,165 | - For the year ended March 31, 2025, the Company defaulted on three borrowings totaling approximately HKD 9,980,000 One of the lenders has served a statutory demand and filed a winding-up petition against the Company[45] Litigation The Group faces significant legal disputes, including a HKD 11.46 million judgment leading to a winding-up petition, while another petition was settled post-reporting period - In the lawsuit with Ms. Yu Yining (HCA 1347/2021), the High Court ruled in January 2025 that the Company must repay approximately HKD 11.46 million plus interest to Ms. Yu Due to the Company's failure to settle, Ms. Yu filed a winding-up petition (HCCW 356/2025) against the Company on June 13, 2025[51] - In the lawsuit with Grand Harbour Limited (HCCW 152/2025), involving approximately HKD 6.10 million in debt, both parties reached a settlement post-reporting period, and the winding-up petition was ordered to be withdrawn by the court on May 21, 2025[54][56] Independent Auditor's Report Basis for Disclaimer of Opinion The auditor issued a "disclaimer of opinion" on the financial statements due to insufficient audit evidence regarding the going concern assumption and the reliability of management's key cash flow forecast assumptions - The auditor explicitly stated a "disclaimer of opinion on the Group's consolidated financial statements" due to the inability to obtain sufficient appropriate audit evidence to provide a basis for the audit opinion[58] - The core of the disclaimer of opinion lies in significant doubts about the "going concern" assumption, as the auditor was unable to evaluate[60] - The status and likelihood of loan repayment extensions - The financial viability of major shareholders providing financial support to the Group - The sufficiency of the Group's plans and measures to enhance profitability and tighten cost controls - The auditor noted that if the Group is unable to continue as a going concern, significant adjustments would be required to the financial statements, such as writing down assets, recognizing additional liabilities, and reclassifying assets and liabilities, which are not reflected in the current statements[61] Management Discussion and Analysis Financial and Business Performance Management attributes the 20.6% revenue decline and expanded loss to market competition and reduced other income, while remaining optimistic about OTT and seeking new investment opportunities - Turnover decreased by approximately 20.6% to HKD 17.6 million, primarily due to reduced OTT service subscriptions caused by intensified market competition and changes in consumer behavior[62][64] - Loss attributable to owners of the Company expanded from HKD 6.8 million to HKD 14.9 million, primarily due to (i) decreased revenue; and (ii) reduced other income and gains (including a loan waiver in the prior year)[62][63] - In the future, the Group plans to leverage existing platform resources to develop media content and will seek investment/acquisition opportunities in other industries to create shareholder value[65] Liquidity, Financial Resources, and Capital Structure The Group's liquidity is extremely tight, with bank balances and cash at HKD 0.3 million against HKD 59.5 million in current liabilities, resulting in a net liability position Liquidity and Capital Structure Summary | Item | March 31, 2025 (HKD millions) | March 31, 2024 (HKD millions) | | :--- | :--- | :--- | | Current assets | 3.0 | 18.4 | | Bank balances and cash | 0.3 | 13.9 | | Current liabilities | 59.5 | 42.3 | | Total borrowings | 24.0 | 31.2 | | Accumulated deficit attributable to owners of the Company | 65.7 | 50.9 | - As the Company recorded an accumulated deficit attributable to owners of the Company as at both March 31, 2024, and March 31, 2025, the gearing ratio is not applicable[68] Use of Proceeds from Placing Net proceeds of HKD 23.01 million from the October 2023 placing were fully utilized for general working capital, OTT content, and staff costs, with concert production funds reallocated Use of Proceeds | Use | Original Allocation (HKD millions) | Cumulative Utilized as at 31/3/2025 (HKD millions) | Unutilized Amount (HKD millions) | | :--- | :--- | :--- | :--- | | Purchase of OTT service content | 5 | 5 | – | | Concert production | 7 | 0 | 0 (reallocated) | | General working capital and others | 11 | 18 | – | | Total | 23 | 23 | – | Corporate Governance and Other Information Major Shareholders As of March 31, 2025, the company had three major shareholders, with Mr. Lui Yu Kin holding the largest stake at 17.29% Major Shareholders Information | Name of Major Shareholder | Capacity | Number of Shares Held | Approximate Percentage of Issued Shares | | :--- | :--- | :--- | :--- | | Lui Yu Kin | Beneficial owner | 22,376,000 | 17.29% | | Cheng Chi Hang | Beneficial owner | 8,628,500 | 6.67% | | Chan Chui Ping | Beneficial owner | 6,472,500 | 5.00% | Audit Committee and Corporate Governance The Audit Committee reviewed the financial statements, and while the company claims corporate governance compliance, it deviates from the code by not having a separate Chairman of the Board - The Audit Committee, comprising three independent non-executive directors, reviewed the Group's audited consolidated financial statements and had no disagreements with the auditor[93] - The Company does not have a Chairman of the Board, with the functions jointly performed by three executive directors (Ms. Wong Tsz Ki, Mr. Chong Tung Sum, and Mr. Ko Chi Kiu), which deviates from Corporate Governance Code Provision C.2.1 regarding the separation of Chairman and Chief Executive Officer roles[95]