Chairman's Statement This fiscal year, the company faced severe challenges, with consolidated revenue decreasing to HKD 110 million, gross profit significantly shrinking, and loss attributable to owners expanding to HKD 56.68 million, while actively pursuing a 'Film IP + AI Technology' dual-driven strategy to enhance efficiency and explore IP value Key Financial Indicators | Indicator | FY2025 (HKD Thousands) | FY2024 (HKD Thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 110,344 | 117,836 | -6.4% | | Gross Profit | 11,123 | 56,599 | -80.4% | | Loss Attributable to Owners of the Company | 56,682 | 21,449 | +164.3% | - The decline in gross profit and expansion of loss were primarily due to: - Decreased channel business and film licensing revenue: Attributed to concessions provided during platform operator contract renewals and fewer films delivered after phased contract completion - Underperforming new content releases: Some films and musicals released during the year did not meet expectations, resulting in losses - Asset impairment: Impairment provisions were made for property, plant, equipment, and right-of-use assets related to the Group's cinema business - Property revaluation losses: Increased revaluation losses on investment properties due to market trends10 - The company established a "Film and Audiovisual Production IP + AI Technology" dual-driven strategy, aiming to create a new entertainment ecosystem, with AI technology applied across various stages, including script development, virtual shooting, and post-production, to enhance efficiency, reduce costs, and re-explore the potential of classic IPs384248 Financial Position (As of March 31, 2025) | Financial Item (As of March 31, 2025) | Amount (HKD Thousands) | | :--- | :--- | | Available Bank Facilities | 33,200 | | Total Bank and Other Borrowings | 127,654 | | Shareholders' Funds | 249,421 | | Gearing Ratio | 51% | Directors' and Senior Management's Profile This section details the backgrounds of the company's executive directors, independent non-executive directors, and senior management, highlighting the core leadership's extensive experience and the diverse expertise of independent non-executive directors in providing governance guidance - The core executive team includes: - Mr. Li Kwok Hing: Group founder, Chairman, and major shareholder, responsible for corporate strategy and development - Mr. Li Tang Yuk: Chief Executive Officer, son of the Chairman, responsible for the Group's daily operations - Dr. Dong Ming: Chief Operating Officer, with over 25 years of experience in investment banking, asset management, and corporate management575859 - Senior management member Mr. Chan Lun Ho serves as Company Secretary and Financial Controller, responsible for all Group financial and accounting matters, possessing over 30 years of auditing and accounting experience76 Corporate Governance Report This report confirms the company's compliance with the Corporate Governance Code during the fiscal year, detailing the board's structure, diversity policy, and the composition and work of its audit, remuneration, and nomination committees, ensuring checks and balances and transparent communication with shareholders - The company confirms compliance with the Corporate Governance Code under the Listing Rules for the fiscal year ended March 31, 202579 Board Composition (As of March 31, 2025) | Board Member Type (As of March 31, 2025) | Number | | :--- | :--- | | Executive Directors | 3 | | Independent Non-Executive Directors | 6 | | Total | 9 | | Male Directors | 8 | | Female Directors | 1 | - The Board has three committees to fulfill its responsibilities: - Audit Committee: Composed of three independent non-executive directors, responsible for reviewing financial statements, internal controls, and risk management systems - Remuneration Committee: Composed of three independent non-executive directors, responsible for formulating remuneration policies for directors and senior management - Nomination Committee: Composed of two executive directors and three independent non-executive directors, responsible for reviewing the Board's structure and nominating director candidates109115121 - For FY2025, audit service fees paid to PricewaterhouseCoopers amounted to approximately HKD 1.868 million, with non-audit service fees of HKD 20 thousand133 Report of the Directors This report outlines the company's FY2025 business activities, financial performance, and share capital changes, including the adoption of a new share option scheme, disclosure of directors' and major shareholders' equity interests, and confirmation of moderate supplier/customer concentration and sufficient public float - The Board does not recommend the payment of any dividend for the fiscal year ended March 31, 2025178 - The company adopted a new share option scheme ("2024 Share Option Scheme") on September 27, 2024, to incentivize eligible participants, including employees, related entity participants, and service providers, who contribute to the Group196197 Directors' Shareholding (As of March 31, 2025) | Director's Shareholding (As of March 31, 2025) | Number of Shares Held (Long Position) | Percentage of Issued Share Capital | | :--- | :--- | :--- | | Mr. Li Kwok Hing (Aggregate of personal, family, and corporate interests) | 3,349,248,800 | 56.54% | | Mr. Li Tang Yuk (Personal interest) | 1,940,000 | 0.03% | | Dr. Dong Ming (Personal interest) | 5,000,000 | 0.08% | FY2025 Major Supplier and Customer Concentration | FY2025 Major Supplier and Customer Concentration | Percentage | | :--- | :--- | | Purchases from Largest Single Supplier | 10% | | Total Purchases from Top Five Suppliers | 29% | | Sales to Largest Single Customer | 12% | | Total Sales to Top Five Customers | 30% | - The company confirms that as of the report date, at least 25% of its issued shares are held by the public, complying with Listing Rules requirements293 Independent Auditor's Report PricewaterhouseCoopers issued an unmodified opinion on the consolidated financial statements for the year ended March 31, 2025, highlighting two key audit matters: impairment assessments of film and program rights and films in progress, and equipment and right-of-use assets for the Tianjin cinema business, both involving significant management judgment - PricewaterhouseCoopers issued an unmodified opinion, stating that the consolidated financial statements present a true and fair view of the Group's financial position309 - The report identified two key audit matters: - Impairment of film and program rights and films in progress: Due to lower-than-expected box office performance for some films, management assessed film rights for impairment, recognizing an impairment of HKD 6.206 million - Impairment of equipment and right-of-use assets for Tianjin cinema business: Given the Tianjin cinema's continuous losses and failure to meet budgets in recent years, management assessed its related assets for impairment, recognizing a total impairment of HKD 13.184 million319328351 Consolidated Financial Statements Consolidated Income Statement This fiscal year, consolidated revenue slightly decreased to HKD 110 million, while a significant increase in cost of sales to HKD 99.22 million sharply reduced gross profit to HKD 11.12 million, ultimately expanding loss attributable to owners to HKD 56.68 million and basic loss per share to HKD 0.96 cents Consolidated Income Statement Summary | Item (HKD Thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 110,344 | 117,836 | | Cost of Sales | (99,221) | (61,237) | | Gross Profit | 11,123 | 56,599 | | Operating Loss | (51,392) | (17,110) | | Loss for the Year | (59,758) | (23,435) | | Loss Attributable to Owners of the Company | (56,682) | (21,449) | | Basic and Diluted Loss Per Share (HK cents) | (0.96) | (0.36) | Consolidated Statement of Comprehensive Income Building on a loss for the year of HKD 59.76 million, total comprehensive loss for this fiscal year significantly increased to HKD 61.67 million (compared to HKD 25.18 million last year), primarily due to other comprehensive losses from building revaluation Consolidated Statement of Comprehensive Income Summary | Item (HKD Thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Loss for the Year | (59,758) | (23,435) | | Other Comprehensive Loss for the Year | (1,914) | (1,748) | | Total Comprehensive Loss for the Year | (61,672) | (25,183) | Consolidated Balance Sheet As of March 31, 2025, total assets decreased to HKD 588.18 million from HKD 661.14 million last year, primarily due to reduced carrying values of non-current assets like property, plant, equipment, investment properties, and film rights, while total liabilities remained stable at HKD 334.80 million, and total equity declined to HKD 253.38 million due to losses Consolidated Balance Sheet Summary | Item (HKD Thousands) | As of March 31, 2025 | As of March 31, 2024 | | :--- | :--- | :--- | | Total Assets | 588,178 | 661,142 | | Non-current Assets | 489,663 | 559,481 | | Current Assets | 98,515 | 101,661 | | Total Liabilities | 334,799 | 346,091 | | Non-current Liabilities | 197,034 | 202,060 | | Current Liabilities | 137,765 | 144,031 | | Total Equity | 253,379 | 315,051 | Consolidated Statement of Changes in Equity This fiscal year, total equity decreased from HKD 315.05 million at the beginning of the year to HKD 253.38 million at year-end, a reduction of HKD 61.67 million, primarily due to the total comprehensive loss for the year, including HKD 56.68 million in net loss attributable to owners and other comprehensive losses - Shareholders' funds decreased from HKD 309 million to HKD 249 million, primarily due to a net loss of HKD 56.68 million and other comprehensive losses of HKD 2.44 million recorded during the year394395 Consolidated Cash Flow Statement This fiscal year, the Group generated a net cash inflow of HKD 45.38 million from operating activities, a significant improvement from last year's HKD 22.36 million, resulting in a net increase in cash and cash equivalents of HKD 15.53 million at year-end, with a closing balance of HKD 23.43 million, despite net