Financial Performance - For the fiscal year ending March 31, 2023, the group's revenue decreased by 9% to HKD 41,166,000 from HKD 45,039,000 in the previous fiscal year, resulting in a post-tax loss of HKD 18,507,000, which is a 50% increase from the previous year's loss of HKD 12,332,000[15]. - The entertainment and lifestyle business segment reported a revenue of HKD 30,452,000, down 9% from HKD 33,348,000 in the previous fiscal year, leading to a segment loss of HKD 13,995,000 compared to HKD 7,104,000 the previous year[16]. - The group recognized one-time other income of HKD 2,461,000 for the fiscal year ending March 31, 2023, compared to HKD 5,158,000 in the previous fiscal year[15]. - The group reported a revenue of HKD 41,166,000 for the year ended March 31, 2023, a decrease of 8.3% from HKD 45,039,000 in the previous year[166]. - Gross profit for the year was HKD 7,242,000, down 15.0% from HKD 8,523,000 in the prior year[166]. - The company incurred an operating loss of HKD 17,190,000, compared to an operating loss of HKD 11,576,000 in the previous year, reflecting a deterioration in performance[166]. - The net loss for the year was HKD 18,507,000, an increase of 50.0% from HKD 12,332,000 in the previous year[166]. - Basic and diluted loss per share increased to HKD 4.6 from HKD 3.1, indicating a worsening financial position[166]. - Other income decreased to HKD 2,758,000 from HKD 5,904,000, representing a decline of 53.3%[166]. - The company reported a total comprehensive loss of HKD 13,694,000 for the year, compared to HKD 14,550,000 in the previous year, showing a slight improvement[168]. - The financial statements indicate a significant increase in financial expenses to HKD 1,293,000 from HKD 575,000, highlighting rising costs[166]. - The company recognized a loss of HKD 143,000 from joint ventures, consistent with the previous year's loss of HKD 145,000[166]. - The company reported a net loss of HKD 18,507,000 for the year, compared to a loss of HKD 12,332,000 in the previous year, indicating a worsening of approximately 50%[174]. - Cash and cash equivalents decreased from HKD 90,259,000 to HKD 36,480,000, a decline of about 60%[176]. - The company’s equity attributable to owners decreased from HKD (9,037,000) to HKD (22,731,000), reflecting a worsening of approximately 151% in accumulated losses[174]. - Operating cash flow showed a net outflow of HKD 18,300,000, compared to a net outflow of HKD 8,739,000 in the previous year, indicating a deterioration of about 109%[176]. - The company’s total comprehensive loss for the year amounted to HKD 13,694,000, compared to a loss of HKD 14,550,000 in the previous year, showing an improvement of about 6%[174]. Business Strategy and Operations - The group plans to enhance team building and apply new technologies to create new revenue sources and expand reader potential in the upcoming year[10]. - The group has successfully launched two video series, "A Star is Born" and "Movie Avenue," across multiple platforms, including websites and YouTube, to attract new clients[7]. - The group continues to leverage its strengths in both print and digital platforms to enhance the impact of its advertising solutions, with flagship publication "Ming Pao Weekly" remaining popular in Hong Kong[8]. - The group has restructured its sales and marketing resources to provide more effective services and deliver results to clients[7]. - The group anticipates further collaboration with industry partners to promote its artists in the artist management business[17]. Economic Environment - The overall economic environment in Hong Kong saw a GDP contraction of 3.5% in 2022, impacting advertising spending from general clients[15]. - The group anticipates a challenging fiscal year ahead due to rising operational costs influenced by geopolitical tensions and global supply chain issues[21]. Financial Position and Assets - As of March 31, 2023, the group's net current assets were HKD 33,421,000, down from HKD 85,700,000 in the previous year, with total liabilities to total assets ratio at 141.7% compared to 108.8% last year[22]. - The group held 12,000,000 shares of a strategic investment, representing 4.4% of the equity, with a fair value of HKD 9,960,000, accounting for approximately 18.3% of total assets[20]. - Total assets decreased from HKD 102,613,000 to HKD 54,479,000, a decline of approximately 47% year-over-year[170]. - Non-current assets increased from HKD 5,355,000 to HKD 10,391,000, representing an increase of about 94%[170]. - Current assets decreased significantly from HKD 97,258,000 to HKD 44,088,000, a drop of around 55%[170]. - Total liabilities decreased from HKD 111,650,000 to HKD 77,210,000, a reduction of approximately 31%[172]. - The group has cash and cash equivalents of HKD 36,480,000, a decrease from HKD 90,259,000 in the previous year[22]. Governance and Compliance - The board of directors has confirmed the independence of all independent non-executive directors[50]. - The company has a diverse board with members having extensive experience in media, finance, and corporate governance[53][56][58]. - The company has maintained its organizational structure without provisions for preemptive rights for existing shareholders[45]. - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the year[88]. - The board has reviewed the compliance with the corporate governance code and the disclosure of information in the corporate governance report[111]. - The audit committee consists of three independent non-executive directors, with the chairman being Yu Han-Du[109]. - The company has established a mechanism to ensure independent opinions are provided to the board, enhancing governance effectiveness[94]. - The company has established a nomination policy outlining the procedures and criteria for selecting and reappointing directors[106]. - The company has purchased insurance for directors against liabilities arising from potential lawsuits[80]. - The company has established a zero-tolerance policy towards bribery and corruption, emphasizing ethical conduct among employees[133]. Risk Management - The board is responsible for ensuring the establishment and maintenance of effective risk management and internal control systems to protect shareholder investments[125]. - The risk management framework includes systematic procedures to identify, assess, monitor, and manage significant risks related to achieving overall corporate objectives[126]. - The internal audit department evaluates the adequacy and effectiveness of the risk management and internal control systems[129]. - The company has implemented a whistleblowing policy to ensure transparency and accountability regarding financial reporting and internal controls[130]. - The board has received assurances from the CEO and CFO regarding the adequacy and effectiveness of the risk management and internal control systems[136]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders and has maintained its shareholder communication policy as effective during the review year[137]. - The company has established a shareholder communication policy to provide detailed information to shareholders, ensuring they can exercise their rights knowledgeably[138]. - The company has a policy allowing shareholders holding at least 10% of the paid-up capital to request a special general meeting[141]. - The company will regularly review its shareholder communication policy to ensure its effectiveness[137]. Accounting Policies - The group has not adopted several new and revised accounting standards and interpretations that have been issued but are not mandatory for the reporting period ending March 31, 2023[184]. - The revised International Accounting Standards (IAS) 1 regarding the classification of liabilities as current or non-current will be effective from January 1, 2024[185]. - The group applies acquisition accounting for all business combinations, regardless of whether equity instruments or other assets have been acquired[188]. - The group recognizes non-controlling interests at fair value or at the proportionate share of the acquiree's identifiable net assets[188]. - The group will not recognize further losses when the share of losses in an associate equals or exceeds the investment in that entity[193]. - The group adjusts the carrying amount of investments in associates based on the share of profits or losses and other comprehensive income[193]. - The group’s consolidated financial statements are presented in Hong Kong dollars, which is the functional currency of the company[199]. - Foreign currency transactions are translated into the functional currency at the exchange rate on the transaction date[200]. - Exchange gains and losses from foreign currency transactions are generally recognized in the consolidated income statement[200].
万华媒体(00426) - 2023 - 年度财报