Financial Performance - For the fiscal year ending March 31, 2022, the group's revenue slightly decreased by 2% to HKD 45,039,000 from HKD 45,943,000 in the previous fiscal year[16] - The group recorded a loss attributable to shareholders of HKD 12,332,000, an improvement of approximately 29% compared to the loss of HKD 17,255,000 in the previous fiscal year[16] - The entertainment and lifestyle segment generated revenue of HKD 33,348,000, down 5% from HKD 35,199,000 in the previous fiscal year, while segment losses were reduced from HKD 9,613,000 to HKD 7,104,000[17] - The group recognized one-time other income of HKD 5,158,000 for the fiscal year, compared to HKD 9,130,000 in the previous fiscal year[16] - The overall loss, excluding one-time income, was HKD 17,490,000, a decrease of approximately 34% from HKD 26,385,000 in the previous fiscal year[16] - The watch and automotive segment recorded revenue of HKD 11,691,000, an increase of 9% from HKD 10,744,000 last year, with losses reduced from HKD 3,085,000 to HKD 637,000[19] - The overall loss for the segment, excluding one-time income, was HKD 745,000 compared to HKD 4,803,000 in the previous fiscal year, primarily due to cost savings[19] - The company reported a comprehensive loss of HKD 14,550,000 for the year, compared to HKD 7,541,000 in the previous year, indicating increased overall losses[172] - The company reported a net loss of HKD 12,332,000 for the year ended March 31, 2022, compared to a net loss of HKD 17,255,000 for the previous year, representing a 28.1% improvement in losses[178] - The total comprehensive loss for the year ended March 31, 2022, was HKD 14,550,000, compared to a total comprehensive loss of HKD 7,541,000 in the previous year, indicating a 93.5% increase in losses[178] Operational Efficiency and Strategy - The company is focusing on cost control and operational efficiency while seeking new opportunities in response to the challenges posed by the pandemic[11] - The group aims to enhance operational efficiency by recruiting new talent to replace losses from natural attrition in 2021[23] - The company plans to focus on improving operational efficiency and exploring new market opportunities to enhance future performance[170] - The company is exploring new advertising solutions, including customized themed short films to attract new advertisers[18] - The group is leveraging its artist management business to promote products and services through its platforms[18] Financial Position and Assets - As of March 31, 2022, the group's net current assets were HKD 85,700,000, down from HKD 112,476,000 in the previous year, with total liabilities to total assets ratio at 108.8% compared to 95.9% last year[24] - The group held 12,000,000 shares of a strategic investment, representing 4.4% of the equity, with a fair value of HKD 4,980,000, down from HKD 7,320,000 the previous year[22] - The company’s equity position deteriorated, with total equity showing a deficit of HKD 9,037,000 compared to a positive equity of HKD 5,513,000 in the prior year[175] - Total assets decreased to HKD 102,613,000 from HKD 133,942,000, a decline of about 23.3%[175] - Total liabilities also decreased to HKD 111,650,000 from HKD 128,429,000, reflecting a reduction of approximately 13.1%[176] - Cash and cash equivalents dropped to HKD 90,259,000 from HKD 115,082,000, a decrease of about 21.6%[175] Governance and Compliance - The board of directors includes independent non-executive directors and an executive director, with recent changes in committee memberships effective April 1, 2022[41][43][58] - The company has adopted the Corporate Governance Code and has adhered to its provisions throughout the year[95] - The board of directors consists of six members, including three independent non-executive directors, ensuring a balanced governance structure[97] - The company has established a shareholder communication policy to ensure stakeholders are well-informed about business matters[142] - The company has implemented a comprehensive internal control system, which is regularly reviewed for effectiveness by the board and management[101] - The company has adopted a written guideline for securities trading, confirming compliance with the standard code by all directors as of March 31, 2022[96] - The company has a dividend policy that considers actual and expected financial performance, financial condition, and other relevant factors before declaring dividends[124] Risk Management - The company emphasizes a risk management framework to identify, assess, and manage significant risks related to achieving its corporate goals[131] - The company has implemented a risk management process that is reviewed at least annually, with senior management assessing identified risks and mitigation measures[132] - The board has committed to regular reviews of the risk management framework to address any identified weaknesses[140] - The internal audit department evaluates the adequacy and effectiveness of the risk management and internal control systems, collaborating with independent auditors[133] Shareholder Information - Major shareholders, including Sir Dato' Zhang Xiaoqing and Dr. Dato' Zhang Yiqing, control 292,700,000 shares, accounting for 73.01% of the issued share capital[78] - The company has maintained sufficient public float, with at least 25% of its issued shares held by the public[85] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, following specific procedural guidelines[145] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of March 31, 2022[150] - The financial statements were prepared in accordance with International Financial Reporting Standards and comply with the disclosure requirements of the Hong Kong Companies Ordinance[150] - The audit procedures included evaluating the internal controls related to the estimation of expected credit losses and assessing the inherent risk of material misstatement[158] - The auditor's report emphasizes the responsibility of the board of directors to prepare accurate financial statements and assess the group's ability to continue as a going concern[162] - The management's estimates regarding the recoverability of trade receivables were found to be reasonable based on the audit evidence collected[158] Employee and Management Information - The company has approximately 106 employees as of March 31, 2022, down from 122 employees the previous year[33] - The remuneration committee held two meetings during the review year to assess the compensation policies for executive directors and senior management[108] - The company’s remuneration policy for employees is based on operational performance, individual performance, and market statistics[126] - The company encourages directors to participate in continuous professional development to enhance their knowledge and skills[118]
万华媒体(00426) - 2022 - 年度财报