cash outflows from investing and financing activities Consolidated Cash Flow Statement Summary | Item (HKD Thousands) | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 45,377 | 22,355 | | Net Cash Used in Investing Activities | (19,239) | (25,032) | | Net Cash Used in Financing Activities | (10,605) | (14,400) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 15,533 | (17,077) | | Cash and Cash Equivalents at Year-End | 23,431 | 8,181 | Notes to the Consolidated Financial Statements These notes provide detailed explanations of the company's accounting policies, key estimates, and financial data, focusing on business segment performance, financial risk management strategies for liquidity, credit, and market risks, and impairment tests and fair value assessments for significant assets like film rights, investment properties, and fixed assets Note 3: Financial Risk Management This note details the Group's primary financial risks, including market, credit, and liquidity risks, managed through diversified investments, credit approvals, and sufficient credit facilities, with the gearing ratio increasing to 51.2% at year-end from 40.9% last year - The Group's gearing ratio (calculated as total bank and other borrowings divided by total equity) increased from 40.9% in FY2024 to 51.2% in FY2025728 Note 5: Revenue and Segment Information This fiscal year, the Group's revenue primarily came from five business segments, with film exhibition and licensing contributing the most revenue at HKD 30.38 million but also the largest loss at HKD 20.76 million, while only processing services achieved profitability FY2025 Segment Performance (HKD Thousands) | Item | Revenue | (Loss)/Profit | | :--- | :--- | :--- | | Channel Operations | 23,558 | (5,800) | | Film Exhibition and Film Rights Licensing and Sub-licensing | 30,382 | (20,759) | | Cinema Business | 21,408 | (13,342) | | Concerts and Event Organization | 29,069 | (7,285) | | Consumer Product Manufacturing and Sales Processing Services | 5,927 | 441 | | Property Investment | – | (12,000) | Note 12: Property, Plant and Equipment Due to the Tianjin cinema's persistent losses and underperformance, the Group recognized an impairment loss of HKD 4.034 million on its related property, plant, and equipment this fiscal year, alongside a revaluation loss of HKD 1.961 million on buildings held at fair value - Due to the underperformance of the Tianjin cinema business, the Group recognized an impairment provision of HKD 4.034 million for its property, plant, and equipment852 Note 14: Investment Properties The Group's investment property portfolio recorded a fair value revaluation loss of HKD 16.765 million this fiscal year, reducing its total carrying value from HKD 194 million at the beginning of the year to HKD 177 million at year-end, while generating HKD 6.57 million in rental income Investment Property Fair Value Changes (HKD Thousands) | Item | FY2025 | | :--- | :--- | | Fair Value at Beginning of Year | 193,901 | | Fair Value Loss on Revaluation | (16,765) | | Exchange Differences | (178) | | Fair Value at End of Year | 176,958 | Note 15: Film and Program Rights, Films in Progress and Deposits for Film and Program Rights The net carrying value of film and program rights significantly decreased from HKD 97.88 million at the beginning of the year to HKD 66.77 million at year-end, primarily due to HKD 36.12 million in amortization expenses and HKD 6.21 million in impairment provisions, reflecting underperforming expected revenue from some films Film and Program Rights Changes (HKD Thousands) | Item | FY2025 | | :--- | :--- | | Net Carrying Amount at Beginning of Year | 97,883 | | Additions | 10,225 | | Amortization | (36,115) | | Impairment | (6,206) | | Net Carrying Amount at End of Year | 66,768 | Five Year Financial Summary This summary presents key financial data for the Group's past five fiscal years (2021-2025), showing continuous losses attributable to owners ranging from HKD 39.23 million to HKD 58.25 million, alongside a consistent downward trend in total assets and total equity Five Year Financial Summary Table | Item (HKD Thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | Loss Attributable to Owners of the Company | (56,682) | (21,449) | (48,915) | (39,232) | (58,249) | | Total Assets | 588,178 | 661,142 | 688,100 | 757,196 | 780,897 | | Total Liabilities | (334,799) | (346,091) | (348,394) | (388,318) | (397,140) | | Total Equity | 253,379 | 315,051 | 339,706 | 368,878 | 383,757 | Schedule of Principal Investment Properties This schedule lists the Group's principal investment properties, including commercial, industrial, and residential types located in Hong Kong and mainland China (Guangzhou, Xiamen), with the Group holding 100% interest in most properties and 70% in one commercial property in Xiamen - The Group's principal investment properties include commercial, industrial, and residential units located in Hong Kong, as well as commercial and residential units in Guangzhou and Xiamen, mainland China10761078
美亚娱乐资讯(00391) - 2025 - 年度财报